UCO BANK'S ATTRACTIVE LOAN SCHEMES Being a Commercial Bank, giving Loans and Advances is among our primary activities. Apart from our participation in meeting both Term Loan and Working Capital requirements of Agriculture sector, Trade and Service sector, Large/Medium and Small Scale Industries sector, Infrastructure sector etc. including taking care of their Export/Import and non-fund based needs like Letter of Credit, Bank Guarantee etc., we have a fairly large basket of loan products specially designed to suit your personal needs. Salient features of some of the more attractive Personal Loan Schemes are described below. UCO Home UCO Car UCO Trader UCO Education Loan UCO Cash UCO Rent UCO Mortgage UCO Securities UCO Real Estate UCO Pensioner UCO Two Wheeler UCO Emd Loan UCO Swabhiman – Reverse Mortgage Loan Scheme for Senior Citizen Interest Subsidy Scheme for Housing the Urban Poor (ISHUP) UCO Education Loan Scheme for Vocational Education and Training UCO HOME This housing finance scheme brings to you an excellent opportunity to have your own house or flat. The scheme has been carefully tailored to suit your requirements and match your capacity. The reasonable rate of interest that you pay will be calculated on reducing balance, i.e. you do not have to pay interest on the loan installments actually repaid from the date of such repayment. Eligibility You are eligible for a loan under UCO HOME individual (salaried/Non-salaried) having Minimum 21years of age and Maximum 65 years of age inclusive of repayment period. Purpose
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UCO BANK'S ATTRACTIVE LOAN SCHEMES
Being a Commercial Bank, giving Loans and Advances is among our primary activities. Apart from our participation in meeting both Term Loan and Working Capital requirements of Agriculture sector, Trade and Service sector, Large/Medium and Small Scale Industries sector, Infrastructure sector etc. including taking care of their Export/Import and non-fund based needs like Letter of Credit, Bank Guarantee etc., we have a fairly large basket of loan products specially designed to suit your personal needs. Salient features of some of the more attractive Personal Loan Schemes are described below.
UCO Home UCO Car UCO Trader
UCO Education Loan UCO Cash UCO Rent
UCO Mortgage UCO Securities UCO Real Estate
UCO Pensioner UCO Two Wheeler UCO Emd Loan
UCO Swabhiman – Reverse Mortgage Loan Scheme for Senior Citizen
Interest Subsidy Scheme for Housing the Urban Poor (ISHUP)
UCO Education Loan Scheme for Vocational Education and Training
UCO HOME
This housing finance scheme brings to you an excellent opportunity to have your own house or flat. The scheme has been carefully tailored to suit your requirements and match your capacity. The reasonable rate of interest that you pay will be calculated on reducing balance, i.e. you do not have to pay interest on the loan installments actually repaid from the date of such repayment.
Eligibility
You are eligible for a loan under UCO HOME individual (salaried/Non-salaried) having
Minimum 21years of age and Maximum 65 years of age inclusive of repayment period.
Purpose
Purchase and construction of independent house/ready built flat for residential purpose.
Extension/Repair/Renovation of existing house/flat not more than 50 years old.
Takeover of home loans availed from other banks/FIs.
Furnishing of house to be constructed/acquired by UCO Home Loan borrower or Non-Uco Home loan borrower.
Quantum of loan
The area-specific maximum limits for construction/purchase are as under :
Location/Centre For construction/Purchase
For Repair/Extension/
Renovation
Metro/Urban/Semi-Urban
Rs. 100 lacs Rs. 25 lacs
Rural Rs. 25 lacs Rs. 7.5 lacs
Maximum limits for Furnishing are Rs.5.00 lacs in Metro/Urban/Semi-Urban areas/ rural areas.
Loan Entitlement
Least of the Following:
i. 80% of the project cost.ii. Existing deduction +EMI should not exceed 60% of the gross income.iii. 60 times of net monthly income.
Processing Fee
0.5% of the loan amount maximum Rs. 15000/-
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No processing fees for take over loan.
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Repayment
The maximum period of repayment is 25 years/300 EMI but should not be beyond retirement age, in case of salaried class and 65 years in case of non-salaried class.
Security & Guarantee
EMTD OF property financed. Guarantee of spouse if not co-applicant. In case of unmarried persons, guarantee of
PF nominee No third party guarantee
Prepayment charge
No pre-payment charges are to be levied if loan is pre-paid from own source.
2% of the prepaid amount, if the loan is prepaid within 3 years. No prepayment charges thereafter.
