Union Bank of India Education Loan
Union Bank of India was established in the year 1919, in Mumbai, Maharashtra and inaugurated by Mahatma Gandhi. The Union Bank has a wide network of branches which are more than 4000 throughout the country. The business of bank is under core banking solution completely and the aim of the bank is to provide solutions to the customer perfectly. The Union Bank of India offers education loans along with a range of loans and advances to students.
Purpose of the loan
The aim to provide this education loan is to facilitate students to attain their basic education, graduation, post-graduation, professional courses, technical courses, management degree and diplomas etc.
Eligibility Criterion for Union Bank of India Student Loan
• The foremost eligibility criterion for the applicant is that he/she has to be an Indian by nationality.
• Applicant must have secured admission in his/her desired university to pursue professional or technical course.
• The admission must have done on the basis of an entrance test or on merit basis after completion of higher secondary schooling.
• The university/college in which applicant desires to study must be approved by government.
For studies in India
• All government approved courses including graduate and post-graduate degree or diploma in Engineering, medical, law, science, commerce, arts, management, pharma etc.
• Approved certificate courses in Computers
• Courses in CA, CFA, ICWA etc.
For studies abroad
• Graduation courses in all job oriented professional degrees
• Post-graduation like MBA, MCA etc.
• Courses like CIMA London, CPA USA.
Quantum of Finance
For studies in India – Maximum limit of Rs. 10 lakhs, in case of applying for premier business schools in India, there is a specific scheme for that with higher slabs for financing.
For studies abroad – Maximum limit of Rs. 20 lakhs.
• For loan amount up to Rs. 4 lakhs the margin is nil.
• For loan amount more than Rs. 4 lakhs, the margin is 5% for studies in India and 15% for studies abroad.
• Scholarship or grant will be included in the margin.
Holiday period is minimum of the following two –
• Course tenure + 1 year
• Course tenure + 6 months after getting the job.
Repayment of the loan
|Quantum of loan||Maximum repayment period|
|Up to 7.5 lakhs||10 years|
|Above to 7.5 lakhs||15 years|
Rate of Interest
|Loan amount||Rate of Interest|
|Male Applicants||Female applicants|
|Up to 7.5 lakhs||12.25%||11.75%|
|Above 7.5 lakhs||12%||11.5%|
• If interest is paid on a regular basis during the study tenure and holiday period, then the applicant will get rebate on interest.
• Interest rates of loans are variable and keep changing from time to time, it is advisable to check with the bank branch.
• Legal, Stamp Duty etc. charges are applicable as per actuals.
Processing Charges: Processing charges are nil.
• For loan amount up to Rs. 4 lacs, no fund is required in terms of security.
• For loan amount up to Rs. 7.5 lacs, collateral security or a third party guarantee satisfactory to the bank.
• For loan amount more than 7.5 lacs, collateral security which equals full value of the loan is necessitated.
Union Bank of India Official website: unionbankofindia.co.in