Union Bank of India’s repayment plan must be understood by the students before taking the loan. It will help you to plan ahead for managing the entire repayment. This includes understanding the mode of payment, the process of repayment etc. Union Bank of India education loan come with a moratorium period also which is 1 year apart from the course period. This repayment holiday is provided so that you can get enough time to start earning and be able to repay the loan without any issues.
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What is the Union Bank of India Repayment Plan?
Union Bank of India provides education loans for international students pursuing studies in India and abroad. Understanding the repayment options can help students manage their finances better. Union Bank of India’s repayment plan refers to the process and modes of loan repayment and the features that come with it like the moratorium period.
Also Read: Check here all the major features and other details of YONO SBI Education Loan to study abroad
Union Bank Education Loan Repayment Plan
The Union Bank of India education loan repayment plan provides students with flexibility through a moratorium period that covers the course duration plus an additional 6–12 months. The bank provides repayment tenure of up to 15 years. The borrowers can repay through manageable EMIs, ECS, or online transfers. The bank offers a 0.5% interest rate concession for female students and allows for early or partial repayments without penalties. Check the features of the Union Bank of India loan repayment plan below.
Moratorium Period
Union Bank offers a moratorium or grace period, which is usually the duration of the course plus 12 months or 6 months after employment, whichever is earlier. During this period, borrowers are not required to repay the principal amount. However, interest may be payable based on the scheme, though it can be deferred to some extent if needed.
Repayment Tenure
Union Bank loan repayment time is usually up to 15 years. A longer repayment period helps you to secure a lower EMI amount. However, a longer repayment period makes the loan costly as you pay more money towards the interest rate. A shorter repayment period makes the loan cheaper.
Repayment Methods
Union Bank of India offers multiple repayment methods to make it convenient for borrowers to repay the loan. Most students choose to repay through EMIs, which are debited monthly from their bank accounts. Automated electronic payments are also an easy way that can be set up to ensure timely repayment.
Interest Rate Concessions on Loan Repayment
Union Bank provides a 0.5% interest rate concession for female students to encourage women to pursue higher education. Proper repayment and opting for automated payments may offer slight concessions.
Also Read: Check here all the details on the SBI Education Loan Disbursement Process
Early Repayment and Prepayment Options
Union Bank allows for early repayment of education loans without prepayment penalties. Like all other banks, there are no early repayment charges on education loans. Borrowers can make lump sum payments or increase EMI amounts as their income grows which will help them clear the debt faster and save on interest.
Union Bank of India loan repayment plan must be understood properly before taking the loan. The bank provides multiple options for loan repayment as well as a moratorium period so that students can repay the loan without any pressure. Check some FAQs based on Union Bank loan repayment below:
FAQs
Union Bank offers a moratorium period that includes the course duration plus 12 months or 6 months after being employed.
The maximum repayment tenure for Union Bank’s education loans to study abroad is 15 years.
No, Union Bank does not charge prepayment penalties which enables the borrowers to make early or partial repayments to reduce their loan burden and interest costs.
Yes, Union Bank offers a 0.5% interest rate concession for female students to encourage women to pursue higher education with a reduced financial load.
Borrowers can repay through EMIs, Electronic Clearing Services (ECS), or online transfers.
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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