UCO Skill Loan Scheme

About the UCO Skill Loan Scheme

UCO Skill Loan Scheme is meant for students who want to gain admission in recognised skill development courses. This education loan aims to empower youth by providing technical and vocational training, boosting self-employment, and job opportunities in growing sectors. It suits families seeking a child education plan focused on short-term, job-oriented training. From certificate to diploma and advanced skill courses, the scheme covers a wide spectrum of government-recognised institutions, including those under NSDC and ITIs.

UCO Skill Loan Scheme - Rates of Interest

The rate of interest under the UCO Skill Loan Scheme is economical and linked to the bank’s internal benchmark. The applicable rate is:

•  UCO Float Rate (8.80%) + 1.50% per annum = 10.3% p.a.

Note: The above rate is based on the updated interest terms as of June 23, 2025, and is subject to change by RBI guidelines or internal lending policies.

Features of the UCO Skill Loan Scheme

There are several features of the UCO Skill Loan Scheme that make it suitable for short-duration vocational and technical training:

• Comprehensive Course Coverage: Covers NSQF-aligned certificate, diploma, technical, and soft skill courses focused on employability and job-linked training outcomes.

• No Collateral or Security Required: Unsecured loan with no collateral or guarantor needed; only parental co-obligation may be required in certain cases.

• Income Tax Benefit: Interest paid qualifies for deductions under Section 80E, claimable while filing taxes using an income tax calculator.

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₹10,000/Month

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Eligibility Criteria for UCO Skill Loan Scheme

To apply under the UCO Skill Loan scheme, students must fulfil the following:

• Nationality Requirement: Applicant must be a citizen of India.

• Course & Institution Eligibility: Admission must be in an NSQF-aligned course offered by an accredited training institution.

• Age Criteria: No minimum age requirement for applying under the scheme.

Documents Required for UCO Skill Loan Scheme

The following documents must be submitted during the UCO Skill Loan application:

• ID and Address Proof: Aadhaar, Voter ID, or any valid government-issued ID with address.

• Proof of Admission: Admission or enrolment letter from the institution.

• Course & Fee Details: NSQF course structure with official fee schedule.

• PAN Card: PAN of the applicant and parent (if co-borrower involved).

• Academic Records: Previous certificates or mark sheets, if available.

• Photographs: Recent passport-size photos of the applicant.

• Income Proof: Parent/guardian’s income proof, if required.

Most Important Terms and Conditions

Here are the key terms and conditions that applicants must be aware of under the UCO Skill Loan Scheme:

• Fund Usage Audit: UCO Bank may review enrolment and fund usage to ensure proper use of the loan.

• Loan Cancellation Grounds: False information or fund misuse can result in loan cancellation or recall.

• Processing Fee: No processing fee is charged for the loan.

• Margin Money: No margin required for loans up to ₹4 lakh. For amounts above ₹4 lakh, a 5% margin is applicable.

• Interest Accrual: Interest accrues during the moratorium and compounds quarterly.

• Interest Subsidy: Available under eligible central government education or skill schemes.

• Moratorium Period: Course duration plus 6 months' grace before repayment starts.

• Repayment Tenure: Up to 3 years for ₹50,000, 5 years for ₹1 lakh, 7 years for more than ₹1 lakh loans.