Union Bank Education Loan for USA: Eligible Universities, Criteria, and Documents

The Union Bank of India provides education loans to students intending to study for a Master's in the USA. They charge a fixed processing fee between Rs 10,000 and Rs 20,000, which is non-refundable regardless of whether you proceed with disbursement. The Union Bank is the only Government Bank that provides an UnSecured Education Loan of up to Rs 40 lacs, compared to other public banks, whose maximum limit is Rs 7.5 Lacs. The Union Bank interest rate for an Unsecured Education Loan starts at 9.25%, which includes a 0.5% concession for female students. Like other lenders, the moratorium period of Union Bank for Education Loans is Course Duration, with an additional one year as a grace period.

Your University and Course must be on Union Bank's approved list to be eligible for an UnSecured Education Loan up to ₹40 Lacs; otherwise, the maximum limit is ₹7.5 Lacs. Connect with Abroad Cube today to check your eligibility and apply for the Education Loan at no additional costs. The other benefits of a Union Bank Education Loan include savings in Income Tax under Section 80E, Zero processing Fees, and minimal Life Insurance charges. 

Eligibility Criteria for Union Bank Education Loans

To be eligible for an Unsecured Education Loan for USA Universities by Union Bank. You must have

1. Indian citizenship and residing in India
2. an admission letter from the pre-approved university
3. the program level as Master and eligible program major
4. a CIBIL Score of 650 and above
5. a Co-Borrower such as a Father, Mother or Spouse with a minimum CIBIL score of 650 and above

Top USA Universities Eligible for Union Bank Education Loans

The Eligible Universities are divided into two categories. Category A has an Unsecured Limit of Rs 40 Lacs, and up to Rs 30 Lacs for Category B. They have a common upper limit of Rs 1.5 Crore for a Secured Education Loan. Here is the List of Universities in USA, which are eligible for Unsecured Education Loan by Union Bank. 

CATEGORY A

CATEGORY B

Interest Rate of Union Bank for USA Education Loan

The Union Bank provides the minimum Interest Rate for Study Abroad Education Loans. Their Interest rate starts at 9.75% for up to Rs 40 Lacs and 9.25% - 9.50% for up to Rs 1.5 Crore based on collateral value and requested loan amount. 

Application Process for Education Loans

Check Eligibility
Start by checking your eligibility on Abroad Cube's website or reach out to us via WhatsApp or phone. The Eligibility criteria include Country acceptance, University and course ranking, Academics, Credit Score and history, co-applicant and Collateral requirements, etc.

Document Submission
Once you pass the basic Eligibility Criteria, the next step will be Documentation. Our Education Loan Expert will send you a personalized Document Checklist of Union Bank and help you arrange, sort and suggest alternatives, if any. Before sending documents to the Union Bank, we ensure that all documents are in order according to the required Checklist to expedite the application login process.

Application Processing
Our Education Loan Expert will choose the best lenders from the pool of 12+ options to get you the best-suited deal. They will follow up with concerned Lender Relationship Managers for Application Login and further processing. The lender process will include getting consent, address verification, and a small telephonic interview with the Credit Manager before the final decision.

Loan Sanction & Disbursal
The sanction letter will be released within 24 hours once you pay the processing fee to the Bank via acceptable payment methods. Afterwards, you may proceed with the Study Visa process or request Pre-Visa disbursement. You can also ask for reimbursement if you have already paid the Tuition Fees or Living Expenses via other means. Once you complete the banking formalities, the loan amount will be disbursed into the Bank Account

Apply for Union Bank Education Loan

Documents required for Union Bank Education Loan

Download Education Loan Document Checklist

Disbursement & Moratorium Period: What to Expect

The Union Bank disburses the Loan amount to existing or new Union Bank savings accounts opened in favour of the Student and Co-Borrower. So, if you do not hold any savings account in Union Bank, you must open a new one at the time of agreement signing and disbursement. Once disbursed, the tuition fee will be transferred to the university, and living expenses will be paid in an Indian savings account, Forex card, or foreign bank account. You can request reimbursement if you have already paid the tuition fees and other expenses through other means. 

To ease the stress, the Union Bank provides a complete moratorium period during the study period and an additional grace period of 1 year. You can pay Simple Interest during the moratorium, but it's optional. The full EMI, as mentioned in your Sanction Letter, starts after the completion of the Moratorium period. 

Term life insurance policy to be obtained & assigned in favour of the bank. The policy should be in the student's name for an amount not less than the loan amount and the tenure covering the course, moratorium and repayment period. The insurance premium can be included in the loan amount if requested by the student.

Success Stories: Students Who Benefited from Union Bank Loans