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UCO Bank Education Loan in India

Last Modified : May 08, 2018

UCO or United Commercial Bank is nearly 75 years old major government owned commercial bank established in 1943. The bank have been ever growing, it has opened more than 4000 branches both nationally and internationally. UCO Bank is now home to 24,724 employees and have total assets of INR 2,44,882 crore.

Studies in India have become quite expensive lately. For students who wish to pursue studies but step back due to monetary burden, UCO Bank have 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 such as UCO Skill Loan scheme to ease the loan liability.

1. UCO Education Loan

United Commercial Bank (UCO) have launched UCO Education Loan scheme to extend financial support to meritorious/ deserving students to pursue higher studies in India. The loan is extended to students with maximum benefits and easy repayment terms.

Eligibility to avail UCO Education Loan

  • Student must be an Indian National
  • He/ She must have secured admission to Graduation/ Post Graduation/ Diploma courses in any recognized institute approved by State or Central Government
  • He/ She must have passed required course with essential grades
  • He/ She must have successfully cleared 10+2 (HSC)
  • 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

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%

Margin

Upto INR 4 Lacs: Nil

Above INR 4 lacs: 5%

 

Maximum Loan Limit

INR 10 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

  • All Graduation, Post- Graduation or Doctorate courses
  • Professional Courses including Medical, Law, Dental, Engineering, Hospital Management, Hotel Management, Event Management, Mass Communication, Fashion Studies, Agricultural Studies, etc.
  • Courses that are offered by reputed foreign universities in India
  • Regular or Evening Courses conducted by colleges/ universities approved by UGC/ Government/ AICTE/ AIBMS/ ICMR etc.
  • Degree or Diploma courses in Teacher Training, Nursing, and B.Ed. provided the training institutes are approved by Central/ State Government.

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

  • He/ She must be an Indian national
  • He/ She must have secured admission to any premier institute that fall under LIST A, B, or C. (list is mentioned at the end)
  • Age limit for general is maximum 38 years and for SC/ST is 40 years.

Key Points for UCO Premier Education Loan Scheme

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

Present Rate of Interest

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

Margin

Upto INR 4 Lacs: Nil

Above INR 4 lacs: 5%

 

Maximum Loan Limit

For List A: INR 30 Lacs

For List B: INR 20 Lacs

For List C: INR 15 Lacs

Security

For List A

Loan upto 20 lacs- no security, only parent/ guardian as co- borrower

Loan from INR 20 to 30 Lacs- tangible collateral security with full value + parent/ guardian as co- borrower

For List B

Loan upto 15 Lacs: no security, only parent/ guardian as co- borrower

Loan from INR 15 to 20 Lacs: tangible collateral security with full value + parent/ guardian as co- borrower

For List C

Loan upto 10 Lacs: no security, only parent/ guardian as co- borrower

Loan from INR 10 to 15 Lacs: tangible collateral security with full value + 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

Upto INR 7.5 Lacs: 10 years

Above INR 7.5 Lacs: 15 years

Prepayment Charges

Nil

Courses covered under UCO Premier Education Loan Scheme

  • All Graduation, Post- Graduation or Doctorate courses
  • Professional Courses including Medical, Law, Dental, Engineering, Hospital Management, Hotel Management, Event Management, Mass Communication, Fashion Studies, Agricultural Studies, etc.
  • Regular or Evening Courses conducted by colleges/ universities approved by UGC/ Government/ AICTE/ AIBMS/ ICMR etc.
  • Courses offered by premier institutes that fall under List A, B, and C

3. UCO Super Premier Education Loan Scheme

UCO Super Premier Education Loan Scheme is specially formulated to provide financial assistance to students who secure admission to 8 premier Institutes in India. The Loan is offered with preferential terms.

Eligibility to avail UCO Super Premier Education Loan Scheme

  • He/ She must be an Indian national
  • He/ She must have secured admission to 8 premier institutes (list is mentioned at the end)

Key Points for UCO Super Premier Education Loan Scheme                                              

  • No margin charged
  • No security in lieu of loan sanctioned
  • No processing charges
  • No prepayment/ documentation charges

Present Rate of Interest

MCLR of 1 year on all amounts of loan under UCO Super Premier Education Loan

Margin

No margin

 

Maximum Loan Limit

INR 30 Lacs

Security

No security

Moratorium Period

Course Period + 1 year

Repayment (Maximum)

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

15 years

Prepayment Charges

Nil

Courses covered under UCO Super Premier Education Loan Scheme

  • All Graduation, Post- Graduation or Doctorate courses
  • Professional or Technical Courses offered by 8 listed premier institutes
  • Degree or Diploma courses are also eligible.

Colleges eligible for UCO Super Premier Education Loan Scheme

  • Indian Institute of Management, Ahmadabad
  • Indian Institute of Management, Bangalore
  • Indian Institute of Management, Kolkata
  • Indian Institute of Management, Indore
  • Indian Institute of Management, Lucknow
  • Indian Institute of Management, Kozhikode
  • XLRI, Jamshedpur
  • ISB, Hyderabad

4. UCO Skill Loan Scheme

United Commercial Bank took up UCO Skill Loan Scheme for students who wish to pursue studies in courses to enhance their skills and prepare for employment opportunities ahead. The Scheme is offered with maximum benefits to promote skill based education with no financial constraints.

