Student Education loans in India

Here know the complete information about Student Education Loans offered by City Union Bank India.

City Union Bank

Studies in India

Eligibility for Education Loan
  • Must be an Indian National.
  • Secured admission to Professional/ Technical courses through Entrance Test/ Selection Process.
  • No specific age restriction
Eligible Courses for Education Loan
  • Graduation, Post-graduation including technical / professional courses from recognized universities.
  • Computer certificate courses from reputed institutes accredited to department of electronics of institutes affiliated to university.
  • Courses like ICWA, CA, CFA and courses conducted by IIM, IIT, IISc, XLRI, NIFT and courses approved by UGC / Govt. / AICTE / AIBMS / ICMR etc.
  • Regular degree/diploma courses like aeronautical, pilot training, shipping etc approved by Director general of Civil Aviation / shipping, if the course is pursued in India. In case the course is pursued abroad, the institute should be recognized by the competent local aviation/shipping authority
Expenses considered for Education Loan
  • Fee payable to college/school/hostel
  • Payment of course fees
  • Purchase of books/equipments/instruments/uniforms and computer/laptops
  • Examination/Library/Laboratory fee
  • Other expense that are required to complete the course - like study tours, project work, thesis, etc.
Quantum of Finance
Need based finance upto Rs. 10.00 lacs.
Margin
  • Upto Rs.4,00,000/- -- NIL
  • Above Rs.4,00,000/- -- 5%

Studies in Abroad

Eligibility
  • Must be an Indian National.
  • Must provide a valid passport and visa
Eligible Courses for Education Loan
  • Graduation : For job oriented professional / technical courses offered by reputed universities
  • Post-Graduation - MCA, MBA, MS, PhD etc.
  • Courses conducted by CIMA-London, CPA in USA etc.
Quantum of Finance
Need based up to a maximum of Rs. 20.00 lacs
Margin
  • Upto Rs.4,00,000/- -- NIL
  • Above Rs.4,00,000/- -- 15%

Common aspects for Indian and Abroad studies

Security
  • Upto Rs.4.00 lacs - NIL
Above Rs. 4.00 Lacs and up to Rs. 7.5 lacs:
  • 1. Co-obligation of parents / guardian together with collateral security in the form of suitable third party guarantee. If we are satisfied about the net worth of the parents/means of parents /guardian, we may waive the condition of obtaining third party guarantee 2. However if the party offers security of immovable property and or guarantee from third party on a voluntary basis, it may be accepted for the loans upto Rs.7.50 lakhs
Above Rs. 7.5 lacs :
  • Third party guarantee and immovable security equal to 100% of the loan amount.
  • Assignment of future income of the student for payment of instalments
  • The document should be executed by both the student / and the parent / guardian.
  • The security can be in the form of land / building / Govt. securities / Public Sector Bonds / NSCs / KVPs / LIC Policies, Gold, shares / MF units / debentures, bank deposits in the name of the student/parent/guardian or any other third party. If land/bldg is already mortgaged, the unencumbered portion can be taken as security on second charge basis, provided it covers the loan amount. In case of married person, coobligator can be either spouse or parent/parent-in-law
  • In case the loan is given for purchase of computers, the same is to be hypothecated to the bank.
Rate of Interest for Studies in India and in Abroad
  • Upto Rs.4.00 lacs - 13.75% for boys and 13.25% for girls
  • Above Rs.4.00 lacs - 14.50% for boys and 14.00% for girls
Repayment
  • The student/parents have the option to repay the interest during the holiday period.
  • If the student / parent do not opt for the same, the principal o/s together with interest payable should be clubbed and should be repaid in EMIs.
  • The EMI amount should be fixed at the time of commencement of repayment
  • The loan to be repaid in 5 - 7 years after commencement.
  • Holiday Period: Course period + 1 year (or) 6 months after getting job whichever is earlier.
For more details visit City Union Bank official website: cityunionbank.com

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