Union Bank of India Education Loan Rate of Interest
Along with the loan, UBI offers a lot of subsidy schemes too.
- The maximum loan limit is INR 20 Lacs.
- No processing fee
- No margin or security required for a loan up to INR 4 Lacs.
The bank offers attractive interest rates as per the guidelines of the RBI.
- The RoI for a loan up to INR 4 Lacs is 11.85%.
- The RoI for a loan from INR 4-7.5 Lacs is 11.60%.
- The RoI for loan above INR 7.5 Lacs is 10.70%.
- Girls are given a concession of 0.5%.
- For those covered under the scheme CGFSEL, the interest rate for a loan up to INR 7.5 Lacs is 10.70%.
CALCULATE YOUR EDUCATION LOAN EMI
1,000 per month
1,000
1,000
Looking for admission for India and Abroad?
Union Bank of India Education Loan Eligibility
- Indian National. The applicant should be a citizen of India or should have the passport of India.
- 10+2. The candidate should have cleared 10+2 with essential grades.
- Eligible Course. Graduate/Postgraduate/Diploma courses.
- Eligible Institute. The candidate should have got admission in a recognized institute.
- Admission Basis. The admission should have been on the basis of an entrance exam or on merit basis.
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| Bank / Financer |  Change bank |  Change bank |  Change bank |  Change bank |  Change bank |
| Applicable Rate of Interest | Up to INR 4 Lacs:11.85%. From INR 4-7.5 Lacs:11.60% Above INR 7.5 Lacs: 10.70%. | Up to INR 7.50 Lacs: 10.55% Above INR 7.50 Lacs: 10.80% | up to INR 7.5 Lacs: MCLR + 2.00% above INR 7.5 Lacs: 2.60% | Upto 4 Lacs- 16.50% Upto 7.5 Lacs- 17.50% Above 7.5 Lacs- 15.50% | |
| Max Loan with Collateral | INR 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs and beyond based requirement | |
| Max loan without collateral | INR 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs and beyond based requirement | |
| Processing Fee | Nil | Up to INR 4 Lacs: Nil Above INR 4 Lacs: INR 5000 | Nil | Nil | |
| Repayment Period | 15 years | 15 years | 15 years | 7 years | |
| Loan for top institutions | No | Yes, SBI Scholar Loan Scheme | Yes, PNB Pratibha | No | |
| Margin | Up to INR 4 Lacs: Nil Above INR 4 lacs: 5% | For loan above INR 4 Lacs In India: 5% In abroad: 15% | Up to INR 4 Lacs - NIL Above INR 4 Lacs - 5% | Upto loan 4 Lacs: No margin Above 4 Lacs: for India: 5% for Abroad: 15% | |
| Age Limit | No age criteria | no age limit | No age limit | No | |
| Loan Security | Up to INR 4 Lacs: No Collateral required From INR 4 to 7.5 Lacs: Guarantee of a bank approved third party Above INR 7.5 Lacs: Collateral Security equal to the amount of loan | Upto 7.50 Lacs: Only Parent/ Guardian as co-borrower. No Collateral Security or third party guarantee Above INR 7.50 Lacs: Tangible security along with parents as co borrower | Upto INR 7.50 Lacs: Parent(s)/guardian be made joint borrower (s). No tangible Security and /or 3rd party guarantee is required. Above INR 7.50 Lacs: Parent(s)/guardian be joint borrower(s). Tangible collateral security of suitable value acceptable to bank. | Third party guarantee Collateral security Additionally, assignment of LIC policy in favor of bank amounting 100% of education loan amount Assignment of Future salaries in favor of Axis Bank | |
| Eligibility concession for SC/ST | No | No | 50% for SC/ST, and;60% for General category. | No | |
| Processing Time | N.A. | 20 days | 15 days | 14 Days | |
| Prepayment charges | Nil | Nil | Nil | Nil | |
| Penal charges | Nil | Penal interest @ 2% to be charged for loans above Rs.4 lacs for the overdue amount and overdue period | Nil | @ 2% per month on the overdue installment/s | |
| Mandatory insurance cover | Not mandatory | Yes | yes | yes | |
| Travel expeneses | yes | yes | yes | yes | |
| Bank transfter allowance | Available (2% on the average loan outstanding for the past 12 months will be levied. | available | available | No such clause mentioned | |
| Top up loan availability | Available | yes | available | unavailable | |
| Interest Subsidy Schemes | CSIS Skill Loan Scheme CGFSEL Padho Pardesh | Padho Pardesh CSIS Skill Loan Scheme | Padho Pardesh CSIS Skill Loan Scheme | CSIS | |
| Tax benifit | yes | yes | yes | yes | |
| Concession/benefits | No margin required for loan upto INR 4 Lacs No security required for loan upto INR 4 Lacs 0.50% concession to girl students No processing fee | Concession to girl students 1% concession if interest is serviced during moratorium period including course period | 0.5% concession to girl students 0.5% concession if interest is serviced during moratorium period including course period Online application | There is no processing fee charged No pre- payment charges are applied No pre- closure charges are applied Loan Disbursal period is 15 working days from the date of final submission of documents |
How to apply for Union Bank of India Education Loan ?
