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UCO Bank Education Loan in Abroad

Last Modified : June 30, 2018

UCO Bank has launched various education loan schemes viz. UCO Education Loan, UCO Premier Education Loan Scheme, and UCO Super Premier Education Loan Scheme.

Students might also be interested in schemes initiated by the government along with Education Loan for India and Abroadsuch as UCO Skill Loan scheme to ease the loan liability.

Why UCO Bank?

Benefits offered by UCO Bank plays a key role in attracting students towards UCO Bank Education Loan. The bank offers a variety of benefits such as no margin upto loan amount of INR 4 Lacs, no processing/ prepayment charges and an affordable rate of interest. 

Are you eligible for UCO Bank Education Loan?

  • Indian National. Student must be an Indian National or an Indian passport holder
  • 10+2.  You must have cleared 10+2 from a recognized board or institute
  • Co-signer. A co-signer is mandate while applying for education loan
  • Eligible Institute. You must have secured admission to premier institute in India or abroad

1. UCO Education Loan

For students who wish to study abroad, UCO Bank has launched UCO Education Loan scheme for meritorious and deserving students wishing to pursue higher studies abroad. The loan is extended to students with maximum benefits and easy repayment terms.

Eligibility to avail UCO Education Loan

  • Indian National
  • 10+2 pass
  • Graduation/ Post Graduation/ Diploma courses 
  • Qualified required course with essential grades
  • For Graduation: Maximum age limit for General candidates is 28 years and for SC/ST is 30 years
  • For Post-Graduation: Maximum age limit for general is 30 years while for SC/ST is 33 years

Present Rate of Interest

Loan amount upto INR 7.50 Lacs

1 year MCLR + 2.00%

Loan amount above INR 7.50 Lacs

1 year MCLR + 2.40%

Quick Facts about UCO Education Loan

Margin

Upto INR 4 Lacs: Nil

Above INR 4 lacs: 15%

 

Maximum Loan Limit

INR 20 Lacs

Security

Less than INR 7.5 Lacs: No Collateral required

 Guarantee of bank approved third party

Above INR 7.5 Lacs: Collateral Security equal to amount of loan

Moratorium Period

Course Period + 1 year

Repayment (Maximum)

Repayment of the loan can be done after the moratorium period by mode of EMI

Upto INR 7.5 Lacs: 10 years

Above INR 7.5 Lacs: 15 years

Prepayment Charges

Nil

Courses covered under UCO Education Loan

  • Courses offered by reputed foreign universities
  • Graduation, Post-Graduation, Doctorate courses 
  • Technical, Professional or any other Job Oriented courses 
  • Degree/ Diploma courses like Aeronautical, Pilot Training, Shipping, etc. (approved by Director General of Civil Aviation/ Shipping in India) 
  • Post- graduation courses such as MCA, MBA, MS, etc.
  • Courses conducted by CIMA, London or CPA, USA etc.

2. UCO Premier Education Loan Scheme

UCO Premier Education Loan scheme is extended to students who have secured admission to premier institutes in India. The Bank provides financial support with preferential terms and maximum benefits.

Eligibility to avail UCO Premier Education Loan Scheme

  • Indian National
  • Premier institutes that are listed in Top 150 universities as per www.webometrics.info as on date of application
  • Age limit for general category is maximum 38 years and for SC/ST is 40 years.

Present Rate of Interest

Rate of interest on all amounts is 1 year MCLR + 1.15%

Quick Facts about UCO Premier Educaton Loan Scheme

Margin

Upto INR 4 Lacs: Nil

Above INR 4 lacs: 5%

 

Maximum Loan Limit

30 Lacs

Security

Upto INR 15 Lacs: No security required

Only parent/ guardian as co borrower

Above INR 15 Lacs: with tangible collateral security of full value and parent/ guardian as co borrower

Moratorium Period

Course Period + 1 year

Repayment (Maximum)

Repayment of the loan can be done after the moratorium period by mode of EMI

Maximum Loan amount: 15 years

Prepayment Charges

Nil

Additional Facts about UCO Premier Education Loan Scheme

  • No margin upto INR 4 Lacs
  • No processing fee
  • No prepayment/ documentation charges

