Looking for a College Education loan from UCO Bank?

Look no further. This page summarises the information you will need on UCO Bank’s Education Loans for Pursuing Higher Studies in India and Abroad.

UCO Bank Student Loan Scheme

The UCO Bank Student Loan Scheme helps students who want to pursue higher studies in India and abroad afford the cost of the course and related expenses. This loan scheme is based on the Indian Banks Association (IBA) Model Education Loan schemes. The maximum loan amount you can get for studying in India is Rs. 10 lakh and the maximum loan amount you can get for studying abroad is Rs. 20 lakh.

Features of UCO Bank Student Loan Scheme for Pursuing Higher Studies in India and Abroad

Why this Loan?

  • The loan is meant to help students fulfil their dreams of pursuing higher education in India or abroad
  • The loan is disbursed as a series of payments over the required number of years and not as a lump sum
  • The loan can be taken for all institution fees as well as related expenses including purchase of books, laptops, hostel fees, lab fees, examination fees, etc.

Loan Amount

  • The maximum loan amount for studying in India is Rs. 10 lakh. For studying abroad, the maximum loan amount a student can get is Rs. 20 lakh


  • Loans up to Rs. 7.5 lakh: The rate of interest is a sum of UCO Float Rate, which is 6.90% and a 2.40% spread, making the effective rate 9.30%. The UCO Float Rate is based on the Repo Rate
  • Loans Above Rs. 7.5 lakh: The rate of interest is a sum of UCO Float Rate and a spread of 2.80%, making the effective rate 9.70%


  • The loan amount for each year is repayable in equated monthly instalments up to a period of 15 years after the end of the moratorium period
  • The interest accrued during the loan moratorium period is added to the principal to calculate EMIs for repayment
  • Moratorium period for this loan scheme is course period plus 12 months after the completion of the course

Security Needed

  • For loan up to Rs. 7.5 lakh: No collateral security is required. Parents must be co-borrowers of the loan
  • For loan above Rs. 7.5 lakh: Parents must be joint applicants. Tangible collateral security that covers at least the quantum of the loan is required


  • The applicant must be an Indian national
  • The student must have secured admission in a higher studies programme at a recognised educational institute in India or abroad after class 12, HSC or equivalent level
  • The loan comes with an age limit. For graduation, it is 28 years for general candidates and 30 years for SC or ST students. For postgraduation, it is 30 years for general candidates and 33 years for SC or ST candidates

Eligible Courses

  • Degree and diploma courses for graduate, postgraduate and doctorate (PhD) studies. For foreign education, it helps if the courses are of a professional or technical nature and help the student land a job
  • CA, CWA, CS, CFA, etc. professional courses and MCA, MBA, MS. etc. postgraduation courses
  • Degree and diploma courses in aviation and shipping approved by the local foreign aviation or shipping authority and Director General of Civil Aviation or Director General of Shipping, or any other competent authority
  • Approved courses offered in India by reputed foreign universities
  • Evening courses from approved institutes
  • Courses offered by National Institutes and other reputed private institutions
  • Computer certificate courses from institutes accredited to DOE or affiliated to universities
  • Degree or diploma courses on teacher training, nursing, B.Ed. courses from government approved private institutions

Margin Money (Borrower Contribution to the Total Cost)

  • Loans up to Rs. 4 Lakh: The borrower does not have to offer any margin money to get the loan
  • Loans above Rs. 4 Lakh to Study in India: The borrower must offer 5% of the loan amount as margin money to get the loan
  • Loans above Rs. 4 lakh to Study Abroad: The borrower must offer 15% of the loan amount as margin money to get the loan

Note: Margin money refers to the amount the borrower contributes to the overall amount required. Suppose a course costs Rs. 20 lakh in which case the borrower will have to provide margin money of Rs. 1 lakh (5% of Rs. 20 lakh) or Rs. 3 lakh (15% of Rs. 20 lakh) for Indian and foreign education respectively while the UCO Bank offers the rest.

Processing and Other Charges

  • There are no processing or documentation charges for this loan

Uses of the Loan

  • Course, examination, library and laboratory fees
  • Cost of books, stationery, equipment, instrument, journals and uniforms
  • Caution deposit, building fund or refundable deposit required by the institution
  • Travel expenses including overseas travel expenses when studying abroad
  • Hostel or boarding fees or reasonable charges of private hostel or paying guest accommodation, etc.
  • Cost of computers needed for the course
  • Any other expenses required to complete the course including expenses for study tours, project, thesis, etc.

Other Features to Know

  • Borrowers need to take a group life insurance cover scheme to cover the outstanding loan to mitigate any risk from the borrower not being able to repay the loan
  • The loan is granted jointly with the parent/guardian (co-borrower) of the applicant
  • The bank may ask the borrower to submit progress reports during the course
  • The loan is disbursed directly to the school, bookseller or publisher, computer seller, and so on and not to the applicant(s)

Documents Needed

  • Application Form duly filled and signed by applicant and/or guarantor along with details of applicant and/or guarantor and family
  • Two Passport Size Photographs of student, applicant and/or guarantor
  • Personal Identification Proofs (Any One) of the Student and Co-borrower: Electoral I-Card, Passport, Driving License, PAN Card or Aadhaar Card
  • Residential Address Proof (Any One) of the Student and Co-borrower: Electricity Bill, Landline Telephone Bill, Electoral or Voter ID Card or Passport
  • Admission Letter, Course Details and Prospectus
  • Statement of the cost of study and Fee Details with Demand of Fee by the Institution
  • All Proofs of Past Academic Record including Mark Sheets and Certificates
  • Copy of Passport is mandatory
  • Proof of Income of the Co-borrower (Salaried): Salary Slip of last 3 months, Copy of Form 16 of last 2 years and Bank Account Statement of last 6 months
  • Proof of Income of the Co-borrower (Self-employed): Business Address Proof, IT return of last 2 years, TDS Certificate, Bank Account Statement of last 6 months and Certificate of Qualification if Doctor, CA, etc.
  • All documents must be self-attested

Reference Facts

  • 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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