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Union Bank of India Education Loan
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Table of content
- Union Bank of India Education loan products
- Union Bank of India Education Loan Scheme for Study Abroad
- Union Bank of India Student Loan scheme for Study in India
- Union Bank of India Education Loan Margin Calculation
- List of Expenses Covered Under Union Bank Education Loan
- Union Bank Education Loan Interest Rate
- Union Bank of India Education Loan Processing fee
- Union Bank Of India Education Loan Eligibility Criteria
- Documents Required for Union Bank of India Education Loan
- How to apply for an Education Loan from Union Bank of India?
- Post Sanction Issues on Going with Union Bank of India
- Union Bank of India Education Loan EMI Calculation
- Union Bank of India Education Loan Repayment Process
- Interest Subsidy on Education Loans of Union Bank of India
- Union Bank of India Education loan Insurance
- FAQ's
- Need Help? Ask Here!
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Union Bank of India is India’s fifth-largest public sector bank, owned by the Ministry of Finance, Government of India. Union Bank of India offers student loans at interest rates starting from 8.25% to study abroad aspirants for their higher education in India. When Union Bank first introduced its unsecured education loan product in 2023, it was a major hit in the study abroad student community. It was the first time a public sector bank offered unsecured education loans of up to 40 Lakhs without a collateral requirement at that time. But this perspective soon started changing because what followed was a series of bad experiences students had with Union Bank. In this article, we are going to discuss all there is to know about the Union Bank education loan products.
Union Bank of India Education loan products
The demand for education loans is on the rise these days, not just to study in India but also to study abroad. Therefore, a Union Bank of India student loan is offered under the following schemes:
Union Bank of India Education Loan Scheme for Study Abroad
- Union Education- Study Abroad
- Union Bank Special Education Loan Schemes for Premier Institute Abroad Studies
- Union Kisan Shiksha Suvidha
Union Bank of India Education Loan Scheme for Study in India
- Union Education - Inland Studies
- Union Bank Special Education Loan Scheme for Premier Medical Institutes
- For Premier Management & Technical Institutes Inland Tier I
- For Premier Management & Technical Institutes (Tier-II)
- Union Kisan Shiksha Suvidha
You'll find everything you need to know about the Union Bank Education Loan in this video, from schemes, loan amount, interest rates, and processing fees to information directly from the bank circulars, which is nowhere available online, even on the official website of Union Bank.
Union Bank of India Education Loan Scheme for Study Abroad
Union Bank Student Loan- Abroad Studies
Providing coverage of all education-related costs, such as tuition and other fees, accommodation, travel, and other incidental expenses, Union Bank helps students achieve their goals and succeed in their subjects of interest. Important Union Bank education loan details, such as the amount of the loan, interest rates, and repayment terms, are provided in the following table.
Loan Parameters | Details |
Loan Limit |
|
Accepted co-applicant | Parents, parents-in-law, spouse, Siblings, Cousins |
Interest Rate | Starts at 9.85% Check the Latest ROI |
Moratorium Period | Course duration + 12 months |
Repayment Duration | 15 years after the moratorium period |
Repayment Policies | If the students opt not to pay the interest amount during their moratorium period, they can pay it with EMI at the time of loan repayment. |
Eligibility Criteria |
|
Collateral Requirements |
|
Loan Margin | 15% of the loan amount |
Courses Covered Under a Union Bank Education Loan for Abroad:
- Graduation and post-graduation degree courses are available at recognized universities
- PG Diploma
- PhD courses
- Undergraduate
- Certified courses offered, like CPA in the USA or CIMA in London, or other such institutes
If your course is not listed above, then there is also no need to worry. Get in touch with your financial officer at WeMakeScholars to know other lenders who provide education loans for your course of study.
Union Bank Special Education Loan Schemes for Premier Institute Abroad Studies
Under this scheme, Union Bank of India provides education loans with collateral security and education loans without collateral to students for their higher studies in 200 premier universities in popular study-abroad destinations like the USA, Canada, Germany, the UK, etc. The premier university list is prepared by the bank itself.
