Union Bank Education Loan: Interest Rate, Features, and Benefits

Know the Eligibility and Interest Rate of  Union Bank Education Loan

Union Bank education loan offers students options to fund their education both in India and abroad. The Union Bank of India (UBI) is aware of the financial constraints that students face in India. This is why this 5th largest public sector bank in India offers many education loan schemes that are directed towards making education financing easier for Indian students. 

UBI offers students easy access to finance in order to fund their education both in India and Abroad. Explore the Union Bank education loan interest rate, features, benefits, and application process before applying.

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Overview of Union Bank of India Education Loan

The Union Bank of India (UBI), which was first founded in 1919 as a limited corporation, was eventually nationalised in 1969. After merging with Andhra Bank and Corporation Bank in 2020, Union Bank of India rose to become the country's fifth-largest public sector bank.

Union Bank of India knows that students need to be well educated to lead a prosperous life in this world. The bank is also aware that the education comes at a cost and expenses that are difficult to manage for many families.

That is why the banks offer different loan schemes to meet the varying needs of the students. The bank also allows students to apply for a Union Bank education loan without collateral.

Union Bank offers competitive education loan options through public schemes. Get a complete overview of Union Bank and other public sector education loan programs to compare features and benefits.

Union Bank Education Loan Interest Rate 2025

If you are planning to take a student loan for higher education, it's important to know the interest rates offered by Union Bank of India. This government-owned bank provides education loans at lower interest rates compared to many private banks.

It also offers special interest rate discounts for female students, making it more affordable for them to pursue higher studies.

Here is the table that contains detailed information about Union Bank Education Loan Interest Rate 2025 (scheme-wise):

Union Education Loan – General (Domestic Studies)

Union Education Loan – Premier Abroad (For Studying Abroad)

Category ‘A’ Institutes

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Get Up to ₹50L Education Loan Without Collateral

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Union Bank Education Loan Schemes

UBI allows students to avail of student loans to pursue higher, professional, or technical education at different universities. For this reason, there are many education loan schemes that the bank offers. The different student loan schemes of Union Bank of India are as follows:

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Union Bank of abroad education loan 

The bank offers the following Union Bank abroad education loan schemes for foreign study:

1. Special Union Bank Education Loan Schemes for Premier Institute Abroad Studies
2. Union Education - Study Abroad
3. Union Kisan Shikshan Suvidha
4. Elite Scholars UB Education Loan

The Union Bank Education Loan Scheme for Abroad Study supports students planning to study medicine overseas. It’s a good option for those looking for an education loan for MBBS in Russia, covering tuition fees and living expenses.

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Union Bank Education Loan Scheme for Study in India

UBI offers the following education loan scheme for study in India:

1. Union Education - Inland studies
2. Special Union Education Loan Scheme for Premier Medical Institutes
3. For Premier Management & Technical Institutes Inland Tier I
4. For Premier Management & Technical Institutes (Tier-II)
5. Union Kisan Shikshan Suvidha

Union Bank of India Education Loan for College Students

The Union Bank of India offers education loans specifically designed to support college students in financing their higher education. With competitive interest rates and flexible repayment options, the bank aims to make it easier for students to pursue their academic dreams.

One of the key advantages of choosing Union Bank of India for a college loan is its comprehensive loan coverage, which includes tuition fees, accommodation expenses, and other educational costs. This ensures that students have access to all necessary funds to complete their education without financial stress.

Additionally, the bank provides attractive features such as a simple application process, quick loan approvals, and the option to defer repayment until after graduation, making it a favorable choice for many students.

Quoting a query from Reddit user nomoreprotein, who asked, “Is Union Bank of India good for a college loan?”this reflects a common concern among aspirants. While experiences can differ based on the branch, many students consider Union Bank of India a reliable and affordable choice due 

to its government-backed credibility, comprehensive loan coverage, and reasonable terms.

Overall, the Union Bank of India stands out as a dependable option for college loans, helping students achieve their educational aspirations with financial support tailored to their needs.

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Union Bank Education Loan Schemes for Study Abroad

Union Bank of India offers 4 different education loan schemes for students who want to study abroad. Before you apply for a student loan, here are the features you must know:

These interest rates are intended to increase the accessibility of education funding for students going overseas for higher education. Union Bank of India offers need-based funding choices, adjustable payback terms, and competitive interest rates to help students fulfil their academic goals.

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Union Bank Education Loan Schemes for Study in India

Union Bank of India offers competitive interest rates on education loans for students who want to study in India. Consider these features of Union education loan for study in India:

Union Bank supports students pursuing higher education in India. Learn more about education loan options after 12th in India including Union Bank schemes for undergraduate and postgraduate courses.

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Eligibility Criteria for Union Bank Student Loan

To be eligible for an education loan from Union Bank of India, students must meet the following criteria:

For Studies Abroad

There are different eligibility criteria for studying abroad:

Union Education - Abroad Studies 

1. Admission to the abroad university via an appropriate selection process
2. Indian National
3. NRI students should hold an Indian Passport 
4. NRI students must secure admission to an Indian college or university
5. Mandatory life insurance

Special Union Education Loan Schemes for Premier Institute Abroad Studies

• Indian National
• Admission to a premium university abroad

Union Kisan Shiksha Suvidha

1. Indian citizen
2. Farming as the primary income source 
3. Secured at least 60% marks in HSC
4. Applicant or co-applicant shouldn't own any nonagricultural property

Elite Scholars UB Education Loan

1. Admission to the abroad university via an appropriate selection process
2. Indian National
3. NRI students should hold an Indian Passport 
4. NRI students must secure admission to an Indian college or university
5. Mandatory life insurance

