UCO Bank — Education Loans (India)

1. Bank Overview

UCO Bank is a mid-sized public sector bank headquartered in Kolkata, operating over 3,300 branches across India. It has a strong presence particularly in eastern states and offers significant government-backed services and support.

2. Key Education Loan Schemes & Coverage

A. Standard Education Loan

• Loan caps:

  • Up to ₹7.5 lakh: No collateral (with 2% margin over float = ~11.25%)
  • Above ₹7.5 lakh: Collateral required; floating +2.65% ≈ 11.65%
• Collateral threshold: Up to ₹7.5 lakh unsecured; beyond that, tangible collateral required

B. Utkash Loan Scheme (Premier Institutions)

• Tailored for students admitted to tiered premier institutes (List A, B, C).

• Loan caps (no collateral for certain limits):

  • List A: up to ₹40 lakh with NIL margin; above → 15% margin
  • List B: ₹30 lakh; List C: ₹10 lakh

• Interest rates (based on collateral availability):

  • Nil collateral: float −0.15% (~8.65%)
  • Full collateral: float −0.45% (~8.35%)
  • Partial collateral: float −0.25% (~8.55%)
• No processing or documentation charges.
• Tenure: up to 15 years; moratorium: course duration + 1 year.

C. Udaan Scheme (Meritorious Female Students)

• Offers preferential terms for admitted female students to premier institutes.
• Loan caps and margins mirror Utkarsh.

• Interest rates:

  • Nil collateral: ~7.90%
  • Full collateral: ~7.50%
  • Partial collateral: ~7.70%

D. Aspire 2.0 Scheme

• Aimed at technical, medical, and job-oriented courses both in India (₹10–75 lakh) and overseas (₹20–75 lakh).
• Requires collateral (typically 125%), with ~10% margin.
• Interest: float −0.25% to +0.50%, depending on institution ranking
• Processing fee: 0.50% of loan (max ₹10,000 + GST).
• Tenure: 15 years; moratorium: course + 1 year.

3. Interest Rates Summary

4. Moratorium, Tenure & Repayment

• Moratorium period: Course duration + 1 year (interest charged at simple rate during this period; borrower may choose to service it or have it added to principal).
• Repayment tenure: Up to 15 years (180 EMI installments).
• Prepayment: Allowed; typically no penalty.

5. Processing & Documentation

• Processing/documentation fees: Generally nil, except for Aspire 2.0.
• Disbursement: Direct to institutions, in alignment with fee schedule.

6. Summary Table