Overview
Established in 1919 as a limited company, the Union Bank of India (UBI) later became a nationalized bank in 1969. The bank provides a range of banking and financial services, including personal banking, corporate banking, international banking, and education loans for studies in India and abroad. In 2020, the Union Bank of India merged with Andhra Bank and Corporation Bank, becoming the fifth-largest public sector bank in India.
Union Bank of India offers both secured and unsecured loans. UBI has further divided courses and universities into lists and offers loans according to them.
Overview of Union Bank of India’s education loan scheme
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Feature
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Description
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Loan amount
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Secured loan - Upto INR 1.5 cr (This amount can be increased depending on the student’s profile)
Unsecured loan - INR 40 Lakh
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Rate of interest
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9.25% - 9.75%
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Processing fees
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INR 5000 (Refundable if disbursement within 3 months of sanction)
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Margin money*
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Secured loans - 10% (Listed universities)
Secured loans - 15% (Non - listed universities)
Unsecured loans - 15%
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Moratorium period*
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Course duration - 12 months
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Repayment tenure
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15 years
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*Moratorium period is the time duration during which you are not required to make payments toward your education loan.
*Margin money refers to the amount of money that a borrower is required to contribute towards the loan, while the remaining amount is paid by the lender.
Eligibility criteria of UBI abroad education loan
Age
The applicant must be an Indian citizen and at least 18 years of age or older at the time of application.
Education qualification
To be eligible for an education loan, the applicant must have secured admission to a reputed university or institution for a program that leads to the degree or diploma they have chosen.
Academic performance
The applicant should have a consistently good academic record and must meet the minimum academic criteria set by the lending institution. Also, the student must fulfill any prerequisite tests such as
GRE,
IELTS, or
TOEFL.
Co-applicant
The co-applicant could be a parent or a legal guardian, with a regular source of income and good credit history.
Country of study
Foreign institutes/universities in the USA, UK, Canada, Australia, Singapore, Japan, Hong Kong, New Zealand, and Europe [Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Sweden, Switzerland, United Kingdom] will be covered under the scheme.
Courses
Under this scheme regular graduate degree/post-graduate degree/diploma/certificate/doctorate courses such as bachelor, master, MCA, MBA, MS, etc are covered. UBI also offers loans for the following courses:
- Courses conducted by CIMA- London, CPA in the USA.
- Degree or diploma courses like aeronautical, pilot training, and shipping.
Types of Collateral accepted
Union Bank of India accepts the following resources as collateral -
- Immovable property such as a house, flat, and open plots as collateral if the property is sanctioned by the legal authorities.
- Fixed deposits.
Documents required for UBI abroad education loan
The documents required for an education loan from UBI include your academic and professional history, your co-applicant financial and credit profile, and the location of the property or asset, which you offer as collateral.
Applicants' documents
- Identity proof: PAN/ Passport/ Driver’s License/ Voter ID card or government-issued identification document.
- Education loan application form.
- Address proof: recent copy of telephone bill/ electricity bill/water bill/ piped gas bill/ driving license/ Aadhaar card.
- Passport.
- Past academic record.
- 10th standard mark sheet
- 12th standard mark sheet
- Undergraduate result (semester-wise)
- Entrance exam results (e.g. GMAT, GRE, TOEFL, etc.)
- Proof of admission: admission letter (A conditional admission letter is also applicable).
- Statement of expenses.
- 2 passport-size photographs.
- Loan A/C statement of one year (if applicable).
- Bank account statement of the student (if applicable).
Co-applicant’s documents
- Identity proof: PAN/ Passport/ Driver’s license/ Voter ID card or government-issued identification document.
- Address: recent copy of telephone bill/ electricity bill/water bill/ piped gas bill or copy of passport/ driving license/ Aadhaar card.
- 2 passport-size photographs.
- If any previous loan is from other banks/ lenders, then the loan A/C statement of 1 year.
- Legal documents of the collateral/ property documents.
- Bank account statement of the co-borrower/guarantor, for the last 6 months (in case of takeover of education loan).
Income proof for salaried co-applicant/guarantor
- Salary slips for the last 3 months
- Copy of Form 16 of the last 2 years or copy
- Bank account statement for the last 6 months (Salary account)
- Brief statement of assets & liabilities of parent/ guardian/ other co-borrower
Income proof for self-employed co-applicant/ guarantor
- Business address proof
- Last 2 years IT returns (If IT Payee)
- TDS certificate (Form 16A, if applicable)
- Certificate of qualification (for C.A./ doctor and other professionals)
- Brief statement of assets & liabilities of parent/ guardian/ other co-borrower
- Bank account statement for the last 6 months
Collateral-based documents for UBI abroad education loan
The list of documents required for collateral, depends on several factors, primarily: property type, purchase history, and location.
Common documents:
- Registered sale deed
- Approved plan or map of the constructed property.
- Chain documents.
- Latest property tax receipt.
- Occupancy proof.
How to contact UBI for an education loan?
To contact UBI for an abroad education loan, you can choose one of the following methods:
Email
Send a detailed email to
[email protected] with information about your profile. Their team will review your email and respond accordingly.
Online application form
Visit the
UBI website and navigate to the "Contact Us" section. You can fill out the online application form and they will evaluate your profile and further the process.
Branch visit
Visit the nearest branch in your city or locality. The staff at the branch will provide assistance regarding education loans, the application process, required documents, and other relevant information. Union Bank of India has 9727 branches in 34 states/union territories of India.
If you're seeking an education loan for studying abroad through but want to avoid the hassle of visiting physical branches and dealing with complicated application forms, you have the option to apply for a study abroad loan through GyanDhan, an education financing platform that specializes in helping students secure funding for their higher education abroad. Once you meet the eligibility criteria, our dedicated counselors will thoroughly assess your profile and recommend the most suitable lenders to meet your specific loan requirements. Throughout the loan process, our counselors will provide guidance and support, being readily available to address any concerns or challenges you may encounter. To check your eligibility
here.
Benefits of getting your UBI abroad education loan through GyanDhan
Guaranteed best loan
GyanDhan stands by the promise to offer you the most competitive education loan in the market. We at GyanDhan bring the best deal possible for you. If you find a better offer, we'll cover the difference in interest rates for the ENTIRE duration of your education loan.
Low turnaround time
GyanDhan officials coordinate with various departments within UBI to secure a loan approval in just 15-20 days. This is why 1000s of students trust us with their loan requests every year. If a student applies directly to the bank, the usual UBI loan processing time is around 30-45 days.
100% free of cost services
GyanDhan’s services for applicants are absolutely free. We do not charge any kind of fees or commissions from the applicants at all.
Lender comparison
The expert education loan counselors at GyanDhan compare the loan products of different lenders to identify the most suitable loan option for your needs. This involves comparing the interest rates, loan amounts, repayment terms, processing fees, and other features of different lenders.
Higher chances of approval
In case of any missing documents, property issues, or other problems, we approach the UBI officials promptly to find solutions. This ensures speedy resolution and significantly increases your odds of approval. In case of any bottlenecks, GyanDhan will always be by your side!
How to apply for a UBI abroad education loan via GyanDhan
To secure an education loan from UBI, you can apply online at the UBI website. Once you fill out the application form online, you will have to visit the nearest UBI branch with all your documents. To avoid all these complex steps, you can simply apply for your education loan via GyanDhan, an online platform that helps students in India to finance their education abroad.
