Lack of education funds shouldn’t restrict aspiring students from pursuing higher education. Education loans from the Union Bank of India are one of the great ways to secure funds for global dreams. Under its Special Union Education Loan Scheme for abroad studies, the bank provides collateral-free loans of up to INR 40 lakhs with no maximum limit on the amount of education loan taken with collateral. The interest rates range from 8.80% to 10.45%.
Let’s have a look at the Union Bank of India education loan in detail.
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Overview of Union Bank of India Education Loan
Union Bank of India provides education loans at very competitive interest rates. Students can take loans as per their needs without any cap on the maximum limit to study abroad. A maximum of 40 lakhs is provided as the education loan amount without collateral. Students can easily apply through Vidya Lakshmi Portal Union Bank of India education loans.
Union Bank education loans cover tuition fees, hostel charges, examination fees, insurance premiums for the borrower, travel expenses, and other study-abroad-related expenses. The university or the institute must be reputed and recognised by the respective approving authorities of the country.
The table below provides an overview in detail.
| Quantum of Finance | Need-based financing |
| Interest Rates | Starting from 8.80% (for loans not covered under CGFSEL) Starting from 9.20% (for loans covered under CGFSEL) |
| Margin Money | Up to INR 4 lakhs- NILAbove INR 4 lakhs- 15% |
| Repayment Period | Maximum 15 years |
| Moratorium Period | Course duration + 1 year |
| Collateral Security | Upto INR 40 lakhs- NIL Above INR 40 lakhs- Tangible collateral security of the minimum value of 50% of the total loan amount |
| Processing Fee | NIL |
| Pre-payment Charges | NIL |
Also Read: Want to get a quick education loan online? Check here YONO SBI Education Loan to Study Abroad
Benefits of Union Bank Education Loan
Many aspiring students prefer to take education loans from the Union Bank of India to study abroad. It’s because of the multiple benefits that the bank offers. Unlike other public sector banks, it provides education loans to study abroad with no maximum limit. Also, the limit on collateral-free education loans is very high.
Here are some of the benefits of taking a Union Bank education loan to study abroad-
- Higher Loan Amount- Union Bank offers customized loan amounts, based on your individual financial needs without any upper limit. This means that you can apply for the exact amount of money that you need to finance your education abroad, without having to worry about taking out more than you can afford.
- Flexible Repayment Terms- With Union Bank’s abroad education loan, you can choose from a range of repayment options to suit your individual needs. This means that you can tailor the loan to your specific financial situation, ensuring that you can repay the loan in a manageable and stress-free manner.
- Competitive Interest Rates- Union Bank offers competitive interest rates on their abroad education loans, ensuring that you are not overburdened with high-interest costs. The Union Bank education loan interest rates range from 8.55% to 10.45%.
- Collateral Required- Union Bank education loans can be taken up to INR 40 lakhs without collateral. This means that you can apply for the loan without having to put up any of your assets as security.
- Disbursement Process- The Union Bank education loan disbursement process is completely online. The process is smooth and simple if the applicant provides all the documents and coordinates with them on a timely basis.
- Education Loan Insurance- It offers an education loan insurance policy i.e. Union Bank SUD Life Shiksha Suraksha II. You can get this policy for your education loan insurance even if you have taken an education loan from any other bank or financial institution.
Eligibility Criteria
Any borrower applying for a Union Bank of India education loan must fulfil the eligibility criteria. Union Bank of India provides education loans to study abroad only to Indian citizens who are above 18 years of age. The applicants must fulfil other criteria too, as listed below-
- You must be a citizen of India.
- You must be at least 18 years of age.
- You must have a good credit history.
- You must be accepted into a recognized institution.
- Students must secure admission to full-time post-graduate courses in Premium universities
- Admission must be secured through fair means, i.e. through merit-based or entrance examination
Also Read: If you are planning to avail of an education loan from SBI, check out our blog to understand the SBI Education Loan Disbursement Process.
Documents Required
The bank needs to verify whether the applicant is eligible for a Union Bank education loan or not. For that matter, it collects certain information and documents from the borrower and co-applicant/ guarantor. These include academic mark sheets, identification and address proof, income certificates, collateral documents and others. Here’s the list-
- Proof of identity- Aadhaar Card/ PAN Card/ Voter ID
- Proof of address- Aadhaar Card
- Academic mark sheets
- Bank Statement for the last 12 Months
- Salary Slips for the last 3 months
- Passport size photographs
- Acceptance letter from the university
- LIC Policies (If Any )
Repaying Union Bank Education Loan
Repaying your abroad education loan with Union Bank is easy and stress-free. You can choose from a range of repayment options, including monthly instalments and one-time repayment options.
- Monthly instalments: You can choose to repay your loan every month, over a set period.
- One-time repayment: You can choose to repay your loan in full, at the end of the loan term.
Union Education Loan Mode for EMI of Loan
Let’s say you have taken a Union Bank education loan for an amount of Rs.10 lakh at an interest rate of 8.30% p.a. with a loan repayment tenure of 15 years, then your EMI details will be:
- Equated Monthly Instalment (EMI): Rs.10,024
- Total interest due Rs.7,51,492
- Total amount payable: Rs.17,51,492
How to Apply for Union Bank Education Loan?
Applying for an abroad education loan with Union Bank is simple. Applicants can easily apply online through the Vidya Laksmi Portal or simply follow the steps stated below:
- Visit the Union Bank website and fill out the online loan application form.
- Provide the required documentation, such as proof of identity, proof of income, and proof of acceptance into an overseas educational institution.
- Wait for the loan application to be processed.
- Once the loan application has been approved, you will receive the loan amount directly in your bank account.
FAQs
Yes, Union Bank of India provides education loans to study-abroad aspirants. Students can avail of up to INR 40 lakhs of collateral-free education loans and need-based financing as per their requirements by pledging assets with them.
The Union Bank education loan interest rates are very competitive and range from 8.80% to 10.45%.
Union Bank of India doesn’t charge any processing fee to process the applicant’s education loans. Also, the applicant is not charged in case they pre-pay the education loan.
Absolutely. Union Bank education loans are the most preferred choice among students because of the higher loan amounts (even without collateral). They offer education loans at competitive interest rates and flexible repayment options. The Union Bank education loan disbursement process is also smooth and hassle-free.
Union Bank sanctions and process the education loans within 7 working days.
This was all about Union Bank education loans to study abroad. Make sure to compare other lenders before applying for education loans to study abroad.
To know more about the loan application process, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