Further details about this scheme are mentioned below in the table
Loan Parameters |
Details |
Loan Limit |
Without collateral - Up to ₹40 lakhs (For a higher amount, you'll have to pledge collateral security whose value is 50% of the loan amount) |
Accepted co-applicant |
Parents, parents-in-law, spouse, Siblings, Cousins |
Interest Rate |
Check the Latest ROI |
Moratorium Period |
Course duration + 12 months |
Repayment Duration |
15 years after the moratorium period |
Eligibility Criteria |
|
Collateral Requirements |
|
Loan Margin |
15% of the loan amount |
Acceptable Programs Under the Union Bank Special Education Loan Schemes for Premier Institutes Abroad:
- Masters
- Post-Graduation Programs
There are no processing fees for sanctioning education loans under the Special Union Education Loan Scheme; however, the students will have to pay Rs 5,000 to the bank, which will be refunded if the student avails of the loan within 3 months from the date of sanction.
Additionally, there will be a legal and valuation charge of Rs 7,500 to Rs 10,000 when students take collateralized education loans eligible under the scheme, the amount of which will have to be paid by the student separately.
NOTE: If the collateral is offered for the loan below Rs. 40 lacs, interest concession is available.
Union Kisan Shiksha Suvidha
Loan Parameters |
Details |
Loan Limit |
Up to ₹30 lakhs |
Accepted co-applicant |
Parents, parents-in-law, spouse, Siblings, Cousins |
Interest Rate |
Starts from 9.85% Check the latest ROI |
Moratorium Period |
Course duration + 12 months |
Repayment Duration |
15 years after the moratorium period |
Repayment policies |
Students can pay their interest amount later on with EMI if they choose to skip paying it during the moratorium period |
Eligibility Criteria |
|
Loan Margin |
15% |
Collateral Accepted for this UBI Bank Education Loan Scheme:
- Generally, liquid securities like FD, government bonds, LIC Policies, and Immovable properties like houses, flats, and non-agricultural land are considered collateral*. However, for this scheme, agricultural land can be pledged with the Union Bank of India as security to take collateralized education loans. As per the following conditions:
- Agricultural land can be pledged only in states where it is accepted as collateral and is as per the bank’s conditions.
- Agricultural land should have proper boundaries and be easily marketable.
*Can you get an Education Loan Using Liquid Securities?
Note: Union Bank requires the utilization of a minimum of 20% of the sanctioned loan amount, and failure to comply may result in consequences for the applicant.
Union Bank of India Student Loan scheme for Study in India
Union Bank Education Loan- Inland Studies
Union Bank covers various aspects of education, such as tuition fees, accommodation, transport, and other essential needs. Additional information regarding the requirements of the loans, the amount that can be borrowed, the costs of the loans, as well as the method of repaying the loans, is provided to assist the learners in the loan application process. Go through the table below to find more Union Bank of India education loan details.
Loan Parameter | Details |
Loan Limit |
|
Accepted co-applicant | Parents, parents-in-law, spouse, Siblings, Cousins |
Interest Rate |
Starts from 9.85% Check the latest ROI |
Moratorium Period | Course duration + 12 months |
Repayment Duration | Up to 15 years |
Repayment policies | Interest is charged to students during the moratorium period but they can choose not to pay it then but get it added to the total loan amount and repay it with EMIs |
Eligibility Criteria |
|
Courses covered Under the UBI Bank Education Loan Scheme
- Graduation / post-graduation / diploma courses from recognized universities
- Technical/ Professional / management courses
- PhD courses
Union Bank Special Education Loan Scheme for Premier Medical Institutes
The Union Bank special education loan for premier medical institutes is offered for students pursuing medical studies. This scheme enables these students to study medicine at recognized medical institutes in the country. With loan amounts ranging up to ₹2 crores, these loans help students cover their educational expenses associated with studying medicine. The following table contains the important Union Bank education loan details of this scheme.
Loan Parameters |
Details |
Loan Limit |
|
Accepted co-applicant |
Parents, parents-in-law, spouse, Siblings, Cousins |
Interest Rate |
Starts from 8.75% Check the latest ROI |
Moratorium Period |
Course duration + 12 months |
Repayment Duration |
Upto 15 years |
Eligibility Criteria |
Students should secure admission in full-time medical courses (MBBS, MD, MS) |
Acceptable Collaterals |
|
Loan margin |
10% of the loan amount |
NOTE
If the collateral is offered for the loan below Rs. 40.00 lakhs, an interest concession is available.
