Union Bank of India Education Loan for Abroad 2025 (formerly Corporation Bank): Eligibility, Rates & How to Apply

Important notice: Corporation Bank no longer exists as a separate bank. It was amalgamated into Union Bank of India effective 1 April 2020, following a Gazette notification dated 4 March 2020. All Corporation Bank branches, accounts, and loan products — including education loans for abroad — are now operated by Union Bank of India. If you are looking for an education loan for abroad studies, please contact Union Bank of India directly or visit unionbankofindia.co.in.

Union Bank of India Education Loan for Abroad Studies 2025-26 opens the door to your dream of studying overseas, offering need-based loan amounts, zero margin on amounts up to ₹4 lakhs, and a streamlined application process.

Keep reading to learn how Union Bank of India's education loan for abroad studies can make your international education happen.

Union Bank of India Education Loan for Abroad Studies — Overview

Note: Corporation Bank was merged into Union Bank of India on 1 April 2020. The loan features below reflect Union Bank of India's education loan scheme for abroad studies as of 2025-26. Figures such as interest rates and processing fees are indicative; verify current rates with Union Bank of India before applying.

The table below highlights the key features of Union Bank of India's education loan for students planning to study abroad.

Union Bank of India Education Loan Eligibility for Abroad Studies

Following the amalgamation of Corporation Bank into Union Bank of India on 1 April 2020, Union Bank of India continues to offer education loans for abroad studies with the following eligibility requirements.

General Eligibility Requirements

• Applicants must be Indian nationals. NRI students should hold a valid Indian passport.
• Must have secured admission to a recognised course abroad through the appropriate selection process.
• Completion of the relevant qualifying examination, including 10+2 for undergraduate courses, and an undergraduate degree for postgraduate courses.
• There are no age restrictions for applicants.

Co-Applicant Requirements

• The student's parent(s) must join as co-applicants.
• For married students, a spouse, parent(s), or parent(s)-in-law can act as a co-applicant.
• If both parents are deceased, a close relative or guardian may be accepted as a co-applicant.
• The co-applicant must be an Indian national.

For students looking to fund their studies independently, you can also explore options to get an education loan without a co-applicant in India in 2025.

Education Loan - Min Docs. Max Approval. Min Hassle. Max Tenure.

Union Bank of India Education Loan Interest Rate for Abroad Studies (2025-26)

For students considering an education loan from Union Bank of India (which absorbed Corporation Bank on 1 April 2020), interest rates are linked to the bank's External Benchmark Lending Rate (EBLR) and change periodically. The figures below are indicative as of 2025-26 — always verify current rates directly with Union Bank of India before applying.

General guidance (verify with Union Bank of India):

• For loans up to INR 7.5 lakhs: interest rate is higher; a 0.50% concession is typically available for female students.
• For loans above INR 7.5 lakhs: interest rate is comparatively lower; concession for female students usually applies here too.

As of 2025-26; verify current rates with Union Bank of India at unionbankofindia.co.in.

What Is the Margin Money in Union Bank of India Education Loan for Abroad Studies (2025-26)?

Margin money refers to the portion of total expenses the borrower must contribute from their own funds, while the bank finances the rest.

Union Bank of India (formerly incorporating Corporation Bank) offers the following margin requirements for abroad education loans:

Maximum Loan Amount — Union Bank of India Education Loan for Abroad Studies (2025-26)

The loan amount is determined based on the applicant's financial requirements while adhering to the prescribed margin norms. There is no fixed upper limit for education loans sanctioned for Indian residents (need-based).

For Non-Resident Indian (NRI) students, the maximum loan amount is indicatively capped at INR 20 lakh – INR 30 lakh for premium institutes. Verify the current cap with Union Bank of India, as limits may be revised.

These loan amounts are designed to cover tuition fees, living costs, travel expenses, and other miscellaneous costs associated with overseas education.

Union Bank of India Education Loan Repayment Period (2025-26)

Repayment commences after a moratorium period comprising the course duration plus an additional 1 year, allowing students to complete their studies and secure employment before starting repayments.

1. Maximum Repayment Tenure

The total repayment period, including the moratorium, can extend up to 15 years, providing ample time for borrowers to repay comfortably.

2. Repayment Start

Repayments are scheduled to begin either one year after the completion of the course or six months after securing employment, whichever is earlier.

Wondering How to Repay Your Education Loan After Studying Abroad? Here's What Students Are Discussing!

Repaying an education loan after completing your degree can be confusing, especially for students earning abroad. Many are unsure about the best method to transfer funds, manage taxes, and make timely repayments.

Reddit User in r/India shared:

"I just finished my degree and will be starting a job soon. I want to repay my loan, but I'm unsure whether to transfer money directly to my Indian bank account or create an NRI account to save on taxes. Any advice?"

Insight: Students often face dilemmas about repayment channels and tax implications. Banks allow direct repayments from India, but NRI accounts can offer benefits such as easier currency conversion and potential tax advantages on international transfers.