For Studies in India

Eligibility criteria for studies in India differ from those of study abroad and include:

Union Education - Inland studies

1. Indian National
2. Must have secured admission to an Indian institute or university
3. NRI students should hold an Indian Passport 
4. NRI students must secure admission to an Indian college or university

Special Union Education Loan Scheme for Premier Medical Institutes

• Admission to full-time medical courses (MBBS, MD, MS)

Special Scheme for Premier Management & Technical Institutes Inland Tier I

• Admission to bank-listed institutes
• NRI students are not covered under the scheme

Special Scheme for Premier Management & Technical Institutes (Tier-II)

• NRI students are not eligible under the scheme

Union Kisan Shiksha Suvidha

• Indian citizen 
• Secured at least 60% marks in HSC
• Applicant or co-applicant shouldn't own any nonagricultural property

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Additional Eligibility Criteria for Union Bank Education Loan

Union Bank of India has specified the eligibility criteria for students applying for an education loan. Only applicants who meet the following requirements will be considered:

• The applicant must be an Indian citizen.
• Must have a valid admission letter from a recognized college or university in India or abroad.
• Admission must be secured through entrance exams such as IELTS, TOEFL, or GRE.
• NRI students must hold an Indian passport and should have secured admission to a course within India only.

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Documents Required for Education Loan in Union Bank of India

Here is the list of documents you need to submit when applying for an education loan from Union Bank of India. The bank usually takes 10 to 20 days to process your loan application. During this time, your documents are verified, and your eligibility is assessed.

To avoid any delays, make sure you submit all required documents at the time of application. A complete application helps speed up the approval process.

List of Documents Required for Student Loan

Union Bank of India that offers education loans at affordable interest rates. The bank provides loan amounts ranging from INR 4 lakhs to INR 1.5 crores, helping students fund their higher education in India and abroad.

With interest rates starting from 7.85%, flexible repayment options, and quick processing, Union Bank makes student loans accessible and convenient. Additionally, female students receive special interest rate concessions, making the loan even more affordable for them.

Minimal Docs. Max Approval. Min Hassle. Max Tenure

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Union Bank Education Loan Interest Rate

Union Bank of India offers varying interest rates on different loan schemes. Here is an overview of Union Bank education loan interest rates for different schemes:

Interest Rates for Abroad Study

Interest Rates for Study in India

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Union Bank Education Loan Interest Rate Calculator

Union Bank of India features an EMI and interest calculator on its official website. If you want to know the exact EMI and interest you are going to pay, you can visit the official UBI website. Meanwhile, here is a short calculation that will help you determine the Union Bank education loan interest rate:

Suppose your education loan demand follows as the below:

1. Loan Amount: ₹10 lakh
2. Interest Rate: 8.5% per year
3. Paying during the moratorium?: No
4. Grace Period: 6 months
5. Tenure: 10 years

Based on this, you will be required to pay:

• EMI monthly: ₹13,750
• Total Payment (Principal + Interest): ₹16,49,941
• Total Interest Payable: ₹6,49,941

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How to Apply for a Union Bank Education Loan?

Union Bank of India allows student to apply for education loans both online and offline. You can choose the method that is most convenient for you. Below is the complete step-by-step guide for both application methods.

Online Application Process

Students can apply online through the Vyom mobile app, the official Union Bank website, or the Vidya Lakshmi Portal. Here's how each method works:

1. Through the Vyom Mobile App (For Existing Account Holders)

• Open the Vyom app on your smartphone.
• Go to the “Loan” section and click on “Education Loan”.
• You will be redirected to the official loan page of the bank.
• Fill in your personal and academic details as asked.
• Once you submit the form, a bank representative will contact you.
  
  

This method is quick and best suited for those who already have a Union Bank account.

2. Through the Official Union Bank Website

• Visit the official website: www.unionbankofindia.co.in
• Click on “Loans”, then choose “Education Loan”.
• Review the available education loan schemes.
• Select the one that fits your needs.
• Fill in the required details such as your education, financial, and personal information.
• Submit the form online and wait for a bank official to follow up.

This method is ideal if you prefer to apply from the comfort of your home.

3. Through the Vidya Lakshmi Portal

• Go to the government portal: www.vidyalakshmi.co.in
• If you're new, register and create an account.
• Fill out all required personal, academic, and financial details.
• Apply for up to three loan schemes from different banks.
• Choose Union Bank of India from the list.
• Submit your application and track its status on the same portal.

This platform is great if you want to explore and compare multiple loan offers at once.

Offline Application Process

If you are more comfortable speaking to someone in person, you can apply for an education loan by visiting a Union Bank branch near you.

Steps to Apply Offline:

1. Go to the nearest Union Bank of India branch.

2. Ask the loan officer for an education loan application form.

3. The officer will give you a list of documents required, including:

• ID proof and address proof
• Admission letter from your college/university
• Academic certificates (10th, 12th, graduation)
• Income proof of parents or guardian
  

4. Fill out the application form carefully.

5. Submit the completed form along with the required documents.

6. The bank will begin the loan process only after receiving all the paperwork.

This option is useful for students or parents who want to ask questions or get in-person support during the application process.

Enjoy Hassle-Free and Quicker Application Process 

If you're looking for a smooth and fast education loan process, Propelld can be your trusted guide. Propelld makes the loan journey simple by offering personal support and expert advice. From choosing the right loan to submitting documents, everything is handled step by step.

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Skip Bank Queues. Apply Online

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