Union Bank of India Abroad Education Loan

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Union Bank of India is a well-renowned bank in India, which provides aid to students by offering abroad education loans at an interest rate starting from 8.70%.

Union Bank of India Education Loan Scheme for Study Abroad

Special Union Education Loan Schemes for Premier Institute Abroad Studies:

Under this scheme, Union Bank of India education loan is provided with and without collateral to students to pursue their studies in 150 premier universities in popular study abroad destinations like Germany, Canada, USA, the UK etc. The premier university list is prepared by the bank itself, but WeMakeScholars has access to them.

Further details about this scheme are mentioned below in the table:

Loan Parameters

Details

Loan Limit

    • Without collateral - Upto 40 lacs
    • With collateral - Upto 1.5 cr

A greater amount can be offered depending on the student's loan profile

Expenses covered

    • Tuition fees of college or university
    • Hostel & mess fees
    • Examination/ Library/ Laboratory fee
    • Purchase of equipments/ instruments/ uniforms
    • Insurance premium for the student borrower
    • Admission acceptance fee
    • Refundable deposit supported by Institution bills/ receipts
    • Caution deposit or building fund
    • Travel Expenses
    • Cost of books & stationeries
    • Purchase of a laptop or computer

Accepted co-applicant

Parents or spouse

Union Bank of India Education loan interest rate/rate of interest

Starts from 8.70%

Moratorium Period

Course duration + 12 months

Repayment Duration

15 years after moratorium period

Eligibility Criteria

    • Applicant must be a citizen of India
    • Student must have secured admission in a premium university abroad (according to the bank)

Collateral Requirements

    • Immovable Properties - Flat, House, Non-agricultural land
    • Liquid Securities - FD, Government bonds, LIC Policies
    • Value of collateral should be 1.25 times of the asked loan amount.

Loan Margin

15% of the loan amount

 

Union Bank of India charges an upfront fee of Rs 5000 from the students, which will be refunded back if the student takes the loan within a period of 3 months from the date of sanction. Otherwise, there are no such processing fees charged by the Union Bank of India for this scheme.

Students applying for an education loan with collateral will have to pay Rs  7,500 to Rs 10,000 as the cost of legal and valuation reports. 

*NOTE: If the collateral is offered for the loan below Rs. 40 lacs interest concession is available.

Union Education Abroad/ NRI Student:

Loan Parameters

Details

Loan Limit

No restriction

For NRI students - upto Rs 30 lacs

Expenses covered

    • Hostel & mess fees
    • Laboratory fee/ Examination/ Library 
    • Tuition fees payable to college or university
    • Admission acceptance fee
    • Purchase of equipments/ instruments/ uniforms
    • Insurance premium for the student borrower
    • Purchase of books & stationeries
    • Refundable deposit supported by Institution bills/ caution deposit, Building fund/ receipts
    • Travel Expenses
    • Purchase of laptop or computer

Accepted co-applicant

Parents, Parents in law, spouse, or close relative (Must be an Indian national)

Union Bank of India Education loan interest rate/rate of interest

Starts from 10.30%

Moratorium Period

Course duration + 12 months

Repayment Duration

15 years

Repayment policies

The interest charged during the moratorium period will be added to the principal loan amount while calculating EMI for repayment

Eligibility Criteria

    • Applicant should be a national of India
    • Should have qualified the necessary selection process for a university abroad
    • NRI students should have an Indian Passport & should have secured admission in Indian college or university only.
    • Life insurance of the student is mandatory to the tune of the loan amount.

 

Courses covered outside of India

  • Students pursue their graduation or post-graduation from a recognized educational institution
  • Ph.D. courses
    • Courses conducted by CIMA in London or CPA offered in the USA and other such courses offered by top institutes

Even if your preferred course is not there in the list above, still no need to worry. Request a callback or fill out the common application form to get your education loan process started with WeMakeScholars, as we are paired with 14+ public and private banks in India, we will help you find another lender that offers education loans for your preferred course.

Loan margin

Amount of loan to study abroad

Margin

Up to Rs.4 Lakh

Nil

Above Rs.4 Lakh

15%

NRI students (to study in India)

15%

 

Union Kisan Shiksha Suvidha with collateral:

Loan Parameters

Details

Loan Limit

Upto 30 lacs

Expenses covered

    • Hostel & mess fees
    • Laboratory fee/ Examination/ Library 
    • Insurance premium for the student borrower
    • Tuition fees payable to college or university
    • Purchase of laptop or computer
    • Admission acceptance fee
    • Refundable deposit supported by Institution bills/ caution deposit, Building fund/ receipts
    • Purchase of equipments/ instruments/ uniforms
    • Purchase of books & stationeries
    • Travel Expenses

