Union Kisan Shiksha Suvidha Education Loan: Features, Benefits, Terms

Union Kisan Shiksha Suvidha Education Loan

India is a land of agriculture. Around 58% of the total population of the country depends on agriculture for livelihood. So it is a basic concern why the students who belong to agrarian families shouldn’t be getting education loans by mortgaging their land! Isn’t it? So here is what the Union Bank which is one of the leading public sector banks in India offering you. The bank has a dedicated scheme for education loans on agricultural land- “Union Kisan Shiksha Suvidha” for students who belong to agrarian families. In this blog, we will discuss all the major features and benefits of the Union Bank Education loan to study abroad on agricultural land.

Union Kisan Shiksha Suvidha Education Loan

Image from Angul United Co-operative Bank

Know What is Union Kisan Shiksha Suvidha

Good People to Bank With” Ever heard this? Well, this is the punchline of the Union Bank. Union Kisna Shiksha Suvidha is a dedicated scheme by Union Bank for education loans which is available only for students who belong to agrarian families. The bank will provide the loan only if more than 50% of your income comes from agricultural activities. However, the approval of the loan is subject to the ongoing law in the concerned state. Some states don’t allow banks to accept agricultural loans as collateral for education loans. Check some of the major highlights of the Union Kisan Shiksha Suvidha loan:

Category Details
Name of the SchemeUnion Kisan Shiksha Suvidha by Union Bank
Maximum Amount of LoanINR 15 lakhs (for study in India), INR 30 lakhs (for study abroad)
Rate of Interest8-13% (vary as per the loan category)
Eligible CoursesCourses with strong job prospects like Medical, Engineering, and Management education in a reputed university (for study abroad)
Repayment TenureUp to 15 years
Mandatory ConditionLife Insurance of the student is mandatory 

Did you know Union Bank also have an education loan insurance policy? Check out this informative blog on Union Bank SUD Life Shiksha Suraksha II

Benefits of Union Kisan Shiksha Suvidha

Union Kisan Shiksha Suvidha offers a lot of benefits to the student belonging to the agrarian family. You will get a loan by mortgaging your agricultural land and since it will be a secured loan the interest rate will be lower. Let’s check some major benefits of the scheme:

  • The loan scheme is available for meritorious students who want to pursue graduate or postgraduate programs in Medical, Engineering or Management courses. 
  • There is no restriction on the minimum or maximum age of the student.
  • The bank will provide you education loan even in the middle of the course. When you approach the bank in the subsequent years of the course make sure that you have not availed loan for the initial years from any other bank or NBFC. 
  • For a study abroad loan the banks charge only 15% margin money and you get 85% finance from the bank. 
  • In the moratorium period of course duration +1 year, the interest will be charged but you are not bound to pay it during that period. The bank will later add it to the principal amount.

Union Bank Shiksha Suvidha Loan: Eligibility Criteria 

The bank has laid some eligibility criteria for students who want to take an education loan by mortgaging their agricultural land. Please note that you have to fulfil all the eligibility conditions and provide the supporting documents to get the loan approved by the bank. Check the criteria provided by the bank:

  • You must be an Indian citizen holding an Indian passport.
  • You must belong to a farming community.
  • The primary source of income of your family (more than 50% of total income) shall be from agricultural activities.
  • In the higher secondary exam, you must have secured at least 60% marks.
  • Either of the parents of the student will have to be a co-applicant. 
  • In the case you are married, the spouse or the parent(s)-in-law can be a co-applicant.

Expenses Covered under Union Bank Shiksha Suvidha Education Loan

Like any other study abroad education loan, the Union Bank Shiksha Suvidha Education Loan covers all the major expenses towards your education. Given below is the list of expenses covered by Union Bank under the Union Kisan Shiksha Suvidha scheme:

  • The entire tuition fee payable to the college for the listed program.
  • Accommodation costs and mess charges.
  • Any type of examination, library, or laboratory fee charged by the university.
  • Insurance premium for the student (primary applicant).
  • Any expenses towards the purchase of books, equipment, instruments, and uniforms.
  • Cost of computer or laptop purchased at reasonable cost, if required for completion of the course.
  • Expenses for travel or the passage money for studies abroad.
  • Any other type of expenses required to complete the course like study tours, project work, thesis, etc.

How it would be if you get a hassle-free education loan from Union Bank sitting at home? Check out this blog on Union Bank Study Abroad Education Loan by Fly Finance

Mandatory Conditions for Union Kisan Shiksha Suvidha Loan

The Union Kisan Shiksha Suvidha Loan is exclusively for students who belong to agrarian families. Before the loan sanction, the bank will check and verify your background and source of income. Your primary source of income i.e. more than 50% of total income must be from agricultural activities. However, the bank is bound to follow the laws of the state and regulations set by the concerned state government. 

  • The bank will accept agricultural land as collateral for education loans only if the state has allowed it to do so. For example, in states like Punjab and Bihar, it’s very critical to get an education loan on agricultural land as the state laws are strict.
  • The agricultural land which you want to mortgage shall be surrounded properly by boundaries. 
  • The property shall be easily accessible and marketable. 

FAQs

What is the interest rate for Union Kisan Shiksha Suvidha Loan?

The interest rate for Union Kisan Shiksha will vary as per the terms and conditions of the bank. Generally, the bank offers education loans with interest rates ranging from 8-13%. 

How much amount can I get through the Union Kisan education loan?

For study abroad, you can get a loan of INR 30 lakhs and for India, you can get INR 15 lakhs.

Is the loan insurance mandatory for taking an education loan?

In the case of Union Kisan Shiksha Suvidha, it is mandatory that a student shall have life insurance coverage.

Can I apply for Union Kisan Shiksha Suvidha Education Loan if my parents are in a job?

More than 50% of the net monthly family income shall come from agricultural sources. You won’t be eligible for the loan if there is any other source of income that exceeds the agricultural income.

How to apply for Union Kisan Shiksha Suvidha Education Loan?

You can apply for this loan by visiting the nearest branch of the bank.

This was all about the Union Kisan Shiksha Suvidha Education Loan by the Union Bank. Please check all the terms and conditions while applying for a loan or consult a financial advisor. 

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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