CUB Vidyavani - City Union Bank Education Loan Scheme

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City Union Bank Education Loan Scheme - CUB Vidyavani, 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.

Eligibility :

Student

To be eligible for educational loan, the candidate

Should be an Indian Resident
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 age of the student

Courses

a) For Study in India

Graduation courses – B.Sc, B.A, B.Com etc
post graduation courses- Masters & Ph.D
Professional courses – Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer etc
Computer certificate courses of reputed institutes accredited to Dept. of electronics or Institutes affiliated to University
Courses like ICWA, CA, CFA etc
courses conducted by IIM, IIT, IISc, XLRI, NIFT etc
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
courses offered in India by reputed foreign universities
evening courses of approved institutes
Other courses leading to diploma / degree etc., conducted by colleges / universities approved by UGC / Govt. / AICTE / AIBMS / ICMR etc

b) Studies abroad:

Graduation : For job oriented professional / technical courses offered by reputed universities
Post-Graduation - MCA, MBA, MS, PhD etc.
Courses conducted by CIMA-London, CPA in USA etc

Loan Details

Coverage of expenses

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/Building (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 expense required to complete the course like study tours, project work, theses, etc.
For purchase of computer / laptop of uniforms
Insurance premium for student borrower

Quantum :

Need based finance subject to the repayment capacity of parents/students subject to a maximum of -

Rs.10.00 Lakhs for studies in India
Rs.20.00 Lakhs for studying 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 :

Upto 4 lakhs – Nil
Above Rs. 4.00 lakhs

For Studies in India - 15%
For Studies abroad - 20%

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

Security :

Up to Rs 4.00 lakhs : Parents / Guardian should join the execution of documents. Security need not be insisted uponAbove 4.00 lakhs and upto Rs 7.50 lakhs
Above Rs.4.00 lakhs and Upto Rs.7.50 lakhs:
1. Co-obligation of parents / guardian together with collateral security in the form of suitable third party guarantee. If we are satisfied about the net worth of the parents/means of parents /guardian, we may waive the condition of obtaining third party guarantee
2. However if the party offers security of immovable property and or guarantee from third party on a voluntary basis, it may be accepted for the loans upto Rs.7.50 lakhs
Above Rs.7.50 lakhs
1. Third party guarantee and immovable security equal to 100% of the loan amount.
2. Assignment of future income of the student for payment of instalments
3. The document should be executed by both the student / and the parent / guardian.
4. The security can be in the form of land / building / Govt. securities / Public Sector Bonds / NSCs / KVPs / LIC Policies, Gold, shares / MF units / debentures, bank deposits in the name of the student/parent/guardian or any other third party. If land/bldg is already mortgaged, the unencumbered portion can be taken as security on second charge basis, provided it covers the loan amount.
5. In case of married person, coobligator can be either spouse or parent/parent-in-law
6. In case the loan is given for purchase of computers, the same is to be hypothecated to the bank.

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.

Rate of Interest

For interest rate check out this link, CUB Interest Rate

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.

Other Conditions:

In case student/parents approach for educational loan after having completed one/two semesters/years, such loans based on future expenses can be considered, provided the student has cleared all the papers in the previous exams.
- If any of the loans of the borrower/co-obligant / guarantor is in default, no loan will be entertained under this scheme till account/s become regular.

1.Life of student should be insured.
2.Life insurance policy should be assigned in favour of the bank.
3) 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.
4) Loan applications have to be disposed of within a period of 15 days to one month

General :

- If the fees have already been paid to the college on account of urgency/payment before the stipulated date by borrowing from the friends/relatives/outsiders/institutions by availing loans, the bank may consider the loan under the scheme for payment of such dues provided sufficient material proof is provided for payment of such fees and also for availment of loans from friends/relatives/outsiders. In such case, the payment should be made direct to the persons from whom borrowed and receipts should be obtained and kept on record.
- If the college/institution indicates arrears of fees for the previous year (not yet paid by the student) it may also be considered for finance.
- If the student has paid fees for certain semester/s and seeks loan for subsequent semesters, the fees paid for earlier semester may be taken as margin and full (100%) fees may be advanced for subsequent semester/ years, provided original receipts for earlier years are provided to the bank for verification and Xerox copies thereof have to be obtained for our records.

Contact Details

Administrative Office:

City Union Bank Ltd.,
"Narayana" No.24 B, Gandhi Nagar,
Kumbakonam-612001
Phone : 0435-2432322, 2431622
Fax : 0435-2431746
E-mail : Contact Now
Website : visit

Click here for the nearest bank branches

Note : Since the rules, regulations, eligibility conditions, repayments and interests rates etc. are revised by the banks from time to time in keeping pace with the changing capital market conditions, students and parents are advised to thoroughly check the terms and conditions of educational loan scheme on offer at the time of application.

Tags

Study Abroad Loan , Professional Education Loan

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