Education Loan

United Bank of India Education Loan for Abroad Studies

United Bank of India Education Loan for Abroad Studies

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Know United Bank of India education loan details- interest rate, documents required, criteria, and process of United Bank of India study loan for India and abroad.

GyanDhan
Gurbani Kaur Suri
Updated on:  11 Sep 2023  | Reviewed By: 
Aman 
| 4.37K | 7  min read

Education loans are the best financing options to fund overseas educational expenses. In India, students who want to go for studying abroad have multiple options in terms of lenders including public-sector banks- SBI & BOB, private-sector banks- ICICI Bank & Axis Bank, and non-banking financial companies (NBFCs) - HDFC Credila. One of the major government banks offering study abroad loans is the United Bank of India.


 One of the largest government banks in India, the United Bank of India offers education loans to students for both education in India and abroad. 

In the blog, we will explore the eligibility criteria, features, documents required, etc. for the United Bank education loan. 

So let’s start...

Check Your Education Loan Eligibility

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What are the Eligibility Criteria for Abroad Education Loans at the United Bank of India?

  1. list items The applicant must be between the age of 18-35 years. 
  2. list items The applicant must be an Indian resident
  3. list items The applicant must be pursuing either PG Diploma, Graduation, or Post Graduation
  4. list items The applicant must have secured (confirmed) admission in any college or university recognized in India or abroad. 
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Which Courses are Eligible for Abroad Education Loans at the United Bank of India?

Students interested in pursuing the below-mentioned courses can avail of education loans for their overseas education -

  1. list items Undergraduate degrees/diplomas
  2. list items Postgraduate degrees/diplomas
  3. list items PhDs and Doctoral Programmes
  4. list items Certificate courses and some special courses 
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What are the Expenses Covered Under Abroad Education Loans from the United Bank of India?

  1. list items College and hostel/accommodation fee
  2. list items Library/Laboratory/Examination fee
  3. list items Flight tickets/travel expenses for travelling abroad
  4. list items Expenses of books/education-related instruments and equipments/uniforms/stationery
  5. list items Laptop/tablet (if applicable)
  6. list items Other education-related expenses (thesis, project works, study tours, etc.)

Read more about: Expenses Covered Under Education Loan

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What is the Maximum Amount that Can be Received from the United Bank of India for Overseas Education?

For education loans up to INR 4L, the applicant has to provide co-borrower’s security which could be the applicant’s parent’s/husband’s. No third-party guarantee/ tangible security is required for the same. 
For education loans above INR 7.5L, the applicant has to submit co-borrower’s security as well as a tangible security equivalent to 100-133% of the loan to be pitched in as collateral. The collateral can be in the form of property/FDs/shares etc. 

Maximum Loan Amount Provided by the Bank - 

  • list items Up to INR 10L for studies in India
  • list items Up to INR 20L for overseas education
  • list items Up to INR 15L for education at IITs/IIMs/ISBs

 

However, the above-mentioned amounts are subjective to margin requirements. 

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What is the Interest Rate of Abroad Education Loans at the United Bank of India?

Interest rates on education loans at the United Bank of India range between 10.65% - 11.40%

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What is the Process of Applying for an Abroad Education Loan from the United Bank of India?

An application for an education loan from the United Bank of India can be submitted both online as well as offline. The interested student can visit the nearest bank branch office to fill the application and submit the required documents or he/she can also visit the bank’s official website to apply online. 

United Bank of India Education Loan Details

  Maximum Loan  Amount   

Up to INR 20L for overseas education
The above-mentioned amount is subjective to margin requirements.

 Interest Rate 

Ranges between 10.65% - 11.40%

 Margin Money

0% for loans up to INR 4L. 15% for loans above 4L.

Moratorium Period

1 year after the course period or 6 months after securing a job.

Repayment Period

10 years for loans up to INR 7.5L. 15 years for loans above INR 7.5L.ss

 Prepayment Charges 

NIL

Processing Fees

NIL

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What are the Documents Required While Applying For An Abroad Education Loan from the United Bank of India?