Tax Benefits
Tax relief on principal and interest components of this loan would be available as per provisions prevailing under Income Tax Act.
Insurance
Insurance cover on house property under Uco Griha Raksha Yojana scheme to cover the risk of damage to home by natural calamities.
Uco Griha Lakshmi Yojana to cover the outstanding loan in case of accidental or natural death of borrower.
For more details, please contact your nearest UCO Bank branch.
UCO CAR
This is an easy finance scheme for purchase of a new car as well as second hand vehicle not older than 5 years.
Eligibility
Salaried Borrower
Minimum monthly take-home pay would be Rs. 10000/- + EMI of the proposed loan.
Non-salaried Borrower
Minimum income should be Rs. 2.40 Lacs per annum during the preceeding year.
Minimum average income for 3 preceding years should be Rs. 1.50 lacs. Clubbing of income of spouse and major children for loan limit allowed.
Likewise clubbing of income of regular earning parents is allowed for loan to major children.
Margin Requirements
Maximum Finance shall be 85% of the Ex- Showroom Car Price.
Fund Based:-Term loan upto Rs. 25 lacs for acquisition of Fixed Assets.
Non-Fund Based:-inland L/C-DP or DA with usance period not exceeding 90 days.
INLAND BG:-validity period upto 1 yr. including claim.
Margin
No margin is required for Cash Credit in case of existing units & 20/25% for new units while computing drawing power
Margin for Term Loan, LC & BG is 25% Application is simple; Balance Sheet is not required for limit up to Rs 10 lac and not
compulsory for limit below Rs 50 lac subject to certain conditions.
Limits(Least of the followings)
60% on realizable market value of immovable property, and/or 90% on FDR (if limit is sought above 60% of project value, 85% on surrender value of LIC Policies, NSCs & Govt. Bonds(if it is sought as
additional limit),
OR
20% of gross Annual sales(existing units) as reflected in last Sales Tax Assessment order/Sales Tax return/VAT Assessment Order or Return/Service Tax Assessment Order or Return/Declaration given by borrower, whichever is less.
Security
Primary-Hypothecation of stocks, book debts & Fixed Assets for existing units making profit at least for last two years.
Collateral Equitable Mortgage of Land & Building, Assignment of LIC policy, Lien ,Pledge/Assignment of KVP,NSC,Bank’s own FDR,Govt/RBI Bonds.
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Guarantee
By owners of immovable properties offered as collateral security, By Karta & all major coparceners of HUF, By all partners of the firm(in case of partnership firm), By all Directors of the company (in case of Limited company)
Processing Charges- 0.50% of fund based limit, 0.25% of Non-Fund based limit. Maximum-Rs.20000/-.
EDUCATION LOAN Click here to apply online
Download UCO Education Loan Application Form - (pdf version)
Scope:
The scheme extends a helping hand to meritorious students desirous of pursuing higher study either in India or abroad.
Eligibility
Studies in India
Graduation courses leading to degrees like B.A., B.Sc., B.Com. etc.
Post Graduate courses leading to Masters degrees as also Ph.D.
Professional courses in Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer, etc.
Computer Certificate courses of reputed institutes accredited to Universities or DoE.
Courses like ICWA, CA, CFA, etc.
Studies Abroad
Graduation : Job oriented professional / technical courses offered by reputed Universities.
Post Graduation : MCA, MBA, MS, etc.
Courses conducted by CIMA – London, CPA in U.S.A., etc.
should be Indian National Must have secured admission in Regular/ Technical course through selection process.
Quantum of loan
Studies in India : Maximum Rs. 10.00 Lac
Studies Abroad : Maximum Rs. 20.00 Lac.
Security
Upto Rs.4.00 lacs – No security
Above Rs. 4.00 lacs & upto Rs. 7.50 lacs: collateral security in the form of a suitable 3rd party guarantee
Above Rs. 7.50 lacs : collateral securities of suitable value.
Margin
Upto Rs. 4 Lac - Nil
Above Rs. 4 Lac Studies in India - 5%
Studies Abroad - 15%
Service Charge : There is no processing fee /no service charge
Disbursement
Disbursement in stages as per the requirement directly to institutions.
Interest Rates-
Base Rate+3.00% for loan upto Rs. 4.00 lacs Base Rate+3.75% for more than Rs. 4.00 lacs
Repayment Period
The loan shall be repaid in 5-7 years after moratorium.
Repayment Holiday
Course period+ 1year or 6 months after getting job whichever is earlier.
