City Union Bank Education Loan Scheme - Vidya Vani

City Union Bank is a private bank incorporated in 1904 and is headquartered in Kumbakonam, Tamil Nadu. Many students believe that it is a public bank, but please note that this is a private bank. It offers education loans by the scheme name Vidya Vani. This education loan is available for higher studies in India and abroad. Students can benefit from this loan as it offers some of the great features that set it apart from other loans. Some of the features are as follows:

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  No margin money for loans up to INR 4 Lakhs
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  Low margin up to INR 7 Lakhs
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  Customized repayment options
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  Tax Benefit under the 80E Section
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  Pre-admission loan sanction
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  Flexibility in collateral surety
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  Attractive rates on Interest
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  Subsidy on interest rates for accredited universities and recognized courses administered by the Government of Tourism

We will explore all the above points in detail below. Apart from this, we will learn about loan limits, expenses covered, City Union Bank education loan interest rates, processing fees, moratorium period, repayment terms and duration and many more features of City Union Bank education application process. Please note that Vidya Vani is City Union Bank education loan scheme for studies in India as well as for abroad. So stay with us till the very end, and we assure you that you will learn many things about City Union Bank education loan.

City Union Bank Education Loan Limit

City Union Bank offers education loans under the Vidya Vani scheme which gives loan unsecured loans up to INR 7 Lakhs. However, a higher amount of loan can be taken, but for that, you need to provide collateral or a security. It can be a government bond, fixed deposit or any other form of accepted security.

City Union Bank Education Loan Interest Rates

The interest rates for City Union Bank's education loans are competitive, but if you compare the interest rates with public banks, their interest rates are higher. City Union Bank education loan starts at an interest rate of 14.25%. However, this is the starting rate, it varies depending on other factors. Please note that these are floating interest rates and depend on EBLR (External Benchmark Loan Rate). Below is the table to understand City Union bank education loan interest rates:

The table below shows the City Union Bank education loan interest rate for meritorious students.

The table below shows the City Union Bank education loan interest rate for management students.

City Union Bank Education Loan Eligibility

To be eligible for an education loan from City Union Bank, applicants must meet the following eligibility criteria:

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  Nationality: Indian citizen.

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  Age: Between 18 and 35 years.

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  Collateral: Required for education loan above INR 7 Lakhs

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  Academic Qualification: Must have secured admission to a recognized institution for a full-time course.

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  Co-applicant: Can be a parent or guardian, with a stable income source and good credit history.

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  Co-applicant income: Stable with a 3-year ITR record

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  CIBIL score: Greater than 700

City Union Bank Education Loan Collateral Requirements

If you are planning to take an education loan above INR 7 lakhs, then you need to provide security to the bank. The following are the accepted collaterals:

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  Immovable Property: Residential or commercial property.

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  Liquid Securities: Fixed deposits, government bonds, or life insurance policies.

The value of the collateral should be equal to the education loan amount, and the property should be free from any legal encumbrances.

City Union Bank Education Loan Documents Required

Now, let us see the documents required for the City Union Bank education loan. Please note that paperwork is very important when it comes to education loans, and you have to make sure that each and every document is accurate and up to date. Following is the list of documents required:

Identification Proof Documents:

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  Aadhaar card, Passport, PAN card, Voter’s Identity Card, Driving license, Ration Card
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  Identity card /confirmation from the employer/other bank (subject to the branch’s satisfaction)
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  ID card issued by recognized Educational Institutions ID issued by Postal Authorities
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  Letter from a recognized public authority or public servant (not below the rank of the Tahsildar) verifying the identity and residence of the customer to the satisfaction of the bank
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  Job card issued by NREGA duly signed by an officer of the State Government
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  Letter issued by the Unique Identification Authority of India containing details of name, address and Aadhaar number.

Address Proof Documents:

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  Aadhaar card
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  Passport
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  Voter’s Identity card
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  Driving license
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  Telephone bill (not older than two months, installation should be at least before 6 months)
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  Bank account statement
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  Letter from a recognized public authority or public servant (not below the rank of the Tahsildar) verifying the identity and residence of the customer to the satisfaction of the bank
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  Electricity bill (latest) Ration card
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  Letter from employer (subject to satisfaction of the Bank) ID issued by Postal Authorities
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  Job card issued by NREGA duly signed by an officer of the State Government,
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  Letter issued by the Unique Identification Authority of India containing details of name, address and Aadhaar number
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  Consumer Pass Book issued by Gas Agency
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  A rent agreement indicating the address of the customer duly registered with the State Government or similar registration authority

City Union Bank Education Loan Application Process

Now, let us understand the application process for a City Union Bank education loan through the following steps:

Fill Out the Application Form:

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  Complete the personal loan (education loan comes under the personal loan category) application form available on their official website. Once filled, you will receive a call from their representative
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  You can also call the bank at 04471225000
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  You can also visit the nearest bank branch

Submit Your Documents:

With the application, you need to provide necessary documents, including identity proof, address proof, academic records, admission letter and co-applicants financial details. The required documents have been mentioned above in this blog.

Application Processing:

The bank will process the application, which may involve verification of documents and assessment of the applicant's creditworthiness. Please note that you may be called by the bank for a short interview to better understand your loan requirement and you and your co-applicant’s financial capacity to repay the education loan.

Sanction Letter:

If your loan application gets approved, you will get a sanction letter from the bank with all the terms and conditions including loan amount, interest rate, repayment terms and other conditions. We recommend that you go through the entire sanction letter word by word so that every term and condition is clear to you.

Disbursement:

This is the stage at which your sanctioned loan amount is disbursed according to the disbursement schedule. The loan amount is disbursed either directly to the educational institution or to you or your co-applicant’s account.

Please note that loan sanction and loan disbursement are two entirely different stages and you can read more about it here.

City Union Bank offers comprehensive education loan products to support students in fulfilling their higher education dreams. With competitive interest rates, flexible repayment options, and a simple application process, getting a City Union Bank education loan is easy and simple.

Frequently Asked Questions