What do we infer from the above case?

• Direct transfers to the Indian account are simple and widely used.
• Opening an NRI account can help optimise currency conversion and reduce certain taxes.
• Planning repayment in advance ensures timely EMI payments and avoids penalties.

Tip: Consult Union Bank of India about the most efficient repayment method for NRIs and consider setting up an automatic transfer or standing instruction to ensure consistent EMIs while working abroad.

Get an Education Loan 10X Faster than Banks.

Are All Degrees and Disciplines Eligible for a Union Bank of India Education Loan for Abroad Studies?

Not all types of degrees and disciplines are eligible. Union Bank of India's education loan for abroad studies covers the following types of courses:

• Graduation and postgraduate degrees offered by recognised foreign universities.
• Certified degree courses such as CIMA (London), CPA (USA), and similar professional institutes.
• PhD programs and doctoral studies at accredited institutions abroad.

Note: Diploma courses abroad are not covered under the scheme.

For a detailed list of eligible universities and colleges, check our guide on Union Bank Education Loan College List: Top Eligible Institutions.

Where Can Students Apply for a Union Bank of India Education Loan for Abroad Studies?

These loans are available at Union Bank of India branches across the country. Students can apply through the following methods:

1. Online Application

Visit the official Union Bank of India website or use the Vyom mobile app to apply for an education loan.

2. Offline Application

Visit the nearest Union Bank of India branch or Union Loan Point (ULP) to submit a physical application form and required documents.

3. PM Vidyalaxmi Portal

Utilise the government's centralised platform for applying to multiple banks simultaneously.

Online Application via PM Vidyalaxmi Portal

The PM Vidyalaxmi Portal is a government-backed platform (active as of 2025-26) that allows students to apply for education loans from multiple banks, including Union Bank of India, through a single portal. It simplifies the application process and provides real-time updates.

1. Register on the Portal

• Visit the PM Vidyalaxmi Portal.
• Click on "Student Login" and register as a new user using your name, date of birth, email ID, and mobile number.
• Verify your email ID and mobile number using the OTP sent to you.

2. Fill Personal and Academic Details

• Log in to your account.
• Complete your personal information, including address, nationality, and identification details.
• Enter your academic details, including the name of the institution, course details, and duration.

3. Choose the Bank and Loan Type

• Select Union Bank of India as the preferred bank.
• Choose the type of education loan (loan for studies in India or abroad).
• The portal will show the eligibility criteria and indicative interest rates.

4. Upload Documents and Submit Application

• Upload scanned copies of essential documents.
• Review all details carefully and submit your application through the portal.

5. Application Tracking

• Once submitted, you will receive an application ID.
• Use this ID to track the status of your loan application in real time.

6. Bank Verification

• Union Bank of India will verify your application and documents.
• The bank may contact you for additional information or clarification.

7. Loan Sanction and Disbursement

• Upon approval, the loan sanction letter will be issued.
• The loan amount is disbursed directly to your university as per the fee schedule.

Documents Required for Union Bank of India Education Loan for Abroad Studies (2025-26)

Providing complete and accurate documents can significantly speed up loan processing. Below is a list of documents required for a Union Bank of India abroad study loan:

1. Application and Credit Information

• Duly filled-in loan application form.
• Credit information as per the bank's format.

2. KYC Documents (for Applicant and Co-Applicant/Guarantor, if any)

• Identity Proof: PAN card, Aadhaar card, Passport, Voter ID, or other valid government-issued ID.
• Address Proof: Driving licence, Passport, Utility bills (electricity, water), or other acceptable documents.
• Latest passport-size photograph of the applicant.
• Income Proof: Income Tax Return (ITR) or salary slips of the borrower, co-borrower, or guarantor.
• Last 12 months' bank statements of the borrower, co-applicant, or guarantor.
• Caste Certificate if required for statistical purposes.

3. Academic Documents

• Admission letter from the university or institution.
• Mark sheets and certificates of all qualifying exams.
• Detailed schedule of tuition and other course-related expenses.
• Scholarship/Freeship/Studentship Letters (if applicable).

The above list is indicative. Union Bank of India may request additional documents depending on the student's specific profile or course requirements.

Securing a Union Bank of India education loan for abroad studies in 2025-26 can make international education financially feasible. Understanding eligibility, margin requirements, and required documentation beforehand can significantly speed up approval. With careful planning, timely submission of documents, and awareness of indicative interest rates and loan limits, you can confidently fund your higher education abroad.

Turn your dream of studying abroad into reality with Propelld! Get tailored education loans, quick digital approval, and flexible repayment options, covering up to ₹1 Crore for study abroad (and up to ₹40 Lakhs for domestic studies). From tuition fees to living expenses, Propelld makes funding your international education hassle-free.

Apply now and take the first step toward your global academic journey with Propelld!