1% interest concession may be provided, if the interest is serviced during moratorium period.
For more details, please contact your nearest UCO Bank branch.
UCO CASH
This is a Personal Loan scheme to meet the domestic needs like marriage, medical, traveling and other social obligations.
Eligibility
A permanent employee in Govt. / Semi-Govt. / Reputed Public / Private Ltd. Co. /College / Universities / other recognized institutions / PSU and have completed minimum 3 years in the organization having salary tie-up arrangement with our branches. Net take home pay should not be less than 40% of gross salary after deduction of PF, IT and other statutory deductions including proposed EMI. Regular income may also be reckoned for eligible quantum.
Quantum of loan
90% of the proposed expenditure or Rs. 2 Lacs whichever is lower. Additional amount may be sanctioned within the quantum ceiling to the existing eligible borrowers.
Security
Loan will be on clean basis with two guarantors – Spouse and other than Spouse having equal income with that of the applicant.
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Repayment
The loan amount with interest is repayable in 48 EMIs for men and 60 EMIs for women through salary deduction of employee borrower, but one year before retirement.
Service Charge : 1% (minimum Rs.750/-)
For more details, please contact your nearest UCO Bank branch.
This is a loan against the security of future receivables i.e. assignment of future rent receivable, for productive purposes e.g. augmenting earnings like investing in securities, undertaking repairs & renovation of the property, etc.
Eligibility
Owners i.e. lessors of houses/flats/godowns/warehouses etc. only are eligible under the scheme. The owner may be an individual, a firm or a company. Properties belonging to cooperative societies are not considered for sanction of loan under the scheme.
Quantum of loan
Maximum 80% of the total rent receivable during the unexpired period of lease less tax deduction at source.Minimum Rs. 1 Lac
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Repayment
The repayment period can be extended upto a maximum period of 84 months.
Processing fee
1. Fresh Sanctions : 1% of the sanctioned loan amount.2. Review on run down Balance: Rs.225.00 per lac, Min.Rs.250.00, Max. Rs.56000.00
For more details please contact your nearest UCO Bank branch.
UCO MORTGAGE
Under the scheme credit facilities are considered upto 60% value of the property located in metro/urban/semi-urban centers to meet financial needs of government employees, employees of schools, colleges, PSU, reputed corporate business enterprises, professionals and businessmen with regular source of income and filing IT return against mortgage of their immovable property with clear Title.
Eligibility
Maximum age limit of the borrower should be 65 years on the date of application. Loans can be sanctioned in the form of only as term loan.
While determining repayment capacity, income of spouse can also be taken. In that case loan should be in joint names.
The condition of maintaining 40% of net take home is applicable to both Salaried and non-salaried person. In case of non-salaried person, their annual Gross Income, as per IT Returns, is to be divided by 12 to arrive at Monthly Gross Income. Like Salaried persons, their NET monthly income after all deductions including monthly installment of proposed Term Loan should not be less than 40% of their Gross monthly income.
If credit facility is granted against building/flat/apartment, the same should not be more than 30 years old.
For more details, please contact your nearest UCO Bank branch.
UCO SECURITIES
Under the scheme credit facilities are extended to borrowers against financial securities issued by Central Govt./State Govt./RBI in the form of National Savings Certificates, Kisan Vikas Patra, Govt. Securities and Relief Bonds. Loans are also sanctioned against Life Insurance Policies of Life Insurance Corporation of India and bonds/debentures issued by specific Public Financial Institutions.
Eligibility
The securities should be in the name of the borrower or any one of the joint borrowers.
The securities should be transferable and can be assigned/pledged in favour of the Bank.
It will be determined on the basis of discounted face value/maturity value/surrender value of the transferable security at 13.50% (BPLR -1.00%).
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Repayment
Facility
Demand Loan Loans should be adjusted from the maturity proceeds of securities assigned/transferred
Overdraft
Cash Credit
For more details, please contact your nearest UCO Bank branch.
UCO REAL ESTATE
Under the scheme advances are extended to the Promoters/Developers of real estate who should be well established and experienced in their line of activities at least for a period of three years. Cooperative Societies are not eligible to be borrowers under the Scheme.
Eligibility
Only builders of repute, integrity and excellent track record and professionally managed are eligible for such finance. They must have at least 3 years experience in the line and must have successfully completed 2-3 projects. The financial position of the builders/developers as per last audited balance sheet must be satisfactory. Financing would be subject to commercial viability and sufficient cash generation to repay the loan.