Documents to be submitted by the applicant (student) -

  • list items 2 passport size photos 
  • list items Previous academic records/certificates
  • list items Report cards of exams such as GMAT/GRE/IELTS/TOEFL etc (whichever is applicable)
  • list items Residence Proof (Aadhar card/Voter ID etc)
  • list items Identity Proof (Driving license, PAN card, etc.)
  • list items Admit letter from the college overseas
  • list items A copy of college/university ranking 
  • list items Copy of passport
  • list items Loan application form

Documents to be submitted by the co-applicant - 

  • list items 2 passport size photos 
  • list items Residence Proof (Aadhar card/Voter ID etc.)
  • list items Identity Proof (Driving license, PAN card, etc.)
  • list items Salary slips of the last three months
  • list items Income Tax receipts of the past 2 years
  • list items Form 16 of the last two years
  • list items Employer’s ID card (if employed)
  • list items Past 3 year’s balance sheet and P & L statement (if self-employed)
  • list items Proof of business address (if self-employed)

Read more about: Documents Required for Education Loan

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What is the Margin Money in Abroad Education Loans from the United Bank of India?

The margin requirement on abroad education loans for students at the Union Bank of India is 0% for loans up to INR 4L and 15% for loans above INR 4L. Click here for more details.

Check Your Education Loan Eligibility

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What Type of Collateral is Accepted by the United Bank of India for Secured Abroad Education Loans?

The following two types of collateral are accepted at the Union Bank of India - 

  • list items Immovable assets such as property, plot, flat, house, etc.
  • list items Liquid securities such as FDs, government bonds, LICs, etc.

Read more about: Types of Collateral Security Acceptable for an Education Loan

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What Collateral Documents are Required to Acquire Abroad Education Loans from the United Bank of India? 

  • list items Registered sale agreement and property title deed
  • list items Original registration receipt for the sale agreement
  • list items Allotment letter by the municipal corporation or any government authority such as MHADA, CIDCO, HUDA, etc. (if applicable)
  • list items Encumbrance certificate (EC), commonly known as link document of the last 30 years
  • list items Copy of municipality approved plot layout or building plan
  • list items Latest property tax bill bearing the same address
  • list items For liquid securities, the documents required are fewer
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What is the Repayment Policy of Abroad Education Loans from the United Bank of India?

The loan interest repayment at the Union Bank of India starts immediately after the disbursement of the first loan installment. UBI offers quarterly or monthly rests for repayment. The repayment of education loans typically starts after the 1 year moratorium period which starts post-course completion or 6 months after securing a job (whichever is easier). The maximum repayment tenure for abroad education is 15 years after the commencement of repayment.

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How Does GyanDhan Help in Acquiring Abroad Education Loans?

GyanDhan is a one-stop solution to all the issues that revolve around acquiring education loans for abroad education. With so many banks willing to extend support to students interested in studying overseas, it can be overwhelmingly difficult to choose a bank/loan lending institution that sits well with your future plans. GyanDhan helps put things in line with its collaboration with various loan lending institutions ranging from public banks, private banks to NBFCs and other lenders. It extends additional support by analyzing each student’s background and financial situation and providing him/her with a loan (secured/unsecured) from an institution best suited for him/her. You may check your eligibility for education loans and reach out to GyanDhan to get in touch with a counselor.

The services provided to students at GyanDhan are free of cost. Absolutely no charge is applicable for any of the amenities. In fact, each student is given a personal counselor who remains in constant contact with the student throughout the complete process of the loan application. The counselor works closely with the student in pacing all the required documents and ensuring they are adequate for loan approval. The counselor also remains in constant contact with the lender, to keep a track of the loan approval status as well as resolve any issue that may arise. From providing a customized document checklist to offering loan options, picking up documents, and securing an abroad education loan, GyanDhan has it sorted for you once you approach them. With GyanDhan you are just a missed call away from securing an education loan to study abroad.

Check Your Education Loan Eligibility


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