Union Bank of India Education Loan

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 8.60% to study aspirants for their higher education in India and also abroad.

The demand for education loans is on a rise these days, not just to study in India but also to study abroad. Therefore, education loan by union bank of india is offered under the following schemes:

Union Bank of India education loan scheme for study abroad

• Union Education- Study Abroad
• Special Union Education Loan Schemes for Premier Institute Abroad Studies
• Union Kisan Shiksha Suvidha
• EliteScholars UB Education Loan 

Union Bank of India education loan scheme for study in India

• Union Education - Inland studies
• Special Union 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 is in this video, from schemes, loan amount, interest rates, and processing fee to information directly from the bank circulars which is nowhere available online even on the official website of Union Bank.

Union Education - Abroad Studies 

Courses covered:

• Graduation and post-graduation degree courses available at recognized universities
• PG Diploma 
• PhD courses
• Undergraduation
• Certified courses offered like CPA in USA or CIMA in London, or other such institutes

If your course is not listed above, then also there is 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. 

Special Union 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.

The further details about this scheme are mentioned below in the table

Acceptable programs:

• Masters
• Post-Graduation Programs 

There is no processing fees for sanctioning education loans under Special Union Education Loan Scheme, however, the students will have to pay Rs 5,000 to the bank, which will be refunded back if the student avails the loan within a period of 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

Collateral Accepted for Union Kisan Shiksha Suvidha:

• Generally, liquid securities like, FD, government bonds, LIC Policies and Immovable properties like houses, flats and non-agricultural land 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 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.

EliteScholars UB Education Loan 

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 Education - Inland studies 

Courses covered under Union Education India

• Graduation / post-graduation / diploma courses from recognized universities
• Technical / professional / management courses
• PhD courses

Special Union Education Loan Scheme for Premier Medical Institutes  

*NOTE

If collateral is offered for the loan below Rs. 40.00 lacs, interest concession is available.

Education loan under Special Union Education Loan Scheme for Premier Medical Institutes is offered by Union Bank of India only for selected prime colleges & universities in India.

Special Scheme for students of Premier Management & Technical Institutes Inland Tier I

*NOTE 

There is no processing fees for taking an education loan under the Special 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 program for working executives, PG programs in management for working executives and e-post graduate offered by different educational institutions.

Special Scheme for Students of Premier Management & Technical Institutes (Tier-II)

*NOTE

There are no processing fees to take education loans under the Special Scheme for students of Premier Management & Technical Institutes (Tier-II) but, the rate of interest for this scheme is floating.

Union Kisan Shiksha Suvidha

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.

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 covered by lenders.
Travel Tickets: Round-trip flight ticket 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 education loan. Just comment it down.

The education loan processing fee of Union Bank of India is 5000/- Rs. It is completely 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 if you go for a collateralized loan.

But, in some schemes for example, Special Union Education Loan Schemes for Premier Institute Abroad Studies, Special 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.

But, 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, 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.

Submitting all the necessary documents in the first step to get your education loan process started, but how to know which all 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 specifically for Union Bank education loan:

1. Completed Application Form
2. Admission Confirmation: Proof that you got accepted into the Institute you picked.
3. Identification Copies: Copies of ID like Passport, Voter ID, Driving Licence, or PAN Card.
4. Passport Photos: Two recent small photos of the person applying, co-applicant, and guarantor.
5. 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.).
6. Financial Records:
   
   1. Income Proof: Papers that show how much money your parents or guardians make, supported by their income tax statements from the last 2 years.
   2. Financial Statements: Provide six months' worth of bank statements or recent payslips.
   3. Course Expenses Plan: Detailed plan showing the costs you expect for your course.
   4. Current Financial Obligations: Tell about any loans you're paying off currently and any scholarships you got.
7. Institute Prospectus: Include a copy of the institute's information booklet to calculate costs properly.

However, the above mentioned documents list is general and is subject to vary as per your loan profile. But, to get the exact document checklist specially customized as per your loan requirements, get in touch with your financial officer at WeMakeScholars.

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 which 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 inability to repay the loan. 

For more such ins and outs about the process of education loan sanctioning, request a callback from WeMakeScholars and get your education loan process started.

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.

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 in 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 form. 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 a common application form

Step 2 Give all your education loan details to your assigned financial officer over a call

After analyzing 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 in 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
• 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 thousand’s 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 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 at all the working days from 9AM to 9 PM to update and assist you at any time of 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. 

A loan transfer to Union Bank of India can help you get lower rates of interest on your existing loans. The other reasons of why you should consider loan transfer are listed below:

• Easy Repayment policies
• Student-friendly bank policies
• Wide coverage of education loan schemes

As WeMakesScholars is partnered with the Union Bank of India, transferring your running education loan from your current lender to the Union bank of India, will no longer be a hassle for you. To transfer your education loan:

• Ask for the proof of outstanding loan amount from your current lender
• Get in touch with us, by requesting a callback.
• Submit your documents as told by your financial officer, in the nearest Union Bank of India branch.

You will be notified once your loan transfer process is completed. Union Bank of India will provide you with a new sanction letter, according to which your new EMI and repayment policies will be regulated.

Union bank of India has an education loan EMI calculator, which is present on its website. But, to calculate your EMI most accurately, your should use 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
• Grace period
• 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 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 grants a moratorium period of the course duration plus upto 12 months. And the total repayment duration can last maximum upto 15 years after the moratorium period ends.

If suppose a student has taken a non-collateralized education loan of Rs 30 lacs for their higher education in India at 12% rate of interest and chose to repay it in 10 years, then their repayment schedule will be as follows

Step up repayment

Generally, in most banks if your repayment period starts they check your outstanding loan amount and they divide it by the number of months in your repayment tenure and you are given an EMI Schedule which 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. 

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