Education Loan

UCO Bank Education Loan For Abroad

UCO Bank Education Loan For Abroad

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Get the details of the UCO Bank education loan for studies in India & abroad. Know the interest rate, eligibility criteria, margin money, repayment tenure, and more.

GyanDhan
Rohit Gidwani
Updated on:  25 Oct 2023  | Reviewed By: 
Aman 
| 6.84K | 6  min read

Did you know that over the last 10 years, there has been a threefold increase in the number of students obtaining education loans for studying abroad from public sector banks? Similarly, the sanctioned loan amounts have also witnessed a sixfold rise during this period, with a total amount of about 7,500 Cr INR. UCO Bank has also been one of the public banks that contributed to this growth. For the fiscal year 2021-2022, UCO Bank sanctioned about 43 Cr INR, making it a considerable choice for obtaining a secured education loan. Let’s have a look at different aspects of UCO Bank and explore what makes it a good choice.

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Overview of UCO Bank

Established in the year 1943, UCO Bank is a commercial bank that operates as a government entity under the jurisdiction of the Government of India. Its Board of Directors is composed of government officials representing the Government of India and the Reserve Bank of India. UCO Bank recorded an impressive 110% growth in net profit during the third quarter of FY23, reaching 653 Crore INR, compared to 310 Crore INR in the same period last year.
 

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Eligibility criteria for UCO Bank

Here are the eligibility requirements that you must meet to qualify for an overseas education loan from UCO Bank. While applying, additional specific criteria may also be presented by the bank. The general prerequisites include:

  • list items You must be an Indian student aged 18 years or older.
  • list items You should have a strong academic track record.
  • list items The Institute/University must be ranked in World's top 150 universities as per (www.webometrics.info) on the date of application to get a loan of up to 30 Lakh INR as per UCO Premier Education Loan Scheme otherwise you will get a maximum of 20 Lakh INR as per normal education loan scheme.
  • list items Successful completion of essential exams like IELTS, TOEFL, GRE, or GMAT is mandatory.
  • list items Admission to a well-regarded international university is necessary.
  • list items Eligible programs include full-time undergraduate/postgraduate courses, PG diploma programs, and more.
  • list items The universities you choose should be among the top 1,000 ranked institutions.
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Expenses covered under abroad education loan by UCO Bank

The various expenditures that will be included when obtaining an overseas education loan from UCO Bank encompass:

  • list items Tuition fees
  • list items Accommodation fees
  • list items Travel costs
  • list items Living expenses
  • list items Procurement of educational materials such as books and laptops, among others.
  • list items Registration or subscription fees for facilities like libraries and laboratories, and similar expenses.
  • list items Any additional charges or outlays, including security deposits, healthcare expenses, or other essential items.
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Features of abroad education loan by UCO Bank

UCO Bank, much like other public sector banks, is a preferred choice when individuals require a secured education loan, which involves collateral. The primary reason for this preference is that opting for a secured education loan from UCO Bank offers several advantages, including higher approved loan amounts, lower interest rates, and various other benefits. Here are the details of UCO Bank's abroad education loan:

Feature  Detail

Loan Amount

Up to 20 Lakh INR (Education Loan Scheme)

Up to 30 Lakh INR (UCO Premier Loan Scheme)

Interest rate type

Floating

Interest rate

  • list items Starts at 11.70% for education loan scheme
  • list items Starts at 10.85% for UCO premier loan scheme

Collateral requirement

For Education Loan Scheme:

  • list items Below 7.5 Lakh INR - Co-obligation of parents required
  • list items Above 7.5 Lakh INR - Collateral matching the loan amount value required

 

For UCO Premier Loan Scheme:

  • list items Upto 15 Lakh INR - Co-obligation of parents required.
  • list items Above 15 Lakh INR - Collateral matching the loan amount value required.

Loan Tenure

Up to 15 years

Moratorium period 

Course + 1 year

Processing fee

Nil

Tax Benefit

Yes

Prepayment penalty

No

Margin Money

15% (Education Loan Scheme)

5 % (UCO Premier Loan Scheme)

Insurance

Group Life Insurance Cover Scheme 


*Interest Rate as of September 2023

 


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Required documents for UCO Bank abroad education loan

The different documents that will be required in order to apply for an abroad education loan via UCO Bank are - 

  • list items Address proof: passport, voter ID, electricity bill, etc.
  • list items Academic record: 10th/12th mark sheet for undergrad students and graduation degree & mark sheet for PG students.
  • list items Age proof
  • list items Community certificate
  • list items Family income proof: ITR, salary certificate, pension certificate of parent/guardian.
  • list items Admission certificate or I20 from the college/university
  • list items Tuition Fee details
  • list items Collateral documents (if applicable): LIC policy, valuation certificate, registry documents, etc.
 
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How to apply for UCO Bank abroad education loan?

The application process for a UCO Bank abroad education loan is easy. You can initiate the loan application by either personally visiting a branch or filling out an online application form, and then following the subsequent steps given below - 

  • list items Visit the official website of UCO Bank. 
  • list items On the home page, you can see several options on the left-hand side. Choose the ‘Borrow’ option for it. 
  • list items A new menu will appear in which you need to select the education loan option. 
  • list items A new webpage will open in which you will be able to find several education loan schemes and their details. Choose the scheme as per your requirements and click the ‘Apply Now’ option.
  • list items An application form will open, fill in the required details, and attach the required documents. Once all of this is done your application can be successfully submitted to the bank.   


Selecting the ideal lender requires thoughtful consideration of various aspects to align with your specific needs. While public sector banks are a better choice for secured education loans, options like SBI and UBI also provide competitive terms. Therefore, it's crucial to analyze factors such as interest rates, loan amounts, eligibility criteria, margin money, processing charges, and more before making a final decision on a lender. We acknowledge that evaluating all these aspects can be a difficult task, which is why GyanDhan is available to help you identify the most suitable lender tailored to your requirements. All you need to do is check your eligibility, and you can easily secure your overseas education loan through UCO Bank.

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Frequently asked questions

What is the maximum amount of loan that I can get from UCO Bank?

You can get up to 30 Lakh INR in case your target university comes under the World's top 150 universities as per this website www.webometrics.info. Apart from it in case your target university is not on the list then you can get up to 20 Lakh INR. 

Is UCO Bank a government or private bank?

UCO Bank is a commercial bank that operates as a government entity under the jurisdiction of the Government of India.

At what locations in India can I avail UCO Bank education loan?

Students can apply for a UCO Bank education loan at any branch in or near his/her place of domicile.

How much time does it take to get my loan approved from the UCO Bank?

You can get your loan approved via UCO Bank in about 15-20 working days once all the documents have been submitted to the bank officials. 

How much interest rate is charged by the UCO Bank for abroad education loans?

The interest rate for the UCO Bank can range between 10.85% - 12.10%. The interest rate that you can get depends on the application profile, eligible scheme, targeted university/college, country, and more.

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