Union Bank of India Education Loan for Studying Abroad

Union Bank of India education loans for abroad are provided under two main schemes: Union Education Loan Scheme and Special Union Education Loan Scheme. The Union Education Loan Scheme has no maximum loan amount, which means the loan amount is decided based on the needs of the applicant. Whereas in the Special Union Education Loan Scheme, the maximum loan amount that is provided collateral-free for Category A universities is ₹40 lakh. For loan amounts above that, security is required. The maximum secured loan amount you can get under that scheme is ₹1.5 crore. The interest rates for both schemes start at 9.50% and 8.50%, respectively. The Union Bank of India education loan repayment tenure goes up to 15 years post-moratorium. The moratorium period offered, on the other hand, lasts for the course duration plus 1 year after course completion. 

To learn more about the Union Bank of India education loan scheme, margin money, interest rates, repayment, etc., you can read the article below.

The demand for overseas education loans is on the rise these days. Union Bank education loan provides financial aid to students who want to continue their studies either in India or abroad. The idea is not to let the lack of money be a hurdle in the pursuit of knowledge. It assists with various educational expenses so that the students can concentrate on learning without being worried about money all the time.

Union Bank provides education loans between ₹4 lakhs and ₹1.5 crore, which will be decided based on the course and location of the education. The repayment structure is designed to reduce financial pressure on students not only when they are studying but also in their early working years.

With the help of WeMakeScholars, the students are able to find out the lenders who are more ready to provide them with very flexible repayment terms according to their financial abilities.

*The Union Bank of India education loan interest rates mentioned are indicative and subject to change. The final interest rate also depends on individual profiles and the bank’s discretion.

Union Bank of India education loan schemes for abroad are provided under two schemes. The information regarding their interest rates, eligibility, loan amount, etc is provided below. 

Union Education Loan 

The first Union Bank of India education loan scheme is the Union Education Loan Scheme. Under this scheme, both secured and unsecured loan options for studies in India and abroad are available. NRI applicants with valid passports are also accepted under this scheme. There are no age restrictions for the applicant, and the maximum loan amount is provided as per need. For NRI students, the maximum loan amount under this scheme is ₹20 lakh and ₹30 lakh for premier universities. 

Special Union Education Loan Scheme 

A Union Bank of India education loan under this scheme is provided if the student is going to a premier institution. Special Union Education Loan Scheme has both secured and unsecured loan options, where the maximum loan amount and interest rates are determined based on the category of your university. Primarily, there are two categories under this scheme: Category A and B. The list of eligible courses under this scheme is based on the university that falls under the premier listing. NRI students are not accepted under this scheme. To know more about the loan amount, interest rates, and collateral, you can read the information below. 

Accepted Collateral

For a Union Bank of India education loan, the bank accepts a wide range of collateral, mainly divided into two types: liquid/financial assets and immovable assets. You can find the list of accepted collateral below: 

Liquid/Financial Assets

These are the liquid/financial assets accepted by Union Bank:

Immovable Assets

These are physical assets that are accepted for a UBI education loan. 

How Collateral Coverage Changes Your Rate

Collateral coverage refers to how much of your total expenditure is covered by your collateral value. If your collateral value is more than your total expenditure, then we call it a fully secured loan. If your collateral value is less than your total expenditure, it is called a partially secured loan. Interest rates and the final loan amount of your Union Bank of India education loan are both determined by your collateral coverage value. 

Co-Applicant Requirements

Banks have a predefined list of co-applicant criteria that must be met in order to process the loan application. Here are some of the basic co-applicant requirements:

1. Must be either the parent or the spouse of the applicant.

2. Must possess all the required documents.

3. Should have a minimum CIBIL score of 650 or above.

The Union Bank Education loan interest rate ranges from 8.50% to 10.25%. The Union Education Loan Scheme ranges from 9.50% to 10.25%. The Special Union Education Loan Scheme for premier universities has an interest rate ranging from 8.50% to 9.75%. Both schemes have secured and unsecured loan options, and under the Special Union Education Loan Scheme, partially secured loans are also accepted. 

