UCO Bank launches educational loans through SMS

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Chennai, May 16 (UNI) In a pioneering effort and first of its kind in Tamil Nadu region, comprising Puducherry one of the first growing public sector banks UCO Bank today announced launch of educational loans through SMS.

All the students or parents, who wished to avail educational loans for higher studies, whether it was for arts and science college or for professional engineering and medical courses, should send in their request to any of the three numbers -- 9940201909, 9940201904, 9940201902.

After receipt of the SMS, the bank team would respond to the call to collect details and the loans would be disbursed in two or three days from the bank's nearest branch, UCO Bank General Manager N Kumaraswamy told reporters here today.

''There was absolutely nil NPA risk involved in it as the Centre had announced Interest subvention in the Budget, under which the interest part would be paid by the government for the first four years or five years depending upon the course,'' he added.

The bank, through its 81 branches in Tamil Nadu region, was planning to disburse 2000 loans (irrespective of the amount involved) for the year 2008-09.

''There is no cap on disbursals. It is unlimited. The aspiring students has to contact the nearest branch. After completing the formalities they can walk with the loan in two to three days. There is no collateral security for loans upto Rs four lakh,'' Mr Kumaraswamy said and added that following the announcement made by Union Finance Minister P Chidambaram, the bank would disburse educational loans to all the needy.

The SMS system introduced in Mumbai last year has worked wonders and the bank had disbursed about 800 loans to the students.

Mr Kumaraswamy also said the bank would also offer loans to students, who want to pursue higher studies in foreign countries.

He also announced launch of a new Loan Scheme for rehabilitation of manual scavengers.

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