City Union Bank Education Loan is a reliable financial solution to help students achieve their academic aspirations. In Q1 FY 2025, City Union Bank's total deposits grew by 6%, reaching INR 54,857 crore, up from INR 51,655 crore in Q1 FY 2024. This growth reflects the bank’s strong financial stability and lending capacity.
With flexible eligibility criteria and competitive interest rates, the City Union Bank Education Loan caters to a wide range of educational needs both in India and abroad.
Keep reading to make an informed decision about financing your education.
By the end of this blog, you will know
The eligibility criteria for obtaining a City Union Bank Education Loan.
The current interest rates and associated terms for these loans.
The comprehensive list of required documents and a detailed guide on the application process.
City Union Bank Education Loan: Key Highlights
City Union Bank (CUB) offers a student loan scheme designed to help Indian students pursue higher education both in India and abroad. Below is a table highlighting the key aspects of the CUB Student Loan Scheme.
Feature
Details
Objective
Offers financial support to Indian students pursuing higher education in India and abroad after securing admission.
Loan Amount
For studies in India: Up to INR 10 lakhs
For studies Abroad: Up to INR 20 lakhs
Margin Money
- Up to INR 4 lakhs: No margin required.
- Above INR 4 lakhs: 5% margin for studies in India and 15% for studies abroad.
- Scholarships or assistantships can be included in the margin contribution.
Security Requirement
- Up to INR 4 lakhs: Only parents/guardians must sign the loan documents; no security is required.
- Above INR 4 lakhs – INR 7.5 lakhs: Co-obligation of parents/guardian and collateral security (third-party guarantee may be waived based on financial standing).
- Above INR 7.5 lakhs: Requires third-party guarantee and collateral security equivalent to 100% of the loan amount.
- Acceptable collateral includes immovable property (land/building), government bonds, LIC policies, gold, bank deposits, mutual funds, and other securities.
Repayment
- Option to pay interest during the moratorium period.
- If not paid, interest is clubbed with the principal, and the total amount is repaid in EMIs.
- Repayment period: 5-7 years after the holiday period ends.
Moratorium Period (Holiday Period)
Course duration + 1 year or 6 months after securing a job, whichever comes first.
Processing Fees
- No processing fees for studies in India.
- For studies abroad, a 0.20% processing fee is applicable.
Capability Certificate
The bank provides a Capability Certificate for students going abroad to demonstrate financial credibility, subject to relevant documentation.
City Union Bank Education Loan: Key Highlights
City Union Bank (CUB) offers a student loan scheme designed to help Indian students pursue higher education both in India and abroad. Below is a table highlighting the key aspects of the CUB Student Loan Scheme.
Particulars
Up to Rs.4 lakh
Above Rs.4 lakh
Male student
14.75%
15.75%
Female student
14.25%
15.25%
CUB Vidhyavani - Management
This category is for students securing admission through management quotas or similar channels.
Particulars
Up to Rs.4 lakh
Above Rs.4 lakh
Male student
15.00%
16.00
Female student
14.50%
15.50%
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City Union Bank Education Loan for Studying Abroad 2025
City Union Bank (CUB) offers an education loan scheme to ensure that students planning to study overseas receive the necessary financial support.
Below are the key features of City Union Bank’s education loan scheme for studying abroad.
Loan Aspect
Details
Loan Limit
INR 20 Lakhs
Higher amounts can be offered based on the applicant and co-applicant profiles.
Loan Margin
15%
Accepted co-applicant
Parents, parents-in-law, sibling, spouse
Moratorium Period
The duration of the course plus one year or six months after securing employment, whichever comes first.
Repayment Duration
5-7 years
Repayment policies
Have the option to repay interest during the moratorium period
Eligibility Criteria
Should be an Indian resident
Secured admission to a foreign university with proof
Value of Collateral (only if it is a collateralised education loan)
City Union Bank Education Loan for Studying in India 2025
Higher education in India can be expensive, especially for professional and technical courses. City Union Bank offers education loans to help students cover tuition fees, books, hostel charges, and other essential expenses.
Below are the key features and details of City Union Bank’s education loan for studying in India.
