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Union Bank provides affordable education loans with convenient features, enabling more Indian students to pursue higher education abroad. With these loans, students can attend some of the best technical and managerial institutions without the obligation of financial constraints. The bank also offers interest subsidy programmes that the central government supports, specifically designed to assist students from economically disadvantaged backgrounds and minority communities.

Loan Margin: 15
Processing Fees: Nil

Union Bank Education Loans come with distinct features that make them a popular choice among students in India who wish to pursue higher education abroad. The loan provides financing for tuition fees, accommodation, travel, and other related expenses during your time abroad. 

 

Additionally, the loan has a flexible repayment period of up to 15 years, which allows students to repay the loan in a manner that best suits their financial circumstances. The bank also offers an interest subsidy programme for students from economically disadvantaged backgrounds and minority communities. This program reduces interest rates, making the loan more affordable for those who need it the most.

Features Of Union Bank of India Abroad Education Loan

Sr. NoFeaturesEducation Loan Details
1Loan amountUpto ₹75Lac (Collateral) Upto ₹40Lac (Without Collateral)
2Margin money15% Up to Rs. 4 Lakh - Not Applicable Above Rs. 4 Lakh - 15%
3Processing feeNil However, an upfront fee of Rs. 5000 to be charged to the student, which will be refunded if the student avails the loan within a period of 3 months from the date of sanction. If the student does not avail the loan within a period of 3 months from the date of sanction, then the deposit of Rs. 5000 to be appropriated as processing charges. A suitable stipulation to this effect should be included in the sanction letter issued to the student.
4Processing time7 Days
5Loan tenure15 Years
6Prepayment chargesNil
7Repayment holidayCourse Period +12 months
8Countries coveredAll accepted course except premium Institution.

Benefits of Union Bank of India Abroad Education Loan

Covers Expenses Apart From Tuition Fee
Union Bank's education loans cover many expenses, including tuition fees and accommodation charges. Other expenses such as examination, library, laboratory fees, insurance premiums, books, equipment, instruments etc. are also covered. Loans may also include travel expenses and costs related to study tours, project work, thesis, and other course-related fees.
Affordable Interest Rates
To provide affordable access to education, the Union Bank of India offers a variety of education loan programmes with competitive interest rates. These programmes are specifically designed to assist students in achieving their academic goals without the financial burden of high fees.
Moratorium Period
Union Bank of India offers a moratorium period similar to a grace period, providing students up to one year after graduation to begin loan repayment. The bank also allows a repayment tenure of up to 15 years, giving students greater flexibility in managing their finances and enabling them to repay their loans at a pace that suits their circumstances.
  • Covers Expenses Apart From Tuition Fee

Union Bank's education loans cover many expenses, including tuition fees and accommodation charges.

Other expenses such as examination, library, laboratory fees, insurance premiums, books, equipment, instruments etc. are also covered.

Loans may also include travel expenses and costs related to study tours, project work, thesis, and other course-related fees.

 

  • Affordable Interest Rates

To provide affordable access to education, the Union Bank of India offers a variety of education loan programmes with competitive interest rates. These programmes are specifically designed to assist students in achieving their academic goals without the financial burden of high fees. 

 

  • Moratorium Period

Union Bank of India offers a moratorium period similar to a grace period, providing students up to one year after graduation to begin loan repayment. The bank also allows a repayment tenure of up to 15 years, giving students greater flexibility in managing their finances and enabling them to repay their loans at a pace that suits their circumstances.

 

Union Bank Education Loan Interest Rate

When it comes to Union Bank of India education loan interest rate, there are different rates of interest for different schemes that are offered by the bank. Below we have defined each scheme and their rate of interest. 

 

Schemes

Course name

Interest Rates (p.a.)

Union Education

Premier Abroad

9.30% p.a. (Up to Rs.40 lakh) 10.55% p.a. (Above Rs.40 lakh)

Union Education

Special scheme for premier medical institutes

10.30% p.a. (Up to Rs.40 lakh)10.55 p.a. (Above Rs.40 lakh)

 

These education loan interest rate Union Bank of India are effective from 11 June 2022.

