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All About The UCO Bank Education Loan – 2024

UCO Bank Education Loan

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 of student loan options and repayment periods that begin after one year of completion of the course.

We’ll go through all the features, requirements, and benefits of a UCO Bank student loan in this article. So, let’s get started.

UCO Bank Education Loan Overview
FeaturesUCO Bank Education Loan
Interest RateFluctuating rate of 12.20% per annum for loans above INR 7.5 lakhs  
11.20% per annum for loans below INR 7.5 lakhs
Margin MoneyNo margin money for loans up to INR 4 lakhs  
Up to 15% for international education loans above INR 4 lakhs
Maximum Loan AmountUp to INR 10 lakhs for in-country Indian studies 
Up to INR 20 lakhs for studies abroad
Repayment DurationBegins one year after course completion
Up to 15 years repayment duration
Collateral RequirementFor loans up to Rs.7.50 lakhs: Co-signing by parents, no security or third-party guarantee required  
For loans above Rs. 7.50 lakhs: Co-obligation of parents and tangible collateral security equivalent to the loan amount required

How To Apply For UCO Bank Education Loan

To apply for a UCO Bank Education Loan online or offline, you have the following options:

Offline Application:

  1. Visit the nearest UCO Bank branch.
  2. Collect the education loan application form from the bank officials.
  3. Fill in the application form with accurate and complete details.
  4. Attach all the required documents as specified by the bank.
  5. Submit the completed application form and supporting documents to the bank representative.
  6. The bank will process your application and communicate further instructions or requirements.

Online Application:

  1. Visit the official website of UCO Bank.
  2. Navigate to the “Borrow” section and select “Education Loan.”
  3. Look for the “Apply Now” button and click on it.
  4. You will be directed to the online application page.
  5. Fill in all the requested information in the application form.
  6. Double-check the provided details for accuracy.
  7. Submit the completed application form electronically.
  8. After submitting the form, a representative from the bank will contact you regarding your loan application.

Please note that the online application process may vary depending on the bank’s website design and functionality. It is advisable to follow the instructions provided on the official UCO Bank website during the application process.

Education Loan Interest Rate In UCO Bank

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  margin money on education loan. The margin of 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  period of moratorium 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. 

Comparison Of UCO Bank Education Loan Schemes for Students

When comparing UCO Bank’s education loan schemes for students, it’s important to consider factors such as interest rates, processing fees, collateral requirements, loan tenure, and eligibility criteria. Let’s go through each scheme to understand the variations and benefits of each.

Loan SchemeInterest RateProcessing FeeCollateralLoan TenureEligibility
UCO Bank Education LoanRanges from 11.70% to 12.10% p.a.NoneUp to Rs.7.5 lakh: None
Above Rs.7.5 lakh: Tangible
15 years after moratoriumOpen to Indian nationals
UCO Premier Educational Loan10.85% p.a.NoneUp to Rs.10 lakh: None15 yearsIndian nationals admitted to premier educational institutions in India and overseas through entrance tests
UCO Super Premier Loan9.70% p.a.NoneNone15 years after moratoriumIndian nationals admitted to specified premier educational institutions in India
UCO Aspire9.70% p.a.0.50% of loan amount (max. Rs.10,000 + GST)Tangible security equivalent to 125% of loan amount15 years after moratoriumIndian nationals admitted to higher education courses in the country or through entrance tests after HSC (10+2 or equivalent)
UCO Skill Loan11.20% p.a.NoneNone, but parent must be joint borrowerUp to 7 years with a moratorium of 6-12 monthsIndian nationals pursuing skill development courses in recognised educational institutions

Each scheme has its own advantages depending on the specific needs and circumstances of the student. For example:

  • UCO Premier Educational Loan Scheme offers a relatively lower interest rate and no collateral requirement for loans up to Rs.10 lakh, making it attractive for students pursuing education in premier institutions.
  • UCO Super Premier Educational Loan Scheme provides the lowest interest rate among the mentioned schemes and requires no collateral, but it is limited to specific premier educational institutions.
  • UCO Aspire has a competitive interest rate and is available for various higher education courses, but tangible security is required.
  • UCO Skill Loan focuses on skill development courses and offers a relatively shorter loan tenure and no processing fees, but a joint borrower is required.

FAQs

1. What is the interest rate of education loan in UCO?

The UCO Float Rate includes an additional 1.90% per annum as simple interest during the moratorium period. This means that during the specified period, simple interest will be charged and will continue until the repayment of the loan begins.

2. Who is eligible for an education loan from UCO bank?

The UCO bank extends its education loan facility to eligible Indian residents who have secured admission in universities, both within India and abroad.

3. What costs are covered under UCO Bank educational loan schemes?

UCO Bank educational loan schemes cover expenses such as examination fees, equipment costs, travel expenses, hostel charges, study materials, and more.

4. Are evening courses covered under UCO Bank educational loan?

Yes, evening courses conducted by government-approved educational institutions are covered under UCO Bank educational loan schemes.

5. How long is the moratorium period for UCO Bank educational loan schemes?

The moratorium period for UCO Bank educational loan schemes is typically the course duration plus one year after completing the course. During this period, simple interest is charged on a monthly rest basis.

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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UCO Bank Education Loan

All About The UCO Bank Education Loan – 2024

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