City Union Bank Education Loan

The City Union Bank was incorporated as a private limited company on 31st October 1904, as a regional bank and later expanded all over India.

They offer education loans to students to pursue studies in India or abroad through its Vidyavani Scheme. Analyse carefully and choose the type of education loan you want to go through. 

• Vidyavani Scheme for Abroad Studies
• Vidyavani Scheme to Study in India

In this article we will explain you each and every details or requirements related to your education loan such as their eligibility criteria, loan amounts, expenses covered, margin, insurance coverage, repayment, processing fee, and interest rate concession.

If you are facing any complication to understand the terms, you can just ask the queries in the comment box at bottom of this article. Moreover, if you want to process your education loan or stuck in the process midway, you can just get in touch with our support team by calling on the no. 9393344424. 

The Bank has come up with the Vidyavani Scheme for Abroad studies. Under this scheme, students can take a loan of up to Rs 20 lacs to study in different countries like Australia, Canada, the UK, the USA, etc.

Eligible courses to study abroad

• Undergraduate programs of STEM coures are eligible
• Post-graduation courses such as MCA, MS, and MBA 
• Professional courses conducted by CIMA-London and CPA- USA

Tip: If the student has already paid fees for the university, he can request his financial officer from WeMakeScholars to talk to the bank employee about considering it in the loan amount and getting a reimbursement

The bank has launched the Vidyavani Scheme to support students studying in India. The scheme provides loans of up to 10 lakhs. 

Here are the other details of the Vidyavani scheme to study in India

Eligible courses to study in India

• Career advancement professional, technical, medical, judiciary courses offered by reputed universities 
• Undergraduate programs, including B.Sc, B.A, and B.Com, among others
• Postgraduate programs,including M.Sc, M.A, M.Com, M.S, or Ph.D.
• Courses like ICWA, CA, CFA, etc. are eligible 
• Diploma and degree courses such as pilot training, shipping, and aeronautical which have been recognized by regulatory bodies in India and abroad (like AICTE, UGC, ICMR, AIBMS, etc.) for employment purposes in India.

*In some cases, a student might have already paid the fees to the university by asking his/her relative or a friend. If you want to include that amount in the fee, ask your financial officer from WeMakeScholars to talk to the lender, for reimbursement of the amount paid from your pocket, from your loan account*

City Union Bank offers education loan scheme designed to ease the financial burden of pursuing higher education. Here are the key benefits and features of their education loan:

• Flexible Payment Options: Students can choose to pay interest during the moratorium period, offering financial flexibility.
• No Upfront Contribution: Loans below 4 lakhs require no margin, making them accessible to all.
• Pre-Admission Approval: Get loan approval before admission, simplifying the enrollment process.
• Competitive Interest Rates: Enjoy attractive interest rates for affordable repayment.
• Minimal Upfront Payment: Low loan margin ensures minimal initial financial burden.
• Concession for Girls: Female students receive a 0.50% interest rate concession, promoting gender equality in education.

The bank does not charge a processing fee for study in-India loans. However, there is a processing fee of 0.20% on the whole loan amount for a study abroad.

Speak to your financial officer from WeMakeScholars who will calculate and clearly tell you the amount you will be charged in your loan as a processing fee. We at WeMakeScholars do not charge any processing fee/service charge to process your education loan. However, banks insist on charging a processing fee, which you will need to pay directly to the bank.

One crucial step in getting your education loan is dealing with the necessary paperwork. We've put together a comprehensive list of documents required to secure an education loan from any bank. Take a look for a clearer understanding. Additionally, I'll outline some essential documents needed by City Union Bank if you plan to study abroad as well as in India.

1. Completed Application Form provided by the bank or you can ask from our financial officer by requesting a callback.
2. Admission Confirmation: Proof of admission from your chosen Institute.
3. Identification Copies: Provide copies of Passport, Voter ID, Driving Licence, or PAN Card.
4. Passport Photos: Two recent passport-size photographs of the applicant, co-applicant, and guarantor.
5. Educational Records: Present the mark sheet of your latest qualified examination and result of the entrance exam through which admission is being taken (e.g. CAT, GRE, GMAT, TOEFL, IELTS, etc.)
6. Financial Records:
   
   1. Income Proof: Furnish the income proof of parents/guardians, supported by the last 2 years' income tax statements.
   2. Financial Statements: Provide six months' bank statements or recent salary slips.
7. Course Expenses Plan: Detailed breakdown outlining your anticipated course expenses.
8. Current Financial Obligations: Disclose details regarding existing loans and any scholarships received.
9. Institute Prospectus: Include a copy of the institute's prospectus to estimate costs effectively.

*The collateral documents are required for a collateralized loan and hence provide them only if you are going for a collateral loan. The collateral list of documents varies from state to state. Hence ask your financial officer to provide an accurate list of documents according to the state you are applying from.*

You can also refer to statewise requirements and documents for a collateralized loan.

• Hyderabad
• Andhra Pradesh
• Mumbai
• Karnataka
• Tamil Nadu
• West Bengal
• Delhi
• Gujarat
• Pune
• Jaipur
• Kerala
• Goa
• MP and Chattisgarh
• Amritsar
• Jharkhand

Residential Property: Residential properties such as apartments, houses, or plots can be used as collateral. The property should have clear titles and be free from any legal disputes.
Commercial Property: Commercial properties can also serve as collateral for education loans. Similar to residential properties, clear ownership, and legal compliance are essential.
Fixed Deposits: Fixed deposits (FDs) with banks can be pledged as collateral. The loan amount is typically a certain percentage or complete value of the FD.
Life Insurance Policies: Surrender value of life insurance can be used as collateral. The loan amount is usually a percentage of the policy value.
Government Bonds: Government bonds, such as National Savings Bonds or other government-backed securities/bonds, can serve as collateral for education loans.