Benefits Of Getting Your Union Bank of India Abroad Education Loan Through UniCreds

Higher Chance Of Approval
By applying for your education loan through UniCreds, you are increasing your chances of approval. Generally, banks dismiss applications if they find any missing documents, property issues, or any other problem. With UniCreds, we will immediately reach out to Union Bank officials and find the best solution.
Online Service
With UniCreds, there’s no need to visit the branch to submit your documents. Simply visit the UniCreds website and upload your documents from the comfort of your home. You can also enjoy step-wise updates via notifications.
No Cost To You
All our education loan services are completely free of cost.
Quicker Sanctions
Our strategic partnerships ensure low turnaround time. Expect to have your education loan processed and sanctioned within 15 days.

Calculate EMI for Education Loan

Loan Amount

Interest (p.a)

Loan Duration

Course Duration

Grace Period

Monthly EMI
Principal Amount
Total Interest
Total Amount
Loan Amortization Schedule

Following table show the year wise payment schedule.

MonthOpening Balance (₹)Interest Paid (₹)Principal Repaid (₹)Closing Balance (₹)
Month
1
Opening Balance (₹)
Interest Paid (₹)
Principal Repaid (₹)
Closing Balance (₹)
Month
2
Opening Balance (₹)
Interest Paid (₹)
Principal Repaid (₹)
Closing Balance (₹)
Month
3
Opening Balance (₹)
Interest Paid (₹)
Principal Repaid (₹)
Closing Balance (₹)
Month
4
Opening Balance (₹)
Interest Paid (₹)
Principal Repaid (₹)
Closing Balance (₹)
Month
5
Opening Balance (₹)
Interest Paid (₹)
Principal Repaid (₹)
Closing Balance (₹)

Eligibility Criteria For Union Bank of India Abroad Education Loan

The eligibility for students and co-applicants is given below. 

 

Eligibility Requirements for Students:

  • The student must be an Indian citizen.
  • Admission to higher, professional, or technical education abroad must be secured through an appropriate selection process and the qualifying examination must be cleared, if applicable.
  • There are no age restrictions.

 

Co-Applicants Eligibility:

  • The student's parent(s) must compulsorily join as a co-applicant.
  • If the student is married, the co-applicant can be their spouse, parent(s), or parent(s)-in-law.
  • If both parents are deceased, a close relative or guardian must be taken as the co-applicant.
  • The co-applicant must be an Indian citizen.

 

Eligible Courses For Union Bank Education Loan

 

Courses covered outside India:

  • Graduation/post-graduation degrees offered by recognised universities
  • Certified degree courses conducted by CIMA, London, CPA, USA and other such institutes
  • PhD courses
  • Diploma courses abroad are not covered

 

Documents Required For Union Bank Education Loan

Following are the Union Bank Education Loan documents required to study abroad:

  • Valid proof of identity such as a Passport, PAN Card, or Employee Identity card.
  • Proof of address such as an Electricity bill, Telephone bill, or Ration card.
  • PAN Card.
  • Bank statement for the last 12 months.
  • Admission documents including Admission Letter and Admit Card.
  • Schedule of expenses including fee structure and living expenses.
  • Mark sheets for Class X or equivalent onwards.
  • 3 photographs.
  • Proof of any outgoings.
  • Loan repayment statement (if any).
  • LIC Policies (if any).
  • Any other document requested in the application form.
  • Proof of Income:
    • For Salaried Individuals - Last one year's Income Tax Returns, Form-16 / letter from employer, salary slips for the last 6 months.
    • For Business Owners - Income Tax Returns for the last 3 years, Profit & Loss Balance Sheet.
    • For Agriculturists - Income Certificate from concerned revenue officer (Tahsildar) or/and proof of land holding.
Sr. NoTypeRequirement
1Eligibility Criteria1. Should be an Indian national. 2. Should have secured admission in India or abroad to pursue higher / professional/ technical education, through appropriate selection process and cleared the qualifying examination, if any. 3. NRI student should hold Indian Passport & has secured admission to a course for studies in India only. 4. The student should have secured admission to an eligible course in a recognised institution in India. ✓ Minimum marks secured in qualifying exam* should be as under: General - 60% OBC - 55% SC/ST - 50%

