Union Bank of India Abroad Education Loan

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%.

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:

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:

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

Union Kisan Shiksha Suvidha with collateral:

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.

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.

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:

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

• 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

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.