The factors that affect the interest rate on a Union Bank of India education loan are:

1. 1. Collateral value 
2. 2. University premier listing 
3. 3. Scheme of choice 
4. 4. Co-applicant's profile 

Check out the Union Bank Education loan interest rate page to understand the detailed breakdown of interest rates under each scheme, how it is calculated, and what affects it.

Loan Amount 

The sanctioned Union Bank of India education loan amount is determined based on the scheme, university of choice, total expenditure, income of the co-applicant, collateral coverage (for secured loans), and the bank’s discretion. The maximum loan amounts for both the UBI education loan schemes for abroad are listed below:

Special Union Education Loan Scheme:

Union Education Loan Scheme:

Expenditure Covered

Union Bank's education loan covers a list of expenditures. The core expenditures are categorised into living expenditure, university expenditure, and miscellaneous. Here is a list of expenditures considered in your education loan. 

• Academic Expenditure - Includes tuition fees, exam fees, books, lab charges, library charges, uniforms, equipment charges, and any academic expenditure specified by the university.

• Living Expenditure - Rent, hostel charges, food and grocery charges, basic clothing, caution deposit/building fund/refundable deposit, Wi-Fi and phone bill, and household appliances are covered under this category. 

• Miscellaneous Expenditure - Insurance, flight charges, public transit charges, and curriculum-related charges are also provided by the banks.

What is Margin Money

Education loan margin money is the portion of the total education expenses that you must arrange from your own funds. For a Union Bank of India education loan under the standard scheme, there is no margin up to ₹4 lakh. For loans above ₹4 lakh, the margin is 5% for studies in India and 15% for studies abroad.

Under the special abroad scheme, the margin is generally 15%. If you provide 100% collateral security, the margin can be nil, subject to the applicable conditions.

The processing fee is the bank charge that the applicant has to pay in order to process their loan application. The processing fee is the same for both education loan schemes abroad. Here is a breakdown of your processing fee:

Note:

1. Processing fee will not be refunded in any case, even if the student does or does not avail the loan.
2. For NRI students: 0.5% of the loan amount is considered as processing fee. With maximum being ₹10,000+GST.

Other Charges: 

Student Eligibility Criteria

To qualify for a Union Bank of India student loan, you must meet these criteria: 

1. Must be an Indian citizen.
2. Must have secured admission in a premier university abroad (for the Special Union education loan).
3. Must have completed 10+2 or equivalent qualification. 
4. Should have secured 60% or above in the last qualifying examination.

Eligible Courses and Institutions

Under the Union Education Loan Scheme, the list of eligible courses abroad is as follows: 

1. Graduation/post-graduation degrees offered by recognized universities.
2. Certified degree courses conducted by CIMA (London), CPA (USA) and other such institutes.
3. PhD courses. 

Note: Diploma courses are not accepted. 

Under the Special Union Education Loan Scheme, the list of eligible courses is decided based on the institute of choice. Every university has a list of eligible courses, mostly STEM, management, law, medical, economics, and others. You can check the list of eligible courses and institutions below.

Submit these documents along with the Union Bank of India education loan application form, and check the detailed education loan document checklist before applying to avoid delays or potential rejection.

For the standard scheme, you can get the Union Bank of India education loan application form through the bank’s official website or from a nearby branch.

For the special abroad scheme, Union Bank specifies that applications are received at the domicile branch or the retail loan processing branch nearest to the parents' permanent residence.

Processing Time and Sanction

The Union Bank of India education loan processing time refers to the time banks take to process your application. This is the time between your application and loan sanction. The average time taken by the bank and WeMakeScholars is mentioned below:

Moratorium Period

Moratorium period refers to the grace period offered to students during which the EMIs don't start. During this period, simple interest is charged, which is optional to pay. The education loan moratorium period offered at Union Bank of India lasts for the course duration plus 1 year post-course completion. 

This period is offered only under education loans, with an aim to provide ample time for students to graduate and find employment. It is always suggested that students opt for an education loan for their higher education and not for any form of personal loan. 

Repayment Tenure

Repayment tenure refers to the time post-moratorium when your EMIs start and lasts until your entire borrowed amount is paid back. During the education loan repayment tenure, your interest is compounding, and all the repayment tenure terms are predecided. The maximum repayment tenure offered under Union Bank of India education loan for abroad studies is 15 years.

