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 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.

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Union Bank Education Loan Interest Rate and Features

The bank offers student loans at interest rates starting from 8.60%. Before applying for the education loan, you must know these features of Union Bank of India’s education loan scheme:

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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 Education Loan Scheme for Abroad Study

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

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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

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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:

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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:

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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

1. Indian nationals who have secured admission to premier educational institutions in India.
2. Minimum marks: 60% for the general category, 55% for OBC, and 50% for SC/ST.
3. The student applying for the loan should have a consistently good academic record and meet the minimum education criteria set by the lending institution.
4. The student must have secured admission to pursue higher/professional/technical education.
5. No income criteria for education loans; all income groups are acceptable.

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Required Documents for Union Bank of India Education Loan

The first step in initiating the student loan procedure is to submit all required documentation. The following is the primary documentation required for Union Bank education loans:

Completed Application Form

• You must complete the Union Bank education loan application.

Admission Confirmation

• Verification that the Institute you selected accepted you.

Identification Copies

1. PAN cards
2. Driving licences
3. Passports
4. Voter IDs

Address Proof

1. Telephone bill, electricity bill, or water bill
2. Driving licence
3. Aadhaar card
4. Passport

Passport Photos

• Two current passport images of the applicant, co-applicant, and guarantor

Educational Records

1. 10th standard mark sheet
2. 12th standard mark sheet
3. Undergraduate result (semester-wise)
4. Entrance exam results (CAT, GRE, TOEFL, IELTS, etc.)
5. Proof of admission
6. Recent exam scores and certificates

Financial Statements

• Loan A/C statement of one year
• Bank account statement
• Income certificate

Co-applicants Documents

1. Identity Proof: PAN, passport, driver’s licence, or voter ID card
2. Address: Telephone, electricity, water bill (passport, driving licence, Aadhaar card)
3. Passport Photo: 2 passport-size photographs
4. Financial Documents: Loan A/C statement of 1 year, collateral documents, bank account statement.
5. Income Proof for salaried co-applicant: Salary slips (3 months), Form 16 (2 years), bank account statement (6 months), brief statement of assets
6. Income Proof for Self-employed Co-applicant: Business address proof, I.T. returns (2 years), TDS certificate, Form 16A (if applicable), certificate of qualification (for C.A.) doctor and other professionals), a brief statement of assets & liabilities.

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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

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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 an Education Loan from Union Bank of India?

Union Bank of India allows students to apply for education loans offline and online.

Offline

• Ask the loan officer at the closest Union Bank of India branch about an education loan.
• Together with a loan application form, he will provide you with a list of paperwork that must be sent to the bank in order to obtain the education loan.
• See the bank once again to turn in the application form and all the previously listed documents. Just when you turn in all the paperwork will the lending procedure begin.

Online

These are the procedures to apply online for an education loan from Union Bank of India:

1. Visit the Union Bank of India website.
2. For an online application for an education loan, go to the education loan department or use the provided direct link.
3. Complete the online application form including precise financial, educational, and personal information.
4. Post the required paperwork—identity, residence, income, academic records, and course information—as directed by the bank.
5. Go over the material supplied and send in the application.
6. Following the submission of the application, the bank will handle it and might get in touch with you for more information or paperwork.
7. Following acceptance, the loan amount will be deposited into your account in accordance with the loan's terms and conditions.

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Enjoy Hassle-free and Quicker Application Process at Propelld

If you wish to experience a hassle free and quicker loan process, Propelld can be your reliable companion. Propelld streamlines the loan application process by offering individualized support and knowledgeable direction. We will also assist you in navigating the intricacies of loan alternatives, documentation, and application procedures.

• Step 1: Get in touch with Propelld's financial officer by requesting a callback or filling up the SBI education loan form.
• Step 2: Share your needs and details with your financial officer.
• Step 3: Gather all the documents and upload all of them online on our portal.
• Step 4: After analyzing your eligibility, your financial officer will connect you to the best education loan lender.
• Step 5: Your financial officer will take care of the process from here.

Benefits of Propelld Education Loan

FAQs About Union Bank Education Loan

Can I get a Union Bank education loan without collateral?

Yes, Union Bank of India offers loans without requiring collateral for amounts up to ₹4 lakhs. No additional security or third-party guarantee is needed within this limit. 

What are my Union Bank Education Loan repayment options?

Union Bank provides clients with adaptable repayment alternatives to help them better manage their education debt. Repayment can begin six months after the course ends or, if that is sooner when you land a job. 

Can I have a co-applicant for the Union Bank Education Loan?

Indeed, candidates for an education loan from the Union Bank of India are permitted to have a co-applicant.

Is there a tax benefit associated with the Union Bank Education Loan?

Yes, the interest paid on the Union Bank student loan is eligible for tax deduction under Section 80E of the Income Tax Act, which can help reduce your overall tax liability.

What is the interest rate of Union Bank for Education Loan?

Union Bank offers different interest loans on different loan schemes, which vary between 8.55% to 11.5%.

Can I get an education loan from Union Bank?

Yes, the maximum loan amount that can be approved under the education loan program is unrestricted. The maximum amount for NRI students is ₹20 lakh, and for elite institutions, it is ₹30 lakh.

What is the minimum credit score required by the Union Bank of India for an education loan?

To be eligible for the Union Bank student loan, an applicant's CIBIL score must be at least 650.

What is the limit of the Union Bank education loan?

Union Bank of India offers different loan limits on different student loan schemes. The loan limit for Union Bank student loans varies between ₹15 lakhs to no upper limit. 

How much education loan can I get from Union Bank?

Union Bank of India has no upper limit on how much student loan you can avail of. The loan amount, however, might depend on the collateral you submit.

Does Union Bank give a loan without collateral?

Yes, Union Bank of India offers student education loans with collateral.