 In case, you are facing any complexity understanding your collateral securities and how it will get valued, comment down your question.

Loan insurance is a kind of protection for your loan. It ensures that the loan is repaid even if you face an unforeseen incident like disability or sudden death. The bank charges 1%-2% of the loan amount for loan insurance. 

You do not need to worry about the charges of the loan insurance, as the same is usually adjusted in the sanctioned loan amount. Talk to your financial officer at WeMakeScholars to have a clear idea about loan insurance.

The banks usually do not provide the full amount that you ask for a student loan and have a dedicated loan margin percentage, which you need to arrange yourself.

Loan Margin for education loan:

However, if you are unable to fund 5% or 15% from your end, then you can talk to your financial officer at WeMakeScholars who will provide you with an alternative.

Check your loan eligibility and then follow the below steps to apply for an education loan from the Bank.

Offline

• Visit the bank with the list of documents that we have provided above as they generally won't have mobile banking facilities.
• Follow the bank employees' instructions at each step to complete your loan process.
• You may finally get a loan sanction after you comply with all the steps provided by the bank

Online method:

• Request a callback from WeMakeScholars
• A financial officer from WeMakeScholars will get in touch with you and will check your eligibility for an education loan.
• He/she will then connect you to suitable lenders and will provide you education loan online Loan application which you will need to fill
• The next process will be taken care of by the lenders and in case of any doubt talk to your financial officer about it
• You will get your loan sanctioned in the stipulated time by your financial officer.

Here are some of the disadvantages of going directly through banks,

• Inaccurate information regarding the process
• Having to pay multiple visits to the bank to know the list of all the documents
• The process will be way longer than it should usually be
• The chances of getting a loan sanction are minimal
• A lot of hidden charges like the kind of interest rate

WeMakeScholars is an organization that comes under the Digital India campaign and is supported by the Ministry of IT, govt of India. We provide free-of-cost consultation like information about education loan tax benefits and other-related information. Online Banking services are provided to you from the comfort of your house.

1. Better Interest rates: WeMakeScholars is the largest partner of banks, and as such, banks offer cheaper interest rates if the loan application is made through us. The interest rates offered by WeMakeScholars are 0.5% to 2% less than those offered by banks generally.
2. Fastest processing time: After receiving the required paperwork from you, we maintain an average sanction timeframe of 21 working days for government banks and 7 working days for private banks and NBFCs. It takes half as long as when you go directly to the banks.
3. End-to-end support: The WeMakeScholars team assists you not only with loan approval but also with disbursement and repayment, even if you are in a timezone that is 12 hours apart.
4. Tax benefits: Government of India provides tax benefits for education loans which many students and parents are unaware of if they are not going through WeMakeScholars.
5. Cashback offered: You win a cashback of up to ₹3000 after you go through us.

All you will need to do to avail of these benefits is request a callback and our financial officer will get back to you in no time with a list of the best student loan offers for you!

Stuck with a bank that is not providing services according to your expectations? You can always transfer your loan to a much better bank

Follow the below steps.

• Request a callback from us i.e WeMakeScholars and collect the information on the outstanding amount from your current loan
• Our financial officer will get back to you. Tell him/her that you wish to transfer your education loan.
• Submit the documents to the bank that are requested by your financial officer. The bank will clear off your dues with the previous bank and start the loan process with them

Let us, with an example, learn how the EMI of an education loan is calculated using the WeMakeScholars EMI calculator.

Let’s say you have taken loan of 20 lacs at an 11% interest rate with 10 years as a repayment duration after your moratorium period of 30 months. 

Here’s how much you will have to pay monthly!

The above EMI calculator takes in account the below factors to calculate your EMI.

• Moratorium period
• Rate of Interest
• Repayment duration
• Compound and Simple interest
• Semester-wise breakdown
• Grace period

Do not panic about EMI calculation as you can also do it by yourself as well, just check WeMakeScholars EMI calculator. We have designed our EMI calculator just focusing on education loan. There you can select your loan amount, interest rate, moratorium period, course duration, etc. So that you can get exact EMI as per your requirement. 

The students have the option to repay the interest amount in the moratorium period for the education loan. If interest is not repaid in the moratorium period, it will be added to monthly EMIs and can slowly be repaid until the tenure ends.

The student also has the option to pay off the loan even before the tenure of his/her loan ends. Below are some of the ways to close off the loan early.

• Prepayment of your loan amount ( there is no charge for prepayment )
• Choosing a shorter duration to repay the amount
• Loan transfer to another bank

The repayment can be harder for students as they may face issues like a sudden increase in the interest rate. That is where WeMakeScholars comes to your rescue. We at WeMakeScholars help students in dealing with such issues.

The government has started specific schemes to promote education among the backward classes like the economically weaker sections of society or the people belonging to backward castes.

Dr. Ambedkar Central sector scheme

The scheme is for students belonging to OBC and EBC and provides interest subsidies for overseas studies.

Padho Pardesh scheme

The Padho Pardesh scheme is for minority students(Muslims, Christians, Sikhs, Buddhists, Jains, and Zoroastrians) whose family income is less than 6 lacs per annum. It provides interest subsidies for overseas educational studies.

Note: The Padho Pardesh scheme is discontinued but the existing beneficiaries as of 31st of March will continue to receive interest subsidies.

Central Scheme for Interest Subsidy for Economically Weaker Sections

The Scheme aims to help students from Economically weaker sections of society whose family income is less than 4.5 lacs per annum. The subsidy is provided for the moratorium period which is course duration plus 12 months or 6 months after getting a job, whichever is earlier.