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.
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.
Rs.10 lakh for courses in India
Upto Rs. 4 lakh:-
Above Rs. 4 lakh:-
Male student- 14.50%
The students and their parents can repay the interest amount on loan during the holiday period. In case the students or their parents don’t 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.
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 percent of the loan amount is to be paid by the borrower for studying in India and 15 percent for studied 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.
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 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.