Search
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.
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
Security
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.
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 –
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 –
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
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)
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
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.
Upto Rs. 4 Lakhs
Rs. 4 - 7.5 Lakhs
Above Rs. 7.5 Lakhs
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 -
How do I approach Union Bank of India for a education loan?
You can approach us in any of the following ways
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.
PGPM
PGP-PRO
PGP-MAX
` 40 Lakh*
` 31.11 lakh**
` 38.62 lakh***
Reimbursement of AAF/Term Fee
Yes
No
ROI (for both male and female)
1 year MCLR (floating)
1 year MCLR+ 0.20% (floating)
1 year MCLR + 0.20% (floating)
At Present 1Y-MCLR is 8.20% as on 01.01.2018
Maximum Repayment Tenure
180 months#
180 months or upto the 60 yrs age of borrower, whichever is earlier#
Moratorium Period
Course Period (12 months) + 1 year
Course Period (16 months)
Course Period (15 months)
No collateral security or 3rd party guarantee (In case where spouse/parents are not there, third party guarantee with adequate means to be obtained.)
Note:
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.
Special Scheme for IIMs, XLRI, MDI, SPJIMR, IITs, NITs, IISc, IMT and Thapar University Patiala
Eligibility
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
Loan for students studying in subsequent years
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
Course period + 1 year
Maximum repayment tenure
180 months
Processing Charges
No collateral security or 3rd party guarantee
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.
Special Scheme for NIFT, SIBM, IIFT, SCHMRD, VIT, NID, BITs, FMS, NITIE etc
Tier II Institutes
` 12 Lakh
Upto ` 4 lakh
Above ` 4 lakh & Upto ` 12 lakh
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
Loan Amt.
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
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.
Earn reward points on transactions made at POS and e-commerce outlets
Deposit lockers are available to keep your valuables in a stringent and safe environment
Connect to our financial advisors to seek assistance and meet set financial goals.
Find PNB Branches and ATMs in proximity to your location.