EDUCATION LOAN

The maximum amount of loan sanctioned would be ` 20 lakh for studies in India and ` 30 lakh for studies outside India. Under our special education schemes, please see the special offers Tab above for information of maximum amount for premier institutes.

Who can be the co-applicants for the education loan?

Parents (either father or mother) can be the co-applicant. In case both parents are not there, the guardian can become the co-applicant. In case of married applicants, the spouse/parent-in-laws can become the co-applicant.

What is the maximum loan repayment tenure ?

Maximum repayment tenure (after the course and moratorium period) is 15 years irrespective of the loan amount.

What are the applicable rates of interest?

Please click here for information on rate of interest.

What are the processing charges?

nil

How is the interest charged/calculated?

Interest will be applied in the account on the basis of reducing balance method at monthly rests. During moratorium period compounding interest would not be charged

What is a Monthly Reducing balance?

An Equated Monthly Instalment (EMI) has 2 components, interest and principal. When the interest is calculated on monthly rests, the principal on which the interest is charged goes down every month. This results in a significant saving for the customer over the tenure of the loan.

How do I repay the Education loan?

The loan shall be repaid in equated monthly instalments (EMIs). You can pay the EMI in any of the following ways  

• Through standing instruction to your Union Bank of India savings account to directly remit the EMI amount to your loan account
• Through internet banking facility available on your Union Bank of India savings account
• ECS (Debit) facility
• Post Dated Cheques (PDCs)

Can I prepay my education loan?

Yes, you can make your prepayment. There is no charge on pre payment if the loan is adjusted by the borrower from his own verifiable legitimate sources. However, a charge of 2% on the average balance of the preceding 12 months if the loan is taken over by any other Bank/ FI

What security/ collateral do I have to provide?

The security required is as mentioned below.

Is a guarantor a must?

The parent / guardian of the student who is availing loan have to join-in as co-borrower.

What are the tax benefits I get from my education loan?

Tax benefits can be claimed on the interest component of the education loan as per the Income Tax Act, 1961. An amount equal to the interest amount paid can be claimed for deduction under section 80E.

Do I need to open an account with Union Bank of India for availing and/ or servicing the education loan?

Although opening of account is not mandatory for availing a loan, we would recommend to bank with us in order to benefit from other value added services.

What documents do I need to submit to avail an education loan?

Please see the Forms & Documents Tab above for information on the list of documents required

How much time will it take for my education loan to be approved?

It takes 7 days for your loan to be sanctioned, after you have submitted all the documents.

What are the stages involved in taking a loan?

There are three main stages -

• Application - Whereby you submit a completely filled in application with all necessary documents
• Sanction - Whereby you get an approval for a specific loan amount based on the value of your property and repayment capabilities
• Disbursement - Whereby the loan amount is disbursed

How do I approach Union Bank of India for a education loan?

You can approach us in any of the following ways  

• You can visit any of our special retail lending branches called Union Loan Points (ULPs). To locate a ULP, click here
• You can visit any of our branches. To locate a branch, click here
• Request for a contact online
• You can also contact our 24 x 7 Call

Students who secure admission in Indian School of Business (ISB), Hyderabad/ Mohali/Mumbai (Proposed), only for the following courses:
• Post Graduated Programme in Management (PGPM)
• Post Graduate Programme in Management for Working Professionals (PGP-PRO)
• Post Graduate Programme in Management for Senior Executives (PGP –MAX)

The scheme does not cover any other executive courses except the above.

To meet tuition fees, cost of books, caution deposit (refundable), hostel/mess charges/equipment such as desktop or laptop/living expenses, insurance premium, student exchange programme, admission acceptance fee etc.

Note:

• * Fees Payable Rs.36.00 lakh + Rs 4.00 Lakh for Student exchange Program.
• ** 15% margin to be taken on total programme fee of Rs.36.60 lakh.
• ***15% margin to be taken on total programme fee of Rs.45.44 lakh.
• # The student can be given an option of step-up repayment schedule in which borrower is allowed to service lower EMI in initial years and higher EMI later on

Students, who availed education loan from other bank or our bank for their graduation studies, are also eligible for 2nd education loan under following conditions:
• If the repayment of the first loan is yet to commence then the applicant must be ensured that the repayment holiday to be extended for first loan by the bank concerned or Student/Parents/Spouse to undertake repayment of the loan.
• If the repayment of the first loan has already commenced then the applicant must be ensured that the account is in standard category as on date of sanction of ISB loan or repayment holiday to be obtained for the first loan or students/parents to undertake repayment of the same.

