United Bank of India Education Loan Interest Rate

United Bank of India Education Loan

Product name: United Superb Education Loan Scheme
There has been a steady rise in expenses related to education and the cost of education has become a major issue for students and their parents. Even if student is well deserving, to meet the bulky fee for the famous educational institutions is a major task. The cost of study associated with the premier institutions in the country are on an unprecedented rise. Education loans and advances thus, has come to rescue. United Bank of India offers a loan to meet the expenses of education.

Eligible courses in India
• Courses in engineering, medical, management etc.
• The course must be approved according to the list of bank of eligible courses.

Quantum of finance: The maximum amount of loan for education in India is 30 lakhs

Loan Purpose
• To pay for the fee of University or college, and to pay for Hostel fee.
• To pay for the exam fee, library fee, lab fee.
• To buy books and equipment, instrument and uniform dress.
• To pay for Caution & refundable Deposit or Building Fund backed by Bills and Receipts.
• To bear the cost of travel or Passage money in case of education abroad.
• To buy computers if vital for the completion of the study course.
• Cost related to the study program like tours, project and thesis etc.

Interest Rates
For list A institutes
For Male & Female students – 10.25% p.a.

For list B institutes
For Male students – 10.75% p.a.
For Female students – 10.50% p.a.

Repayment of loan
• Starts out one year after completion of the course or Six months after getting job, whichever is earlier.
• Simple Interest will be debited quarterly during the repayment moratorium period. When the repayment starts, the accrued interest is added to the principal amount and EMI is fixed on total outstanding loan amount
• The loan has to be repaid in maximum 10 years after commencement of the loan.

Life Insurance (compulsory): To make sure the security of loan sanctioned to the borrower and the applicant’s life and against the liability of loan the life insurance is provided by the bank.

Security
For list A institutes
Up to 20 lakhs – No collaterals required.
More than 20 lakhs – tangible collateral security.

For list B institutes
Up to 10 lakhs – No collaterals required.
More than 10 lakhs – tangible collateral security.

Important Note
• Assignment of future income of applicant is mandatory in all scenarios for repayment of loan.
• The loan documents must be carried out by the applicant as a borrower and the parent/ guardian as a co-borrower.
• The collateral security to support the education loan may be in the form of mortgage of property like land, building or resident house, which has to be unencumbered or in form of government securities, mutual funds, LIC policy or part of land or building which is already mortgaged and which is on second charge basis with the worth equals the loan amount. Collateral security can also be in form of a third party guarantee.
• If computer or laptop has been purchased under the loan coverage, it will be hypothecated to the bank until the loan is completely paid off.

United Education Loan Official website: unitedbankofindia.com

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