City Union Bank Vidyavani Education Loan Scheme supports meritorious and deserving students by helping them financially to pursue higher education in India and foreign countries. This education loan scheme also helps the poor and needy students to avail basic education.
City Union Bank Education loan interest rate
CUB Vidhyavani (Meritorious):
|Particulars||Upto Rs. 4 lakh||Above Rs. 4 lakh|
CUB Vidhyavani (Management):
|Particulars||Upto Rs. 4 lakh||Above Rs. 4 lakh|
Processing Fees and Repayment
For studying in India, students do not need to pay any upfront fees or processing charges. However, students need to pay 0.20 percent processing fee for studying in foreign countries.
The students and their parents can repay the interest amount on loan during the holiday period. In case the students or their parents dont choose this option, the payable interest amount will be added to the principal loan amount and repaid as monthly instalments. At the beginning of the repayment process, the EMI amount will be fixed and the complete loan amount is to be paid in a span of 5 to 7 years.
How to apply for City Union Bank Education Loan
You can visit the nearest City Union Bank branch along with all the necessary documents to apply for an education loan. You will have to fill a loan application form and submit it along with the documents. A representative from the bank will assist you with the process.
The lender will verify the form and the documents submitted, and if all the details are found to be correct, then your application for loan will be approved and the amount will get disbursed to your bank account.
City Union Bank Education Loan EMI Calculator
You can visit the official website of BankBazaar and use the Education Loan EMI calculator to determine the EMI you will have to pay depending on the loan amount availed by you, repayment tenure, and the interest rate. Given below are the steps you will have to follow to use the BankBazaar Education Loan EMI calculator:
- Click on the link.
- Select the loan amount you wish to avail.
- Select the tenure for which you wish to avail the loan.
- Enter the interest rate in the box given.
- Click on ‘Calculate’. You will be able to view the EMI you will be paying on a monthly basis.
- The student or candidate should be a resident of India.
- The student should produce proof of secured admission through entrance or selection. Test conducted by the respective university.
- The educational loan does not depend on the age of the student or applicant.
Documents required for City Union Bank Education Loan
Given below is the list of documents you will have to submit while applying for City Union Bank Education Loan:
- Proof of address such as Aadhaar, voter ID card, etc.
- Proof of identity such as PAN, Aadhaar, etc.
- Duly filled and signed application form.
- Documents showing that the student has been granted admission to the university.
- Test scores, interview letters, and other applicable documents.
- Security to be pledged if the loan amount is above Rs.4 lakh.
- Passport size photo of applicant.
- Other documents as asked for by the lender.
Features and benefits of CUB educational loan facility:
- CUB offers customised repayment options.
- The borrower can avail the tax benefits under the Section 80 E of the Income Tax Act with CUB educational loan.
- CUB has pre-admission loan sanction facility available.
- There is flexible collateral security option with CUB loan.
- No margin money is charged for loan up to Rs. 4 lakh and minimum margin for loan ranging from Rs. 4 lakhs to Rs. 7 lakhs.
Up to 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 provide third party guarantee with collateral security. The bank may waive the condition of obtaining third party guarantee if it feels that the parents or the guardian is capable of repaying the loan amount without a need for security.
Above Rs.7.50 lakh: Security of immovable property and third-party guarantee should be equal to the amount of educational loan granted to the student. The security can be in the form of building, land, public sector bonds, government securities, life insurance policies, NSCs, KVPs, gold, shares, MF units etc. in the name of the student, parents, guardian or any other third party signing as guarantor. In case, the land or building has already been mortgaged, then the unencumbered part can be provided as security on a second charge basis, considering the fact that it covers the loan amount. The spouse or parents-in-law can be co-obligators in case of a married individual.
- City Union Bank educational loan has nil margin for borrowers when the loan amount is up to Rs.4 lakh.
- For a loan amount above Rs.4 lakh, 5% of the loan amount is to be paid by the borrower for studying in India and 15% for studies in foreign countries. Any scholarship or assistantship can be also included in the margin set by the bank. When disbursements happen on a pro-rata basis, the margin can be introduced in a year to year basis.
Quantum of Finance:
The loan amount provided by City Union Bank depends on the repayment capacity of the student, parents or the guardian.
- For pursuing studies in India, a loan amount of maximum Rs.10 lakh can be provided by the bank
- A maximum of Rs.20 lakh can be provided by the bank for studying abroad.
- 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.
- 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.
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.
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.
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.
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.
Are there any processing fees?
No processing fee is charged by City Union Bank for borrower students studying in India. However, 0.20% processing fee is charged for pursuing courses in foreign countries.