Eligibility to avail UCO Skill Loan Scheme

  • Student should be an Indian National
  • He/ She must have secured admission to course offered by Industrial Training Institutes (ITIs), Polytechnics or in school recognized by State/ Central Boards or any other recognized college or organization
  • The admission should be secured through entrance exam or merit based
  • No minimum age limit

Present Rate of Interest

1 year MCLR + 1.50% p.a. (simple interest during moratorium period)

Margin

No margin

Maximum Loan Limit

INR 1,50,000

Security

No collateral or security is required

Moratorium Period

Course duration upto  1 year: Course period+6 months

Course duration above 1 year: Course period+12 months

Repayment (Maximum)

Loan upto 50,000: 3 years

Loan between 50,000 to 1 Lac: 5 years

Loan above 1 Lac: 7 years

Prepayment Charges

Nil

Courses Covered under UCO Skill Loan Scheme

  • Courses recognized by:
  • Industrial Training Institutes (ITIs)
  • Polytechnics Institutes
  • School recognized by Central or State Education Boards
  • College affiliated to recognized university
  • Training partners affiliated to National Skill Development Corporation (NSDC), Sector Skill Councils, State Skill Mission, and State Skill Corporation
  • Courses leading to a certificate / diploma/degree issued by such organization as per National Skill Qualification Framework (NSQF)

Expenses covered under all types of UCO Education Loan

  • Payment of Fee to College, Institute or University
  • Examination Fee or payment of fee to library or laboratory
  • Hostel Fee and other charges applicable
  • Cost of Books, equipment, instrument or uniforms
  • Miscellaneous expenses required for completion of the course- 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 such as 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 course
  • Community Certificate
  • Two recent passport size photographs of applicant, co-obligant and guarantor
  • Educational Proof such as copy of admission letter along with fee structure, mark sheets, SSC, HSC and degree course certificates
  • Salary Proof such as Latest salary slip, Form 16 and recent salary certificate

UCO Premier Education Loan Scheme Institutes

REVISED LIST OF EDUCATIONAL INTITUTES
UNDER UCO PREMIER EDUCATION LOAN SCHEME        

 
 

S.No

Name of the Institution

 

LIST-A

 

1

Indian Institute of Management (IIM), Ahmedabad

 

2

Indian Institute of Management (IIM), Bangalore

 

3

Indian Institute of Management (IIM), Kolkata

 

4

Indian Institute of Management (IIM), Indore

 

5

Indian Institute of Management (IIM), Lucknow

 

6

IIM Lucknow - Noida Campus

 

7

Indian Institute of Management (IIM), Kozikode

 

8

Indian Institute of Management (IIM), Shillong

 

9

Xavier Labour Relations Institute (XLRI), Jamshedpur

 

10

Indian School of Business (ISB), Hyderabad

 

11

ISB – Mohali Campus

 

12

Indian Institute of Management (IIM), Raipur

 

13

Indian Institute of Management (IIM), Ranchi

 

14

Indian Institute of Management (IIM), Rohtak

 

15

Indian Institute of Management (IIM), Trichy

 

16

Indian Institute of Management (IIM), Udaipur

 

17

Indian Institute of Management (IIM), Kashipur

 

18

Indian Institute of Science (IISC), Bangalore

 

19

Indian Institute of Technology (IIT), Mumbai

 

20

Indian Institute of Technology (IIT), Kanpur

 

21

Indian Institute of Technology (IIT), Chennai

 

22

Indian Institute of Technology (IIT), Kharagpur

 

23

Indian Institute of Technology (IIT), Guwahati

 

24

Indian Institute of Technology (IIT), Delhi

 

25

Indian Institute of Technology (IIT), Roorkee

 

26

Indian Institute of Technology (IIT), Gandhinagar

 

27

Indian Institute of Technology (IIT), Roopnagar

 

28

Indian Institute of Technology (IIT), Jodhpur

 

29

Indian Institute of Technology (IIT), Hyderabad

 

30

Indian Institute of Technology (IIT), Patna

 

31

Indian Institute of Technology (IIT), Bhubaneswar

 

32

Indian Institute of Technology (IIT), Mandi

 

33

Indian Institute of Technology (IIT), Indore

 

34

IT BHU, Banaras ( converted into IIT Varanasi)

 

35

Faculty of Management Studies (FMS), Delhi

 

36

Birla Institute of Technology & Science (BITS), Pilani

 

37

Narsee Monjee Institute of Management & Higher Studies (NMIMS), Mumbai

 

38

Jamnalal Bajaj Institute of Management Studies (JBIMS), Mumbai

 

39

S P Jain Institute of Management and Research (SPJIMR), Mumbai

 

40

Christian Medical College (CMC), Vellore

 

41

Armed Forces Medical College (AFMC), Pune

 

42

All India Institute of Medical Sciences (AIIMS), Delhi

 

43

Lady Hardinge Medical College (LHMC), Delhi

 

44

Post Graduate Institute of Medical education & Research (PGIMER), Chandigarh

 

45

Jawaharlal Institute of Post-Graduate Medical Education and Research (JIPMER), Pondicherry

 

46

Indian School of Mines (ISM), Dhanbad

 

47

IIIT Hyderabad

 

48

National Law School of India University, Bangalore (NLSIU)

 

49

NALSAR University of Law, Hyderabad (NALSAR)

 

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 listed under List A and B provided by the bank
  • 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. 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 offers 1% concession to students who secure admission to top premier institutes.

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 courses are eligible under UCO Bank Education Loan. Regular degree or diploma courses like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping.

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:

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%

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. 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. 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. 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: customercare.calcutta@ucobank.co.in , hopgr.calcutta@ucobank.co.in