Education Loan

Union Bank of India Education Loan Details

Union Bank of India Education Loan Details

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Get the details of the Union Bank of India education loan for studies in India & abroad. Know the interest rate, eligibility criteria, margin money, repayment tenure, and more.

GyanDhan
Rahul Srivastava
Updated on:  14 Nov 2023  | Reviewed By: 
Aman 
| 8.9K | 4  min read

One of the largest government banks in India, the Union Bank of India currently boasts over 9500 branches in the country. Union Bank of India amalgamated with the Corporation Bank and Andhra Bank on 1 April 2020. 

Union Bank of India student education loans are offered to deserving and meritorious students wanting to go for higher education in India or abroad. Student loans from the Union Bank of India come with flexible repayment options and repayment periods start after the course completion.


The education loan schemes of the Union Bank of India include expenses such as college fees, exam fees, hostel fees, equipment fees, books, travel money, etc for overseas education. It also takes in building fund deposits, caution deposits, and any refundable deposits as well. 

In this blog, we will explore all the features, requirements, and benefits of a Union Bank of India education loan. So, let's plunge in...

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What are the eligibility criteria for getting a Union Bank of India education loan?

  • list items The applicant should be an Indian national.
  • list items The applicant should have secured admission in India or abroad to pursue higher/ professional/ technical education, through an appropriate selection process and cleared the qualifying examination (if any).
  • list items If the applicant is NRI, s/he should hold an Indian Passport & has secured admission to a course for studies in India only.

Check Your Education Loan Eligibility

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Union Bank of India Education Loan Interest Rate

Union Bank of India offers education loans to students at a fixed Interest rate of 12.25% p.a (for loans of more than INR 7.5 Lakhs).

For loan amount less than INR 7.5 Lakhs, the applicable interest rate is 12.00% p.a.

Female candidates get an extra 0.50% concession from UBI on the interest rate as per the Indian Government’s policy.

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What is the margin money on the Union Bank of India education loan?

There is no margin money on loan margin for the education loans up to INR 4 Lakhs. For the loan amount of more than INR 4 Lakhs, the margin money is up to 15% for abroad education and 5% for study in Indian colleges.

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UBI Education Loan Overview & Details

Loan Tenure

Up to 15 Years

Interest Rate

Up to Rs.7.50 lakhs: 12.25% p.a.
Above Rs.7.50 lakhs: 12.00% p.a.
Additional 0.50% concession for female students

Moratorium Period

Course period + 1 year

Margin Money

Up to INR 4 Lakhs- Nil
 For more than INR 4 Lakhs- 15% for studying abroad and 5% for Indian college/university 

Processing Fees

NIL

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How much loan can be taken from the Union Bank of India education loan?

The bank can sanction any amount on the need-basis for both studies in India and abroad if the student is an Indian resident. For NRI’s the maximum loan amount that can be sanctioned is INR 30 Lakhs.

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What is the processing fee for getting a Union Bank education loan?

No processing fee is charged by the Union Bank of India under its education loan schemes.

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What is the repayment period of the Union Bank of India education loan?

Repayment of Union Bank of India study loan starts after 1 year of the course completion. The loan repayment period can be up to 15 years for all the loans.

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What is the security required to be pledged for the Union Bank of India education loan?

  • list items For loan up to Rs.7.50 lakhs - Co-obligation of parents and no security or third party guarantee.
  • list items For loans above Rs. 7.50 lakh - Co-obligation of parents, and tangible collateral security equivalent to the full value of required loan amount.
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What are the documents required for a Union Bank of India education loan?

  • list items Address proof: passport, voter ID, electricity bill, etc.
  • list items Academic record: 10th/12th mark sheet for undergrad students and graduation degree & mark sheet for PG students.
  • list items Age proof
  • list items Community certificate
  • list items Family income proof: ITR, salary certificate, pension certificate of parent/guardian.
  • list items Admission certificate or I20 from the college/university
  • list items Fee details
  • list items Collateral documents (if applicable): LIC policy, valuation certificate, registry documents, etc.
  • list items An affidavit declaring that no study loan is availed from any other bank by the student and his/her parent.
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At what locations in India can a student avail of a Union Bank of India education loan?

Students can apply for a Union Bank of India education loan at any branch in or near his/her place of domicile.

Also Try - Education Loan EMI Calculator Union Bank of India

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Does the Union Bank of India provide education loan for all types of degrees and disciplines?

Union Bank of India offers education loans, diplomas, undergraduate courses, and postgraduate courses which offer professional and technical degrees in India and abroad.

Looking for an education loan to study abroad? Contact GyanDhan and avail of abroad education loans from top government banks, private banks, and NBFCs. At GyanDhan, we have partnered with leading financial lenders in India to offer the best deal on study abroad loans. For both secured and unsecured education loans, you can check your loan eligibility and see if you are qualified for a study abroad loan. 

Our loan assistance service is totally free of cost!

Check Your Education Loan Eligibility


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