The scheme extends a helping hand to meritorious students desirous of pursuing basic/higher/professional/technical education either in India or abroad. The parents will become co-borrowers with their dependent (student) if the latter applies for educational loan.
Need based finance subject to repaying capacity of parents/students with following ceilings :
The loan amount under the scheme would be for meeting the following expenses :
Up to Rs.4.00 lacs – No security
Above Rs.4.00 lacs – Collateral securities by way of suitable 3rd party guarantee or tangible security equivalent to loan amount.
Upto Rs. 4 Lac – Nil
Above Rs. 4 Lac Studies in India – 5%
Studies Abroad – 15%
There is no processing fee /no service charge
Interest Rate on Advances
Up to Rs.7.50 lakhs
Base rate + 2.50%
Above Rs.7.50 lakhs
Base Rate + 225%
The loan will be repaid in 5-7 years after commencement of repayment. There will be moratorium for repayment during “the course period +1 year or 6 months after getting job, which ever is earlier”.
1% interest concession may be provided, if the interest is serviced during moratorium period.
For details on UCO Bank’s Education Loan, click here.