The student applying for UNION EDUCATION Loan ought to:

Be an Indian National
Has secured admission to professional or technical courses through an appropriate Entrance Test or selection process
Has secured admission to a foreign University
Has passed an appropriate qualifying examination

a. Studies in India

  • School education up to +2
  • Graduation/Post-Graduation
  • Professional course
  • Management course

b. Studies Abroad :

  • Graduation: For job-oriented professional or technical courses offered by reputed universities
  • Post-Graduation: MCA, MBA, MS and such other courses
  • Courses conducted by CIMA, London, CPA, USA., and such other institution


To the poor and needy students to undertake basic education
To meritorious students to pursue higher or professional or technical education


  • The Parent/Guardian of the student who is availing loan from our bank shall be made co-obligator/joint borrower irrespective of the age of such students.
  • The Loan Accounts of students applying through college/institutions will be sanctioned/disbursed at the branch nearest to permanent residence/place of domicile of the borrower student.
  • Loan will be disbursed directly to the college/institute.
  • Student to produce mark list of previous term/semester before availing next installment.
  • Student /Parent to provide latest mailing address before availing next installment.
  • In case of parents with transferable job, new address to be provided before availing installments.


Need-based finance subject to repayment capacity of the parent or student with margin and upto the following ceilings

For studies in India - Up to Rs. 7.50 lacs

For studies abroad - Up to Rs. 15.00 lacs


No margin for loans up to Rs. 4.00 lacs . However, for loan of higher amounts, the margin requirement is 5% for inland studies and 15% for studies abroad.

Scholarship/assistance to be included in margin.

Margin maybe brought in on pro-rata basis as and when disbursement is made.


Repayment holiday or Moratorium on loan: Course period + 1 year OR 6 months after job placement, whichever is earlier.

Starting from this point, the loan is to be repaid in 5-7 years after completion of course period/moratorium.

RATE OF INTEREST(w.e.f 01/10/2007)




No collateral security is needed for loans up to Rs. 7.50 lacs. However, for loans above this amount, collateral security of suitable value, along with co-obligation of parents/guardian/third party, accompanied by an assignment of future income of the student for payment of installments is required.

A Life insurance policy from Insurance company for a sum not less than the loan amount is required to be taken in the name of the student and duly assigned in favour of Union Bank.


Loans can be considered for eligible students in case they approach the Bank in the subsequent year of the commencement of the course.

Branches can issue Bank Guarantee, for payment seats wherever required.

No Prepayment penalty if the loan is adjusted by the borrower from his own verifiable legitimate sources or genuine sale. However, 2% charged on an average o/s. balance of last 12 months if loan is closed on take over by other Banks / Financial Institutions

* Rate of Interest prevailing on the date of sanction shall be applicable.