Union Bank of India Education loan application form can be available online or offline at Bank branches.
Visit the official website for Union Bank of India Education Loan.
Click on Apply Now.
Fill out the form with essential details.
Upload the mandatory documents required.
Submit the form and take out a print out of the application.
Visit the bank branch for further formalities.
Applicants can directly visit the nearest branch and ask for an application form. The bank representative will then guide them with all the necessary information regarding eligibility, documents required and also which loan is best suitable.
Union Bank of India Education Loan Details
Above INR 4 lacs: 5%
From INR 4 to 7.5 Lacs: Guarantee of a bank approved third party
Above INR 7.5 Lacs: Collateral Security equal to the amount of loan
Assignment of students future salary towards the bank
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Expenses covered under Union Bank of India Student Loan Scheme
- Tuition Fee
- Examination Fee
- Library/ Laboratory Fee
- Hostel Fee
- Cost of Books, equipment, instrument or uniforms
- Miscellaneous expenses- study tours, project work, thesis, etc.
- A reasonable cost of computer or laptop (if required).
Courses Covered Under Union Bank of India Student Loan Scheme
In India
All Graduation, Post- Graduation or Doctorate courses.
Professional Courses including Medical, Law, Dental, Engineering, etc.
Courses that are offered by reputed foreign universities in India.
Regular or Evening Courses conducted by colleges/ universities approved by UGC/ Government/ AICTE/ AIBMS/ ICMR etc.
Degree or Diploma courses in Teacher Training, Nursing, B.Ed provided the training institutes are approved by Central/ State Government.
Education Loan Documents Required ?
Admission letter with all essential details.
Attested copies of age proof, residence proof and birth date.
Self-attested passport size photograph.
Copies of qualifying courses.
Salary proof such as Latest salary slip, Form 16 and recent salary certificate.
Details of collateral security along with government approved valuation certificate (if any).
Schedule of Expenses of the course.
Copy of passport and visa for abroad courses.
Interest Subsidy Schemes
Credit Guarantee Fund Scheme for Educational Loans
HRD Ministry has launched this scheme to promote education amongst economically weaker sections and provide them with basic education right.
Central Scheme of Interest Subsidy (CSIS)
Formulated by the Govt. of India, a scheme to assist the students belonging to the economically weaker section.
Skill Loan Scheme
The bank offers 'Skill Loan Scheme' for students who aspire to gain knowledge and specialized training in one specific field.
Frequently Asked Questions
What schemes does Union Bank of India considers for its education loans?
+ -In whose name is the loan granted?
+ -Is the loan contract executed only in student's name?
+ -What is the age limit for availing loan in Union Bank of India?
+ -Are minors eligible to apply for Union Bank of India Education Loan?
+ -What does margin on any loan mean?
+ -Should the student's margin be paid upfront in the starting?
+ -Where can I avail Union Bank of India Education Loan?
+ -Is there any provision to apply for loan online?
+ -Can I view my loan statement online if I am an existing education loan borrower?
+ -Is there any minimum aggregate marks to meet the eligibility criteria to avail Union Bank of India education loan?
+ -What is the discount/ rebate offered by Union Bank of India?
+ -What all is included in tangible collateral security?
+ -Can I place my family property as collateral?
+ -Is scholarship or assistantship included in the margin?
+ -What is Moratorium Period?
+ -What is tenure of an education loan?
+ -What does MCLR stands for?
+ -What all expenses are covered under this course?
+ -I have taken admission through management quota. Am I eligible?
+ -What do you mean by reputed or recognized institutes?
+ -Are there any special benefits if I have secured admission to one of the top premier institutes?
+ -What is the processing fee or prepayment charges?
+ -Will cost of my computer be covered under the loan sanctioned?
+ -Why is Pan Card necessary?
+ -Are diploma or certificate courses considered under Union Bank of India education Loan (both for India and Abroad)?
+ -Is a co-borrower necessary for loan?
+ -Who can be my co-borrower?
+ -What all documents are required from the co-borrower?
+ -How many guarantors do I need to borrow loan from Union Bank of India?
+ -What is the KYC requirement in education loan?
+ -What are maximum term for repayment?
+ -How can I repay the loan?
+ -What is EMI? How are they calculated?
+ -What are the charges for late EMI payment?
+ -Is the loan disbursed in name of individual applicant or to the institute/ university directly?
+ -If I am unable to complete my course in given tenure, will my repayment term be extended?
+ -What is method of application of interest on education loan?
+ -If I am joining the course soon after current course, can I get an extension?
+ -What is interest rate of education loan?
+ -What is interest subsidy on education loan?
+ -What documents do I need to submit to avail interest subsidy scheme?
+ -What is employment verification in an education loan?
+ -Are there any tax benefits in education loans?
+ -Is it necessary to have bank account with the bank while availing loan from that particular bank?
+ -Why do banks require insurance policy as security?
+ -Are there any additional benefits on availing loan from Union Bank of India?
+ -What is credit score? Is it important for education loan?
+ -If a student have any query, where or whom to contact?
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