| Interest Rate | Moratorium Period | Margin Money |
| 9.5% – 11.7% | Course years + 1 year | Up to INR 4 Lakhs – Nil Above INR 4 Lakhs – 15% (abroad), 5% (India) |
Table of Contents
- Overview: Union Bank Education Loan
- Union Bank Education Loan Schemes
- Union Bank Education Loan Interest Rate
- Union Bank Education Loan Eligibility
- Expenses Covered by Union Bank Education Loan
- Documents Required for an Education Loan from Union Bank
- How to Apply for Union Bank Education Loans?
- Union Bank Education Loan Repayment
- Conclusion: Get Started with Your Loan Application
- Frequently Asked Questions
Union Bank of India is a top public bank in India, established in 1919, with its headquarters in Mumbai. Since then, the bank’s contribution to the Indian economy and the education sector has been significant. Union Bank education loans empower students to study degree, diploma, and technical courses in science, engineering, medicine, and many other subjects.
If you want an education loan to advance your studies, don’t miss out on the Union Bank education loans.
Overview: Union Bank Education Loan
Education loans by the Union Bank of India have no cap, meaning you will get need-based funding based on your collateral value and cosigner income. The interest rates can go lower by up to 9% if your institute of admission is in the A-category listed by the bank.
| Maximum loan amount | No cap. Need-based finance |
| Interest rates | 9.5% – 11.7% |
| Expenses covered | Tuition fee Accommodation Travel Insurance premium Caution deposit Books, equipment |
| Margin money | Up to INR 4 Lakhs – Nil Above INR 4 Lakhs – 15% (abroad), 5% (India) |
| Moratorium period | Course years + 1 year |
| Repayment period | 15 years |
| Collateral requirement | Up to INR 4 Lakhs – Nil INR 4 – 7.5 Lakhs – Suitable third party guarantee required Above INR 7.5 Lakhs – Tangible collateral with equivalent value to the collateral and accrued interest. |
Union Bank Education Loan Schemes
Special Union Education Loan Schemes for Premier Institute Abroad Studies
Union Bank offers education loan assistance to students who secure admission to premier institutes abroad. The admission must be based on entrance tests conducted by recognized agencies (GMAT, GRE, etc.). Eligible students can get up to INR 1.5 Cr. Note that the university of admission must be listed by the Union Bank for this education loan scheme.
Union Education India /Abroad/ NRI Student
Union Bank education loan to study in a recognized Indian or overseas institute for higher, professional, or technical education. The student’s parent has to compulsorily join as a co-applicant.
- Graduation, postgraduation, and diploma courses, technical and management courses, and PhD courses are eligible.
- Diploma courses abroad are not covered.
- Certified degree courses conducted by CIMA, London, CPA, USA and other such institutes are eligible for funding.
Special Scheme for students of Premier Management & Technical Institutes Inland- TIER I
Union Bank education loan helps students to study management and technical courses in top institutes in India. Eligible students can get up to INR 40 Lakhs without collateral security or third-party guarantee. Your college of admission must be listed by the Union Bank to get a loan through this scheme.
Special Union Education Scheme For ISB
Students who secure admission to the Indian School of Business at Hyderabad or Mohali or cohorts at Mumbai, Hyderabad, New Delhi, and Bengaluru can apply for an education loan from the Union Bank. Education loans are offered to study different courses at the ISB.
Union Bank Education Loan Interest Rate
Union Bank education loan interest rate differs with your university of admission. The interest rates for listed universities under Category A are comparatively lower than those listed under Category B.
Interest rates for Category A institutes:
| Quantum of Loan | Collateral Requirement | Effective ROI |
| Up to INR 40 Lakhs | Without collateral | 9.50% |
| Up to INR 1.5 Cr | 50% up to <100% collateral | 9.25% |
| 100% and above collateral | 9.00% |
Interest rates for Category B institutes:
| Quantum of Loan | Collateral Requirement | Effective ROI |
| Up to INR 30 Lakhs | Without collateral | 9.75% |
| Up to INR 1.5 Cr | 50% up to <100% collateral | 9.5% |
| 100% and above collateral | 9.00% |
Union Bank Education Loan Eligibility
The eligibility criteria for a Union Bank education loan mainly include your nationality and admission requirements.
- The student is an Indian national.