Education loan under the Union Bank Special Education Loan Scheme for Premier Medical Institutes is offered by UBI only for selected prime colleges & universities in India.
Union Bank Special Education Loan Scheme for Students of Premier Management & Technical Institutes Inland Tier I
Loan Parameters |
Details |
Loan Limit |
Up to ₹40 lakhs |
Accepted co-applicant |
Parents, parents-in-law, spouse, Siblings, Cousins |
Interest Rate |
Starts from 9.85% Check the latest ROI |
Moratorium Period |
Course duration + 12 months |
Repayment Duration |
15 years |
Eligibility Criteria |
|
Loan margin |
0% |
NOTE
There are no processing fees for taking an education loan under the Union Bank Special Education Loan Scheme for students of Premier Management & Technical Institutes, Inland Tier I. However, the rate of interest and other loan parameters vary according to the course, like MBA programs for working executives, PG programs in management for working executives, and postgraduate programs offered by different educational institutions.
Union Bank Special Education Loan Scheme for Students of Premier Management & Technical Institutes (Tier-II)
Loan Parameters |
Details |
Loan Limit |
Up to ₹20 lakhs |
Accepted co-applicant |
Parents, parents-in-law, spouse, Siblings, Cousins |
Interest Rate |
Starts from 9.50% Check the latest ROI |
Moratorium Period |
Course period + 12 months |
Repayment Duration |
15 years |
Eligibility Criteria |
NRI students are not eligible under the scheme. |
Loan margin |
|
NOTE
There are no processing fees to take education loans under the Union Bank Special Education Loan Scheme for students of Premier Management & Technical Institutes (Tier-II), but the rate of interest for this scheme is floating.
Union Kisan Shiksha Suvidha
Loan Parameters |
Details |
Loan Limit |
Up to ₹15 lakhs |
Accepted co-applicant |
Parents, parents-in-law, spouse, Siblings, Cousins |
Interest Rate |
Starts from 9.85% Check the latest ROI |
Moratorium Period |
Course duration + 12 months |
Repayment Duration |
15 years |
Repayment policies |
The interest amount charged from borrowers during the moratorium period is optional to be repaid to them. Students can choose to get it added to the total loan amount and pay it with EMIs |
Eligibility Criteria |
|
Loan margin |
5% |
Note: Union Bank requires the utilization of a minimum of 20% of the sanctioned loan amount, and failure to comply may result in consequences for the applicant.
Union Bank of India Education Loan Margin Calculation
Place of Study |
Loan Margin % |
To study in India
|
0-15% (depending on course and loan amount)
|
To study abroad
|
0-15% (depending on course and loan amount)
|
Often, students couldn’t afford the loan margin amount and get stuck in the middle of their education loan sanctioning process. That is why, we suggest students to process their education loan with WeMakeScholars because we can help you to reduce your loan margin. Get in touch with your financial officer at WeMakeScholars to navigate easily through your education loan sanctioning process.
List of Expenses Covered Under Union Bank Education Loan
- Tuition Fees: The fee mentioned in your admission letter or admit card.
- Living Expenses: These cover costs for housing, meals, and transportation.
- Health Insurance: Often part of the expenses are covered by lenders.
- Travel Tickets: Round-trip flight tickets per year.
- Books & Stationery: Costs for study materials throughout the course.
- Laptop & Computer: If needed for the program, students can use their study loan for this purchase.
- Cautionary Deposit: Up to 10% of the amount can be used as a deposit.
- Miscellaneous Expenses: Any other costs related to field trips or projects.
Comment- If you have any doubt about the expenses covered under the education loan. Just comment it down.
Union Bank Education Loan Interest Rate
- Students should carefully look at the Union Bank education loan interest rates before taking a student loan from the bank.
- Union Bank of India, being a public bank, offers low interest rates on education loans.
- The Union Bank education loan interest rates start from as low as 8.25%. It varies based on several factors, including the loan scheme, loan amount, collateral involvement, country of study, student’s profile, and the co-applicant’s financial status.
Union Bank of India Education Loan Processing fee
The Union Bank of India education loan processing fee is ₹5000/-. It is refundable if you take a disbursement within 3 months. In addition to that, a legal and valuation fee of 10,000/- Rs is charged on your immovable property in case you go for a collateralized loan.
