Union Bank of India - Education Loan
Union Bank of India Education Loan Scheme
PURPOSE
- To poor and needy to undertake basic education.
- To the meritorious students to pursue higher / professional/ technical education, after passing 10+2 or equivalent
ELIGIBILITY
- Should be an Indian national
- Secured admission to the concerned institute in India or abroad through appropriate selection process and cleared the qualifying examination, if any
- Courses covered in India
- Graduation / post-graduation / diploma courses from recongnized universities
- Technical / professional / management courses
- PhD courses
- Courses covered outside India
- Graduation / post-graduation degrees offered by recongnized universities
- Certified degree courses conducted by CIMA, London, CPA, USA and other such institutes
- PhD courses
- Diploma courses abroad are not covered
LOAN IN SUBSEQUENT YEARS OF COURSE
- Educational loans can also be considered for eligible students in case they approach the bank in the subsequent years of the course.
- The loan can be granted provided the student has not availed loan from initial years from any other bank/FI.
QUANTUM
| Type of studies |
Maximum Quantum |
| For Inland Studies |
Rs. 20 lakhs |
| For Studies Abroad |
Rs. 30 lakhs |
Loan amount beyond maximum quantum of loan to be considered by respective delegatee, as per their delegated authority, as deviation. |
- Note: The quantum of loan is higher for the institutes covered under Special Education Loan schemes. Please check the Special Offers Tab above for further details.
MARGIN
Quantum of loan |
Margin |
Up to 4 Lakh |
Nil |
Above 4 Lakh |
Studies in India |
5% |
Studies abroad |
15% |
Scholarship / assistance to be included in margin
EXPENSES CONSIDERED
- Moratorium period: Course period + 1 year
- Maximum repayment tenure after completion of course / moratorium period is -
- 15 years irrespective of the quantum of loan
RATE OF INTEREST AND PROCESSING CHARGE
- Please click here here to know our latest interest rates
- If interest is regularly serviced during the course and moratorium period, i.e. prior to the commencement of repayment, then the student is eligible for interest rebate. Please contact the nearest branch for details.
- No processing charges.
- Wherever applicable, Valuation / Legal / Stamp Duty / CERSAI / Memorandum registration charges as per actuals
- Simple interest will be calculated during course / moratorium period; subsequently compounding interest will be charged.
- Floating rate of interest will be applicable on all educational loans.
- Servicing of interest during course/moratorium period is optional for the borrowers.
- The accrued interest during course/moratorium period will be added to the principal amount borrowed while fixing EMI for repayment, if the same is not serviced.
SECURITY
- The security required is as mentioned below.
| Quantum of loan |
Security |
Up to 4 Lakh |
No guarantee and No security, if the loan is covered under CGFSEL. (In case, if there is any deviation, the third party guaranty with equivalent means to be taken for the loan Above ` 4 Lakh & up to ` 7.50 Lakh.) |
Above 4 Lakh & up to 7.50 Lakh |
Above 7.50 Lakh |
Tangible collateral security of minimum value equivalent to the loan amount and interest accumulation during course & moratorium period, acceptable to the bank. |
Note:
- For all the above categories, parent / spouse / parent-in-law to become the co-applicant
- In cases where both the parents are not alive, close relative or guardian to be taken as co-applicant.
INSURANCE
- Life insurance of the student is mandatory to the tune of the loan amount
PADHO PARDESH SCHEME
SCHEME TO PROVIDE INTEREST SUBSIDY ON EDUCATIONAL LOANS FOR OVERSEAS STUDIES FOR THE STUDENTS BELONGING TO THE MINORITY COMMUNITIES.
The students should satisfy all the following parameters –
Secured admission to higher studies abroad viz. Masters, M. Phil and Ph.D. levels only The student belongs to the Economically Weaker Section (EWS) of Minority communities with an annual gross family income not exceeding ` 6 Lakh.
The student has to submit income certificate issued by authorized officers appointed by the respective State Governments
Subsidy is available for interest charged on the loan amount disbursed during a financial year
Available for course and moratorium period only
The scheme is applicable for higher studies abroad.
The students obtaining benefits under this scheme shall not be given interest subsidy if he gives up Indian Citizenship during the tenure of the loan.
ACSISOBCEBC Scheme - Dr. Ambedkar Central Sector Scheme of Interest Subsidy on Educational Loan For Overseas Studies For Other Backward Classes (OBCs) & Economically Backward Classes (EBCs)
SCHEME TO PROVIDE INTEREST SUBSIDY ON EDUCATIONAL LOANS FOR OVERSEAS STUDIES FOR THE STUDENTS BELONGING TO THE OTHER BACKWARD CLASSES (OBCs) & ECONOMICALLY BACKWARD CLASSES (EBCs).
