Union Bank Education Loan for Study Abroad

The Union Bank of India provides education loans to students intending to study in India and abroad. They charge a fixed processing fee of Rs 5000, which is refundable on the first disbursement. So, technically, their processing fee for the Education Loan is zero. 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 9.3%, 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 get your Eligiblity checked 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. 

Abroad Cube is an Official partner of UBISL, a wholly owned subsidary of Union Bank for Education, Home, Vehicle and MSME Loans. Our partner code is P4190 and our legal name is McCarthy AI Private Limited. 

Union Bank Education Loan Products

The Union Bank of India provides Secured and UnSecured Education loans for both Study in India and abroad via multiple schemes. Each scheme comes with its separate Eligibility Criteria and List of Pre-Approved Institutes. 

1. Education Loan for Premier Institute Abroad Studies
2. Education Loan for Premier Medical Institutes - Union Medicos
3. Education Loan for Premier Management & Technical Institutes Inland- TIER I
4. Education Loan for Premier Management & Technical Institutes Inland- TIER II

Union Bank - Premier Abroad Institutes

The Union Bank is a first-of-its-kind government bank in India that started providing unsecured loans to aspirants who were studying abroad for up to Rs 40 Lacs. The product is in line with multiple NBFCs and Private Banks offering Unsecured Education Loans for higher amounts. There are more than 150+ top-rank universities in the USA, UK, Australia, Canada, Germany, Singapore, Denmark, Netherlands, etc., in the Pre-Approved List of Eligible Universities.  

Download List of Eligible Universities

Union Bank - Premier Medical Institutes

The Union Bank provides up to Rs 2 Crore Secured Education Loan for Medical Universities in India. The maximum limit for an Unsecured Loan is Rs 40 Lacs, which is sufficient for most students. The List comprises all AIIMS, Jamia Hamdard University, Mahatma Gandhi Medical College & Research Institute and various other Top Ranking Institutes. The repayment of the loan starts one year after the course is completed. 

Download List of Eligible Universities

Union Bank - Premier Management & Technical Institutes (TIER I)

High-ranking universities in India, such as IITs, IIMs, etc., are eligible for an Unsecured Education Loan for up to Rs 40 Lacs, with interest rates starting at just 8.10%. The Eligible course is based on the University and may vary. 

Union Bank - Premier Management & Technical Institutes (TIER II)

More than 100 universities and colleges are eligible for an unsecured education loan of up to Rs 20 Lacs. The programs related to Bachelors, Masters, and PGDM are on the approved list. As a special offering, there is a 0.50% Interest Rate concession for Females, SC / ST / Minority.

Expenses Covered by Union Bank Education Loan

Here is the list of expenses covered by Union Bank for an Education Loan

• Tuition Fee payable to University/College
• Living expenses, including accommodation, food, and day-to-day expenses
• Travel Expenses such as Flight Ticket and related costs
• Insurance premium for student borrowers, if applicable
• Purchase of books/equipment/ instruments/ uniforms
• Purchase of computer at reasonable cost, if required for completion of the course
• Any other expense required to complete the course

Eligibility criteria for Union Bank Education Loan

Here is the basic Eligiblity Criteria for Study Abroad Education Loan by Union Bank. 

Student

• must be an Indian Citizen
• must be a minimum of 18 years of age
• must have a good CIBIL history

University

• must be approved by the concerned regularities
• can be a Graduate/Post-Graduate/technical course
• must have a good world and national ranking
• must be SDS & PGWP approved (for Canada only)

Academics

• must have a minimum of 50% in Class 10th, Class 12th, Bachelors and Masters
• must have a sufficient language proficiency exam scores

Co-Applicant / Co-Borrower

• must be an Indian citizen
• should be a father, mother, brother, sister, grandparent or any other blood relative.
• must be a financial earner (Salaried, Self-Employed, Farmer, or Pensioner)
• must have a savings bank account in India that allows them to sign cheques
• must be the primary debtor
• must have a good CIBIL history

Collateral

• must be a fixed deposit or property such as a house, or shop
• property must be approved by the concerned authorities
• property must be located in an Urban or City area

Charges of Union Bank Education Loan

Here is the list of basic charges involved in Union Bank Study Abroad Education Loan

*Charges may vary

Union Bank Education Loan Interest Rates

The Union Bank has the lowest interest rate for unsecured Loans among all banks and NBFCs available in India. Their interest rate for an unsecured loan starts at 9.75% and goes down by 0.50% concession based on collateral value if available. The interest rate varies based on the University category between Category A, Category B and Uncategorized. 

The spread will remain fixed for 3 years for the borrower. The first reset will be 3 years from the date of sanction, and subsequent resets will be every 3 years from the last reset date. The premium component will remain fixed till the maturity of the loan.

Union Bank Premier Abroad

Union Bank Premier Medical - Union Medicos

* Interest Rate is subject to Change

Union Bank Processing Fees for Education Loans

The Union Bank of India does not charge any processing for Education Loans for Study in India, including Education Loans for Premier Medical and Premier Technical and Management institutes. For Study Abroad, there is a processing fee of Rs 10,000 + GST for Education Loans up to Rs 40 Lacs and Rs 20,000 + GST for more than Rs 40 Lacs. 

Union Bank Education Loan Repayment Process

The Union Bank of India has a straightway process of Repayment where Bachelor programs are required to pay full EMI during the study period with zero grace period. However, Master's programs have a choice between zero-EMI and Simple-Interest EMI during the Moratorium period. No further concession for servicing interest during course & moratorium period.