City Union Bank Education Loan

Overview of Education loan:

City Union Bank Vidyavani Education Loan Scheme supports meritorious and deserving students by helping them pursue higher education in India and overseas countries. This education loan scheme also aids the weak and needy students to avail fundamental education.

Features and benefits of Education loan:

Educational loan is a fantastic option for students who are meritorious and want to pursue higher education in India and overseas. Not only can the students pay their faculty, college and hostel fees readily, but also they can cover their library, examination and laboratory charges. City Union Bank loan helps pupils to buy books, instruments and other equipment required within their course of research. The amount of the loan can be utilized to pay the deposit, but it should not be more than 10% of the total tuition fees for the entire course. Students can use the loan amount for travel, study tours, project works etc., and may also pay their insurance premium, if any.

City Union Bank Education loan rate for research in India and overseas:

Processing Fees:

For studying in India, students do not have to pay any upfront fees or processing fees. However, students will need to cover 0.20 percent processing fee for studying in foreign nations.

Repayment:

The students and their parents can pay back the interest level on loan during the vacation period. In case the pupils or their parents don't pick this option, the payable interest level will be added to the principal loan amount and also reimbursed as monthly instalments. At the start of the repayment process, the EMI amount is going to be fixed and also the complete loan amount is to be paid in a period of 5 to 7 decades.

Securities Suggested:

Upto Rs. 4 lakh: Parents and guardians will be co-obligants when the student applies for the education loan.

Above Rs. 4 lakh and up to Rs. 7.50 lakh:

The parents or the guardian should offer third party guarantee with collateral security. The bank may reevaluate the condition of getting third party guarantee if it feels that the parents or the guardian is capable of repaying the loan number without a need for security.

Above Rs. 7.50 lakh:

Security of immovable property and third party assurance ought to be equivalent to the amount of student loan granted to the pupil. The safety can be in the kind of building, land, public sector bonds, government securities, life insurance policies, NSCs, KVPs, gold, shares, MF units etc. in the name of the pupil, parents, guardian or any other third party enrolling as guarantor. In case, the property or building has already been mortgaged, then the unencumbered part can be provided as security on a second charge basis, taking into consideration the fact that it insures the amount of the loan. The spouse or parents-in-law can be co-obligators in the event of a married person.

Margin:

City Union Bank educational loan has nil margin for borrowers when the amount of the loan is up to Rs. 4 lakh. For a loan amount above Rs. 4 lakh, 5 percent of the amount of the loan is to be paid by the borrower for studying in India and 15% for examined in foreign nations. Any scholarship or assistant-ship can also be included in the margin set by the bank. When disbursements happen on a pro-rata foundation, the margin can be released in a year annually.

Quantum of Finance:

The amount of the loan provided by City Union Bank is dependent upon the repayment ability of the pupil, parents or the defender. For pursuing studies in India, a loan amount of maximum Rs 10 lakh can be offered by the lender and a maximum of Rs. 20 lakh can be provided by the bank for studying overseas.

Eligible Courses:

India:

• Graduation courses like B.Sc, B.A, and B.Com etc.
• Post-Graduation Courses like M.Sc, M.A, M.Com, M.S or Ph.D.
• Professional courses including medical, engineering, veterinary, agriculture, dental, law, management etc.
• Courses like ICWA, CA, CFA etc. are eligible.
• Degree of Diploma courses like pilot training, shipping etc. approved by the Director General of Civil Aviation or Shipping Company.
• Specific evening courses approved by different recognized institutes.
• Courses approved by AICTE, UGC, ICMR, AIBMS etc.

Abroad:

• Job oriented technical and professional graduation courses offered by several renowned universities.
• Post-Graduation courses like MCA, MBA, MS and PhD etc.
• Different courses conducted by CPA, CIMA-London etc.

Eligibility:

• The student or candidate ought to be a resident of India.
• The pupil should produce proof of bonded admission through entry or choice. Test performed by the individual university.
• The student loan doesn't rely on the age of the student or applicant.

City Union Bank Educational Loan FAQs:

1. What is the repayment schedule?
The repayment schedule for City Union Bank begins after one year of completion of the course or six months after you get a job, whichever is earlier. The student is supposed to repay the loan on EMI basis.
2. How is the EMI calculated?
The Equated Monthly Instalments (EMI) depends on the tenor that the student opts for. The longer the loan term, smaller are the monthly instalments. If the student chooses to repay the loan in a smaller tenure, he would have to pay higher monthly instalments.
3. 3. Is there any age limit to avail CIty Union Bank education loan?
No, the educational loan offered by City Union Bank does not depend of the age of the student or the applicant.
4. What is the maximum amount of loan that I can avail?
City Union Bank Educational loan scheme provides with Rs.10 lakh for courses in India and Rs. 20 lakh for courses in foreign countries.
5. Are there any processing fees?
No processing fee is charged by City Union Bank for borrower students studying in India. However, 0.20 percent processing fee is charged for pursuing courses in foreign countries.