Note: In both the above scenarios, it must be ensured that total of o/s balance of first loan and the limit proposed to be sanctioned under ISB, should not exceed maximum quantum of loan specified in the scheme.

Takeover of Education Loan of ISB students is only permitted when
• He/she have availed Housing Loan from our bank and are in standard category with us.
• He/She have availed Housing Loan and Education loan from other bank/FI and he/she willing to shift the same to us (even if the loans are from two different banks).
Note:
• If the loan is taken over by any other bank/FI, then normal education loan rate of interest, as applicable on the date of sanction, to be charged ab-initio.
• No takeover charged to be levied.
Other Conditions:
• Parent / guardian / spouse should join as co-applicant
• Life insurance policy for a sum not less than the loan amount is required to be taken out in the name of the student and got assigned in bank's favour for the entire repayment tenure (Preferably SUD Life Shiksha Suraksha 2 Plan). However, student may have the option to approach any insurance company for lesser premium.

Special Scheme for IIMs, XLRI, MDI, SPJIMR, IITs, NITs, IISc, IMT and Thapar University Patiala

Eligibility Students who secure admission in following Institutions for regular courses are eligible: Indian Institute of Management (IIMs) Xavier Labour Relation Institute (XLRI), Jamshedpur S P Jain Institute of Management & Research (SPJIMR), Mumbai Management Development Institute (MDI) Indian Institute of Technology (IITs) National Institute of Technology (NITs) Indian Institute of Science (IISc), Bangalore Institute of Management Technology (IMT), Ghaziabad Thapar University, Patiala The scheme does not cover executive courses and short duration courses / programmes of the above institutes.

Purpose To meet tuition fees, cost of books, caution deposit, hostel charges, mess charges equipment such as desktop or laptop/desktop, living expenses, insurance premium, expense for student exchange programme, admission acceptance fee etc.   IIMs, XLRI, MDI, SPJIMR, IITs, NITs, IISc, IMT Maximum quantum ` 30 Lakh Margin Nil Loan for students studying in subsequent years Students in the subsequent years can also apply for loans. The fee and other expenses incurred by the student for initial years will not be reimbursed to the student. Reimbursement of AAF/Term Fee Yes (on production of original receipt within the overall limit of Rs. 30 lakh) ROI (for both male & female) 1 year MCLR (floating) At present 1Y-MCLR is 8.20% as on 01.01.2018 Moratorium Period Course period + 1 year Maximum repayment tenure 180 months Processing Charges Nil Security No collateral security or 3rd party guarantee 2nd Education Loan: Students, who availed education loan from other bank or our bank for their graduation studies, are also eligible for 2nd education loan under following conditions: If the repayment of the first loan is yet to commence then the applicant must be ensured that the repayment holiday to be extended for first loan by the bank concerned or Student/Parents/Spouse to undertake repayment of the loan. If the repayment of the first loan has already commenced then the applicant must be ensured that the account is in standard category as on date of sanction of second education loan or repayment holiday to be obtained for the first loan or students/parents to undertake repayment of the same. Note: In both the above scenarios, it must be ensured that total of o/s balance of first loan and the limit proposed to be sanctioned under Special Scheme for Premier Management & Technical Institute, should not exceed maximum quantum of loan specified in the scheme i.e. ` 30 lakh. Takeover of Education Loan: Takeover of Education Loan of ISB students is only permitted when He/she have availed Housing Loan from our bank and are in standard category with us. He/She have availed Housing Loan and Education loan from other bank/FI and he/she willing to shift the same to us (even if the loans are from two different banks). Note: If the loan is taken over by any other bank/FI, then normal education loan rate of interest, as applicable on the date of sanction, to be charged ab-initio. No takeover charged to be levied. OTHER CONDITIONS Parent / guardian / spouse should join as co-applicant NRI students are not covered under the scheme. Life insurance policy for a sum not less than the loan amount is required to be taken out in the name of the student and got assigned in bank's favour for the entire repayment tenure (Preferably SUD life Shiksha Suraksha-II Plan). However, student may have the option to approach any insurance company for lesser premium. All other terms & conditions as per Union Education Scheme for studies in India.

