UCO Bank is a large public sector commercial bank in India, founded in 1943. United Commercial Bank was its previous name. Deserving and meritorious students seeking higher education in India or abroad can apply for a UCO Bank education loan.
A student must be an Indian national and have earned admission to a higher education course following 10+2 or equivalent to be eligible for a study loan from UCO Bank. UCO Bank offers education loans with flexible repayment options and repayment periods that begin after one year of completion of the course.
We’ll go through all of the features, requirements, and benefits of a UCO Bank student loan in this article. So, let’s get started.
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UCO Bank Education Loan Interest Rate
Students can obtain study loans at a fluctuating rate of 12.20 per cent per annum. The appropriate interest rate for loans less than INR 7.5 lakhs is 11.20 per cent per annum.
What is the margin money for the UCO Bank education loan?
For education loans of up to INR 4 lakhs, there is no loan margin money. The margin money for loans of more than INR 4 lakhs is up to 15% for international education.
What is the maximum amount of money that can be borrowed from the UCO Bank education loan?
The bank can lend up to INR 10 lakhs for in-country Indian studies and up to INR 20 lakhs for studies abroad.
How long does it take to repay a UCO Bank education loan?
The repayment of a UCO Bank study loan begins one year after the course is completed. For all loans, the repayment duration might be up to 15 years.
What kind of security must be put up as collateral for a UCO Bank education loan?
- For loans up to Rs.7.50 lakhs, parents must co-sign and there is no security or third-party guarantee.
- Co-obligation of parents and tangible collateral security equal to the whole value of the needed loan amount is required for loans above Rs. 7.50 lakh.
Documents Required:
- Address Proof: Electricity Bill, Voter ID, Passport, and more.
- Academic Proof: All your 10th and 12th-grade mark sheets for undergraduate students and graduation degree mark sheet & certificate for Masters/PG students.
- Age proof
- Family Income proof: Salary Documents, ITR, Pension Certificate of parent/guardian.
- Community Certificate
- Admission Certificate or I20 form from your university or college
- Fee structure
- Collateral Documents (if applicable)
Processing Fees of UCO Bank Education Loan
When you apply for UCO Bank Education Loan, there is no processing fee charged.
Eligibility Criteria
- Nationality: The applicant must be an Indian citizen.
- 10+2: The candidate must have completed 10+2 with good grades.
- Eligible Courses: Courses leading to a bachelor’s degree, a master’s degree, or a diploma.
- Age: General candidates’ maximum age limit for graduation is 28 years, whereas Post-Graduation candidates’ maximum age limit is 30 years. For SC/ST candidates, there is a two-year grace period.
- Basis of Admission: Admission should have been granted either through an entrance exam or on the basis of merit.
What are the various costs covered under the UCO Bank Student Loan Scheme?
Some of the prime expenses covered under the bank education loan scheme are mentioned below: Laboratory costs, examination fees, library fees, cost of instruments, stationery, equipment, uniforms, and academic books, building fund, refundable deposit, travel expenses for studying abroad, caution deposit too. For travelling, you will get boarding and student accommodation charges involved, paying guest or private hostel costs and more. A personal computer that will be required for your course, study tours that come along your course journey, cost of project work, final thesis, etc.
Will there be any interest charged during the moratorium period of the education loan?
Yes, interest is going to get accumulated on your education loan during the span of your moratorium period. This rate will be added to the principal amount when the actual repayment starts.
Are there any evening courses covered under the education loan?
Yes, even evening courses are a part of the education loan schemes, provided they must be conducted and held by government-approved educational institutions.
Penalty for Pre-payment?
No, there is no penalty as such charged if one chooses to make a prepayment on the education loan at any time during the repayment period.
We hope that we were able to answer and present you with all the information related to the UCO Bank Education loan. If you have any more questions, feel free to comment them down below.
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