Courses covered under UCO Premier Education Loan Scheme

  • Courses offered by reputed foreign universities
  • Graduation, Post-Graduation, Doctorate courses 
  • Technical, Professional or any other Job Oriented 
  • Degree/ Diploma courses like Aeronautical, Pilot Training, Shipping, etc. (approved by Director General of Civil Aviation/ Shipping in India).
  • Post- graduation courses such as MCA, MBA, MS, etc.
  • Courses conducted by CIMA, London or CPA, USA etc.
  • Courses offered by top 150 universities as per www.webometrics.info

Expenses covered under all types of UCO Education Loan

  • Tuition fee
  • Examination fee
  • Library/ Laboratory fee
  • Hostel Fee 
  • Cost of Books, equipment, instrument or uniforms
  • Miscellaneous expenses- study tours, project work, thesis, etc.
  • Reasonable cost of computer or laptop (if required)

Documents required under all types of UCO Education Loan

  • Identity Proof: Passport, Voter’s ID, Driving Licence or PAN Card
  • Mark sheet of recently qualified public exam for school, college in India
  • Admission Proof: Fee receipts, Transfer certificate, etc.
  • Schedule of expenses for the course
  • Community Certificate
  • Two recent passport size photographs of applicant, co-obligant and guarantor
  • Educational Proof: copy of admission letter along with fee structure, mark sheets, SSC, HSC and degree course certificates
  • Salary Proof: Latest salary slip, Form 16 and recent salary certificate

FAQs

Q. What schemes does UCO Bank considers for its education loans?

Answer: There are multiple other schemes offered by UCO Bank apart from the basic education loans viz UCO Education Loan, UCO Premier Education Loan, and UCO Super Premier Education Loan. These are:

  • CSIS Scheme
  • Padho Pardesh
  • Skill Loan Scheme

Q. In whose name is the loan granted?

Answer: The loan is granted in the name of the student

Q. Is the loan contract executed only in student’s name?

Answer: No, the loan can be executed both in name of student and co-borrower as both are equally responsible for repayment of loan.

Q. What is the age limit for availing loan in UCO Bank?

Answer: Age Limit varies for students who wish to pursue graduation/ post graduation courses

  • For Graduation: Maximum age limit for general candidates is 28 years while for SC/ST is 30 years
  • For Post-Graduation: Maximum age limit for general is 30 years while for SC/ST is 33 years

Q. Are minors eligible to apply for UCO Bank Education Loan?

Answer: Yes, Minors aspiring for further studies can apply for education loan with help of legal representation from parents/ guardians.

Q. What does margin on any loan mean?

Answer: Margin amount is the amount that a borrower has to pay through his/ her own sources in form of a down payment as his/ her contribution towards the education.

Q. Should the student’s margin be paid upfront in the starting?

Answer: Margin can be paid on a year to year pro rata basis whenever bank disburses loan amount as per requirement.

Q. Where can I avail UCO Bank Education Loan?

Answer: You can either contact your nearest branch for the application form or details regarding the loan or apply online from the official website.

Q. Is there any provision to apply for loan online?

Answer: : Yes, you can apply online through Vidyalakshmi portal to avail for this loan.

Q. Can I view my loan statement online if I am an existing education loan borrower?

Answer: Yes, by creating a login on UCO Bank web portal, you can view all details related to education loan online.

Q. Is there any minimum aggregate marks to meet the eligibility criteria to avail UCO Bank education loan?

Answer: Yes, a student must have secured a minimum aggregate marks in their last qualifying examination (10+2 or Graduation). Relaxation in the marks is given to SC/ ST students

Q. What is the discount/ rebate offered by UCO Bank?

Answer:

  • 0.50% concession is given to girl students
  • 1% concession to students who have secured admission to any top premier institutes rated as Top 150 universities as per www.webometrics.info
  • Eligibility criteria and margin on education loan is relaxed for SC/ST students

Q. What all is included in tangible collateral security?

Answer: Mostly UCO Bank asks tangible security in lieu of the loan amount sanctioned along with assignment of future salaries in favour of UCO Bank. Tangible security includes documents related to land/ building/ government security/ public sector bonds/ units of UTI, NSC, Life insurance policy/ bank deposits/ shares or debentures. The value of the security should be equal to the education loan amount.

Q. Can I place my family property as collateral?

Answer: Yes, but it will need consent of all family members involved.

Q. Is scholarship or assistantship included in the margin?

Answer: Yes any scholarship or assistantship will be a part of margin charged on education loan.

