City Union Bank Education Loan

Planning to study abroad? City Union Bank education loans provide financial support to ambitious students with flexible loan schemes, competitive interest rates, and comprehensive benefits. From processing fees, documents, collateral requirements, and insurance to EMI calculation, repayment policies, and loan transfers, we guide you through the entire process. 

Choosing to apply via WeMakeScholars ensures a simplified, hassle-free experience and maximizes your chances of approval. Start your journey toward higher education today with confidence!

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

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.

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 a 0.20% processing fee on the total loan amount. 

The moratorium period for City Union Bank education loan is the course duration plus 6 months or 1 year. Students can choose to repay interest during the moratorium period or opt out of it. In case the student chooses not to repay interest during 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 a 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.

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 the complete value of the FD.
Life Insurance Policies: The 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 in understanding your collateral securities and how they will be valued, write 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 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 a margin, and the borrower has to deposit the scholarship amount into the bank account. 

In case you are looking for a loan amount of more than 7.5 lakhs, you have to provide collateral security and a third-party guarantee 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 doubts related to an abroad education loan, comment below all your queries.

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.

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 call back 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.

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 

Better Interest rates: WeMakeScholars is the largest partner of banks, and as such, banks offer cheaper interest rates if the loan applicof your house.ation is made through us. The interest rates offered by WeMakeScholars are 0.5% to 2% less than those offered by banks generally.

1. 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.
2. 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.
3. 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.
4. 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

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.

A City Union Bank education loan is a reliable way to finance your higher education goals, offering flexible loan options, manageable EMI, and easy repayment plans. With guidance on eligibility, required documents, collateral, insurance, and applying through WeMakeScholars, students can secure funding efficiently and focus on their studies without financial worries. Take the next step and make your academic dreams a reality with City Union Bank.