✓ Fast & Easy Loan Application
✓ Feature an interest rate starting at 8.70%
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%.
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 |
A greater amount can be offered depending on the student's loan profile |
Expenses covered |
|
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 |
|
Collateral Requirements |
|
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.
Loan Parameters |
Details |
Loan Limit |
No restriction For NRI students - upto Rs 30 lacs |
Expenses covered |
|
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 |
|
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.
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% |
Loan Parameters |
Details |
Loan Limit |
Upto 30 lacs |
Expenses covered |
|
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% |
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:
The mandatory documents checklist includes:
Application form
Basic documents of applicant and co-borrower or Guarantor
All the papers should be self-attested.
Section 3: Student's academic documents
Income documents of the Co-applicant
If Salaried
If Self-employed
Other Documents
Additional docs (if applicable)
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.
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;
*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.
Offline Application process
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:
With WeMakeScholars you get:
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.
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.