UBI Education Loan Vs Yes Bank Education Loan: Know the Difference

UBI Education Loan vs Yes Bank Education Loan
Home » Education Loan » UBI Education Loan Vs Yes Bank Education Loan: Know the Difference

UBI Education Loan vs Yes Bank Education Loan: Union Bank of India is a leading government bank in India. It is quite popular for providing education loans to study abroad or in India. On the other hand, Yes Bank is one of the most popular private sector banks in India providing multiple financial services like education loans, personal loans for education, Forex cards, currency exchange etc. Both banks have their terms and conditions for education loans to study abroad. Let’s check and compare the UBI education loan and Yes Bank Education Loan to study abroad.

UBI Education Loan: Key Highlights

Union Bank of India offers flexible and need-based finance with competitive interest rates starting from 8.80% for loans not covered under CGFSEL and 9.20% for loans covered under CGFSEL. The students are not required to pay margin money for loans up to INR 4 lakhs and only a 15% margin is required for loans above INR 4 lakh for Union Bank education loan. Check more details below:

  • Union Bank provides a repayment period of 15 years and a moratorium period of course period plus 1 year or 6 months after getting a job (whichever is earlier)
  • Students can get education loans of up to INR 40 lakhs from Union Bank without collateral
  • Loans exceeding INR 40 lakh amount will require tangible collateral security valued at a minimum of 50% of the loan.
  • Union Bank of India waives processing fees and pre-payment charges, making it an attractive option for borrowers.

Also Read: Looking for a quick online education loan? Check this blog on YONO SBI Education Loan to Study Abroad

Yes Bank Education Loan: Key Highlights

Yes Bank is one of the most popular private banks in India. It provides education loans to study abroad at affordable interest rates. The application process is very easy and you can apply for the loan on the official website of Yes Bank. Yes Bank offers a flexible financing option to international students with loan amounts ranging from INR 1 lakh to INR 40 lakhs within India, and up to INR 1.5 crore for studies abroad. Check more details below:

  • The processing fee of Yes Bank Education Loan is 2% only which shall be paid upfront and so the bank will deduct the same at the time of disbursement
  • Yes Bank provides competitive interest rates ranging from 12% to 14%
  • The minimum and maximum age limit for Yes Bank education loan is 18 and 35 years respectively.
  • The repayment tenure is up to 15 years which provides ample time for borrowers to manage their finances post-education. 
  • Yes Bank also provides a moratorium period for the loan. The purpose of a grace period for student loan is to provide the student sufficient time to become financially sound

Also Read: In a rising rate environment, it’s better to get your loan refinanced. Check this blog and get complete information on How to Apply for Education Loan Refinance

Difference between Union Bank and Yes Bank Education Loan

Union Bank and Yes Bank offer education loans but there are some key differences in their terms and services. Union Bank usually provides loans with lower interest rates and more flexible repayment options like a longer repayment period and a moratorium period that allows students to begin repayment after course completion. Yes Bank, on the other hand, often offers faster processing times and a more efficient application process. Both banks support a wide range of courses and institutions. Let’s check the difference between Union Bank and Yes Bank education loans in the table below:

ParametersUnion Bank of IndiaYes Bank
Application ProcessOnline through Vidya Lakshmi PortalOnline through the Official Website
Maximum Loan AmountNeed-Based FinanceINR 1.5 crore
Interest RateStarting from 8.80% (for loans not covered under CGFSEL)
Starting from 9.20% (for loans covered under CGFSEL)
12 – 14%
Repayment PeriodUp to 15 yearsUp to 15 years
Collateral RequirementUpto INR 40 lakhs- NIL
Above INR 40 lakhs- Tangible collateral security of the minimum value of 50% of the total loan amount
Required as per the terms and conditions of the bank
Margin Money15% if the loan amount exceeds INR 4 lakhs.Not Specified
Processing FeeNILUp to 2% of the loan amount

This was all about the UBI Education Loan vs Yes Bank Education Loan. These were some of the major differences between Union Bank and Yes Bank education loans. Both banks have their advantages and limitations. You should compare considering all the features of the banks and then finalised the lender best suited for your requirements. Check some of the common frequently asked questions below:

FAQs

What are the interest rates for education loans offered by Union Bank of India and Yes Bank?

Union Bank of India offers education loans at interest rates starting from 8.80% for loans not covered under CGFSEL and 9.20% for loans covered under CGFSEL. Yes Bank’s interest rates range from 12% to 14%.

What is the maximum loan amount I can borrow from Union Bank of India and Yes Bank for studying abroad?

Union Bank of India offers need-based finance, which can go up to INR 40 lakhs without collateral and requires collateral for amounts exceeding INR 40 lakhs. Yes Bank offers loan amounts up to INR 1.5 crore for studies abroad.

Are there any processing fees associated with the education loans from Union Bank of India and Yes Bank?

Union Bank of India does not charge any processing fees for education loans. Yes Bank charges a processing fee of up to 2% of the loan amount, which is deducted at the time of disbursement.

What is the repayment period for education loans from Union Bank of India and Yes Bank?

Both Union Bank of India and Yes Bank provide a repayment period of up to 15 years.

Do I need to provide collateral for education loans from Union Bank of India and Yes Bank?

For Union Bank of India, no collateral is required for loans up to INR 40 lakhs. Loans exceeding INR 40 lakhs require tangible collateral security valued at a minimum of 50% of the loan. Yes Bank requires collateral as per their terms and conditions.

To know more about education loans, 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.

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About Shekhar Suman

Shekhar is a versatile writer with a passion for sharing knowledge and creativity. With expertise in crafting informative blogs on study abroad and finance, Shekhar helps readers navigate the complexities of education and financial planning. Most of his writings blend the practicality of finance and the beauty of language, making a meaningful impact in both spheres. Beyond his professional pursuits, he finds solace in the writing Shayari.

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