UCO Utkarsh Loan Scheme

About the UCO UTKARSH Loan Scheme

UCO UTKARSH Loan Scheme is designed for Indian students from families with an annual parental income not exceeding ₹4.5 lakh. This education loan covers professional and technical courses in India, allowing eligible students to study without the burden of interest payments during the moratorium period.

The UCO UTKARSH Loan Scheme is especially useful for parents mapping out a child investment plan. 

UCO UTKARSH Loan Scheme - Rate of Interest 

The UCO UTKARSH education loan is offered under UCO Bank’s standard floating rate system. The interest rate depends on the amount of collateral you provide. The current UCO Float Rate is 8.80% per annum and may change with RBI repo rate revisions.

• With 100% Collateral

  You get the lowest interest rates in this category: UCO Float Rate minus 0.45% = 7.85% p.a.

• With Less Than 100% Collateral

  Rates are slightly higher due to lower security: UCO Float Rate minus 0.15% = 8.15% p.a.

• With No or Minimal Collateral

  This category has the highest interest rates: UCO Float Rate plus 0.95% = 9.25% p.a.

Note: The above rate is based on the updated interest terms as of June 25, 2025, and is subject to change by RBI guidelines or internal lending policies.

Features of the UCO UTKARSH Loan Scheme

Here’s what makes the UCO UTKARSH Loan Scheme attractive to students and parents:

• Collateral Requirements: No collateral is needed for loans up to ₹30 lakh, but a co-borrower is mandatory. Loans above ₹30 lakh require 100% collateral and a co-borrower.

• Processing & Documentation Charges: No processing or documentation fees for loans under this scheme.

• Moratorium Period: Repayment begins after the course duration plus 1 year.

• Ideal for Future Planning: Suitable for parents planning with a structured child education allowance to support their child’s academic journey.

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Eligibility for UCO UTKARSH Loan Scheme

Those looking to apply for this UCO Bank education loan must fulfil the following eligibility criteria:

• Citizenship: Must be an Indian citizen.

• Income Criteria: Parental annual income must not exceed ₹4.5 lakh (validated by a competent authority).

• Eligible Courses: Applicable for recognised professional/technical courses in India after Class 12.

• Age Limit: No minimum or maximum age restriction for applying under the UCO UTKARSH Loan Scheme.

Documents Required for UCO UTKARSH Loan Scheme

Here are the typical documents you’ll need to apply for the UCO Education Loan:

• EWS Certificate: Issued by a competent authority to confirm EWS status.

• Course & Institution Proof: From a recognised Indian institution offering an eligible course.

• Academic Records: Mark sheets from Class 10 onwards.

• Fee Structure: Breakdown of tuition and other academic costs.

• Identity Proof: PAN card, Aadhaar, passport (if available).

• Co-borrower Documents: KYC and income documents of the parent/guardian co-borrower.

Most Important Terms and Conditions

Here’s a quick look at the key terms and conditions you should know before applying for the UCO UTKARSH loan scheme:

• Target Group: Students ranked into leading institutes in India based on entrance tests or academic performance throughout the country (e.g., IITs, IIMs, NITs).

• Loan Tenure: After the end of the moratorium, repayment is undertaken. The total repayment period may reach 15 years.

• Mortgage & Margin Structure: Loans are exempt from any margin of up to 30 lakh, and those above 30 lakh have a margin of 15%.

• Course Drop Clause: There is no subsidy when the student drops out of the course or is expelled, except on medical grounds, which must be certified.

• Security: Loans up to ₹30 lakh need only a co-borrower; above ₹30 lakh, 100% collateral and a co-borrower are required.