Q. What is Moratorium Period?

Answer: Course Period plus one year, or six months after getting a job

Q. What is tenure of an education loan?

Answer: Tenure of education loan provided by UCO Bank is maximum 15 years

Q. What does MCLR stands for?

Answer: MCLR stands for Marginal Cost of funds based Lending Rate. It refers to the minimum interest rate of bank below which it cannot lend.

Q. What all expenses are covered under this course?

Answer: Expenses covered by UCO Bank education loan are:

  • Tuition/ college/ hostel fee
  • Examination/ lab/ library fee
  • Books/ uniform/ instruments
  • Caution deposit
  • Passage money for studies abroad, etc.

Q. Will my travel expense will be covered if I take loan from UCO Bank?

Answer: Yes, travel expenses are covered under this loan

Q. I have taken admission through management quota. Am I eligible?

Answer: This depends totally on bank’s discretion as whether a student meets other eligibility criteria or not.

Q. What do you mean by reputed or recognized institutes?

Answer: Institutes that are affiliated to state/ central universities and comes under UGC or AICTE are considered as recognized institutes. Reputed institutes are those which are well known and have standard course of repute. More often, banks provide the list of institutes they consider for loan. (You can contact nearest branch for the same)

Q. Are there any special benefits if I have secured admission to one of the top premier institutes?

Answer: UCO Bank offer 1% rebate or concession to students securing admission to premier institutes that are listed as Top 150 universities as per www.webometrics.info.

Q. What is the processing fee or prepayment charges?

Answer: The education loan offered by UCO Bank does not carry any prepayment charges/ processing fee/ documentation charges.

Q. Will cost of my computer be covered under the loan sanctioned?

Answer: Reasonable cost for the computer or laptop well be covered under the loan if it is required to complete the course. 

Q. Why is Pan Card necessary?

Answer: Pan Card is one of the mandatory document required by banks these days. It is mandatory because:

  • Easy to assess Income
  • Easy to trace borrowers

Q. Are diploma or certificate courses considered under UCO Bank education Loan (both for India and Abroad)?

Answer: Diploma/ Certificate courses are eligible under UCO Bank Education Loan for abroad. Regular degree like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping can be considered.

Q. Is a co-borrower necessary for loan?

Answer: Yes, it is mandatory to have a co-borrower to avail loan from UCO Bank.  

Q. Who can be my co-borrower?

Answer: Your parent/ spouse/ guardian can be a co-borrower. A co-borrower should be your immediate family member, should have a steady source of income, and a good credit history.

Q. What all documents are required from the co-borrower?

Answer: Documents required from the co-borrower are:

  • Attested copies of age proof, residence proof and birth date.
  • Self-attested passport size photograph
  • Income proof and/or copy of income tax return file
  • Details of collateral security along with government approved valuation certificate (if any).

Q. How many guarantors do I need to borrow loan from UCO Bank?

Answer: You need at least 2 guarantors to avail loan from UCO Bank.

Q. What is the KYC requirement in education loan?

Answer: KYC requirements are the documents as a proof of personal identification and residence proof of the applicant as well as the co-borrower.

Q. What are maximum term for repayment?

Answer: The maximum term for repayment is different for different variant of loans offered by UCO Bank for overseas studies:

  • UCO Education Loan: Maximum Term for repayment for Loan amount upto INR 7.50 Lacs is 10 years and maximum term for repayment is 15 years for loan amount above INR 7.50 Lacs
  • UCO Premier Education Loan Scheme: 15 years

Q. How can I repay the loan?

Answer: You can repay the loan after the moratorium period by mode of EMI or through post- dated cheques.

Q. What is EMI? How are they calculated?

Answer: EMI stands for Equated Monthly Installments. It can be calculated by using the formula given below

  • EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]
  • Here, P is Amount of Education Loan, R is Rate of Interest, n is Tenure of the Loan.

Q. What are the charges for late EMI payment?

Answer: 24% per annum on outstanding amount is charged for the late EMI payment and INR 500 for every bounced cheque.

Q. Is the loan disbursed in name of individual applicant or to the institute/ university directly?

Answer: The loan is disbursed directly to the institute/ university that you have taken admission to. Hence, an applicant is supposed to submit institute brochure with proper division of the fee

Q. If I am unable to complete my course in given tenure, will my repayment term be extended?

Answer: It is completely on the banks discretion to extend the moratorium period or not. It can be extended for maximum 2 years based on student’s reason. You can contact your nearest branch for more details.  