Documents Required for Union Bank of India Abroad Education Loan

Sr. NoTypeDocuments Required
1Documents Required1. Application form duly filled by the customer 2. Credit information of student/co borrower(s)/guarantor (if any) 3. KYC documents for each applicant / co-applicant / guarantor (if any): 4. Latest passport size photograph 5. Residence proof (Driving license/ Passport/Electricity Bill etc) 6. PAN card; if the student does not have PAN card at the time of applying for loan, branches should advise the student to apply for the same and furnish a copy at a later date but before the next disbursement of loan. Branches should also ensure to update the PAN card details of the existing educational loan borrowers in Finacle. 7. Aadhaar made mandatory (if applicable in respective), for claim of eligible subsidies 8. ITR or Income proof of Borrower/Co-borrower/Guarantor, if any 9. Last 12 months bank statement of Borrower/Co-borrower/Guarantor (with us or other bank / financial institutions) 10. All original documents should be verified and an endorsement there-to should be recorded on the photocopies by the branch officials. 11. Caste certificate wherever required for statistical purposes only. 12. Proof of admission (admission letter) 13. Mark sheets and certificates of all exam passed. 14. Schedule of expenses for the course. 15. Letter conferring scholarship, free ship, studentship etc.

Loan Repayment For Union Bank of India

The maximum repayment period for educational loans is 15 years, including the course and moratorium periods. This repayment tenure applies regardless of the amount of the loan. In case the interest accrues during the moratorium period and is not serviced, it will be added to the principal amount when calculating the Equated Monthly Instalments (EMI) for repayment. This ensures that the interest doesn't become an additional burden for the borrower, and they can repay the loan in a structured manner. It's crucial to note that timely repayment of the loan will not only help borrowers avoid the burden of interest but will also positively impact their credit history, making it easier for them to secure loans in the future.

 

Expenses Covered in Union Bank Of India Education Loan

Here is the list of expenses that are covered in the Union Bank student Loan. 

  • Tuition fees for college, school, or university.
  • Hostel and mess charges.
  • Examination, library, and laboratory fees.
  • Insurance premiums for the student borrower.
  • Caution deposits, building funds, and refundable deposits supported by institution bills or receipts.
  • Purchases of books, equipment, instruments, and uniforms required for the course.
  • Purchase of a computer or laptop at a reasonable cost, if necessary for course completion.
  • Travel expenses or passage money for studying abroad.
  • Admission acceptance fees.
  • Any other expenses required to complete the course, such as study tours, project work, thesis, etc.

 

By covering these expenses through educational loans, students can focus on their studies without worrying about the financial burden of educational expenses.

 

Education Loan Security For Union Bank Of India Education Loan

 

Quantum of loan

Security

Up to Rs.4 Lakh

No security required, but loan must be covered under CGFSEL

Above Rs.4 Lakh & up to Rs.7.50 Lakh

Third-party guarantee or tangible collateral security may be accepted and loan to be covered under CGFSEL

Above Rs.7.50 Lakh

Collateral security must be of minimum value equivalent to the loan amount and interest accumulation during the course and moratorium period

How To Apply For Union Bank of India Abroad Education Loan?

  • Once you've established your Union Bank of India education loan eligibility, you can submit an online application or get in touch with one of our expert education loan counsellors at UniCreds to schedule a callback. 
  • After you've submitted your profile information, our specialists will carefully review it and, based on your eligibility, recommend the next course of action to you.
  • UniCreds enables students to upload documents digitally, sparing you the trouble of presenting your documents at the bank and allowing you to do it from the convenience of your home.
  • In addition, UniCreds gives you a customised set of documents to submit based on your profile and the loan you've applied for to speed up the process.
  • Once your documents are uploaded & KYC is verified, you can expect your loan to get sanctioned within a few working days, as specified.

 

Frequently Asked Questions

What is the Normal time required for disbursement of Education loan?
It takes only 7 working days to get the Loan sanctioned from Union Bank of India after submission of requisite documents and papers

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