UCO PM Vidyalaxmi Education Loan

About UCO PM Vidyalaxmi Education Loan Scheme

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.

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.

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.