UCO UDAAN Loan Scheme

About the UCO UDAAN Loan Scheme

The UCO Udaan Loan Scheme helps eligible female students get into top Indian schools by giving them need-based loans. This education loan scheme has low loan rates and no processing fees. The repayment period is 15 years, with a one-year break after the course.

UCO UDAAN Loan Scheme - Rates of Interest

The interest rate for the UCO UDAAN Loan Scheme depends on the borrower’s category and is linked to the UCO Float Rate. The UCO Float Rate is presently 8.80% and is subject to revision based on changes in the RBI’s Repo Rate.

Category A

• Nil collateral: UCO Float minus 0.25%, current rate 8.05% p.a.

• 100% collateral: UCO Float minus 0.55%, current rate 7.75% p.a.

• Less than 100% collateral: UCO Float minus 0.35%, current rate 7.95% p.a.

Category B

• Nil collateral: UCO Float plus 0.15%, current rate 8.45% p.a.

• 100% collateral: UCO Float minus 0.25%, current rate 8.05% p.a.

• Less than 100% collateral: UCO Float plus 0.00%, current rate 8.30% p.a.

Category C

• Nil collateral: UCO Float plus 1.85%, current rate 10.15% p.a.

• 100% collateral: UCO Float plus 0.85%, current rate 9.15% p.a.

• Less than 100% collateral: UCO Float plus 1.35%, current rate 9.65% p.a.

Note: Rates are based on UCO Bank's current terms (6 months ago) and may change owing to regulatory updates or changes in the UCO Float (tied to the RBI repo rate).

Features of UCO UDAAN Loan Scheme

Key features and benefits of the UCO UDAAN Loan Scheme are outlined below.

• Flexible Repayment: For the first 180 months after the moratorium, the EMIs are due, including the course time plus one year for a repayment holiday.

• Targeted Support for Female Students: Designed especially for female students who want to get into the best schools, making it a more focused option than general child investment plans.

• Application Methods: You can get it at UCO Bank branches. That is, by visiting the bank in person or calling customer service.

Investment

Secure

Secure your child’s future with or without you

Start Investing

₹10,000/Month

& Get

₹1 Crore^*

VIEW PLANS

*Standard T & C Apply

Eligibility of the UCO UDAAN Loan Scheme

Those who want to apply for the UCO UDAAN Loan Scheme must meet these exact requirements:

• Must be an Indian girl student (NRIs are not eligible).

• If you're under 18, your parents must apply for a UCO Bank education loan. Since there's no age limit, this only works when needed.

• Must have made it into a top school in the country by an admission exam, selection procedure, or good marks.

• This scheme has no age limit; as was already said, there are no minimum or maximum age requirements.

• The scheme does not set an income limit.

Documents Required for UCO UDAAN Loan Scheme

The following documents are required to initiate the loan application process.

• Aadhaar Card, Passport, Voter ID, Driving Licence, PAN Card, Birth Certificate, Office ID Card, School Leaving Certificate.

• Ration Card, Voter ID, NABARD (likely Driving Licence), Passport, Office ID Card, Bank Passbook/Account Statement (last 6 months)

• Two recent passport-sized photos of the student

• Marksheet/degree of last qualification, admission offer letter, student ID and scholarship letter (if any).

• Employment verification certificate, Last three months’ salary slips, Form 16 and Income Tax Return / Assessment order, Bank passbook/account statement (last 6 months) for co-applicant/parent or guardian.

• Completed the UCO education loan application form, Statement of means of applicant & co-applicant (format provided by bank)

• Schedule of anticipated expenses as provided by the institution.

Most Important Terms and Conditions

Here are the essential terms and conditions of the UCO UDAAN Loan Scheme:

• Quantum of Finance: The loan is need-based, with no upper limit specified. 

• Margin Requirements: No margin is required for loan amounts up to ₹30 lakhs. A 15% margin applies to amounts above ₹30 lakhs. 

• Moratorium Period: A grace period extends through the course duration plus 6 months. 

• Security/Collateral: No collateral is required for loans up to ₹30 lakhs; above that, collateral is necessary.