Disbursement Process of UBI Education Loan
Education Loan

Disbursement Process of UBI Education Loan

Disbursement Process of UBI Education Loan

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Read about the UBI education loan disbursement process and the required documents.

GyanDhan

Ananya Ghai

Updated on: 24 Jan 2024

Did you know that banks transfer tuition fees and living expenses directly to the university’s account and later the student has to claim? 

Students often ignore the importance of the disbursement process which can lead to delays in paying the university tuition fees that can even result in the cancellation of a student’s admission. Hence, the study abroad aspirants must get a holistic understanding of the disbursement process of a UBI education loan.

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Union Bank of India Abroad Education Loan  

Feature Description

Loan amount

Up to INR 1 cr (secured loan)
Up to INR 40 Lakh (unsecured loan)

Rate of Interest

9.25% - 9.75%

Margin money

Secured loans - 10% (Listed universities)

Secured loans - 15% (Non - listed universities)

Unsecured loans - 15%

Moratorium period

1 year after completing the course.

Repayment tenure

Up to 15 years

Processing time

7-10 working days after submission of required documents.

Processing fees

INR 5000 + GST
(Refundable if disbursement within 3 months of sanction)


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Disbursement Process of UBI Education Loan 

  1. list items Once UBI has provided students with the sanction letter, students along with their co-applicants have to visit the Union Bank of India branch to sign the education loan agreement. After the agreement is signed, the education loan is prepared for disbursement.  
  2. list items The UBI education loan disbursement process does not effectively begin after students have signed the education loan agreement itself. Further, students are required to submit an education loan disbursement letter at UBI that clearly states the method of payment through which their respective universities prefer to pay tuition fees. At times, universities prefer payment via third-party payment services like Flywire, Globalpay, etc.  

Pro tip - Students heading to countries like Germany and Canada often want to get their education loans early. They prefer paying using third-party services for living expenses. To make sure their loan is disbursed on time, students should tell the Union Bank of India how they want to pay. They can do this by writing a letter about loan disbursement after signing the loan agreement. 

  1. list items Upon receiving the education loan disbursement letter, Union Bank of India releases the tuition fee portion of the international education loan. This is done either by transferring funds directly to the university's accounts or through third-party payment software. Students need to specify the credentials of the third-party payment software in their education loan disbursement letter.  
  2. list items Union Bank of India does not transfer the complete tuition fees for the entire course at once. Instead, funds are disbursed based on students' requests, following either a yearly or semester-wise schedule, depending on the schedule preferred by universities for tuition fee payments.  
  3. list items An essential aspect of study abroad loans is covering living expenses. The Union Bank of India transfers the student's living expenses to a FOREX card. This card is provided to students to simplify money withdrawals while they are abroad. Please note that FOREX cards come with an expiry date.  
  4. list items Union Bank of India rents out the FOREX card to students pursuing higher education for a duration of three months. During this period, students are required to establish a savings account in their country of residence. Subsequently, the bank will transfer the education loan into this savings account, following the instructions specified by students in the education loan disbursement letter to the bank, for the remaining duration of their higher education course.

Check Your Education Loan Eligibility

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Documents required for the UBI Education Loan Disbursement Process

The following documents are required for the disbursement process of the UBI education loan

  1. list items A demand letter from a university or college
  2. list items A self-attested final loan agreement
  3. list items Disbursement request form signed by the applicant and co-applicant
  4. list items Receipt of margin money paid to the college/university along with the bank statement reflecting the transaction
  5. list items Academic records, marksheet, bonafide certificate, etc
  6. list items Form A2 signed by the applicant or co-applicant 
  7. list items KYC documents of the student, co-applicant, and guarantor (if applicable).
  8. list items Complete two copies of the ECS mandate form, ensuring it is signed and stamped by your bank. 
  9. list items Alternatively, the co-applicant can fill out a NACH form, providing account details for monthly interest payments deduction.
  10. list items As a security measure, the co-applicant must provide 9-12 post-dated cheques to cover potential lapses in interest payment for a specific month.
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How to apply for an education loan at UBI with GyanDhan?

Did you know that GyanDhan is partnered with 13+ lenders including leading private banks, public banks, NBFCs, and international lenders? Among its esteemed partners is the United Bank of India (UBI). Hence, if you are considering applying for an abroad education loan through GyanDhan, the process involves five straightforward steps.
 

Step 1: Check your loan eligibility.

Step 2: An expert education loan counselor will evaluate your profile.

Step 3: Team GyanDhan will provide you with a customized document checklist for you.

Step 4: Once the documents are uploaded, GyanDhan will proceed with the rest of the formalities.

Step 5: The bank will disburse the amount as per schedule.

Securing an education loan for studying abroad can be a complex process, but with careful planning and expert advice, it is entirely achievable. Moreover, ensuring a smooth disbursement process is vital for students, necessitating informed decisions on education loans. Your choices in funding education have a profound impact on your future. It's crucial to be aware that even after disbursement, there are essential steps like repayment and tax savings that demand attention and expert guidance. 

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Frequently Asked Questions

How much time is required for education loan disbursement at UBI?

The disbursement of an education loan from Union Bank of India typically takes only 7 working days from the submission of the necessary documents and papers for loan disbursement.

What is the processing time of an education loan at Union Bank of India?

Secured education loans generally take up to 10-12 days for approval whereas unsecured loans are approved within 7 working days.

What are the stages of education loan disbursement?

The education loan disbursement process usually has three stages: the applicant has to visit the bank and submit the application form and documents with cancelled cheques followed by the sanction and the disbursement. This is usually communicated through the education loan disbursement letter, which contains your disbursement schedule.