City Union Bank Abroad Education Loan
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Table of content
- City Union bank products for Abroad Education Loan
- Benefits of City Union Bank Abroad Education Loan
- City Union Bank Abroad Education Loan Processing Fees and Repayment Policies
- City Union Bank Abroad Education Loan security and Loan Margin
- Documents required to get an Abroad education loan from City Union Bank
- How to Apply for a City Union Bank Abroad Education Loan?
- Why go through WeMakeScholars and not directly to banks?
- Need Help? Ask Here!
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The City Union bank has the Vidyavani education loan scheme to support meritorious and deserving students in pursuing higher education abroad. The scheme provides students with loans at attractive interest rates starting from 11% per annum with the repayment duration of 5-7 years. In this article we will explain you each and every details or requirements related to your education loan for abraod studies 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.
City Union bank products for Abroad Education Loan
The Vidyavani education loan scheme provides up to 20 lacs of loans for deserving and meritorious students.
Higher amount can be offered based on students profile
Fees payable to college/school/hostel, examination/library fees, purchase of books/equipment/instruments, purchase of computer/laptop, etc
Parents, parents in law, sibling, spouse
Education loan interest rate
For collateral loans- 11%-14%
For Non-collateral loans- 14%-18%
(NOTE- To check the latest and detailed interest rate of City Union Bank click here)
Course Duration+1 year or 6 months after job (whichever is earlier)
Can opt to pay interest rate in the moratorium period
Value of Collateral (only if it is a collateralized education loan)
The collateral value of up to 100% of the loan amount
- The bank also provides ease of fee reimbursement. If the student has already paid fees to the university, he can request his financial officer from WeMakeScholars to talk to the bank about including the already paid fee in the loan account.
- There are different types of education loans based on your place of study or on the collateral. Hence, carefully go through different types to select the best one for you.
Countries Eligible for an Education Loan from City Union Bank
Students can apply for an education loan for the following countries
Courses Eligibile for Abroad Education Loan from City Union Bank
Several prestigious universities provide career-focused technical and professional undergraduate programs such as STEM coures. Additionally, there are postgraduate options such as MCA, MBA, MS, and PhD. Various courses are also offered by institutions like CPA and CIMA-London.
List of Acceptable Collateral under City Union Bank Education Loan
- Fixed Deposits
- Govenment Securities
- Public Sector Bonds
- Life Insurance Policies
Benefits of City Union Bank Abroad Education Loan
City Union Bank is an established bank, which has grown from a small regional bank and offers a pack of benefits for students who are taking an abroad education loan.
- Offers students a choice to pay interest in the moratorium period
- No loan margin for loans below 4 lacs
- Offers pre-admission loan sanction
- Attractive rates of interest
- Low loan margin
This banks is great for students looking for an education loan abroad. Still, you wouldn’t want to go directly to the bank, as there are a lot of hassles when you go directly to banks. Instead, you can prefer to go through WeMakeScholars, as we offer a lot of benefits to students going through us. We will explain you the reasons for both of these in later section of this article.
City Union Bank Abroad Education Loan Processing Fees and Repayment Policies
If you are planning to take an education loan through CIty Union Bank for your abroad studies, you have to keep in mind that they charge 0.20% processing fee on the total loan amount.
The moratorium period for City Union bank education loan is course duration plus 6 months or 1 year. Students can choose to repay interest in the moratorium period or can opt out of it. In case the student chooses to not repay interest in the moratorium period, that can be included in the regular EMIs.
The students also have the option to repay the loan before the tenure ends. Some of the ways to close off the loan early are.
- Choosing a shorter duration to repay the amount
- Prepaying your loan amount
- Loan transfer to another bank with cheaper interest rate
Evidently, students have faced difficulties in repayment, like a sudden increase in interest rates. That is the reason, WeMakeScholars also offers post-sanction services, where we help students in solving such issues.
City Union Bank Abroad Education Loan security and Loan Margin
The CUB Vidyavani Education Loan Scheme offered by City Union Bank is available for deserving/meritorious students who wish to pursue higher education in India and abroad. The margin for the loan depends on the amount borrowed. For loans up to Rs. 4 lakhs, the margin is NIL. For loans above Rs. 4 lakhs and up to Rs. 7.5 lakhs, the margin is 15% for studies abroad. Any scholarship received by the student can be treated as margin, and the borrower has to deposit the scholarship amount in the bank account.
In case, you are looking for loan amount more than 7.5 lakhs, you have to provide collateral security and third party gaurantee equal to 100% of the loan amount.
