Union Education loan scheme

[sharmila banu.m]

Name of the Scheme: Union Education loan scheme

Eligibility:

High school graduate, college graduate / postgraduate. For job oriented courses: MBA, MCA, MS etc.

Courses eligibility:

School education including +2 stage, professional courses, management courses etc.

Studies abroad: Job oriented professional/technical courses, post graduation: MCA. MBA, MS etc.

Courses conducted by: CIMA London, CAP USA etc.

Amount:

Rs 7.5 lakhs for studies in India and Rs, 15 lakhs for studies abroad.

Purpose:

For poor and needy students to undertake higher professional/ technical education.

Margin:

No margin may be insisted upon for loan up to Rs 4.00 lakhs. However, for loans of higher amounts, the margin requirement may be 5% for inland studies and 15% for studies abroad

Scholarship/assistance to be included in margin

Margin may be brought in on year-to-year basis as and when disbursements are made on a pro-rata basis.

Security:

No collateral security will be insisted upon for loans up to Rs 4.00 lakhs. However, for loans above this amount, collateral security of suitable value or co-obligation of parents/guardians/third party along with the assignment of future income of the student for payment of installments is required. An LIC Policy/Convertible Whole Life Assurance Policy for a sum not less than loan amount be taken out in the name of the student and got assigned in Bank's favour.

Interest rate:

Up to Rs 4 lakhs - PLR
Above Rs 4 lakhs - PLR + 1%
Simple interest will be calculated during Repayment holiday / Moratorium period

Repayment:

Repayment holiday/moratorium: course period +1 year or 6months after getting a job. Loan repayment to be completed within 5-7 years after commencement of repayment.

For more details: http://www.unionbankofindia.co.in