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image  FAQ: Union Education

  • Can I get reimbursement of cost already incurred for the course?

Answer: Yes, reimbursement is permissible for initial year /semester fees for loan sanctioned within 6 Month from the date of letter of admission. For further information please visit Branch/office.

  • What is the Normal time required for disbursement of Education loan

Answer: It takes only 7 working days to get the Loan sanctioned from Union Bank of India after submission of requisite documents and papers.

  • How do I know if I am eligible for any Subsidy Scheme?

Answer: In order to make education loan affordable for each student, many tax benefits and government sponsored subsidy schemes are available in India. You can check the brief of Education Loan Subsidy schemes to know the eligibility norms.

  • Do I need to pay interest amount during the course period?

Answer: It is not mandatory. However, if you choose to pay the accrued interest during the course period, rebate of 1 % will be given in applicable rate of interest for the repayment period, except in special schemes where already interest concession is available.

  • Is there any requirement with respect to the minimum marks in previous exams?

Answer: Yes, Minimum marks secured in qualifying exam should be as under:  

 

For studies in India

Category

Minimum marks

General

60%

OBC

55%

SC/ST

50%

For studies abroad 

Category

Minimum marks

General

60%

OBC

50%

SC/ST

50%

  • What is qualifying exam?

Answer: Qualifying exam is defined as any examination/course which is a prerequisite for securing admission to the proposed course of study. For example 10+2/higher secondary exam is a qualifying exam for securing admission to Degree course.

  • What does the own contribution (Margin) mean?

Answer: Own contribution (Margin) means is the total expenses minus loan amount.

  • What are the expenses covered under the Education Loan?

Answer: Expenses includes tuition fee, Hostel/mess charges, Examination/ Library/ Laboratory fee, Insurance premium, Books/ equipment/ instruments/ uniforms, computer/laptop, travel expenses (for studies abroad), any other expenses required to complete the course - like study tours, project work, thesis, etc.

  • What is EBLR

Answer: EBLR stands for External Benchmark Lending Rate. Union bank of India has adopted Repo rate linked External benchmark lending rate as per RBI directive to link its floating rate loans.

  • When will my interest Rate changes under EBLR regime?

Answer: The External Benchmark shall be reset at least once in three months or any other frequency as prescribed by Bank / RBI.

  • How do I make a Union Education Loan Application?

Answer: Collect application form from our nearest branch or simply download it from our website and submit it along with documents at any Union Bank of India branch. However, it is advisable to apply online through Vidya Lakshmi Portal of GoI and select Union Bank of India as preferred Bank.

  • Is it mandatory to buy insurances policy with Education loan?

Answer: For a borrower to understand the same better, there are two types of insurance covers available for Education Loan:

  • Property Insurance: In order to safeguard the Bank’s interest against any loss to the Property caused by unpredictable damages and natural disasters, insurance cover is mandatory (only for the cases where the loan is secured by mortgage of the property). Property insurance policy should cover the structure as well as its contents or possessions.
  • Life Insurance: This is also mandatory. The insurance policy should cover the life of the student for the tenure and quantum of the loan. The insurance premium amount can be included in the loan amount, if so desired by the applicant.