The students should satisfy all the following parameters –
- Secured admission to higher studies abroad viz. Masters , M. Phil and Ph.D. levels only
- The student belongs to the other backward classes (OBC) & Economically backward classes (EBC) with an annual gross family income not exceeding ` 3 Lakh & 1 Lakh respectively.
The student has to submit income proof either of Form-16/ITR/certificate issued by authorized officers appointed by the respective State Governments
Scheme applicable for loans sanctioned from 01.04.2014 onwards
Subsidy is available for interest charged on the loan amount disbursed during a financial year
Available for course and moratorium period only
The scheme is applicable for higher studies abroad.
VIDYA LAKSHMI
Government of India has launched Vidya Lakshmi portal for providing single window for students to access information and make applications for educational loans. Students can apply education loan through Vidya Lakshmi portal(Click here for Vidya Lakshmi portal)
For more information please visit nearest union bank of India Branch.
Forms & Documents
DOCUMENTS
- KYC documents
- Photo-Identity proof of student, co-borrower(s) and guarantor (if any)
- Residence proof of student, co-borrower(s) and guarantor (if any)
- 2 passport size photographs each of student, co-borrower(s), guarantor (if any)
- PAN card of student, co-borrower(s), guarantor (if any). If the student does not have PAN card at the time of applying for loan, branches should advise the student to apply for the same and furnish a copy at a later date.
- Income proof of student wherever applicable
- Income proof of co-borrower(s) and guarantor (if any)
- Academic documents
- Proof of admission (admission letter)
- Mark sheet and certificates of all exam passed
- Schedule of expenses for the course
- Letter conferring scholarship, free-ship, studentship etc
- Security documents (if any)
- Valuation certificate wherever applicable
- Guarantee documents wherever applicable
- Other documents
- Credit information of student / co-borrower(s) / guarantor (if any)
- Caste certificate wherever required (only for statistical purposes)
FAQs
The maximum amount of loan sanctioned would be 20 lakh for studies in India and ` 30 lakh for studies outside India. Under our special education schemes, please see the special offers Tab above for information of maximum amount for premier institutes.
Parents (either father or mother) can be the co-applicant. In case both parents are not there, the guardian can become the co-applicant. In case of married applicants, the spouse/parent-in-laws can become the co-applicant.
Maximum repayment tenure (after the course and moratorium period) is 15 years irrespective of the loan amount.
Please click here for information on rate of interest.
Interest will be applied in the account on the basis of reducing balance method at monthly rests. During moratorium period compounding interest would not be charged
An Equated Monthly Instalment (EMI) has 2 components, interest and principal. When the interest is calculated on monthly rests, the principal on which the interest is charged goes down every month. This results in a significant saving for the customer over the tenure of the loan.
The loan shall be repaid in equated monthly instalments (EMIs). You can pay the EMI in any of the following ways
- Through standing instruction to your Union Bank of India savings account to directly remit the EMI amount to your loan account
- Through internet banking facility available on your Union Bank of India savings account
- ECS (Debit) facility
- Post Dated Cheques (PDCs)
Yes, you can make your prepayment. There is no charge on pre payment if the loan is adjusted by the borrower from his own verifiable legitimate sources. However, a charge of 2% on the average balance of the preceding 12 months if the loan is taken over by any other Bank/ FI
The security required is as mentioned below.
| Loan amount |
Security
|
|
Upto Rs. 4 Lakhs
|
Nil
|
|
Rs. 4 - 7.5 Lakhs
|
- No collateral security required
- Third party guarantee is needed
|
|
Above Rs. 7.5 Lakhs
|
- Collateral security of suitable value is required
|
The parent / guardian of the student who is availing loan have to join-in as co-borrower.
Tax benefits can be claimed on the interest component of the education loan as per the Income Tax Act, 1961. An amount equal to the interest amount paid can be claimed for deduction under section 80E.
Although opening of account is not mandatory for availing a loan, we would recommend to bank with us in order to benefit from other value added services.
Please see the Forms & Documents Tab above for information on the list of documents required
It takes 7 days for your loan to be sanctioned, after you have submitted all the documents.
There are three main stages -
- Application - Whereby you submit a completely filled in application with all necessary documents
- Sanction - Whereby you get an approval for a specific loan amount based on the value of your property and repayment capabilities
- Disbursement - Whereby the loan amount is disbursed
You can approach us in any of the following ways
- You can visit any of our special retail lending branches called Union Loan Points (ULPs). To locate a ULP, click here
- You can visit any of our branches. To locate a branch, click here
- Request for a contact online
- You can also contact our 24 x 7 Call
