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Union Bank of India Education Loan

Pursue your dreams with Union Bank of India’s education loans, offering up to ₹40 lakh without collateral and flexible repayment options.

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Overview

Union Bank of India, a trusted public sector bank, offers education loans to support students pursuing higher education in India and abroad. With loans up to ₹40 lakh without collateral for overseas studies and no upper limit for secured loans, Union Bank provides comprehensive financing at competitive rates starting at 7.85% p.a.

Key Features & Benefits

  • ✔Loan Amount: Up to ₹40 lakh unsecured; no limit for secured loans.
  • ✔Moratorium: Course duration + 1 year.
  • ✔Repayment Tenure: Up to 15 years (> ₹7.5 lakh); 10 years (≤ ₹7.5 lakh).
  • ✔Margin: Nil up to ₹4 lakh; 5% (India), 15% (abroad) above ₹4 lakh.
  • ✔Rates: 7.85%–11.75% p.a., with concessions for female students.
  • ✔Subsidies: CSIS, Padho Pardesh, PM-Vidyalaxmi for eligible students.
  • ✔Tax Benefits: Interest deductible under Section 80E.

Eligibility Criteria

Student:

  • •Indian national (NRI with Indian passport for India studies only).
  • •Secured admission via entrance exams (e.g., IELTS, TOEFL, GRE) to recognized institutions.
  • •Minimum marks: 60% (general), 55% (OBC), 50% (SC/ST) for premier institutes.

Co-applicant:

  • •Mandatory (parent, spouse, or guardian).
  • •Steady income, good credit score (CIBIL ≥650).

Documents Required

Student:

  • •Admission letter or proof of application.
  • •Academic records (10th, 12th, graduation, entrance exam scores).
  • •KYC (Aadhaar, PAN, Passport, Voter ID).
  • •Passport-size photographs, visa (for abroad).

Co-applicant:

  • •KYC (Aadhaar, PAN, Passport).
  • •Income proof (ITR, salary slips, Form-16, 12 months’ bank statements).
  • •Address proof (utility bill, Aadhaar).

Other:

  • •Loan application form.
  • •Course fee structure.
  • •Collateral documents or guarantor form (if applicable).

Interest Rates & Charges

Union Bank of India offers competitive interest rates, with concessions for female students and premier institutes.

Loan Type Interest Rate (p.a.)* Processing Fee Collateral
Unsecured (up to ₹40 lakh) 9.25%–11.75% (9.75%–11.25% for females) ₹10,000–₹20,000 Not required
Secured (above ₹7.5 lakh) 7.85%–11.50% ₹5,000 (refundable) Required

*Rates vary based on profile and institute. Contact Union Bank for exact rates.

Application Process

  1. Submit Inquiry: Fill out our quick online form.
  2. Expert Guidance: Connect with our loan advisor for Union Bank options.
  3. Document Prep: Gather documents with our assistance.
  4. Application: Apply online via Vidya Lakshmi portal or offline at branches.
  5. Disbursal: Funds released to institute or account post-approval.

Frequently Asked Questions