Pre-requisites
a. Details of the project cost and means of finance
b. Profitability statement
c. Annual Cash Budget for the duration of the loan showing monthly/quarterly cash inflows of the specific project along with repayment schedule
d. Audited financial statements for the last 3 years, the current year's estimate and projections for next 3 years or till the completion of the project
e. Original Title Deed of the land, detailed estimate of the proposed construction from a Chartered Engineer/Architect and permission from the competent authority of the property in case it is falling under Urban Land Ceiling Act
f. Documents like non-encumbrance certificate, certified copy of R.S. Parcha, current, renew/Municipal receipts, Lawyer's opinion on ownership and marketable title and sanctioned plan.
g. The Bank should enter in to a legally vetted tripartite agreement with promoter and buyer that should ensure among other covenants adherence to National Building Code (NBC).
Quantum of Loan
The quantum of advance will be assessed on the basis of peak level deficit projected in the Cash Flow Statement in the Budget, as submitted by the borrower applicant.
Security:
(a) Primary: The land and building to be constructed on the land shall form the primary security. The value of primary security should be adequate to cover the Bank finance.
(b) Collateral: Collateral in the form of equitable/registered mortgage of other land and building of adequate value of promoter/ guarantor may be taken.
Margin- 25% (minimum)
Insurance-Building to be comprehensively insured against fire, riot and other damages with Bank's clause.
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Processing & Up-Front Fees
a. Processing fees
1. Fresh Sanctions : 0.80% on the amount of loan applied for along with the application. 1.20% processing fee of the sanctioned loan amount.2. Review of TL on run down Balance : Rs.125.00 per lac, Min. Rs.250.00, Max. Rs.56000.003. Renewal of CC/WC : Rs.395.00 per lac or part thereof Min.Rs.700.00
b. Upfront fee will be 1% of loan amount sanctioned
Delivery of Credit
The credit /quasi credit requirement of the Construction company by way of cash credit/overdraft/short term loans linked to each specific project for a maximum period covering the period of construction plus 12 months will be considered on merit. Bid bond,
Bank Guarantee for raising mobilization of advance, performance guarantee and guarantee for release of retention money etc. will also be considered on merit. Disbursement will be in phases depending upon the progress of work as certified by Chartered Engineer/Architects.
Repayment
Repayment is to be made in one or two installments after completion of the project and sale of the flats. Sales realizations in one Project should not be diverted to another Project.
For more details, please contact your nearest UCO Bank branch.
UCO PENSIONER
Short Term loan is extended through this scheme to Pensioners who receive pension through our Branches. War widows drawing family Pension are also eligible.
Purpose
For meeting medical expenses for self and dependants. Payment of mediclaim premium. Meeting marriage expenses. Educational and traveling expenses. Repairs/renovation of dwelling house. Funeral expenses.
Quantum of loan
10 times of monthly pension subject to maximum of Rs. 1,00,000/-(Maximum Rs. 1,50,000/- where Family Pension is admissible)
Processing Charges
There is no processing charge or service charge.
Rate of Interest
Base Rate + 4.20%
Repayment
In 12 to 24 monthly installments after one month from the disbursement, may be extended to 36 months.
For General category – Base rate + 4.25% A/C with full liquid security – Base Rate +3.25% A/C with 50% liquid collateral security – Base Rate + 3.75%
Accounts with full liquid collateral security
1.00% interest Rebate
Accounts with 50% liquid collateral security
0.50% interest Rebate
Prepayment Charges
No pre-payment charges.
For more details please contact your nearest UCO Bank branch.
UCO EARNEST MONEY DEPOSIT LOAN SCHEME
Loan scheme for financing for Earnest Money Deposit for booking housing plots/flats offered by various Urban/Metropolitan Development Authorities & Housing Boards.
Eligibility
Indian residents having regular documented source of income. Minimum 21 years of age Singly/Jointly as permitted by State Housing Boards/Urban Development Authority/Metropolitan Development Authority. The facility is to be allowed to only those applicants who fulfill all the eligibility criteria under UCO Shelter Scheme.
Letter of undertaking to be obtained from SHB/UDA/MDA of having noted Bank's lien and refund the amount through UCO Bank in case of unsuccessful applicants
In case of allotment of plot, housing loan under UCO Shelter can be availed by the applicants. In such case the loan for EMD shall be adjusted against the loan granted for purchase of land and construction of house thereon.
Repayment- 24 monthly installments
For more details please contact your nearest UCO Bank branch.
