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Union Bank of India - Education Loan

Union Bank of India Education Loan Scheme

PURPOSE

• To poor and needy to undertake basic education.
• To the meritorious students to pursue higher / professional/ technical education, after passing 10+2 or equivalent

ELIGIBILITY

• Should be an Indian national
• Secured admission to the concerned institute in India or abroad through appropriate selection process and cleared the qualifying examination, if any
• Courses covered in India
  • Graduation / post-graduation / diploma courses from recongnized universities
  • Technical / professional / management courses
  • PhD courses
• Courses covered outside India
  • Graduation / post-graduation degrees offered by recongnized universities
  • Certified degree courses conducted by CIMA, London, CPA, USA and other such institutes
  • PhD courses
  • Diploma courses abroad are not covered

LOAN IN SUBSEQUENT YEARS OF COURSE

• Educational loans can also be considered for eligible students in case they approach the bank in the subsequent years of the course.
• The loan can be granted provided the student has not availed loan from initial years from any other bank/FI.

QUANTUM

Type of studies	Maximum Quantum
For Inland Studies	Rs. 20 lakhs
For Studies Abroad	Rs. 30 lakhs
Loan amount beyond maximum quantum of loan to be considered by respective delegatee, as per their delegated authority, as deviation.

• Note: The quantum of loan is higher for the institutes covered under Special Education Loan schemes. Please check the Special Offers Tab above for further details.

MARGIN

Quantum of loan		Margin
Up to 4 Lakh		Nil
Above 4 Lakh	Studies in India	5%
	Studies abroad	15%

Scholarship / assistance to be included in margin

EXPENSES CONSIDERED

• Moratorium period: Course period + 1 year
• Maximum repayment tenure after completion of course / moratorium period is -
• 15 years irrespective of the quantum of loan

RATE OF INTEREST AND PROCESSING CHARGE

• Please click here here to know our latest interest rates
• If interest is regularly serviced during the course and moratorium period, i.e. prior to the commencement of repayment, then the student is eligible for interest rebate. Please contact the nearest branch for details.
• No processing charges.
• Wherever applicable, Valuation / Legal / Stamp Duty / CERSAI / Memorandum registration charges as per actuals
• Simple interest will be calculated during course / moratorium period; subsequently compounding interest will be charged.
• Floating rate of interest will be applicable on all educational loans.
• Servicing of interest during course/moratorium period is optional for the borrowers.
• The accrued interest during course/moratorium period will be added to the principal amount borrowed while fixing EMI for repayment, if the same is not serviced.

SECURITY

• The security required is as mentioned below.

Quantum of loan	Security
Up to 4 Lakh	No guarantee and No security, if the loan is covered under CGFSEL. (In case, if there is any deviation, the third party guaranty with equivalent means to be taken for the loan Above ` 4 Lakh & up to ` 7.50 Lakh.)
Above 4 Lakh & up to 7.50 Lakh
Above 7.50 Lakh	Tangible collateral security of minimum value equivalent to the loan amount and interest accumulation during course & moratorium period, acceptable to the bank.

Note:

• For all the above categories, parent / spouse / parent-in-law to become the co-applicant
• In cases where both the parents are not alive, close relative or guardian to be taken as co-applicant.

INSURANCE

• Life insurance of the student is mandatory to the tune of the loan amount

PADHO PARDESH SCHEME

SCHEME TO PROVIDE INTEREST SUBSIDY ON EDUCATIONAL LOANS FOR OVERSEAS STUDIES FOR THE STUDENTS BELONGING TO THE MINORITY COMMUNITIES.

The students should satisfy all the following parameters –

Secured admission to higher studies abroad viz. Masters, M. Phil and Ph.D. levels only

The student belongs to the Economically Weaker Section (EWS) of Minority communities with an annual gross family income not exceeding ` 6 Lakh.

The student has to submit income certificate issued by authorized officers appointed by the respective State Governments

Subsidy is available for interest charged on the loan amount disbursed during a financial year

Available for course and moratorium period only

The scheme is applicable for higher studies abroad.

The students obtaining benefits under this scheme shall not be given interest subsidy if he gives up Indian Citizenship during the tenure of the loan.

ACSISOBCEBC Scheme - Dr. Ambedkar Central Sector Scheme of Interest Subsidy on Educational Loan For Overseas Studies For Other Backward Classes (OBCs) & Economically Backward Classes (EBCs) 

SCHEME TO PROVIDE INTEREST SUBSIDY ON EDUCATIONAL LOANS FOR OVERSEAS STUDIES FOR THE STUDENTS BELONGING TO THE OTHER BACKWARD CLASSES (OBCs) & ECONOMICALLY BACKWARD CLASSES (EBCs).

The students should satisfy all the following parameters –

• Secured admission to higher studies abroad viz. Masters , M. Phil and Ph.D. levels only
• The student belongs to the other backward classes (OBC) & Economically backward classes (EBC) with an annual gross family income not exceeding ` 3 Lakh & 1 Lakh respectively.

The student has to submit income proof either of Form-16/ITR/certificate issued by authorized officers appointed by the respective State Governments

Scheme applicable for loans sanctioned from 01.04.2014 onwards

Subsidy is available for interest charged on the loan amount disbursed during a financial year

Available for course and moratorium period only

The scheme is applicable for higher studies abroad.

VIDYA LAKSHMI

Government of India has launched Vidya Lakshmi portal for providing  single window for students to access information and make applications for educational loans. Students can apply education loan through Vidya Lakshmi portal(Click here for  Vidya Lakshmi portal)

For more information please visit nearest union bank of India Branch.

Forms & Documents

DOCUMENTS

• KYC documents
1. Photo-Identity proof of student, co-borrower(s) and guarantor (if any)
2. Residence proof of student, co-borrower(s) and guarantor (if any)
3. 2 passport size photographs each of student, co-borrower(s), guarantor (if any)
4. PAN card of student, co-borrower(s), guarantor (if any). If the student does not have PAN card at the time of applying for loan, branches should advise the student to apply for the same and furnish a copy at a later date.
5. Income proof of student wherever applicable
6. Income proof of co-borrower(s) and guarantor (if any)

• Academic documents
1. Proof of admission (admission letter)
2. Mark sheet and certificates of all exam passed
3. Schedule of expenses for the course
4. Letter conferring scholarship, free-ship, studentship etc

• Security documents (if any)
1. Valuation certificate wherever applicable
2. Guarantee documents wherever applicable

• Other documents
1. Credit information of student / co-borrower(s) / guarantor (if any)
2. Caste certificate wherever required (only for statistical purposes)

FAQs