But, in some schemes, for example, Union Bank Special Education Loan Schemes for Premier Institute Abroad Studies, Union Bank Special Education Loan Scheme for students of Premier Management & Technical Institutes Inland Tier I, Special Scheme for students of Premier Management & Technical Institutes (Tier-II), etc there is no processing fee.
However, the services of WeMakeScholars are always totally free of cost for the students, as we are funded and supported by the IT Ministry, under the Digital India Campaign, and we do not charge any type of fees from the students. To start your loan process with WeMakeScholars, reach out to your financial officer by requesting a callback or filling up the common application form.
Union Bank Of India Education Loan Eligibility Criteria
The Union Bank of India education loan eligibility criteria vary by scheme. It depends on several factors, including the loan amount, collateral involvement, country of study, the student’s profile, and the co-applicant’s financial condition. The following are the common eligibility criteria for the Union Bank of India student loan.
- Citizenship: Both the student and the co-applicant should be Indian citizens.
- Admission: The student should have secured admission to a recognized institute in India or abroad.
- University: The university that the student is going to should come under the recognized list of universities of the bank, according to the scheme.
- Field of Study: Union Bank offers several student loan schemes for studies in India as well as abroad. These schemes cover various courses, including UG, PG, Diplomas, and professional courses.
- Academic History: Students should have a good academic history with a minimum of 50% of marks in their previous academic records, such as 10th, 12th, and undergraduate.
- Collateral: To get a secured education loan from UBI, students should pledge acceptable collateral to the bank with a value according to the loan requirement.
- Co-applicant: The Union Bank education loan process involves evaluating the co-applicant’s financial status. The Co-applicant's Income and CIBIL score should meet the requirements of the lender, especially when you are planning to get an education loan without collateral.
Documents Required for Union Bank of India Education Loan
Submitting all the necessary documents in the first step to get your education loan process started, but how to know which documents are must to do so? Our recent article lists all the important documents needed to get an education loan. Here are the main documents needed for a Union Bank education loan process:
- Completed Application Form
- Admission Confirmation: Proof that you got accepted into the Institute you picked.
- Identification Copies: Copies of ID like Passport, Voter ID, Driving Licence, or PAN Card.
- Passport Photos: Two recent small photos of the person applying, co-applicant, and guarantor.
- Educational Records: Show your latest exam marks and the result of the entrance test you took to get into the course (like CAT, GRE, TOEFL, IELTS, etc.).
- Financial Records:
- Income Proof: Papers that show how much money your parents or guardians make, supported by their income tax statements from the last 2 years.
- Financial Statements: Provide six months' worth of bank statements or recent payslips.
- Course Expenses Plan: A Detailed plan showing the costs you expect for your course.
- Current Financial Obligations: Tell about any loans you're paying off currently and any scholarships you got.
- Institute Prospectus: Include a copy of the institute's information booklet to calculate costs properly.
However, the above-mentioned document list is general and is subject to vary as per your loan profile. But, to get the exact document checklist specially customised as per your loan requirements, get in touch with your financial officer at WeMakeScholars.
How to apply for an Education Loan from Union Bank of India?
The application process to take an education loan from the Union Bank of India is
Offline application process
- Visit the nearest Union Bank of India branch and ask for an education loan from the loan officer.
- He will give you a list of documents to be submitted to the bank to get the education loan, along with a loan application form.
- Visit the bank again to submit all the mentioned documents and application forms. The loan process will start only if you submit all the documents.
Online application process via WeMakeScholars
- Step 1: Reach out to WeMakeScholars by requesting a callback or filling out a common application form
- Step 2: Give all your education loan details to your assigned financial officer over a call
After analysing your loan details, your financial officer will suggest and connect you with suitable lenders.
- Step 3: Choose the best lender as per your suitability and tell your financial officer.
- Step 4: According to the document checklist provided by your financial officer, submit all the documents to the bank to start your education loan process.
- Step 5: Sit back and relax, your financial officer will take care of everything else. If required, take follow-ups from them from time to time.
- Step 6: Collect your education loan sanction letter from your lender bank within 15 -20 days.
