UCO Bank is a commercial bank and a Government of India undertaking offering loans to deserving and meritorious students who are looking to pursue higher education in India or abroad. Students must be Indian nationals and have secured admission to a higher education course through a selection process based on merit or through the entrance tests after completion of HSC (10 plus 2 or equivalent).
Features and Benefits:
Objective:
The UCO Education Loan aims at providing finance to deserving students desirous of pursuing their education further and having secured admission in recognized universities or colleges in India and reputed institutions abroad.
Interest Rates:
The UCO Bank education loan interest rate is as below:
| Loan amount | Interest rate | Effective rate |
| Up to Rs.7.50 lakhs | Base rate + 2.50% | 11.20% |
| Above Rs.7.50 lakhs | Base Rate + 225% | 12.20% |
UCO Bank offers a floating rate of interest linked to base rate. The rates are subject to change depending on the base rate. The latest interest rates can be found on the bank’s website. The interest accrued during the moratorium period will be added to the principal and repayment in EMI to be fixed.
Processing Fees:
There are no processing charges as per the UCO education loan procedure.
Repayment Tenure:
The moratorium period is inclusive of the duration of the course + 1 year or 6 months after getting a job, whichever is earlier.
| Loan amount | Repayment period |
| Up to Rs.7.50 lakhs | Up to 10 years |
| Above Rs.7.50 lakhs | Up to 15 years |
Maximum Loan Limit:
For studies in India, the maximum loan amount given is Rs.10 lakhs.
For studies abroad, it is Rs.20 lakhs.
Security:
- For loans up to Rs.4 lakhs, there is no security required. Co-obligation of Parents will suffice.
- For loans of Rs.4 lakhs to Rs.7.5 lakhs, the co-obligation of parents, and collateral in the form of an acceptable third party guarantor is required.
- For loans above Rs.7.5 lakhs, the co-obligation of parents is required along with tangible security equivalent to the full amount of the loan.
Margin:
According to the UCO Education Loan scheme, the margin required for studies in India is as below:
| Loan Amount | Margin |
| Up to Rs.4 lakhs | Nil |
| Above Rs.4 lakhs | 5% |
For studies abroad, the margin is 15%. Scholarships to be included in margin.
Expenses considered:
- Course or tuition fees
- Purchase of books, equipment, instruments, uniforms, stationery
- Building fund or caution deposit or refundable deposit supported by institution bill
- Travel expenses incurred for studies abroad
- Boarding or hostel costs run by the institution, paying guest accommodation or private hostel
- Reasonable lodging or boarding charges for students who opt for or have to find outside accommodation will be considered
- Purchase of computers required for completion of the course
- Any other expenses required to complete the course like a thesis, study tours, project work, etc.
Group Life Insurance Cover Scheme for Educational Loan Borrowers to cover the outstanding loan in the event of the death of a borrower, accidental or natural.
Eligible Courses:
The loan covers all approved courses in India leading to graduation or post-graduation by recognized universities or colleges.
For studies in India
- Graduate or postgraduate (Masters and PhD) degree and PG diplomas. Approved courses conducted by recognized universities recognized by Government, UGC, AICTE, AIBMS, ICMR, etc.
- Courses conducted by ICWA, CA, CFA, IIT, IIM, NIFT, IISC, XLRI, NID.
- Degree or diploma courses for pilot training, aeronautical, and shipping. If the course is pursued in India, it should be approved by Director General of Civil Aviation or Shipping.
- Professional Courses such as Engineering, Law, Medical, Dental, Veterinary, Agriculture, Management, and Computers.
- Computer Certificate Courses offered by reputed institutes attributed to universities or accredited to DOE.
- Approved courses offered in India by reputed foreign universities.
- Courses from National Institutes and reputed private institutions.
- Evening courses offered from recognized institutes.
For Studies Abroad
- Graduation: Job-oriented professional/technical courses by reputed universities.
- Post-Graduation:
- MBA, MCA, MS, etc. Courses conducted by CIMA-London, and CPA in USA.
- Degree or diploma courses for pilot training, aeronautical, and shipping. They should be recognized by competent regulatory bodies in India or abroad for the purpose of employment in India or abroad.
- Degree or diploma for nursing, teacher training, B. Ed Courses conducted by private institutions approved by Central or State Government.
Teacher Training course, Nursing and B.Ed. should not be a certification course. Fees structure should be as stipulated in Central or State Government colleges.
Eligibility:
The UCO education loan eligibility is as follows:
Student must be an Indian National and have secured admission to a course offered by a recognized or reputed university for higher education in India or abroad. Course admission should be acquired through an entrance test or selection process after completion of HSC (10 + 2 equivalent).
There are no minimum age criteria. In the case of minors, the loan will be jointly executed in the name of the parents. The student shall ratify the borrowing on attaining 18 years of age (major status) by acknowledging the debt.
The maximum age limit is as follows:
| GENERAL CANDIDATES | Age limit |
| Graduation | 28 years |
| Post-graduation | 30 years |
| SC/ST CANDIDATES | Age limit |
| Graduation/diploma | 30 years |
| Post-graduation | 33 years |
Documents required:
- Statement of means of the applicant.
- Two passport size photographs of the applicant.
- Two documents for proof of age and identity. (Any two from the following: Ration card, PAN card, Voter’s ID, Driving Licence, Passport, Office identity card, School leaving certificate, Birth certificate).
- Mark sheet or degree certificate of the last examination passed.
- Letter of admission from the institution or university.
- Proof of admission, scholarship, Identity card, etc., from the institution.
- Schedule of expenses issued by the institution. Brochure of the institution with information about the course, duration, fees, other expenses, hostel facilities and charges, etc.
- Statement of bank account for the last six months, or bank passbook of the applicant and the co-applicant or guarantor.
- Employment verification certificate and last three months’ salary slip of co-applicant or guarantor.
- Form 16 and income tax returns or assessment order of co-applicant or guarantor.
- Statement of means (mandatory for co-applicant or guarantor).
Additional documents may be required as per the UCO Education loan terms & conditions, and the rules and guidelines of UCO Bank.
UCO Premier Educational Loan:
UCO bank provides loans on preferential terms to meritorious students who have secured admission in premier educational institutions in India or abroad. Students must have secured admission through Entrance Test or Selection Process. Required percentage of marks as prescribed by the Institute will be considered.
For studies in India:
Eligibility:
Full-time degree or diploma and part-time courses offered by these institutions. The age limit for general applicants is 38 years. For SC/ST, it is 40 years.
List of educational institutes under UCO Premier Education Loan Scheme:
133 premier educational institutions in India are eligible. The full list of institutions is available on the UCO Bank website. Some of the institutions are listed below.
