Union Education
Objective & Purpose:
The scheme aims at providing financial assistance on reasonable terms to the poor and needy students to undertake basic education and to meritorious students that they may pursue higher or professional or technical education.
Eligibility:
Student Eligibility
- Indian citizen
- Secured admission to the concerned institute in India or abroad through an appropriate selection process and cleared the qualifying examination, if any
Courses Eligibility (Indicative List):
(a.) Studies in India
- Graduation/Post-Graduation
- Professional courses
- Management courses
(b.) Studies Abroad:
- Graduation: For job-oriented professional or technical courses offered by reputed universities
- Post-Graduation: MCA, MBA, MS and such other courses
- Courses conducted by CIMA, London, CPA, USA., and such other institution
Expenses Considerd For Loan:
- Fee payable to Institute/Hostel.
- Examination/Library/Laboratory fees
- Purchase of Books/Equipments/Instruments/Uniforms
- Caution Deposit, Building Fund/refundable deposit supported by Institution Bills/receipts, subject to the condition that the amount does not exceed 10% of the total tuition fees for the entire course.
- Travel Expenses/passage money for studies abroad
- Purchase of computers-essential for completion of the course
- Insurance premium for the student borrower
- Any other expense required to complete the course, such as, Study Tours, Project Work, Thesis, etc.
Quantum of Loan:
Need-based finance subject to repayment capacity of the parent or student with margin and upto the following ceilings:
- For studies in India - Up to Rs. 10 lacs
- For studies abroad - Up to Rs. 20 lacs
Margin:
- No margin for loans up to Rs. 4.00 lacs . However, for loan of higher amounts, the margin requirement is 5% for inland studies and 15% for studies abroad.
- Scholarship/assistance to be included in margin.
- Margin maybe brought in on pro-rata basis as and when disbursement is made.
Repayment:
Repayment holiday or Moratorium on loan: Course period + 1 year OR 6 months after job placement, whichever is earlier.
Starting from this point, the loan is to be repaid in 5-7 years after completion of course period/moratorium.
