.:: 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 Studies abroad: 

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

Student Eligibility: 

1) Should be an Indian Resident. v 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: 

1) For payment of College / School/ Hostel Fees.
2) For payment of Examination / Library / Laboratory Fees.
3) For purchase of books/equipments/instruments.
4) For payment of Caution Deposits (caution deposit not to exceed 10% of total tuition fees for the entire course) 5) For making Travel Expenses / Passage Money for studies abroad.
6) For purchasing inputs essential for completion of the course.
7) Any other expenses required to complete the course like study tours, project work, thesis, etc.
8) for purchase of computer / laptop of uniforms
10) 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.

Securities Suggested: 

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:

• 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
• 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

• Third party guarantee and immovable security equal to 100% of the loan amount.
• Assignment of future income of the student for payment of instalments
• The document should be executed by both the student / and the parent / guardian.
• 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. In case of married person, coobligator can be either spouse or parent/parent-in-law
• In case the loan is given for purchase of computers, the same is to be hypothecated to the bank.

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: 

1) Life of student should be insured for the loan value
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

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