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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 |
|
| 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 Interest Rates 2026
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 interest rates of the CUB Student Loan Scheme. (as of 2025-26; indicative — check with lender)
| 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 2026
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 |
|
| Value of Collateral (only if it is a collateralised education loan) | Collateral value equal to 100% of the loan amount |
If you're planning to pursue international education, explore the City Union Bank Education Loan for Studying Abroad 2026, especially for countries like Canada, where loan coverage can extend to living expenses.
Thinking of studying abroad after the 12th but not sure where to start? Check out our detailed Guide To Study Abroad After 12th: Exams, Universities & More and learn everything you need to know!
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City Union Bank Education Loan for Studying in India 2026
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 |
|
| 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 2026
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. |
| CIBIL Score | A credit score exceeding 700 is necessary. |
Before applying, check the City Union Bank Education Loan Eligibility Criteria 2026, which include academic merit, admission to recognized institutions, and co-applicant requirements
Struggling with a low CIBIL score? Don't let it hold you back! Discover expert tips, top banks, and smart alternatives in our detailed blog on How to Get an Education Loan with Low CIBIL Score.
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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. - Evening & Part-Time Courses: Recognised evening programs from accredited institutes. - 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. |
The List of Eligible Courses Under City Union Bank Education Loan typically includes professional degrees like MBA, engineering, medicine, and other UGC/AICTE-approved programs
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 2026
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.
| Category | Accepted Documents |
| Identity Proof |
Aadhaar Card, Passport, PAN Card, Voter ID, Driving License, Ration Card Employer-issued ID or confirmation letter (subject to bank approval) Student ID from a recognised educational institution ID issued by postal authorities Letter from a recognised public official (Tahsildar rank or higher) verifying identity and residence Job Card issued under NREGA (signed by a state government official) Letter from UIDAI containing Aadhaar details |
| Address Proof |
Aadhaar Card, Passport, Voter ID, Driving License Recent telephone bill (not older than 2 months) Latest electricity bill Bank account statement Ration Card Letter from employer confirming address (subject to bank approval) ID issued by postal authorities Job Card issued under NREGA (signed by a state government official) Letter from UIDAI with name, address, and Aadhaar number Consumer Passbook issued by a gas agency Registered rent agreement indicating the applicant's residential address |
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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 |
City Union Bank Education Loan Application Process 2026
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. |
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Benefits of City Union Bank Education Loan
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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| Particulars | Details |
|---|---|
| Max Loan Amount | 50 Lakhs |
| Collateral | Not Required |
| Moratorium | Available |
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| Disbursal Time | 7 Days |
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| Special USP | Marks Based Approval |
| % Financed | 100% of Fees |
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