Accepted co-applicant

Parents, Parents in law, Spouse

Union Bank of India Bank Education loan interest rate/rate of interest

Starts from 8.70%

Moratorium Period

Course duration + 12 months

Repayment Duration

15 years after the moratorium period

Repayment policies

A partial simple interest may be charged to students in their moratorium period, however, it is not mandatory for them to pay it then. Students can choose to add it to the total loan amount and pay it later with EMI 

Eligibility Criteria

Student should have farming as their main source of family income

Minimum 60% marks should be scored by student by student in their higher secondary

Loan Margin

15%

 

Collateral Accepted for Union Kisan Shiksha Suvidha with collateral

Generally, Immovable properties like houses, flats, and non-agricultural land, and liquid securities like government bonds, FD, LIC Policies and are considered as collaterals. 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 is accepted as collateral only if it is not be used for agricultural purpose and only in those states where it is permitted by the bank to be mortgaged
  • Agricultural land should have properly demarcated boundaries and should be easily marketable.
Education loan can be secured in no time with the help of WeMakeScholars

Documents required to get Abroad Education Loan from Union Bank of India

The mandatory documents checklist includes:

Application form  

  • Application form to get student loan with 2 passport-size photographs (hardcopy of online form filled on WeMakeScholars website is also accepted)

Basic documents of applicant and co-borrower or Guarantor

  • Address proof – Electricity Bill/ Voter ID Card/  Passport/Ration card/Bank account statement/ Telephone Bill/Aadhar card(if applicant’s permanent and current addresses are not the same then 2 different address proofs will be required)
  • Proof of identification – PAN Card or Passport of the student (if applying for a Union Bank of India Education loan for abroad)
    • If the co-applicant is salaried then the last 6 months' personal and salary bank account statement showing the salary crediting. If the co-applicant is self-employed then the bank then show transactions of 1 year’s business if self-employed.
  • Statement of personal asset & liability (assessed by the branch professional)

All the papers should be self-attested.

Section 3: Student's academic documents

  • Educational scorecards and certificates of class 10th, 12th, Degree
  • Admission proof in the course (should be reflecting the total fees and  course duration)
  • Fee breakdown and payment deadlines
  • Entrance exam scorecard provided by a responsible authority

Income documents of the Co-applicant

If Salaried

  •  Identity  card of the company
  • Form 16 of the last 2 years
  • last 2 years of ITR  Latest Salary slips (for last 3 months)

If Self-employed

  • ITR of last 3 years
  • Balance sheet of last 3 years showing profit & loss statements  Business address proofs

Other Documents

  • Notarised affidavit with the co-applicant and student in Bank’s standard format, that will be provided by your assigned financial officer at WeMakeScholars
  • Declaration by the co-applicant, that left over expenses will be borne by them (Format will be provided by your assigned financial officer at WeMakeScholars)

Additional docs (if applicable)

  • Statements of loan account of past 1 year if there is any pending loan.
  • Receipts of advance payments made if any.
  • Break certificate on Rs 100 stamp giving the reason for the gap in the academic degrees. (As per the format given by your WeMakeScholars)
  • Gap certificate if the applicant has taken any break in their academic degrees.   It should be on Rs. 100 stamp paper. 

Collateral documents (Optional)

Required only if a student is taking an education loan with collateral, and each state has a different requirement of documents, you can ask your financial officer about the collateral documents required for your state.

Ask for an overall documents checklist from the assigned financial officer that is customized specially for your loan process, after analyzing your education loan profile. Get in touch with your financial officer at WeMakeScholars, by requesting a callback or filling up the common application form,  to get your own document checklist.

Let us help you find the best education loan for you in no time at free of cost

Union Bank of India Abroad Education loan Repayment Policies

The usual repayment duration for abroad education loan taken from Union Bank of India is 15 years after the moratorium period ends, however, students can opt to repay their education loans even earlier by implying the following repayment strategies; 

  • Pre-payment or part payment
  • Keeping repayment period shorter
  • Transferring their education loan

*NOTE: The students who opt for pre-payment or part payment of their education loan, to repay the loan early, are offered additional interest rate concessions on the usual rate. 

