UCO Bank Super Premier Education Loan for Studying in Premier Education Institutes

This loan is meant for students pursuing higher studies at 8 premier educational institutes in the country, namely IIM-Ahmedabad, IIM-Bangalore, IIM-Kolkata, IIM-Indore, IIM-Lucknow, IIM-Kozhikode, XLRI-Jamshedpur and ISB-Hyderabad. The maximum loan amount is capped at Rs. 30 lakh or the 100% cost of the programme whichever is lower.

Features of UCO Super Premier Education Loan

Why this Loan?

• The loan is meant for you if you have gained admission into a Bachelors, Masters, Doctorate (PhD) or a professional studies programme at one of the eight premier institutes in the country, namely IIM-Ahmedabad, IIM-Bangalore, IIM-Kolkata, IIM-Indore, IIM-Lucknow, IIM-Kozhikode, XLRI-Jamshedpur and ISB-Hyderabad
• The UCO Super Premium Education Loan is disbursed to the institution as required to pay the fees or other approved charges

Loan Amount

• The maximum loan amount is capped at Rs. 30 lakh

Interest

• The interest rate for this loan is equal to the sum of Repo Linked UCO Float Rate, which is 6.90% and a spread of 0.4%, which makes the effective interest rate 7.3%
• Simple interest is charged during the moratorium period of the loan
• The bank charges a penal interest of 2% on overdue amount if the loan amount is over Rs. 4 lakh

Repayment

• The repayment period for this loan is 15 years
• The loan amount for each year is repayable in 12 equated monthly instalments, with the first instalment becoming due after the end of moratorium period
• The moratorium period for this loan is course duration + 12 months

Security Needed

• This is an unsecured loan, i.e. no security is needed

Eligibility

• The applicant must be an Indian national
• The student should have gained admission into a recognised higher study course one of the listed premier educational institutes in India through Entrance Test or Merit-based Selection process

Eligible Courses

• All regular full-time degree and diploma courses in 8 premier institutes in the country

Borrower Contribution to Total Cost (Margin Money)

• The bank does not charge 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. 10 lakh and the borrowers have to provide a 10% margin, then they will have to contribute Rs. 1 lakh to the overall cost while the lender bank offers the rest.

Processing and Other Charges

• There are no processing charges on 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
• Hostel or boarding fees or reasonable charges of private hostel or PG accommodation, etc.
• Cost of computers needed for the course
• Other expenses such for study tours, project work, thesis etc. needed to complete the course
• Can be used to pay for insurance premium of Group Credit Life Insurance, if opted for by the borrower
• But the loan cannot be used to pay off external coaching or tuition fees

Other Features to Know

• The student’s progress reports may have to be submitted with the bank at regular intervals
• The loan is disbursed directly to the college, 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
• A declaration/ affidavit from the borrower confirming that, no educational loans have been availed from other banks
• Two Passport Size Photographs of student, applicant and/or guarantor
• Photocopy of PAN Card of the student that needs 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 as proof of admission
• Fee Details with Demand of Fee by the Institution
• All Proofs of Past Academic Record including Mark Sheets and Certificates
• For the co-borrower, documents as age, ID, signature, address, employment/business/income proofs are required

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