Note: If a piece of land or a building has already been used as collateral for a loan, the remaining portion without any existing loans can be used as security for a second loan, as long as it covers the amount of the new loan. If the borrower is married, the person responsible for the loan can be either their spouse, parent, or parent-in-law.
If you have any doubt related to abroad education loan, comment below all your queries.
Documents required to get an Abroad education loan from City Union Bank
One of the basic and most important process that involve in your education loan process is the documentation. In our recent article we have compiled a complete list of documents that are essential for securing an education loan for any banks. Go through it for your better understanding and I am going to list down some mandatory document requirement which is asked by the City Union Bank if you are going to study abroad.
Meanwhile, You can check your eligibility for an education loan and then arrange the following documents to process your education loan.
- Completed Application Form provided by the bank or you can ask from our financial officer by requesting a callback.
- Admission Confirmation: Proof of admission from your chosen Institute.
- Identification Copies: Provide copies of Passport, Voter ID, Driving Licence, or PAN Card.
- Passport Photos: Two recent passport-size photographs of the applicant, co-applicant, and guarantor.
- 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, TOEFL, IELTS, etc.)
- Financial Records:
- Income Proof: Furnish the income proof of parents/guardians, supported by the last 2 years' income tax statements.
- Financial Statements: Provide six months' bank statements or recent salary slips.
- Course Expenses Plan: Detailed breakdown outlining your anticipated course expenses.
- Current Financial Obligations: Disclose details regarding existing loans and any scholarships received.
- Institute Prospectus: Include a copy of the institute's prospectus to estimate costs effectively.
*The collateral documents are to be provided if you are going for a collateral loan. They vary by the state you are going for. Below are the details of an education loan including collateral documents required from different states.
How to Apply for a City Union Bank Abroad Education Loan?
Here’s a hassle-free process to apply for a City Union bank Vidyavani abroad education loan through WeMakeScholars.
- Request a callback from our portal or fill out the common application form available on our portal
- Our financial officers will callback to you and will ask you some basic questions like
- Your personal details
- Your collateral details
- Details of the university you are going to
- Your academic details
- Once you provide all the details, your financial officer will tell you about all the banks that you can get an education loan from and will ask you to upload all the documents that are required for an education loan
- Once all the documents are submitted in the document uploading link, you can sit back and relax as your financial officer will do all the hard work for you.
- You will receive your sanction letter after all the negotiations are done by our team.
Why you should not go directly through banks?
Here are the disadvantages of going directly through banks.
- Partial information regarding the education loan process
- An incomplete list of documents and having to visit multiple times for the full list of documents
- It will take so many days, even months to complete your education loan process
- Few chances of getting an education loan sanction
- A lot of hidden information
If you are someone who values your time and also wishes for the best services, then go through WeMakeScholars. Below is a guide on why you should go through WeMakeScholars.
Why go through WeMakeScholars and not directly to banks?
WeMakeScholars is an organization supported by the Ministry of IT, govt of India under the Digital India campaign. WeMakeScholars connects students with various public or private lenders and offers free consultations for student loans. We work with over 14 banks (public and private). Here are a few benefits of working with us.
- Better interest rates: Because WeMakeScholars is their major partner, banks provide reduced interest rates if the loan application is made through our website. WeMakeScholars offers interest rates that are 0.5% to 2% less than the average bank rate.
- Fastest processing time: Your loan sanction time will be 50% faster if you go through WeMakeScholars as opposed to going directly to the banks. After the submission of all the documents, we have a specific timeframe of 21 working days for government banks and 7 working days for private lenders to sanction your loan.
- End-to-end support: WeMakeScholars team assists you not only with loan sanctioning but also with disbursement and repayment, even if you are in a timezone that is 12 hours apart.
- 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.
- Cashback offered: You get a cashback of up to ₹3000 after your disbursement
Let us help you in your abroad education loan process. Request a callback today!
Education Loan FAQs
What is City Union Bank Education Loan Interest rate?
The interest rate for City Union Bank usually range between 11%-14% (for collatralized loan) and 14-18% (for non collatralized loan). The interest rate also varies depending on various other factors as well like the country you choosen, course you opt out, income potential etc.
What is common City Union Bank eligibility critera for edcuation loan?
You should be an Indian national and you should have secured admission to a university through an entrance exam or merit based and must provide proof of it.
Is there any City Union Bank education loan EMI calculator ?
You can use WeMakeScholars education loan EMI calculator which is specially designed for calulating EMI of education loans only. There is no as such EMI calculator designed by the bank particularly for education loan purpose.
Our Education Loan team will help you with any questions
WeMakeScholars- supported by IT Ministry, Govt. of India.