UCO Bank Skill Loan Scheme
This loan helps students who want to take up skill development courses and have gained admission into technical courses offered by Industrial Training Institutes (ITIs), polytechnics, etc. to pay their course fees. The loan amount starts from Rs. 5,000 and can go up to Rs. 1.5 lakh depending on the duration of the course.
Features of UCO Skill Loan Scheme for Technical Courses
Why this Loan?
- The loan is meant for you if you have gained admission into a technical course offered by a polytechnic, Industrial Training Institute (ITI), etc. in India
- The bank disburses the UCO Bank Skill Loan Scheme as a series of payments over the required number of terms or years to pay the course fees or other approved charges
- The minimum loan amount starts from Rs. 5,000 and the maximum amount can go up to Rs. 1.5 lakh depending on the duration of the course
- The interest rate charged will be the Repo Linked UCO Float Rate which is currently 6.90% plus a spread of 1.90%. This makes the effective rate, 8.80%
- Simple interest is charged monthly during the repayment moratorium period
- Borrowers can choose to pay the interest during moratorium in which case UCO Bank offers a 1% interest concession on the loan
- Courses of Duration up to 1 Year: Course duration and 6 months from the completion of the course
- Courses of Duration Above 1 Year: Course duration and 12 months from the completion of the course
- Loans up to Rs. 50,000: Repayment period is up to 3 years after course completion
- Loans between Rs. 50,000 and 1 lakh: Repayment period is up to 5 years after course completion
- Loans above Rs. 1 lakh: Repayment period is up to 7 years after course completion
- UCO Bank does not ask for any security or third party guarantee, however, the parents have to sign the loan documents with the student as co-borrowers
- The borrower should be an Indian national
- In case the student is a minor, the parents will have to sign the application and do the necessary paperwork. The bank will get the student to ratify the loan through a letter of acceptance of terms and conditions once she or he reaches the age of majority
- Students of courses offered by Industrial Training Institutes (ITIs), polytechnics, schools recognised for the same by the central or state education board or college affiliated to a recognised university are eligible for the loan
- Even students pursuing a certificate, diploma or degree course from training centres that are affiliated to professional skill augmentation bodies such as National Skill Development Corporation (NSDC), sector skill councils, state skill missions, state skill corporations and who operate under the National Skill Qualification Framework (NSQF) are eligible to apply for the loan
Borrower Contribution to Total Cost (Margin Money)
- The bank does not charge any margin money on this loan
Note: Margin money refers to the amount the borrower contributes to the overall amount required. Suppose a course costs Rs. 1.5 lakh. Here if the borrower has to pay a 10% margin, then they will have to pay Rs. 15,000 while the bank offers the rest.
Processing and Other Charges
- There are no processing charges for this loan
Uses of the Loan
- The loan amount can be used to pay any fees or other charges that are a part of the standard tuition cost
- The loan can also be met to cover examination, library and laboratory fees
- It also covers any caution deposit fees
- It can also be used to buy books or equipment or instrument needed for the course
Other Features to Know
- The student’s progress report has to be submitted with the bank at regular intervals
- The loan is disbursed directly to the college, book seller or publisher, computer seller, and so on and not to the applicant(s)
- Application Form duly filled and signed by applicant and/or parents along with details of applicant and/or parents
- Two Passport Size Photographs of applicant(s)
- Photocopy of PAN Cards of the student or parents that need to be submitted at the time of application or during the course period
- Personal Identification Proofs (Any One): Electoral I-Card, Passport, Driving License, PAN Card or Aadhaar Card
- Residential Address Proof (Any One): Electricity Bill, Landline Telephone Bill, Electoral or Voter ID Card or Passport
- Admission Letter, Course Details and Prospectus
- Fee Details with Demand of Fee by the Institution
- All Proofs of Past Academic Record including Mark Sheets and Certificates
- UCO Bank Website: www.ucobank.com and www.ucobanking.com (net banking)
- Headquarters: Kolkata, West Bengal
- Call Centre Toll-Free Number: 1800 274 0123
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