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.
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. No | Features | Education Loan Details |
|---|---|---|
| 1 | Loan amount | Upto ₹75Lac (Collateral) Upto ₹40Lac (Without Collateral) |
| 2 | Margin money | 15% Up to Rs. 4 Lakh - Not Applicable Above Rs. 4 Lakh - 15% |
| 3 | Processing fee | Nil 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. |
| 4 | Processing time | 7 Days |
| 5 | Loan tenure | 15 Years |
| 6 | Prepayment charges | Nil |
| 7 | Repayment holiday | Course Period +12 months |
| 8 | Countries covered | All accepted course except premium Institution. |
Benefits of Union Bank of India Abroad Education Loan
Covers Expenses Apart From Tuition Fee
Affordable Interest Rates
Moratorium Period
- 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
Online Service
No Cost To You
Quicker Sanctions
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.
| Month | Opening 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. No | Type | Requirement |
|---|---|---|
| 1 | Eligibility Criteria | 1. 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. No | Type | Documents Required |
|---|---|---|
| 1 | Documents Required | 1. 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.