In a novel way to attract students to avail educational loans, public sector UCO bank on Friday said it would consider applications for the loan, if the students simply send SMS to them.
'Our bank employee will immediately contact the concerned student and the loan application will be cleared in three days', N Kumaraswamy, General Manager of the bank told reporters.
For loans upto Rs four lakh, there was no need for collateral security, he said.
The Centre would bear the interest burden of the loan till the students finished their course, he said. The bank had nominated three officers to deal with the applications sent by SMS, he said.
For the first time, the bank had decided to sanction loans even for school education from this year, he said.
The bank had also introduced a new loan scheme for rehabilitation of manual scavengers, he said.