The application process is not as simple as it looks if you go directly to the banks to get your education loan sanctioned. Following is the list of issues if you go directly to the banks:
- No particular list of required documents
- The inconvenience of going to the bank multiple times
- Delay in the process
- Improper customer care channels
- Unavailability of correct information
- Unawareness about education loan eligibility and coverage
But why get caught up in the hustle and bustle when you can directly skip to the good part with WeMakeScholars? With years of experience, after processing thousands of loan files, we proudly call ourselves education loan experts, and here are the reasons why:-
- Professional guidance - We connect you to the best lenders as per your eligibility and guide you throughout your loan sanctioning process.
- Support - Our financial officers, if required, negotiate with the Union Bank of India team to get the best interest rate deal for your loan.
- Online application process - We empower you to apply and get your education loan sanctioned via the online process.
- Short processing time - With us, your loan would be processed within 7 days from private banks and NBFCs, and it would take only 15-20 days to get your loan sanctioned from a public bank after your documents are submitted.
- Round-the-clock availability - We are available on all working days from 9 AM to 9 PM to update and assist you at any time during your online loan application process.
- Benefit in Tax - We make sure that you save maximum tax by suggesting ways through the tax-saving schemes of the Government of India.
- Cashback offer - You can get up to Rs 3,000 as a cashback at the time of your disbursement from us.
Post Sanction Issues on Going with Union Bank of India
On the surface level, the Union Bank education loan scheme might seem like a quite decent product considering it is offered by a public bank. But things don't run as smoothly as they seem at UBI. Here are a few major issues many students have faced while trying to get their education loan sanctioned from Union Bank.
Issue 1: Unreasonable Loan Margin
As you have read about the Loan Margin offered by Union Bank in the above sections, you can see that the standard they offer is 15% which seems pretty reasonable, considering it is the same in almost all public banks, doesn't it?
For you to understand a little better, let's start by understanding what exactly is a loan margin.
A loan margin is the student's contribution to meet the total requirement of the amount needed for your education abroad. To put it simply, assume that you need 80 Lakhs to pursue your education at some university in the USA (Including all costs such as tuition fees, living expenses, and other miscellaneous costs). These costs are then verified by the bank using official proof of costs. After that, the calculations are made according to the loan margin (which the student has to pay to the bank), and you are given an estimation. So, considering the loan margin is 15%, the bank can give up to 68 Lakhs to the student and the student has to arrange the 12 Lakhs by themselves.
Many students would naturally assume that I don't need 80 Lakhs, 68 Lakhs is more than enough for me to make it there. But what students fail to understand is that for the 68 lakhs to be disbursed into your account, you will have to pay the bank the 12 Lakhs first. Otherwise, the disbursement won't happen.
Coming to the main issue with the Union Bank Unsecured Education Loan product,
If you go through with their unsecured education loan product, you can receive a maximum loan amount of up to 40 Lakhs. As we previously assumed that the total loan amount the student would require to study abroad is 80 Lakhs, this brings our loan margin up to a whopping 50%. Let's understand this better with a table.
Expense | Student’s portion- 50% | Bank’s portion- 50% | Total Sent to university or your account |
First yr fee | 15 lacs | 15 lacs | 30 lacs |
First yr living exp | 5 lacs | 5 lacs | 10 lacs |
Second yr fee | 15 lacs | 15 lacs | 30 lacs |
Second yr living exp | 5 lacs | 5 lacs | 10 lacs |
Total | 40 lacs | 40 lacs | 80 lacs |
As you can see, when you consider getting an unsecured loan from Union Bank of 40 Lakhs with your total requirement being 80 Lakhs, you would have to first arrange the 40 Lakhs all by yourself for the bank to contribute its part of the deal. A lot of people might think that 80 Lakhs might be a huge number and that you won't require as much. However, UB only offers unsecured loans to the universities on their prime list, and most of the universities on their prime list are US-based universities. The average I-20 amount is around 40 Lakhs. Considering that students want to pursue a 2-year course. The costs add up to 80 Lakhs.
Issue 2: No Previsa disbursement
The students who want to pursue their higher education abroad have certain financial conditions to fulfill before they are issued a visa. They need to pay the first-year fees and make specific deposits such as:
- Canada: First-year tuition and a GIC certificate guaranteeing an investment will earn a fixed interest rate for a certain period.
- Germany: Payment for a blocked account.
