City Union Bank Education Loan: Application, Eligibility, Interest Rate, Documents & Much More.

CUB Edcation Loan
CUB Edcation Loan

The City Union Bank is an Indian bank and was first called The Kumbakonam Bank Limited, incorporated as a limited company on 31 October 1904. The bank initially preferred the role of a regional bank in the Thanjavur district of Tamil Nadu. If you want Education Loan to pursue higher studies from Abroad or India, You are at the right place to collect every aspect of information related to Education Loan in India.

City Union Bank Logo

Read this full post on City Union Bank Education Loan for information Like Eligibility, How to apply, Interest Rates, Documents Needed, Different aspects of Education Loan, Interest Rates, Return Policy, General Instructions etc. Throughout the article, we will share information regarding CUB Education Loan it’s Process to Apply and full detailed Information.


City Union Bank Education Loan


The major aim of the bank is to ensure anywhere and any time banking for the customer with the latest state-of-the-art technology. The Bank is very serious about its Education Loan Facility and by developing an effective customer-centric relationship it promises to emerge as a world-class education Loan provider. Before we share further, let us first have a brief review of the Bank.

Brief Review

Profile Description
Name of Bank  City Union Bank
Founded on 1904
Headquarter Kumbakonam, Thanjavur, Tamil Nadu
Type of Bank  Private Bank
Number of Employees 4,517 (2016)
CEO Name Dr N. Kamakodi
Maximum Loan Amount   Rs 20.0 Lacs
Timeline for Loan Disposal Maximum 15 Working days
Annual Revenue Δ 2,944.21 crore(US$410 million)
Processing Fees No processing fees/upfront charges may be collected for studies in India. For studies.
abroad, processing fee @ 0.20% should be collected
Other Subsidiaries
  • City Union Bank Ltd., Asset Management Arm
Category  Education Loan in India

Types of CUB Education Loan

S.no. Scheme Description
1. Vidyavani (Education Loan) 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.
one can avail the lone from Rs. 10 lacs for studies in India and Rs 20 lacs for studies abroad.

How to Apply

Online

Offline

  • Visit the nearest branch of City Union Bank to get offline Education Loan form.
  • You may also download the form from official web handle.
  • Submit the Application Form to Nearest Branch along with document needed.

Eligibility

  • The applicant should be an Indian national.
  • Secured admission to Professional/Technical courses through Entrance Test/Selection
    Process and should produce proof.
  • Secured admission to Foreign University / Institutions and should produce proof.
  • No specific age restriction with regard to the age of the student to be eligible for educational loan

Documents Needed

  • Mark sheet of last qualifying examination for school and graduate studies in India
  • Academic Records: 10th Result, 12th Result, Graduation result-semester Wise (if Possible) Entrance Exam Result through which admission is being taken
  • Proof of admission: Offer Letter or Admission Letter from the Institution.
  • Identity Proof
  • Residence Proof
  • Passport size photographs
  • Application form

Expenses Considered

  • Tuition and course fee
  • Examination, library and laboratory fees
  • For the purchase of books/ equipment/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.
  • For purchase of computer/laptop of uniforms
  • Insurance premium for student borrower

Return Policy and Repayment Period

  • In the case of CUB Education loan, repayment will start after the completion of course period + 1 year (or) 6 months after getting job whichever is earlier.
  • The loan to be repaid in 5  to  7 years after commencement.
  • The student/parents have the option to repay the interest during the holiday period.
  • If the student/parent does 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

CUB Education Loan EMI Calculator

EMI Calculator is used for calculating the periodic payment amount due on a loan. For calculating EMI one must input data like Amount, Interest Rate, tenure, Processing Fee etc.

  • If you want to calculate EMI for City Union Bank Education LoanClick Here

CUB Education Loan Security

  •  Up to Rs. 4 Lacs
    • Parents and guardians will be co-obligants when the student applies for the education loan
  •  Above Rs. 4 lacs and up to Rs.7.50 Lacs
    •Co-obligation of parents/guardian together with collateral security in the form of suitable third party guarantee.
  • Above Rs.7.50 lakhs
    •Third party guarantee and immovable security equal to 100% of the loan amount.

Contact Details

Head office  24b Gandhinagar Kumbakonam
Tamil Nadu, 612001
Official website www.cityunionbank.com
Apply for Loan  Click Here
Contact Number (0435) 2402322 2431622

 

City Union Bank Student Loans FAQs

We hope that the information furnished above will guide you to get the best educational loan for your studies. In case of any doubt regarding the loan procedure and other related terms, read our FAQ’s session.

Q1. Who can be my co-borrowers?

Ans. Your parents/guardian can be a co-borrower as well as the spouse in case of a married applicant. The co-borrower should have a steady source of income and a good credit history in order to improve the applicant’s chances of a successful loan application.

Q2. How long does it take to process Educational Loan?

Ans. Generally, the time taken for the education loan to process is somewhat between 7-10 working days. Often, the whole process can be easily completed within 3 to 5  Working days, once the student fulfils all documentation.

Q3. What all expenses will be covered by education loans?

Ans. Apart from the tuition fees, other aspects of expenses such as hostel charges, equipment purchases and other course-related expenses may also be covered by the education loan.

Q4. What are the courses for which an education loan can be availed?

Ans. An education loan can be availed for all courses recognized by the UGC in case of India and all regular courses abroad. Each lender has its own list of educational institutions and courses that they would provide a loan for whether overseas or within India.

Q5. Can a student avail another loan for further studies?

Ans. Yes, this is possible. You can borrow a loan for a bachelor’s degree followed by one for master’s without repaying the first loan. This loan can be taken as a top-up loan against the already existing loan; however, it is subject to the lending bank’s discretion and the internal rules and regulations of the lender.

Q6. Do education loans have any Income Tax benefits?

Ans. Loan borrowers can avail tax benefits on interest paid on education loan under Sec 80E of the Income Tax Act. This benefit is available over and above the Rs. 150,000 deduction allowed under Section 80C. Tax benefits can be availed once the borrower starts paying the interest on the education loan. Further, the deduction is available until the borrower pays off the full interest amount on the loan or for a maximum period of 8 years, whichever is earlier.

Q7. Why do banks require an insurance policy?

Ans. Banks usually prefer that students avail a life insurance policy equivalent to, or more than, the loan amount. The policy acts as a security feature and forms a part of the collateral. In case of the untimely demise of the borrower, the bank recovers the outstanding loan amount from the student’s life insurance policy and the remaining amount, if any, is paid out to the beneficiary of the policy.

Q8. Is any incentive available for a girl student applying for education loan?

Ans. Banks generally provide a 0.5% concession on the applicable education loan interest rate to girl students pursuing higher education in India and abroad.

Q9. Are there any special privileges for students of SC/ST category who avail education loans?

Ans. Yes, eligibility criteria and loan margins on education loan are relaxed for Scheduled Caste/Scheduled Tribe students availing education loans in India. The eligibility criteria are lowered from first/second class to pass class for SC/ST category students seeking education loan for graduate and postgraduate studies, while, margin money is sometimes lowered than the regular percentage or nil.

Q10. Where can I avail on a CUB education loan?
Ans. The loan is available from all branches in metro/urban areas as well as those having personal banking divisions.

 

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