Education Loan EMI Calculator Union Bank of India 

Calculating your EMI will give you an understanding of what your future repayment is going to look like. Let's understand how your EMI would work out based on the interest rates, repayment, and moratorium information given above. 

Scenario 1: Union Education Loan Scheme

Priya is studying for her master’s in Germany at a university that isn’t on the premier list. Her total course cost is about ₹29 lakh. The course duration is 2 years, and she doesn't pay any interest during the moratorium. Her interest rate is 9.50%, and the repayment tenure is 15 years.

Her payment journey would look like this:

1. Total Interest Paid: ₹37,77,465
2. Total Amount Paid (principal+interest): ₹66,77,465
3. EMI: ₹37,097

Scenario 2: Special Union Education Loan Scheme (no collateral)

Rahul has secured admission to a master’s programme at a premier institute abroad on the bank’s list. His course costs about ₹40 lakh, is 2 years long, and he decides to pay the accumulated interest during the moratorium. The interest rate is 9.50%, and the repayment tenure is 12 years.

His repayment journey is going to look like this:

1. Total Interest Paid: ₹35,73,310
2. Total Amount Paid (principal+interest): ₹75,73,310
3. EMI: ₹46,655

You can calculate your EMI using the WeMakeScholars education loan EMI calculator. 

Disclaimer: Figures shown are illustrative examples only. Actual figures may vary based on applicable loan terms and conditions.

Prepayment and Foreclosure Charges

Prepayment means paying an additional amount towards your loan before the scheduled EMI, while foreclosure means repaying the entire outstanding amount before the end of the tenure. In the case of a Union Bank of India education loan, there are no education loan prepayment/foreclosure charges. Hence, it is easy for students to preclose their loan. 

How to Apply Through WeMakeScholars

You can begin your education loan application through WeMakeScholars by visiting the official website and clicking on ‘Check Eligibility’. You will be directed to a simple application form where you need to provide basic details, including your name, email ID, nationality, phone number, city or district, and preferred higher education destination.

Once you submit the form, a dedicated financial officer will connect with you to understand your requirements and help you explore suitable education loan options based on your profile. After identifying the right lenders, you will be guided through the process of connecting with the respective banks and uploading the required documents through the WeMakeScholars portal.

Your assigned financial officer will remain your primary point of contact throughout the process, assisting you with the application, coordinating with the lenders, and keeping you updated on your loan status until the process is complete.

What You Get Through WeMakeScholars

• Broad Spectrum of Choices: WeMakeScholars is partnered with 20+ banks and NBFCs, giving students a broad range of schemes to choose from.
• Lower Interest Rates: Processing via WeMakeScholars can get you interest rates lower than applying directly with a bank.
• Faster Loan Process: The WeMakeScholars team constantly monitors the loan process to ensure your loan is sanctioned within days.
• Cashback: Students processing their education loan via WeMakeScholars receive a cashback of up to ₹3,000 on their first disbursement. 
• Free of Cost: All services of WeMakeScholars are completely free; hence, students are not charged any service fee. 
• End-to-End Support: From checking your eligibility with various banks to providing post-loan sanction support, you are assisted throughout the loan process.

Here is how the Union Bank of India student loan compares with other banks:

*The Union Bank education loan interest rates mentioned are indicative and subject to change. The final interest rate also depends on individual profiles and the bank’s discretion.

The Union Bank of India education loan for abroad studies is available under two schemes. Under the Union Education Loan Scheme, students can get loans for studying abroad and at Indian universities. With no maximum limit on the loan amount, the interest rates start at 9.50% for female applicants and 10% for male applicants. Loans up to ₹7.5 lakh are covered under CGFSEL; hence, they are collateral-free. For higher loan amounts, collateral is mandatory. Under the Special Union Education Loan Scheme, the loan amount is determined by the university category. There are two categories under this scheme: Category A and Category B. For Category A, the maximum unsecured loan amount is ₹40 lakh, and for Category B, the maximum unsecured loan amount is ₹30 lakh. For both categories, the maximum loan amount against security is ₹1.5 crore. The interest rates for this scheme start from 8.50% and go up to 9.75% depending on the collateral coverage and university category. Compare the Union Bank of India education loan with other lenders through WeMakeScholars and choose the scheme that fits your profile.