Bank introduces UCO Reverse Mortgage Loan Scheme for Senior Citizens, under Reverse Mortgage a Senior Citizen, owning a house/flat, can avail of a monthly stream of Income against the mortgage of his/her property while remaining the owner and occupying the house throughout his/her lifetime, without repayment or servicing of the loan.
Eligible Borrowers Senior Citizens of India.
Purpose Supplementing Senior Citizen’s Income
Loan Amount Based on valuation of the property and age of the borrower – Maximum Rs.50 lacs
Period of Loan Minimum 5 years and maximum 15 years.
Mode of Disbursement Monthly/Quarterly with fixed/increasing Equated monthly Disbursement with an option to avail One-time lump sum payment after 12 months from the first disbursement during entire tenure of 15 years as per choice of the borrower.
Security Equitable Mortgage of the residential property owned & self occupied by the Senior Citizen borrower.
Rate of Interest 10.50% (fixed) with reset clause after 3 years.
Repayment The outstanding loan will be due when the last
borrower dies/permanently moves out of the house/would like to sell the home.
Loan will be liquidated by sale of property.
Option available with the legal heir(s) to repay the loan and redeem, the house property.
Interest Subsidy Scheme for Housing the Urban Poor (ISHUP)
'Affordable Housing for All' is an important policy agenda of the Government of India. Accordingly The Cabinet Committee for Economic Affairs has approved an Interest Subsidy Scheme for Housing the Urban Poor in order to ameliorate the living conditions of Economically Weaker Section/LIG population in urban areas. Primary objective of the scheme is to provide interest subsidy support.
Objective:
The key objective of the scheme is to enable Economically Weaker Sections (EWS) and Low Income Group (LIG) households to avail affordable housing loans for purchase of house/construction of new house.
Definition:
a) EWS- Economically Weaker Sections are those households having monthly income upto Rs.3300/-
b) LIG- Low Income Groups are those households having monthly income between Rs.3301/- to Rs. 7300/-
Target Group:
Individuals /NGOs for on lending to their group members. Preference will be given to SCs, STs, Minorities, Person with disabilities and Women beneficiaries in accordance with their proportion in the total population of city/urban agglomerate during the 2001 census.
Applicants planning to form cooperative group housing societies or organizations like Employees Welfare Housing, Labour Housing, etc. should be given preference and whenever possible construction of houses by such cooperatives by way of 1+3 storied buildings should be promoted so that cost of land is shared among beneficiaries. However, this is not a mandatory requirement. Both individuals as well as group Housing borrowers are equally eligible under the scheme.
Identification of beneficiaries will be undertaken by Urban Local Bodies or Local Nodal Agencies and they will assist the borrowers in paper works and procedure of bank loan. However the borrower would be free to approach and negotiate a loan under the scheme directly with the bank branch.
Preference:
Preference will be given to Scheduled Caste, Scheduled Tribe, Minorities, Person with disabilities and Women beneficiaries in accordance with their proportion in the total population of the city/urban agglomerate during the 2001 census
Stipulations:
The ultimate beneficiaries should not own a house in his/her name or in the name of his/her spouse or any dependent child. But such beneficiaries should own land in his name in case of application for construction of new house.
Area of operation:
Urban area. Zonal Offices will be advised to submit us a list of branches at urban area for implementation of the scheme.
Nodal Agency:
NHB and HUDCO were selected by the Government of India to act as intermediary financial institutions that would be responsible for administering the subsidy. Before implementation the Bank has to sign a MOU with any of the two organizations. We have signed MOU with NHB.
Loan amount:
a) EWS- Maximum loan of Rs.1 lac ( Rs one Lac Only) for a house of at least 25 sq mts.
b) LIG- Maximum loan of Rs.1.60 lac( Rs one Lac sixty thousand Only) for a house of at least 40 sq mts. However subsidy will be available for loan upto Rs. 1 lac only.
Disbursement:
Disbursement will be made on a phased manner depending upon the progress of construction. Branch will monitor the construction of the dwelling units financed under the scheme, including the approvals for the building design, infrastructure facilities etc. as also the quality of the construction and verify through site visits etc. the expenditure incurred upto different stages of construction. In case of construction disbursement may be done by debiting the respective loan account and crediting the savings bank account of the borrower. However in case of purchase of a ready built house the payment should be made directly to the vendor by issuing Demand Draft/ Pay Order as the case may be by debiting the loan account of the borrower.
Rate of Interest:
Interest @8.50% p.a. for first 5 years with a provision to reset after 5 years from the date of drawal of first installment for all loan under the scheme.