Parameter
Details
Loan Limit
Up to INR 10 lakhs
A higher amount can be offered
Loan Margin
5%
Accepted co-applicant
Parents, parents-in-law, siblings, spouse
Interest rate
Depends on the amount of education loan
Moratorium Period
Course Duration plus 1 year or 6 months after getting a job(whichever is earlier)
Repayment Duration
5-7 years
Repayment policies
Have the option of paying interest in the moratorium period
Eligibility Criteria
The applicant should be an Indian national
Gained admission to a university via an entrance exam and need to submit proof.
Value of Collateral (only if it is a collateralised education loan)
It may require collateral of up to 100% of the value of the loan amount
City Union Bank Education Loan Eligibility Criteria 2025
Applicants must fulfil certain eligibility criteria to qualify for a City Union Bank Education Loan. Here’s a table highlighting the essential requirements.
Criteria
Details
Nationality
Applicants must be an Indian citizen.
Age Limit
Applicants must be between 18 and 35 years old.
Admission Requirement (India)
Admission to a professional or technical course in India must be secured through an entrance exam or selection process, with valid proof provided.
Admission Requirement (Abroad)
Must be admitted to a recognised foreign university or institution.
Collateral Requirement
Mandatory for loans exceeding INR 7 lakhs.
Co-Applicant Requirement
A financially stable parent or guardian with a strong credit record.
Co-Applicant Income
Must have a stable income with an ITR record for the last 3 years.
List of Eligible Courses Under City Union Bank Education Loan
City Union Bank provides education loans for various undergraduate, postgraduate, and professional courses in India and abroad. The bank ensures that students enrolling in recognised institutions and accredited programs can access financial support for their education.
Here’s a table highlighting the eligible courses under the City Union Bank Education Loan.
Study Location
Eligible Courses
India
- Undergraduate Degrees: B.Sc, B.A, B.Com, and similar courses from recognised institutions.
- Postgraduate Degrees: M.Sc, M.A, M.Com, M.S, Ph.D., and other higher education programs.
- Professional Courses: Medical, Engineering, Veterinary, Agriculture, Dental, Law, and Management studies.
- Chartered & Financial Certifications: CA, ICWA, CFA, and similar professional courses.
- Diploma & Specialised Training: Pilot training, maritime studies, and shipping courses approved by the Director General of Civil Aviation (DGCA) or Shipping Authority.
- Government-Approved Courses: Programs certified by AICTE, UGC, ICMR, AIBMS, and other regulatory bodies.
Abroad
- Job-Oriented Professional Degrees: Technical and professional graduation programs from renowned international universities.
- Postgraduate Studies: MCA, MBA, MS, Ph.D., and similar advanced programs.
- Globally Recognised Certifications: Courses conducted by CPA, CIMA-London, and other international bodies.
Explore top universities, tuition costs, and scholarship options in our guide on Affordable MBA Abroad for Indian Students – your key to an economical international degree!
City Union Bank Education Loan: Documents Required 2025
When applying for a City Union Bank Education Loan, you must provide specific documents to verify your identity, address, and financial stability.
Below is a detailed list of the required documents categorised for easy reference.
City Union Bank Education Loan: Collateral Requirements
For education loans exceeding INR 7 lakhs, City Union Bank requires applicants to pledge collateral as security. This ensures the bank’s financial safety while providing students access to higher education funding.
Below are the accepted types of collateral for City Union Bank Education Loan.
Collateral Type
Accepted Forms
Conditions
Immovable Property
Residential property, Commercial property
Must be legally clear and free from disputes or encumbrances
Liquid Securities
Fixed Deposits (FDs), Government Bonds, Life Insurance Policies
The value should match the loan amount
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City Union Bank Education Loan Application Process 2025
Applying for a City Union Bank Education Loan is simple, provided you meet the eligibility criteria and have the necessary documents ready.
Here’s a step-by-step guide to help you secure your loan with ease.
Step 1: Choose the Right Loan Scheme
City Union Bank offers two main education loan schemes under CUB Vidhyavani. Select the scheme that best fits your admission type and financial requirements.
Step 2: Gather Required Documents
Prepare all the necessary documents before proceeding with the application.
Step 3: Visit the Nearest City Union Bank Branch
You must visit the nearest City Union Bank branch to complete the loan application form and submit the necessary documents.