- Australia: Tuition fees for the first year of study and accommodation expenses in the first year of residence.
- UK: Deposit for Confirmation of Acceptance for Studies (CAS) deposit.
However, students are facing problems in dealing with Union Bank because they do not disburse the loans pre-visa, and the students are required to have the amount disbursed to show all expenses before their visa is approved. What is the point of an education loan if the students don't aren't even able to apply for a VISA? Thus, students are no longer taking their loans with Union Bank and are instead seeking other banking institutions. For Australia, a loan from Union Bank can lead to visa rejection as well.
Issue 3: Not getting the moratorium period
Besides, of course, there are so many other cases like this students who don’t get a moratorium period for the non-collateral loan and have to pay full interest from the very first day.
So to summarize these are our recommendations if you are planning to get your education loan through Union Bank
Students planning to study in Germany, Canada, the UK or Australia should avoid taking a loan from Union Bank because they do not release money to any student before the visa is processed. For Australia, the student can be denied a visa.
If the student is planning to go to the USA, a 40 lakh non-collateral loan from Union Bank has a high margin requirement and In the case of larger loan amounts, security is required.
However, if you need to pledge an asset as security, other banks may offer cheaper rates even though their interest rates are slightly higher than Union Bank. However, there are other options which are available in which 70-80 lakh loans can be availed without pledging any asset.
Union Bank of India Education Loan EMI Calculation
If you are still keen on getting an education loan from UBI, here are some more Union Bank of India education loan details about the EMI calculation.
Union Bank of India has an education loan EMI calculator, which is present on its website. The education loan EMI calculator of Union Bank of India estimates the EMIs, total interest, and total repayment amount of a UBI Bank education loan. It calculates the repayments based on details such as the loan amount, interest rate, and repayment tenure. Applicants can compare different loan options and understand how a Union Bank student loan repayment works using this EMI calculator.
However, the education loan EMI calculator of Union Bank of India doesn't consider all essential factors, such as the moratorium period. This is why, to calculate your EMI most accurately, you should use the WeMakeScholars Education loan EMI calculator, which is specially designed with 100% precision, considering:
- Rate of interest
- Loan amount
- Moratorium period
- Type of interest rate, simple or compound
- Loan Amount Paid off by Semester
- Repayment condition in the moratorium period
Benefits of using the WeMakeScholars EMI calculator:
- High Accuracy - The calculator is highly accurate because it takes into account all the factors that alter the education loan EMI calculation
- Free of cost - All the services of WeMakeScholars are free of cost for students, and so is the Education loan EMI calculator.
- Detailed explanation - The calculator provides detailed information about the EMI amount, interest amount paid in each EMI, principal loan amount deducted from the loan, and current outstanding loan amount.
- Strategic advantage - Students & their parents can decide and choose the loan parameters as per their paying capacity after checking it through the EMI calculator.
Union Bank of India Education Loan Repayment Process
Union Bank Education Loan Repayment Policies
- The UBI Bank education loan repayment process starts after the moratorium period.
- And the total repayment duration can last a maximum of up to 15 years after the moratorium period ends.
Moratorium Period for Union Bank Student Loans
- The Union Bank student loans offer a moratorium period of the course duration plus 6 to 12 months.
- It is a repayment holiday during which the education loan repayments, i.e., the EMIs of the loan, do not start. This provides financial relief for students and their families.
- Although Union Bank student loan repayments do not start until the end of the moratorium period, interest continues to accrue during this period.
Let's understand the Union Bank education loan repayment process with an example.
Suppose a student has taken a non-collateralized education loan of Rs 30 lakhs for their higher education in India at a 12% rate of interest and chose to repay it in 10 years, then their repayment schedule will be as follows
Repayment cycle |
EMI |
Interest Portion |
Principal Portion |
Loan Outstanding |
Start of loan EMI |
42897 |
24507 |
18390 |
3441407 |
End of year 1 |
42897 |
23022 |
19874 |
3230318 |
End of year 2 |
42897 |
21265 |
21631 |
2980555 |
End of year 3 |
42897 |
19353 |
23543 |
2708715 |
End of year 4 |
42897 |
17273 |
25624 |
2412847 |
End of year 5 |
42897 |
15008 |
27889 |
2090828 |
End of year 6 |
42897 |
12542 |
30354 |
1740344 |
End of year 7 |
42897 |
9859 |
33037 |
1358881 |
End of year 8 |
42897 |
6939 |
35957 |
943700 |
End of year 9 |
42897 |
3761 |
39136 |
491821 |
End of year 10 |
42897 |
302 |
42595 |
0 |
Step up repayment
Generally, in most banks, when your repayment period starts, they check your outstanding loan amount and divide it by the number of months in your repayment tenure, and you are given an EMI Schedule that is constant throughout.