Sanctioning Authority:
All the loan applications under the scheme will be processed and sanctioned at the Retail Processing Centres at Zonal Offices and in case there is no Retail Processing Centres at any Zonal Office, at the branches identified by the respective Zonal Office. On receipt of the sanctioned proposals the branch will disbursed the loan following all the stipulation noted by the Retail Processing Centres at Zonal Office/Processing Cell.
However before sanctioning any loan it should be ensured that the borrower have sufficient repaying capacity based on the average monthly income of the applicant for last three years and monthly family expenditure depending upon the size of family.
Pre-payment charges:
There will be no pre-payment charges for any loan sanctioned under the scheme.
Subsidy:
The subsidy will be 5% p.a. on interest charged on the admissible loan amount for both EWS and LIG, over the full period of the loan for construction or acquisition of a new house.
The Net Present Value (NPV) of the subsidy will be arrived at on the basis of notional discount rate of 9% p.a. (equivalent to Government Security rate) for the period of the loan and on the interest chargeable at the time the loan is contracted.
The subsidy will be credited upfront to the borrowers account and interest will be calculated on the net amount of loan at the agreed rate of interest.
Procedure for claiming Subsidy:
Participating branches will claim interest subsidy for the entire period of any loan disbursed during the quarter to Head Office, Priority Sector Department through their respective Zonal Offices.
Branches should submit their claim within 3 days of close of a quarter to their respective Zonal Offices and the Zonal Offices in turn will submit it to Head Office, Priority Sector Department within 7 days of close of a quarter.
Repayment:
Loan will be repaid in 180 to 240 EMI depending upon the income of the borrower. However branches may prefer for 20 years repayment, to get full benefits of Interest Subsidy and lower EMI.
NPV of Subsidy Rs.29,112=00 Rs.35,458=00 Rs.29,112=00 Rs.35,458=00
EMI Rs. 698=00 Rs. 560=00 Rs.1,289=00 Rs.1,081=00
Security:
a) Primary- Mortgage of the dwelling house
b) Collateral/Third Party Guarantee: NIL
Documents:
Loan Application form duly vetted by urban local bodies along with the following;
Income certificate issued from the ULB Copy of the land Records Copy of updated payment receipt of Government revenues Non-encumbrance Search Certificate.
Process Note
A declaration from the borrower having been understood the impact of Fixed/Floating Rate of Interest.
Supervision:
It should be ensured that the housing unit is completed within one year period from the start of construction. On a half yearly basis a certificate of utilization of subsidy and also a certificate in relation to the progress of the construction leading up to the completion of the housing unit have to be submitted. Branch will have to submit a certificate on completion of the housing unit.
Processing Charges:
There will be no processing charges for any loan sanctioned under the scheme.
Classification:
All loans sanctioned under the scheme will be classified as Priority Sector Advance under Sub category – Housing
For more details please contact your nearest UCO Bank branch
UCO Education Loan Scheme for Vocational Education and Training
Objective
Providing financial support to the students who have minimum educational qualification but desire to pursue vocational & skill development courses.
Courses Eligible
Vocational / Skill development courses of duration from 2 months to 3 years run or supported by a Ministry / Dept. / Organisation of the Govt. or a company / society / organization supported by National Skill Development Corporation or State Skill Missions / State Skill Corporations, preferably leading to a certificate / diploma / degree, etc. issued by a Govt. organization or an organization recognized/authorized by the Govt.
Minimum Age
No minimum age
Quantum of Finance
For courses of duration upto 3 months - Rs. 20,000/- For courses of duration 3 to 6 months - Rs. 50,000/- For courses of duration 6 months to 1 year - Rs. 75,000/- For courses of duration above 1 year - Rs.1,50,000/-
Margin - NIL
Moratorium Period
For courses of duration upto 1 year - 6 months from the completion of the course. For courses of durationabove1 year - 12 months from the completion of the course.
Rate of Interest
ROI at Base Rate +3%, presently 13.50% p.a. (simple interest during moratorium period)
Servicing of interest during study period and the moratorium period till commencement of repayment is optional for students.
1% interest concession may be provided by the Bank, if interest is serviced during the study period and subsequent moratorium period prior to commencement of repayment.
Processing Charges - NIL
Security
No collateral or third party guarantee will be taken. However, the parent will execute loan document along with the student borrower as joint borrower.
Repayment
Courses upto 1 year - In 2 to 5 years Courses above 1 year - In 3 to 7 years.