Many students dream to study overseas to get international exposure and experience new cultures and learnings there. Many students from India as well aspire to study abroad. However, financing their study-abroad expenses is a common worry among all students. A simple solution to this problem is education loans. An education loan is the amount of money a student borrows from a bank or a financial organization to cover the cost associated with their higher education. United Bank of India Education Loan is quite popular among students and if you want to know more about it, continue reading the blog.
Features of United Bank of India Education Loan
The following are the important features of this loan scheme:
- The objective of the loan is to provide a term loan to students from India to pursue their higher education Abroad or from India provided that they have secured admission at an institute.
- Loan Amount
To study in India – Max. INR 10 Lakh
To study abroad – Max. INR 20 Lakh
- Margin – There is no margin required for loan amounts up to INR 4 Lakh, a 5% margin on the loan above INR 4 Lakh to study in India and to study abroad 15% margin on the loan above INR 4 Lakh.
- Security Required
Upto INR 7.50 Lakh – It required co-obligation of parents without providing any collateral security for the loan and third-party guarantee
Above INR 7.50 Lakh – It required co-obligation of parents with tangible security worth sufficient value to cover the loan amount along with the future income of the student for the payment of instalments
- Repayment Period – 15 Years
- It does not charge any loan processing fees
Also Read: The Best Education Loan in India for Study Abroad Purposes
Eligibility Criteria for United Bank of India Education Loan
The following are the details of the eligibility criteria for the loan:
- To apply for the loan, the applicant must be between the age of 18 – 35 years
- The applicant must be a resident of India
- The applicant must be pursuing either a Postgraduate, Graduate or a PG diploma course
- The applicant is required to have secured admission to a recognized university in India or Abroad
Courses Covered
Given below is the list of courses that an applicant must be pursuing to avail of this loan scheme:
- Undergraduate degrees/diplomas
- Postgraduate degrees/diplomas
- PhDs and Doctoral Programmes
- Certificate courses and some special courses
Also Read: Types of Education Loan for Indian Students
Expenses Covered Under United Bank of India Education Loan
An applicant can cover the cost of the following things through this education loan:
- Accommodation fees or the cost of living including hostel etc.
- It also covers the examination fees and science and technology fees for library and laboratory facilities
- It also covers the cost of airfare
- Cost of books and other school supplies including equipment, uniforms, stationery etc
- Tablet or Laptop
- Other education-related expenses such as resources project work, thesis, study tours
Documents Required
You are required to provide a list of documents for identity and verification purposes:
For Applicant
- Two Passport size photographs
- Copy of Passport
- Loan Application form
- Academic Transcripts or certificates
- Scorecard of English language proficiency tests like IELTS, TOEFL
- Scorecard of aptitude tests like GMAT or GRE
- Aadhar card or Voter ID card for residence proof
- Driving license, PAN card for identity proof
- Letter of Acceptance from a recognised university
For Co-Applicant
- Two Passport size photographs
- Aadhar card or Voter ID card for residence proof
- Driving license, PAN card for identity proof
- Salary slips for three months
- Income tax receipts for the past two years
- ID card of Employer (if applicable)
- Form of 16 of the past two years
- Balance sheet and P and L statement of the past three years (in case of self-employment)
- If you are self-employed you are also required to provide proof of business address
Also Read: Education Loan by Using Agricultural Land as a Collateral
Benefits of United Bank of India Education Loan
The following are the benefits of the United Bank of India Education Loan:
- It offers low-interest rates on the loan
- It does not have any hidden costs or administrative charges
- Saves time and requires less paperwork
- The bank does not charge any processing fees
- You are not required to provide any security for the loan amount up to INR 4 Lakh
- Additionally, the bank provides a 0.50% concession for girl students
FAQs
The bank charges an interest rate between the range of 8.55% p.a – 9.50% p.a
As an applicant, you are required to provide a list of documents for identity and verification purposes:
Two Passport size photographs
Copy of Passport
Loan Application form
Academic Transcripts or certificates
Scorecard of English language proficiency tests like IELTS, TOEFL
Scorecard of aptitude tests like GMAT or GRE
Aadhar card or Voter ID card for residence proof
Driving license, PAN card for identity proof
Letter of Acceptance from a recognised university
An applicant can cover the cost of the following things through this education loan:
Accommodation fees or the cost of living including hostel etc.
It also covers the examination fees and science and technology fees for library and laboratory facilities
It also covers the cost of airfare
Cost of books and other school supplies including equipment, uniforms, stationery etc
Tablet or Laptop
Other education-related expenses such as resources project work, thesis, study tours
This was all about United Bank of India education loan Visit Fly. Finance to know more about such topics.
