Every year, lakhs of Indian students set out to study abroad. In 2025, over 1.8 million Indian students are studying overseas, most relying on education loans to fund their dreams. Want to study abroad but hesitant to pledge property? But many hesitate to pledge property for approval.
With Union Bank of India’s Abroad Education Loan, you can borrow up to ₹40 lakh collateral-free (and up to ₹1.5 crore with security). This guide covers eligibility, rates, approved colleges, documents, EMI planning, and how to apply. Learn everything you need to fund your global education with confidence.
What Is the Union Bank Abroad Education Loan?
The Union Bank Abroad Education Loan (Special Union Education Loan Scheme) supports students pursuing foreign studies. It provides up to ₹40 lakh unsecured, with no collateral or guarantor required (Category A), and up to ₹1.5 crore secured with acceptable property. This scheme supports global education across the US, UK, Canada, Europe, Australia, and more.
Get an Education Loan 10X Faster than Banks.
Union Bank Abroad Education Loan Overview
Union Bank Abroad Education Loan Interest Rate
Union Bank offers highly competitive rates:
1. Unsecured loans (up to ₹40 lakh): EBLR + margin – roughly 8.8% to 10.45%.
2. Secured loans (over ₹40 lakh): Lower rates between 9.0% to 9.75% depending on collateral value.
3. Premia/Concessions: Up to 0.5% concession for female or students admitted to premier institutes. EBLR-linked floating rates ensure transparency and RBI-linked adjustments.
Get an Education Loan with Higher Chances of Approval
Union Bank Education Loan College List Abroad
Union Bank education loan college list abroad includes over 150 top-ranked universities across major countries. Coverage spans Ivy League, Russell Group, public institutions in Canada and Australia, top European universities, and leading Asian schools.
Eligible Countries the Loan Covers
USA, UK, Canada, Australia, New Zealand, Singapore, Japan, Hong Kong, and major European countries (Germany, France, Ireland, Italy, Netherlands, Sweden, Switzerland, etc.).
Courses Covered Under Union Bank Abroad Education Loan
1. Graduate & Postgraduate programs (MS, MBA, MCA, etc.)
2. Professional programs (Engineering, Medicine, Law, Management)
3. Specialized certifications (CPA-USA, CIMA-London)
4. Aviation, Shipping, Pilot training courses
5. Diploma/Doctorate programs in approved universities
Eligibility Criteria for Union Bank Education Loan Abroad
Applicants must meet the following:
1. Nationality: Indian citizens (NRIs for India-only are included).
2. Admission: Confirmed offer from a recognized international university.
3. Academic Record: Preferably a minimum score (usually 60% or equivalent).
4. Age: Typically 18–35 years (depending on profile).
5. Co-applicant: Parent or close family with steady income; CIBIL not mandatory for unsecured amounts.
6. Margin Money:
- Up to ₹4 lakh – No margin required.
- Above ₹4 lakh – 15% margin applies for unsecured loans; no margin if 100% collateral is provided.
Margin Money Rules:
1. Secured loans: 10% for listed universities, 15% for non-listed universities
2. Unsecured loans: 15%
Loan terms (amount, interest) are linked to the university’s tier. You can understand more about the Union Bank education loan college list abroad in our guide.
Documents Required for Education Loan in Union Bank of India
Applicants must submit the following documents:
Student Documents:
1. Aadhaar, PAN, Passport
2. 10th, 12th, UG mark sheets
3. Entrance exams (GRE/GMAT/TOEFL/IELTS)
4. Admission letter, fee structure
5. 2 passport-size photos
Co-Applicant Documents:
1. Aadhaar, PAN, Passport/Driving License
2. Income proof:
- Salaried → last three salary slips, Form 16, ITRs
- Self-employed → business proof, IT returns, balance sheet
3. Bank statements (last 6 months)
Collateral (if applicable):
1. Registered sale deed, approved property map, chain documents
2. Latest property tax receipt
3. FD receipts, LIC policies
Before applying, you can understand more about the eligibility, interest rates, and more in our Union Bank Education Loan guide.
Education Loan EMI Calculator Union Bank of India
Use EMI calculators to estimate monthly payments. Example: A ₹20 lakh loan at 9% interest over 15 years results in an EMI of approximately ₹20,000.
Students can use Union Bank’s official calculator or online tools to adjust loan amount, tenure, and interest for accurate budgeting.
Union Bank Abroad Education Loan Without Collateral
Under the Special Union Education Loan Scheme, Union Bank offers collateral-free loans up to ₹40 lakh, ideal for Asset-Light students.
These loans eliminate property-related hassles and significantly reduce approval timelines, making them an excellent choice for families without pledged assets.
Special Loan Schemes You Should Know
1. Premier Institutes Scheme: Lower interest rates for top-ranked global universities.
2. ISB Loan Scheme: Special terms for Indian School of Business students.
3. Skill Development Loan: For vocational/short-term courses.
You can understand more about how to get an education loan without collateral in our complete guide.
How to Apply Education Loan in Union Bank of India
1. Application submission: Online via Vidya Lakshmi Portal or Union Bank’s site/Vyom app, or in-branch.
2. Submit documents (see section above).
3. Evaluation & approval, followed by sanction letter.
4. Loan agreement signing, acceptance of terms.
5. Disbursement: funds are released directly to the institution; living expenses may be credited to your account.
Contact Support:
1. Email: customercare@unionbankofindia.com
2. Online: Vidya Lakshmi Portal or Union Bank’s official site
3. Branch: 9,700+ branches across India
Union Bank Abroad Education Loan? Here’s What Reddit Users Discuss
Reddit User in r/Indians_StudyAbroad shared:
“Hey guys!, I am planning to get an education loan for my masters in TUM, Germany. I’m looking to take in Union Bank because of its low interest rate. Yeah! I know about margin of 85%, but for that I’m funding my blocked account with my parents’ funds. Need some experiences of people who got loan from UBI.”
Insight:
This highlights an important factor: while Union Bank offers attractive interest rates, students must carefully plan for margin requirements. For unsecured loans beyond ₹4 lakh, Union Bank typically asks for a 15% margin, meaning you need to contribute part of the funds from your own or family’s resources.
What Do We Infer?
1. Union Bank is a good choice for students prioritizing lower ROI, but upfront margin planning is key.
2. Students relying on blocked accounts (like those required in Germany) often use parental funding to meet the margin obligation.
3. Those without sufficient family funds may need to explore collateral-based secured loans for higher coverage without high margins.
Tip:
Before applying, calculate:
1. Net funds available after margin contribution.
2. Collateral vs non-collateral route based on your family’s financial profile.
3. Compare Union Bank’s requirements with private banks/NBFCs, which may offer 0% margin but at a higher interest rate.
Union Bank Abroad Education Loan stands out as one of the strongest public-sector options for students aiming to study overseas. With collateral-free funding up to ₹40 lakh, secured loans up to ₹1.5 crore, flexible repayment terms, and wide university coverage, it gives students the financial confidence to pursue global education.
That said, the loan process can feel complex, with paperwork, collateral evaluations, and bank coordination often slowing things down. This is where Propelld adds real value.
By guiding you through the documentation, speeding up approvals, and even helping with pre-visa disbursements, Propelld makes sure your loan is processed faster and with fewer roadblocks, all at no extra cost. Apply with Propelld today!
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