City Union Bank Indian and Foreign Education Loan – City Union Bank is an Indian bank. The Kumbakonam Bank Limited, as it was at first called, was merged as a limited company on 31 October 1904. The bank originally favored the role of a regional bank in the Thanjavur District Tamil Nadu. City Union Bank has 426 computerized branches in India.
City Union Bank Vidyavani Education Loan System supports commendable and eligible students by facilitating them monetarily to seek higher education in India and foreign countries. This education loan scheme also aids the poor and needy students to avail basic education.
Features and benefits
Purpose of the loan:
Educational loan is a fictional selection for students who are commendable and want to seek higher education in India and abroad. Not only can the candidates’ reimbursement their school, college and hostel fees easily, but also they can recompense their library, examination and laboratory charges. City Union Bank loan aids students to buy books, instruments and other equipment required during their course of study. The loan amount can be used to pay the caution deposit, but it should not be more than 10 percent of the total tuition fees for the whole course. Students can use the loan amount for travelling, study tours; project works etc., and can also pay their insurance premium, if any.
City Union Bank Education loan interest rate for studies in India and abroad
|Up to Rs. 4 lakh||Above Rs. 4 lakh|
For studying in India, students do not need to recompense any upfront fees or processing charges. However, students need to remuneration 0.20 percent processing fee for studying in foreign countries.
- 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 entitled.
- Degree of Diploma courses like pilot training, shipping etc. sanctioned by the Director General of Civil Aviation or Shipping Company.
- Specific evening courses sanctioned by different documented institutions.
- Courses sanctioned by AICTE, UGC, ICMR, AIBMS etc.
- Job oriented technical and professional graduation courses accessible by several well-known universities.
- Post-Graduation courses like MCA, MBA, MS and PhD etc.
- Different courses conducted by CPA, CIMA-London etc.
- The student or candidate should be a resident of India.
- The student or candidate should produce proof of secured admission through entrance examination or selection. Examination conducted by the respective university.
- The educational loan does not depend on the age of the student or candidate.
The students and their parents can reimburse the interest amount on loan during the holiday period. In case the students or their parents don’t choice this option, the payable interest amount will be added to the principal loan amount and recompensed as once-a-month payments. At the commencement 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.
|Up to Rs. 4 lakh||Parents and guardians will be co-obligates when the student applies for the education mortgage.|
|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 procurement third party guarantee if it feels that the parents or the guardian is capable of reimbursing the loan amount without a need for security.|
|Above Rs. 7.50 lakh||Security of fixed 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 restrictions for borrowers when the loan amount is up to Rs. 4 lakh. For a loan amount above Rs. 4 lakh, 5 percent of the loan amount is to be remunerated by the borrower for studying in India and 15 percent for studies in foreign countries. Any scholarship or assistantship can be also included in the margin set by the bank. When payments 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 reimbursement capacity of the student, parents or the guardian. For seeking studies in India, a loan amount of maximum Rs 10 lakhs can be provided by the bank and a maximum of Rs. 20 lakhs can be provided by the bank for studying in abroad.
Education Loan Interest Rates
With more and more Indians selecting to seek their education in abroad, borrowing institutions are anxious on providing the best possible funding choices to suit every student’s needs. Funding higher education in a foreign country is generally an enormous task for any middle-tier family in India. Along with regular tuition fees, families also have to tolerate boarding and lodging costs, books, travel and other related expenditures for the student. Demonstrating to be a rescuer in this case, is an education loan which is usually given out by banks at attractive interest rates to finance higher studies in reputed institutions abroad. Education loans normally cover a massive number of expenditures comprehensive of fees, equipment, books, hostel fees, travel, examination fees, etc., for students. Education loans also cover studies in India as well, with learners choosing for either graduation or post-graduation courses. Generally, education loans are accessible in specific slabs: a) Below Rs. 4 lakhs, b) Between Rs. 4 lakhs and Rs. 7.5 lakhs and c) Above Rs. 7.5 lakhs.