Corporation Bank Education Loan for Abroad 2025 opens the door to your dream of studying overseas, offering loans up to INR 20 lakhs, zero margin on amounts up to ₹4 lakhs, and a simple application process. Through a Gazette notification on March 4, 2020, the government, in consultation with the RBI, merged Andhra Bank and Corporation Bank into Union Bank of India, effective April 1, 2020.
Keep reading to learn how the Corporation Bank education loan for abroad 2025 can actually make your international education happen
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Corporation Bank Education Loan For Abroad Studies Overview
The table below highlights the key features of the Corporation Bank Education Loan for students planning to study abroad. It covers aspects such as loan amount, margin requirements, interest rates, and repayment tenure.
Corporation Bank Study Loan Eligibility for Abroad Studies
Before its amalgamation into Union Bank of India on April 1, 2020, Corporation Bank provided education loans to Indian and NRI students pursuing higher education abroad. Post-merger, Union Bank of India continues to offer similar education loan schemes, maintaining the core 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 in India or 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.
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What Is The Corporation Bank Student Loan Interest Rate for Abroad Studies 2025?
For students eyeing an education loan from Corporation Bank (now part of Union Bank of India), it's essential to understand the prevailing interest rates, as they directly impact the total repayment amount over the loan tenure.
Based on recent data, the interest rates for Corporation Bank Education Loans for Abroad Studies are as follows:
1. For loans up to INR 7.5 lakhs, the interest rate stands at
- 10.75% per annum for female students
- 11.25% per annum for male students
2. For loans above INR 7.5 Lakhs, the rate is slightly lower at
- 9.85% per annum for female students
- 10.35% per annum for male students
What is the Margin Money in Corporation Bank Education Loan for Abroad Studies 2025?
One of the key components of such loans is the concept of margin money. This refers to the portion of the total expenses that the borrower must contribute from their own funds, while the bank finances the remaining amount.
Corporation Bank, now part of Union Bank of India, offers education loans for studying abroad with specific margin money requirements:
Maximum Loan Amount in Corporation Bank Education Loan For Abroad Studies 2025
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 under this scheme for Indian residents.
For Non-Resident Indian (NRI) students, the maximum loan amount is capped at INR 20 lakh - INR 30 lakh for premium institutes. This limit is set to ensure that the loan amount aligns with the typical expenses associated with studying abroad.
These loan amounts are designed to cover various expenses, including tuition fees, living costs, travel expenses, and other miscellaneous costs associated with overseas education.
Corporation Bank Education Loan Repayment Period 2025
The repayment of the loan commences after a grace period, which includes the course duration plus an additional 1 year. This moratorium allows students time to complete their studies and secure employment before starting repayments.
1. Maximum Repayment Tenure
The total repayment period, including the moratorium, could extend up to 15 years, providing ample time for borrowers to repay the loan comfortably.
2. Repayment Start
Repayments were scheduled to begin either one year after the completion of the course or six months after securing employment, whichever was 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 your bank 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.
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Are All Degrees and Disciplines Eligible for a Corporation Bank Education Loan for Abroad Studies?
It's important to note that not all types of degrees and disciplines are eligible for funding under these schemes. Corporation Bank's education loan for abroad studies covers the following types of courses:
- Graduation and postgraduate degrees that are offered by recognised foreign universities.
- Certified degree courses such as CIMA (London), CPA (USA), and similar professional institutes.
- PhD programs, 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, you can check out our detailed 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 numerous UBI branches, ensuring accessibility for students in various regions. Students can apply for the education loan 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 branch or Union Loan Point (ULP) to submit a physical application form and required documents.
3. Vidya Lakshmi Portal
Utilise the government's centralised platform for applying to multiple banks simultaneously.
Online Application via Vidya Lakshmi Portal
The PM-Vidyalaxmi Portal is a government-backed platform 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 Vidya Lakshmi 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 you’ve secured admission to, 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 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’ll 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 Corporation Bank Education Loan for Abroad Studies 2025
Providing complete and accurate documents can significantly speed up the loan processing and sanctioning. 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 license, 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 (from Union Bank or other banks/financial institutions).
- Caste Certificate if required for statistical purposes.
3. Academic Documents
- An 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), provide letters confirming any financial aid.
The above list is indicative. Banks may request other documents depending on the student’s specific profile or course requirements.
Securing a Corporation Bank Education Loan for abroad in 2025 can make international studies financially feasible, especially with loans of up to INR 20 lakh and above. Understanding eligibility, margin requirements, and required documentation beforehand can significantly speed up approval and reduce hurdles. With careful planning, timely submission of documents, and awareness of interest rates and loan limits, you can confidently fund your higher education abroad.
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