If suppose a student takes an education loan at 10% interest rate for an amount of say Rs 40 lakhs for 15 years of duration to study abroad. Then the amortization schedule of the student will look like  the following:

Timeline

EMI

Interest portion

Principal portion

Loan Outstanding

Start of loan EMI

48357

37500

10857

4489143

End of year 1

48357

36462

11895

4363573

End of year 2

48357

35217

13141

4212860

End of year 3

48357

33841

14517

4046365

End of year 4

48357

32321

16037

3862436

End of year 5

48357

30641

17716

3659248

End of year 6

48357

28786

19571

3434783

End of year 7

48357

26737

21620

3186813

End of year 8

48357

21972

26385

2610259

End of year 9

48357

19209

29148

2275951

End of year 10

48357

16157

32200

1906637

End of year 11

48357

13838

31297

1813735

End of year 12

48357

12785

35572

1498650

End of year 13

48357

9060

39297

1047943

End of year 14

48357

4945

43412

550040

End of year 15

48357

400

47958

0

 

You will also be informed about your repayment cycle by the lender's side after each EMI repayment. To start your loan process with WeMakeScholars, ask a callback or fill the common application form.

Worried about where to apply for an education loan

How to Apply for an Abroad Education Loan from Union Bank of India?

Offline Application process

  • Go to the nearest Union Bank of India’s branch and ask about the education loan products
  • Choose the best education loan product to study abroad and fill the application form, as per your eligibility.
  • To start the loan process, get the list of documents required 
  • Visit the bank again to submit your documents to finally get your abroad education loan process started

Online Application process via WeMakeScholars

Step 1 : Fill the online abroad education loan form for Union Bank of India 

Step 2 : Give your loan profile details as asked to your financial officer, so that they can analyze your profile and connect you to the best lenders

Step 3 : Select your lender after comparing from all the lender options as per your eligibility and loan policies

Step 4 : As per the shared documents checklist shared by your financial officer, upload your documents online on WeMakeScholars document portal

Step 5 : After documents submission, your loan file will be logged in. You will receive a loan sanctioning confirmation within 15-20 days from the public. banks, and within 2-6 days  from private banks & NBFCs.

Step 6 : You are supposed to sign the loan agreement, once your loan is approved, and collect your sanction letter.

The process will not be this easy, if you approach the banks and apply in the banks directly to get your education loan sanctioned on your own. You are sure to find the following issues while processing your loan:

  1. Delay in processing
  2. Too much of documentation
  3. Improper customer service
  4. Biased legal & valuation reports
  5. Insufficient information regarding loan schemes
  6. No specific documents checklist
  7. Numerous visits to the bank
We take care of your complete documentation process for your education loan completely

Why choose WeMakeScholars?

With WeMakeScholars you get:

  1. Digitized application process : Online education loan process and WeMakeScholars online documents portal empowers students with the power of digitalization and reduces the stress of going multiple times to the bank, thus reducing the loan processing time by 50%.
  2. Minimal Processing time : With years of experience we hold expertise in sanctioning abroad education loans within 7  working days from private banks & NBFCs, and within 15-20 days from the government banks, after the documents are submitted. This is 50% less time than what banks usually take.
  3. Tax benefits : While guiding you through the repayment process, we also provide guidance to save tax under Income tax Section 80E, 80C, etc, and tax collected at source (TCS).
  4. Expert guidance :- Your financial officer will guide you through the complete education loan process, as per your loan profile analysis, to choose the best lender according to your eligibility and bank policies.
  5. Better Interest rates : Banks offer special interest rate discounts of 0.5% to 2% on the usual interest rate for the students processing their education loan with WeMakeScholars
  6. Negotiation support : We push ourselves a little extra, to negotiate with the bankers & lenders team for rate of interest and loan conditions, wherever possible, on your behalf.
  7. Free of cost services : We are a government funded initiative, supported by the IT Ministry, under the Digital India Campaign and therefore all our prime loan sanctioning services are totally FREE for all the students.
  8. End-to-end support : We will be available at your service, even after getting your loan sanctioned, till the last repayment of your EMI to provide you help in disbursement and repayment process.
  9. Cashback offer : You get a chance to win a cashback of up to Rs 3,000 from us, at the time of your disbursement

Apply for your abroad education loan in the Union Bank of India through WeMakeScholars, Request a callback or fill the common application form to get the process started.

With WeMakeScholars help you can get an education loan in no time, for absolutely free of cost

Education Loan FAQs

  • Can a student apply for an education loan without parents in the Union Bank of India?

    Yes, students can apply for an education loan without parents being the co-applicant, because as per the Union Bank of India policies, student’s guardians, siblings can be the co-applicants, if the applicant is married then their parents-in-law or spouse can also be considered as a co-applicant

  • What is the interest rate on abroad education loans in the Union Bank of India?

    Union Bank of India offers an abroad education loan at an interest rate starting from 8.70%. However, the rate of interest charged depends on the scheme under which the loan has been taken, it also depends upon the student's academic records, co-applicant details and other parameters of loan profile.

  • How can I calculate my EMI for education loan from the Union Bank of India?

    You can use the education loan EMI calculator, specially designed by WeMakeScholars, to help students get an idea of their EMI amount and repayment schedule along with other parameters of EMI.