.:: City Union Bank ::.

City Union Bank: Cub-Vidyavani (Educational Loan)

Objectives:
The Educational Loan Scheme aims to provide financial support to deserving/meritorious students for pursuing higher education in India and abroad. The Scheme also aims to provide financial assistance to the needy poor to undertake basic education.

Eligible Courses of Study in India:

1. Graduation courses – B.Sc, B.A, B.Com etc
2. Post graduation courses- Masters & Ph.D
3. Professional courses – Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer etc
4. Computer certificate courses of reputed institutes accredited to Dept. of electronics or Institutes affiliated to University
5. Courses like ICWA, CA, CFA etc
6. Courses conducted by IIM, IIT, IISc, XLRI, NIFT etc
7. Regular degree/diploma courses like aeronautical, pilot training, shipping etc approved by Director general of Civil Aviation / shipping, if the course is pursed in India. In case the course is perused abroad, the institute should be recognized by the competent local aviation/shipping authority
8. Courses offered in India by reputed foreign universities
9. evening courses of approved institutes
10. Other courses leading to diploma / degree etc., conducted by colleges / universities approved by UGC / Govt. / AICTE / AIBMS / ICMR etc

Student Eligibility:

1. Should be an Indian Resident.
2. Secured admission to Professional/Technical courses through Entrance Test/Selection Process and should produce proof.
3. Secured admission to Foreign University / Institutions and should produce proof.
4. No specific age restriction with regard to age of the student to be eligible for educational loan

Purpose of the Loan:

For payment of College / School/ Hostel Fees.
For payment of Examination / Library / Laboratory Fees.
For purchase of books/equipments/instruments.
For payment of Caution Deposits (caution deposit not to exceed 10% of total tuition fees for the entire course)
For making Travel Expenses / Passage Money for studies abroad.
For purchasing inputs essential for completion of the course.
Any other expenses required to complete the course like study tours, project work, thesis, etc.

1. for purchase of computer / laptop of uniforms

Insurance premium for student borrower

Quantum of Finance:

Need based finance subject to the repayment capacity of parents/guardian subject to
Max. upto Rs.20.00 Lakhs for studies abroad.

Scale if Finance:

Based on the demand received from the college / Institutions, keeping the required margin. The disbursement towards fees etc to college / purchase of equipments should be direct to the College / Institution / supplier

Margin Suggested: Upto 4 lakhs – Nil

Above Rs. 4.00 lakhs
Studies abroad – 15 %
1. Scholarship / Assistantship to be included in Margin.
2. Margin may be brought in on a year to year basis as and when disbursements are made on a pro-rata basis.

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.

Processing Fees:

No processing fees / upfront charges may be collected for studies in India. For studies abroad, processing fee @ 0.20% should be collected

Capability Certificate:

The bank can also issue the Capability Certificate for students going abroad for higher studies after obtaining the relevant supporting documents from the applicant.

Other Conditions:

Life of student should be insured for the loan value
Life insurance policy should be assigned in favour of the bank.
No Due certificate need not be insisted upon as a precondition for considering educational loan. However, branches may obtain a declaration / an affidavit confirming that no loans are availed from other banks.
Loan applications have to be disposed of within a period of 15 days to one month

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