UBI Education Loan

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. Union Bank education loans have further divided courses and universities into lists and offered loans according to them.

Overview of Union Bank of India Educational Loan Scheme

*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.

Union Bank Education Loan Without Collateral

Union Bank is the only public bank in India right now that provides education loans without collateral for studying abroad. Union Bank of India is currently the only public sector bank in India that offers education loans without the requirement of collateral for students pursuing studies abroad. This unique offering makes it an attractive option for students who may not have substantial assets to pledge as security, providing them with the opportunity to access quality education globally without financial hurdles.

Key Features of Union Bank Education Loan Without Collateral:

Below are the top features of UBI’s unsecured loan options for students interested in applying for the Union Bank of India education loan abroad.

• Loan Amount: The education loan in Union Bank of India without collateral typically covers tuition fees, examination charges, accommodation, travel expenses, and other related costs up to a certain limit. The maximum loan amount without collateral is up to INR 40 Lakh for overseas education.
• Eligibility Criteria: To avail of the Union Bank of India abroad education loan without collateral, the applicant must meet specific eligibility criteria, such as securing admission to a recognized institution, maintaining a good academic record, and demonstrating the ability to repay the loan.
• Courses Covered: The Union Bank of India education loan abroad without collateral typically supports pre-approved courses, including postgraduate and professional courses in fields like engineering, medicine, management, and more.
• Interest Rates and Repayment: The interest rates for Union Bank of India abroad education loan without collateral are competitive starting at just 9.75%, with concessions available for female students. The repayment period usually begins after the completion of the course and offers flexible repayment terms, often extending up to 15 years, depending on the loan amount and the course duration.

Note- The Union Bank of India education loan interest rate is subject to change.

Union Bank of India Educational Loan: Eligibility Criteria

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 the Union Bank education loan 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.

Union Bank Education Loan Interest Rates

The Union Bank of India education loan interest rate is designed to be competitive, making higher education more accessible for students. Whether you're pursuing studies in India or abroad, the Union Bank education loan rate of interest offers various schemes to suit different educational needs. From general education loans to specialized programs like the Union Education Loan for ISB Students, Union Bank provides tailored options to ensure that students can focus on their studies without financial stress. Below is a table detailing the various Union Bank education loan interest rates for different schemes:

Union Bank Education Loan Documents Required 

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 that you offer as collateral.

Applicants Documents Required for Union Bank Education Loan Abroad:

• 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 Required for Union Bank Abroad Education Loan

• 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 Union Bank Education Loan Abroad

The list of documents required for a Union Bank student loan, 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.

Union Bank Education Loan: Contact Details

For assistance regarding an education loan Union Bank of India, you can choose one of the following methods to get in touch with them:

Email

Send a detailed email to customercare@unionbankofindia.comwith information about your profile. Their team will review your email and respond accordingly.

Online application form

Visit the UBI website (https://www.unionbankofindia.co.in/english/contact-us.aspx) and navigate to the "Contact Us" section. You can fill out the online application form and Union Bank evaluates your profile and further the process.

Branch visit

Visit the nearest branch in your city or locality. The staff at the branch will assist with 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 are seeking a Union Bank student loan for studying abroad 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. Start your education loan journey with GyanDhan by checking your loan eligibility now!

Benefits of Union Bank Education Loan for Abroad 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.

The GyanDhan effect in UBI