Education and Career Forum

Respected Sir, I am going to apply for an Education Loan of City Union Bank. But before that I want to know that is there any prepayment fine available in an educational loan scheme of this bank? If yes, then please let me know.

Pre payment of loan means clearing loan before stipulated period of time .

Pre payment means the borrower needs to pay extra towards monthly EMI , reducing interest hence cutting down their long term dues.

There are no penalty charges for prepayment .one can prepay their loan anytime.

The repayment schedule for City Union Bank begins after 1 year of completion of the course of 6 months after you get a job, which ever is earlier. The student is supposed to repay the loan on EMI basis.

The equated monthly installments depends on the tenor that the student opts for. The longer the loan terms smaller are the monthly installments.
If the student choses to repay the loan in a smaller tenure he would have to pay higher monthly installments.

°°° The repayment schedule for City Union Bank begins after 1 year of completion of the course or 6 months after you get a job.
The student is supposed to repay the loan on EMI basis.

The equated monthly installments depends on the tenor that the students Opts for.
The education loan offered by City Union Bank does not depend on the age of the Student or the applicant.

Is there any prepayment fine available under City Union Bank Education Loan?

There is no prepayment penalty / take-over penalty if loan is taken over by other banks/FIs.

Repayment: Holiday| Moratorium: Course Period + 1 year or 6 months after getting job, whichever is earlier. The loan to be repaid in 5 - 7 years after commencement of the repayment.
Processing Fee 0.15% to 0.50% of loan amount.

Is there any prepayment fine available under City Union Bank Education Loan?

There is no prepayment penalty if loan is prepaid from own verifiable sources.

Repayment period of up to 30 years in case of purchase/ construction.

Repayment period of 15 years in case of repair & renovation.

--- For studying in India students do not need to pay any upfront fees or processing charges however, students need to pay 0.20% processing fees for studying in foreign countries.

The students and their parents Canary pay the interest amount on loan during the holiday period and case the students of their parents don't choose this option the payable interest amount will be added to the principal loan amount and repaired as monthly installments.
At the beginning of the repayment process the EMI amount will be fixed and the complete loan amount is to be paid in a span of 5 to 7 years.

There are NO penalty charges for prepayment.

You can prepay your education loan anytime.

For more details regarding this kindly visit the official website of City Union Bank Education Loan.