- The student should have secured admission in India or abroad to pursue higher/ professional/technical education through the appropriate selection process and cleared the qualifying examination, if any.
- NRI students should hold an Indian Passport & have secured admission to a course for studies in India only.
The specific eligibility criteria differ for the type of education loan you are applying for and your course of study.
Expenses Covered by Union Bank Education Loan
Your Union Bank education loan covers academic and living expenses, partially or completely. The loan coverage depends on the fund availability for your profile. The following expenses are mainly funded by an education loan from the Union Bank:
- Tuition fee payable to college/school/ university
- Hostel/mess charges
- Examination/Library/Laboratory fee
- Insurance premium for the student borrower
- Caution deposit, Building fund/refundable deposit supported by Institution bills/receipts
- Purchase of books/equipment/instruments/ uniforms
- Purchase of computer/laptop at a reasonable cost, if required for completion of the course
- Travel expenses/passage money for studies abroad
- Admission acceptance fee
- Any other expense required to complete the course – like study tours, project work, thesis, etc.
Documents Required for an Education Loan from Union Bank
Union Bank education loan documents are required to validate your application. Your personal, academic, and financial documents are required to get an education loan from the Union Bank. Please note the exact list of documents may include more than the documents mentioned below.
| Application form and credit information – duly filled | KYC documents of applicant and co-applicant/guarantor (if any) |
| Identity proof (Pan Card/Voters ID/Passport/Aadhaar Card etc) | Residence proof (Driving license/ Passport/Electricity Bill etc) |
| Latest passport size photograph | ITR or Income proof of Borrower/Co-borrower/Guarantor, if any |
| Last 12 months bank statement of Borrower/Co-borrower/Guarantor (with us or other bank / financial institutions) | Caste certificate wherever required for statistical purposes only. |
| Proof of admission (admission letter) | Mark sheets and certificates of all exams passed |
| Schedule of expenses for the course | Letter conferring scholarship, freeship, studentship etc. |
How to Apply for Union Bank Education Loans?
You can apply for a Union Bank education loan online and offline. To apply online, visit the official site and fill in the application form. When your application is reviewed, upload the documents on the bank’s portal and wait for a decision. You may be required to visit the offline branch to complete the process.
Similarly, you can apply for a Union Bank education loan offline by visiting a branch. Complete the application form and submit your documents. Wait for the bank’s decision to proceed further.
Union Bank Education Loan Repayment
Union Bank education loan repayment is 15 years (180 months). You can start paying the interest while studying or pay it after the moratorium period. However, if you don’t pay the interest while studying, the interest will accrue to your loan amount.
Conclusion: Get Started with Your Loan Application
Union Bank education loans help deserving students to study abroad without financial worries. The bank has different education loan schemes catered to diverse courses in India and abroad. If you are eligible, apply now for a Union Bank education loan to achieve your higher education goals and secure a bright future.
Considering the Union Bank education loan is great, but matching your eligibility is crucial. Check your education loan eligibility with Nomad Credit and get results within seconds. We will streamline your education funding process with low-interest education loan options customized for your profile. Connect with us today.
Frequently Asked Questions
What is the EMI for an INR 10 Lakhs education loan from the Union Bank?
The education loan EMI depends on the interest rate you pay. For example, if the interest rate is 10% for INR 10 Lakhs loan and 10 years is the repayment period, your EMI will be INR 12,519. Check the calculator for details.
Do you need collateral for an INR 7.5 Lakhs education loan from Union Bank?
You can get INR 7.5 Lakhs of education loan from Union Bank without collateral. A third-party guarantee is required in this case.
Who is eligible to apply for a Union Bank education loan?
Anyone who is an Indian citizen and got admission to a recognized institute listed by the Union Bank can apply for education loans. According to your loan amount demand, you may need a third-party guarantee or collateral.
How many days does it take to process your Union Bank education loan application?
As of the Union Bank updates, 7 business days are required to process your application. However, the loan application process can go up to 15 – 30 days, especially if you have collateral to submit as the loan guarantee.
How many countries are covered by Union Bank education loans?
Union Bank education loans cover many countries like the United States, United Kingdom, Australia, Canada, Germany, Ireland, and New Zealand. It depends on your future job prospects and financial profile to get an education loan from the Union Bank.