 Special Scheme for NIFT, SIBM, IIFT, SCHMRD, VIT, NID, BITs, FMS, NITIE etc

   

Eligibility  
Students who secure admission in following Institutions for regular courses are eligible:
• Birla Institute of Technology & Science (BITs) at Pilani, Goa, Ranchi, Hyderabad & Dubai
• Vellore Institute of Technology (VIT), Vellore
• National Institute of Fashion Technology (NIFT)
• National Institute of Design (NID), Ahmedabad
• Faculty of Management Studies (FMS) - University of Delhi, New Delhi
• Indian Institute of Foreign Trade (IIFT), New Delhi & Kolkata
• Jamnalal Bajaj Institute of Management Studies (JBIMS), Mumbai
• National Institute of Industrial Engineering (NITIE), Mumbai
• Narsee Monjee Institute of Management Studies (NMIMS), Mumbai
• Shailesh J Mehta School of Management - IIT Bombay, Mumbai
• Department of Management Studies - IIT Delhi, New Delhi
• Vinod Gupta School of Management - IIT Kharagpur, Kharagpur
• Industrial and Management Engineering - IIT Kanpur, Kanpur
• Department of Management Studies - IIT Madras, Chennai
• Tata Institute of Social Sciences (TISS), Mumbai
• Welingkar Institute of Management Development and Research, Mumbai
• Sydenham Institute of Management Studies, Research and Entrepreneurship Education (SIMSREE), Mumbai
• KJ Somaiya Institute of Management Studies and Research (KJSIMSR), Mumbai
• Symbiosis Institute of Business Management (SIBM), Pune
• Symbiosis Center for Management and Human Resources Development (SCMHRD), Pune
• Xavier's Institute of Management Bhubaneshwar (XIMB)
• Mudra Institute of Communication Ahmedabad (MICA)
• TA Pai Management Institute (TAPMI) Manipal
• Institute of Rural Management Anand (IRMA)
• Institute of Management - Nirma University, Ahmedabad (NIRMA)
• Goa Institute of Management (GIM), Goa
• Indian Institute of Forest Management (IIFM), Bhopal
• Xavier Institute of Social Services (XISS), Ranchi

The scheme does not cover executive courses and short duration courses / programmes of the above institutes.

• PURPOSE 

To meet tuition fees, cost of books, caution deposit, hostel charges, mess charges, equipment such as desktop or laptop/desktop, living expenses, insurance premium, expense for student exchange programme, admission acceptance fee etc.

	Tier II Institutes
Maximum quantum	` 12 Lakh
Margin	Upto ` 4 lakh			Nil
	Above ` 4 lakh & Upto ` 12 lakh			5%
Loan for students studying in subsequent years	Students in the subsequent years can also apply for loans. The fee and other expenses incurred by the student for initial years will not be reimbursed to the student.
Reimbursement of AAF/Term Fee	Yes (on production of original receipt within the overall limit of ` 12 lakh)
ROI	Male		1Y- MCLR + 1.65% (floating)
	Female/SC/ST/Minority		1Y- MCLR + 1.15% (floating)
	At present 1Y-MCLR is 8.20% as on 01.01.2018
Moratorium Period	Course period + 1 year
Maximum repayment tenure	180 months
Processing Charges	Nil
Security	Loan Amt.	Security
	Upto ` 4 lakh	No Security
	>`4 lakh to `7.5 lakh	Suitable third party guarantee
	>`7.5 lakh to `12 lakh	Tangible Collateral Security of minimum value equivalent to the loan amount

 

2nd Education Loan:
Students, who availed education loan from other bank or our bank for their graduation studies, are also eligible for 2nd education loan under following conditions:
• If the repayment of the first loan is yet to commence then the applicant must be ensured that the repayment holiday to be extended for first loan by the bank concerned or Student/Parents/Spouse to undertake repayment of the loan.
• If the repayment of the first loan has already commenced then the applicant must be ensured that the account is in standard category as on date of sanction of second education loan or repayment holiday to be obtained for the first loan or students/parents to undertake repayment of the same.

Note: In both the above scenarios, it must be ensured that total of o/s balance of first loan and the limit proposed to be sanctioned under Special Scheme for Premier Management & Tehnical Institute, Tier-II , should not exceed maximum quantum of loan specified in the scheme i.e. `12 lakh.

Other Conditions
• Parent / guardian / spouse should join as co-applicant.
• NRI students are not covered under the scheme.
• Life insurance policy for a sum not less than the loan amount is required to be taken out in the name of the student and got assigned in bank's favour for the entire repayment tenure (Preferably SUD life Shiksha Suraksha-II Plan). However, student may have the option to approach any insurance company for lesser premium.
• All other terms & conditions as per Union Education Scheme for studies in India.