Q. What is method of application of interest on education loan?

Answer: The interest will be charged at simple rate from the date of disbursement till commencement of repayment of loan. After that, compound interest is charged on reducing balance. 

Q. If I am joining the course soon after current course, can I get an extension?

Answer: Mostly, in such cases, you do not get an extension and even if you do there is a possibility that interest rates are higher

Q. What is interest rate of education loan?

Answer: Interest rate varies for different variants of education loan schemes provided by UCO Bank. These are:

Q. The Interest Rate for UCO Education Loan is

Loan amount upto INR 7.50 Lacs

1 year MCLR + 2.00%

 Loan amount above INR 7.50 Lacs

1 year MCLR + 2.40%

Q. The Interest Rate for UCO Premier

Answer: Rate of interest on all amounts is 1 year MCLR + 1.15%

Q. What is interest subsidy on education loan?

Answer: UCO Bank offers

  • CSIS- Interest Subsidy scheme for economically weaker sections and to promote education amongst them
  • Padho Pardesh scheme for students who wish to pursue studies abroad
  • Skill Loan Scheme for students who wish to pursue courses to enhance their skills and attain better career opportunities.

Q. What documents do I need to submit to avail interest subsidy scheme?

Answer: The documents that need to be submitted are:

  • Income certificate issued by authorised authorities
  • Bonafide student certificate
  • Letter of undertaking or declaration signed by borrower/ co-borrower

Q. If I am availing loan for overseas studies, can I also avail interest subsidy scheme?

Answer: CSIS Scheme is not available for students who wish to pursue overseas studies whereas Padho Pardesh is formulated for foreign education.

Q. What is employment verification in an education loan?

Answer: The bank takes the responsibility to cross verify all the employment details of the applicant and co-borrower. If the banks fails to cross verify every detail provided, it might reject the loan application.

Q. Are there any tax benefits in education loans?

Answer: Under Section 80E of Income Tax Act, loan borrowers can avail the tax benefits. This benefit is only available over and above INR 1,50,000. Tax benefits can be availed once the borrower starts paying interest on loan. The deduction is available until borrower pays off full interest amount on loan or for maximum of 8 years (whichever is earlier).

Q. Is it necessary to have bank account with the bank while availing loan from that particular bank?

Answer: It is not necessary to have a bank account while availing the loan but it makes it easier for the borrower to get loan application approved.

Q. Can I repay my loan in foreign currency even if my bank is in India?

Answer: Yes, you can pay the amount in foreign currency (Euro, Pound, Dollar, etc.) The bank might charge an additional currency conversion fee as per RBI regulations.

Q. Why do banks require insurance policy as security?

Answer: The banks require insurance policy as security in lieu of education loan provided. The insurance policy should be equal or more to the amount of loan sanctioned. In case of untimely demise of the borrower, the bank recovers the amount from the insurance policy

Q. Are there any additional benefits on availing loan from UCO Bank?

Answer: UCO Bank provides Group Life Insurance Cover Scheme for education loan borrowers. The premium of which will be borne by the bank

Q. What is credit score? Is it important for education loan?

Answer: Credit Score is inclusive of various factors such as credit history (Loan history or credit card). If a student does not have a credit score, banks calculate it by considering factors such as University, College and the Course of admission. Banks consider the academic background of student and credit history of co-borrower.

Q. Are NRIs eligible for the education loan?

Answer: NRIs are eligible for the loan if they have Indian citizenship and are Indian passport holder.

Q. Is Visa a necessary document for studying abroad?

Answer: Visa is needed as a document proof but it is not a sole requirement.

Q. What all procedures do one have to go through while applying for abroad?

Answer: A student who is applying for studying abroad have to give necessary documents required by the bank. One needs to have a thorough knowledge of the course they are applying for and in which institute as it can be asked on the airport by the foreign officials.

Q. If a student have any query, where or whom to contact?

Answer: student can reach out to the nearest branch in case of any query.

Customer Care Number: 033 2234 1756/ 1800 274 0123

Local rates apply on every call

Customer Care Id: 1). customercare.calcutta@ucobank.co.in, 2).  hopgr.calcutta@ucobank.co.in