A major benefit this loan brings is that it does not require any collateral to be deposited while taking the loan. Other banks although may grant loans without collaterals but that is only for smaller amounts.
It refers to the contribution by the borrower towards the cost of project for which loan is applied for. All banks ask for margin money of around 5% for larger loan amount education loans. But the unique scheme from UBI comes without any margin money.
Expenses covered by the loan
The loan covers tuition fees and cost of books, hostel and mess charges, Laptop, living expenses and student exchange program.
The fixed rate of interest provided by UBI for this scheme is an advantage to the borrower in a scenario when interest rates are on a rising spree. Other major counterparts in the industry including the largest lender of the country, State Bank of India is providing education loan at floating rate of interest.
Institutes covered under the scheme
Indian Institute of Management Ahmedabad (IIMA)
Indian Institute of Management Bangalore (IIMB)
Indian Institute of Management Calcutta (IIMC)
Indian Institute of Management Indore (IIMI)
Indian Institute of Management Kozhikode (IIMK)
Indian Institute of Management Lucknow (IIML)
Management Development Institute (MDI), Gurgaon
S. P. Jain Institute of Management and Research (SPJIMR), Mumbai
Xavier Labour Relation Institute (XLRI), Jamshedpur