But at Union Bank, under their step-up repayment policy, the student can choose to pay a lower EMI for the first three years of the repayment tenure, after which it gets spiked up to the regular EMI after the student becomes financially stable to start paying the EMIs
TIP - While repaying the last EMI, don’t forget to pay around Rs 500-1000 additionally, to avoid any written off scores in your CIBIL, because the process of loan closure takes at least 1 day to process.
When you process your loan through WeMakeScholars, we make sure to offer you post-disbursement assistance till you are done paying your last EMI.
Interest Subsidy on Education Loans of Union Bank of India
PADHO PARDESH SCHEME
Padho Pardesh is an interest subsidy scheme launched and regulated by the Ministry of Minority Affairs to benefit students from religious minority communities like Muslims, Sikhs, Buddhists, Christians, Jains, and Zoroastrians to motivate them to take education loans for their higher education abroad. Under this scheme:
- Students belonging to religious minority communities need not pay any interest to their lender bank in the moratorium period.
- The benefits are only available till the moratorium period lasts.
- Only Indian students are benefited
Eligibility criteria take benefit under Padho Pardesh Scheme:
- Students should have secured admission in either Masters, M. Phil or Ph.D. courses abroad.
- Gross family income of the student should not be more than Rs.6 lacs per annum.
Note: The scheme is currently closed and hence no new beneficiaries can enroll. However, the beneficiaries before the 31st of march will continue to receive subsidies as usual
Dr. Ambedkar Central Sector Scheme of Interest Subsidy
Dr. Ambedkar Central Sector Scheme of Interest Subsidy was launched by the Ministry of Social Justice & Empowerment to provide financial assistance to study abroad aspirants belonging to other backward classes (OBC) & Economically Backward Classes (EBC) of society. As per the scheme:
- Students do not have to pay any interest against their education loan within their moratorium period.
- To be declared eligible for Dr. Ambedkar Central Sector Scheme of Interest Subsidy, students must:
Submit income proof either of ITR/ Form-16/ certificate issued by authorized officers appointed by the respective State Governments
- Secure admission to higher studies abroad in M. Phil, Masters or Ph.D. levels courses
- Belong to the other backward classes (OBC) & Economically Backward Classes (EBC) with an annual gross family income not exceeding Rs. 8 lacs respectively.
CENTRAL GOVERNMENT INTEREST SUBSIDY SCHEME (CSIS)
The HRD Ministry, GOI launched this interest subsidy scheme on educational loans for students belonging to Economically Weaker Sections (EWS) candidates, to pursue their higher education in India. Eligible under the scheme:
- There is no need for collateral or third-party guarantor to get benefited
- Students can take interest subsidy benefits of amounts only up to Rs 7.5 lacs, even if the sanctioned loan amount is more.
- The gross parental or family income of the applicant should not be more than Rs 4.5 lacs
To avail the benefit of the Central Government Interest Subsidy Scheme (CSIS) a student should:
- Secure admission after class 12th, in professional/technical courses approved by NAAC-accredited Institutions, NBA, or CFTs.
- Students should provide an income certificate issued by some appointed authority
- Parental income of students should not be more than Rs 4.5 lacs
Union Bank of India Education loan Insurance
Union Bank of India provides education loan insurance to students, the loan insurance amount is around 1-2 % of the total loan amount. It is a safety option that prevents the parents or co-applicant of the students from repaying the entire loan amount in case of any mishappening with the student, resulting in an inability to repay the loan.
FAQs:
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Does Union Bank of India provide education loans for abroad studies?
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Does Union Bank of India have an education loan calculator?
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Where to find the union bank of India education loan form?
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How much education loan can I get from Union Bank of India?
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What is the interest rate for Union Bank of India for 2022?
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