Step 4: Loan Processing & Approval
The bank will review your documents and determine your loan eligibility. If collateral is required, the assets will be assessed for valuation.
Step 5: Loan Disbursement
After completing all formalities, City Union Bank will transfer the loan amount directly to the educational institution based on the submitted fee structure.
City Union Bank Education Loan: Expenses Covered
City Union Bank's education loan supports various academic costs, allowing students to pursue their studies without financial worries.
The table below highlights the expenses covered under the City Union Bank Education Loan.
Category
Details
Tuition & Institutional Fees
Covers college, school, and hostel fees, along with library, laboratory, and examination charges
Study Materials & Equipment
Funding for books, study materials, laboratory instruments, and necessary tools required for the course
Travel Expenses
Covers airfare and travel costs for students pursuing education abroad
Project & Course Completion Costs
Financial support for study tours, project work, thesis submissions, and other academic requirements
Laptop & Uniforms
Funding for computer/laptop purchase and required course uniforms
Student Insurance
The loan includes coverage for education loan insurance premiums to safeguard the borrower.
City Union Bank offers student-friendly education loans with affordable interest rates, flexible repayment options, and minimal margin requirements.
Below is a breakdown of the key advantages of the City Union Bank Education Loan.
Feature
Details
Zero Margin for Small Loans
Students can secure loans up to INR 4 lakhs without any margin money, ensuring easier access to financial support.
Low Margin for Higher Loans
Loans up to INR 7 lakhs require a low-margin contribution from the borrower
Flexible Repayment
Custom repayment options to suit different financial situations
Tax Benefits
Interest paid on the loan qualifies for tax deduction under Section 80E of the Income Tax Act
Pre-Admission Loan Sanction
Loan approvals can be obtained before securing admission, ensuring students have financial backing in advance
Collateral Flexibility
Relaxed collateral norms, making it easier for students to secure high-value loans
Attractive Interest Rates
Competitive interest rates tailored for students pursuing higher education
Government Subsidy
Special interest subsidies for students enrolled in government-recognised courses and institutions, including tourism-related programs
City Union Bank Education Loan is a reliable and flexible financial solution for students aspiring to study in India or abroad. Affordable interest rates, minimal margin requirements, and tailored repayment options ensure that financial constraints do not hinder academic goals.
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Important FAQs About City Union Bank Education Loan
What is the City Union Bank Education Loan?
The City Union Bank Education Loan is a financial solution aimed at supporting students in covering the costs of their higher education both in India and overseas.
What are the eligibility criteria for a City Union Bank Education Loan?
Eligibility typically includes being an Indian citizen, having secured admission to a recognised institution, and meeting the bank's specific requirements.
What are the interest rates for City Union Bank Education Loans?
Interest rates vary based on the loan amount and repayment duration. Reach out to the bank for the most up-to-date rates.
How can I apply for a City Union Bank Education Loan?
You can submit your application online or visit a nearby branch with the necessary documents.
What is the maximum loan amount available under the City Union Bank Education Loan?
Depending on the scheme, the maximum loan amount can go up to INR 7 Lakhs for unsecured loans.
Are there any processing fees for the City Union Bank Education Loan?
Yes, processing fees may apply, and they can differ depending on the loan amount and terms.
What is the repayment period for City Union Bank Education Loans?
The repayment tenure usually varies between 5 to 15 years, based on the loan amount and agreed terms.
Can I get a City Union Bank Education Loan for studying abroad?
Yes, City Union Bank offers education loans for both domestic and international studies.
What are the City Union Bank education loan requirements?
Requirements include proof of admission, academic qualifications, and co-applicant's financial documents.
Is collateral required for a City Union Bank Education Loan?
Collateral may be required for higher loan amounts, but smaller loans can be unsecured.
What happens if I default on my City Union Bank Education Loan?
Failing to repay may result in penalties, harm your credit score, and could lead to legal consequences.
Can I prepay my City Union Bank Education Loan?
Yes, prepayment options are available, but check for any associated fees.
How is the loan amount disbursed?
The loan amount is usually disbursed in instalments based on the educational institution's fee structure.
What support does City Union Bank provide during the loan application process?
The bank offers guidance through customer service and dedicated loan officers to assist applicants.
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