UCO PM Vidyalaxmi Education Loan is a dedicated loan to support Indian students to cover the expenses of getting higher education in the best universities. The UCO Bank education loan under this scheme ensures that students do not face financial barriers to access quality education at top institutions in India.
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Invest in Your Child's Future:Give Your Child the Most Valuable Gift of Education
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The PM Vidyalaxmi Scheme is a student education loan facilitated by UCO Bank. It empowers the students who secure admission in the top 860 Quality Higher Educational Institutions (QHEIs) in India. The selection of these institutions depends on academic excellence and country ranking. The loan is need-based and covers both undergraduate and postgraduate education. It has been designed to make higher education affordable to all segments of society.
UCO PM Vidyalaxmi Education Loan - Rates of Interest
UCO Bank offers the PM Vidyalaxmi Education Loan at interest rates ranging from 7.85% to 9.30%, depending on the loan amount and applicant profile.
Note: The rates are updated per UCO Bank's latest terms as of 20 June 2025. These may change based on the RBI Repo Rate monetary lending policy updates.
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Features of UCO PM Vidyalaxmi Education Loan Scheme
Here are the features of UCO PM Vidyalaxmi Education Loan:
Extended Repayment Period: Repayment tenure up to 15 years (180 EMIs) after the moratorium.
No Processing Fees: No charges levied on loan processing for students applying under this scheme.
Moratorium Period: Repayment begins after the course period + 1 year post-completion.
Group Life Insurance: Covers the loan in case of the borrower’s death, ensuring family safety.
Interest Subvention: Interest subsidy up to 100% for economically weaker sections.
Need-Based Financial Assistance: Loan amounts are tailored to course requirements, offering flexible funding based on the actual need and fee structure.
Pairing this with a child education plan can be beneficial to manage long-term academic finances.
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Eligibility of UCO PM Vidyalaxmi Education Loan Scheme
The eligibility criteria of UCO PM Vidyalaxmi Education Loan Scheme are as follows:
Nationality Requirement: Only Indian citizens are eligible to apply under this scheme.
Course Type: Applicable to approved degree, postgraduate, or PhD programmes in listed institutions.
No Age Barrier: The scheme has no age limit for applicants, making it more inclusive.
Academic Performance: You should have a consistent academic record and the required documents for verification.
Students may also explore a parallel child investment plan to secure their education expenses ahead of time.
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Documents Required for UCO PM Vidyalaxmi Education Loan Scheme
To apply for the UCO PM Vidyalaxmi Education Loan, students must submit:
Mark sheet of the last qualifying exam
Admission proof to the course and the schedule of expenses
Passport-sized photos (student, parent/guardian)
Income proof (salary slips/Form 16/ITR)
Land/property documents (if applicable)
PAN card, Aadhar, and other ID proofs
Students planning their finances early might also consider getting a child education allowance to save money for such elite schools.
Most Important Terms and Conditions
Here are the most important terms and conditions for the UCO PM Vidyalaxmi Education Loan Scheme:
Security of loans: Loans up to ₹7.5 lakhs are covered under the Credit Guarantee Fund Scheme for Education Loans (CGFSEL).
Interest Calculation: Simple interest during the moratorium, followed by EMI-based repayment.
Disbursement Method: Funds are disbursed directly to the educational institution in instalments.
Interest Subvention: 100% interest subsidy for families with annual income up to ₹4.5 lakh; 3% subsidy for income up to ₹8 lakh on loans up to ₹10 lakh.
To calculate your outflow of repayment and interest, you can calculate your loan wisely using the income tax calculator.
FAQs
Does UCO Bank offer a full interest subsidy under the PM Vidyalaxmi Education Loan?
Yes. UCO Bank provides a 100% interest subsidy for families earning up to ₹4.5 lakhs annually on loans up to ₹10 lakhs, as per Section 80E of the Income Tax Act guidelines.
What is the repayment period for UCO PM Vidyalaxmi Education Loan?
The repayment period offered by UCO Bank under this scheme extends up to 15 years after the moratorium period.
Does UCO Bank charge any processing fee for the PM Vidyalaxmi Education Loan?
No. There are no application processing fees under the PM Vidyalaxmi Education Loan Scheme.
Can students studying abroad apply for the UCO PM Vidyalaxmi Education Loan?
No. UCO Bank’s PM Vidyalaxmi Education Loan is only for students admitted to QHEIs within India. To study abroad, you can explore other education loan options.
Is life insurance mandatory with UCO Bank PM Vidyalaxmi Education Loan?
Yes. UCO Bank mandates a group life insurance cover for borrowers under this scheme, which secures the outstanding loan in case of the borrower’s untimely demise.
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#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CARG 8%; ₹50,45,591 @ CAGR 4%
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