Make college memories that last a lot longer than your student loan payments.

Union Bank of India Education Loan

Union Bank offers education loans with affordable interest rates and beneficial features that make higher education possible for more students throughout India. There are also special education schemes for students who wish to study at premier technical institutions and management institutes in the country. Students from economically weaker sections and minority communities can also avail several central-government funded interest subsidy schemes through Union Bank

Union Bank Education Loan Interest Rates

The interest rates for Union Bank's education loan schemes are as given below:

Schemes Maximum Loan Amount Interest Rates (p.a.)
Union Education (under CGFSEL) Up to Rs.7.5 lakh 8.80% p.a.
Union Education (not under CGFSEL)
  • No maximum limit. Need-based financing
  • For NRI students: Up to Rs.30 lakh
8.40% p.a. to 10.05% p.a.
Union Education Loan for ISB Students Rs.30 lakh 6.80% p.a. to 7.00% p.a.
Union Special Education Loan Scheme
  • India: Rs.10 to Rs.75 lakh
  • Overseas: Rs.20 to Rs.75 lakh
6.80% p.a. to 8.55% p.a.
Union Education Skill Development Up to Rs.1.5 lakh 8.30% p.a. to 10.05% p.a.
Union Kisan Shiksha Suvidha
  • India: Rs.15 lakh
  • Overseas: Rs.30 lakh
Contact the bank

These interest rates are effective from 1 August 2021

Compare Union Bank Education Loan Schemes for Students

  1. Union Education
    • Interest rate: 8.40% p.a. to 10.05% p.a.
    • Processing fee: Nil for Indian students
    • Collateral:
      • Loans up to Rs.7.5 lakh: No collateral
      • Loans above Rs.7.5 lakh: Tangible collateral
    • Loan Tenure: 15 years after moratorium period
    • Eligibility: Indian nationals
  2. Union Kisan Shiksha Suvidha
    • Interest rate: Contact the bank
    • Collateral: Agricultural land where permissible
    • Loan Tenure: 15 years after moratorium period
    • Eligibility: Indian nationals belonging to the farming community who have secured admission into medical, engineering, and management courses
  3. Union Special Education Loan Scheme
    • Interest Rate: 6.80% p.a. to 8.55% p.a.
    • Processing Fees: None
    • Collateral: None
    • Loan Tenure: 15 years after moratorium period
    • Eligibility: Indian nationals who have secured admission in premier educational institutions in India
  4. Union Special Scheme for Tier II Management and Technical Institutes
    • Interest Rate: 8.05% p.a. to 8.55% p.a.
    • Processing Fees: None
    • Collateral:
      • Loans up to Rs.7.5 lakh: No collateral
      • Loans above Rs.7.5 lakh: Tangible collateral
    • Loan Tenure: 15 years after moratorium period
    • Eligibility: Indian nationals who have secured admission in tier II management and technical educational institutions in the country

Union Bank Education Loan EMI Calculator

Using the Union Bank education loan EMI calculator helps you understand exactly how much your Equated Monthly Instalment will be once you start repaying your education loan. This can help you plan your finances ahead and create a realistic budget. This will ensure that you are able to pay the EMIs on time while also having enough for your daily expenses and savings.

All you have to do is enter the required details on the EMI calculator, such as your approved loan amount, loan repayment tenure, and prevailing interest rate. Click on the ''Calculate'' button and the details of your loan, including a comprehensive amortisation table, will be instantly displayed on the page. This will be more accurate than a manual calculation.

Here's an example to illustrate this:

Let's say you have taken a Union Bank education loan for an amount of Rs.10 lakh at an interest rate of 8.80% p.a. with a loan repayment tenure of 15 years, then your EMI details will be:

  • Equated Monthly Instalment (EMI): Rs.10,024
  • Total interest due: Rs.8,04,326
  • Total amount payable: Rs.18,04,326

The amortisation table for the above-mentioned loan will be as follows:

Principal Paid (A) Rs. Interest Paid (B) (Rs.) Total Payment (A+B) (Rs.) Outstanding Loan Balance (Rs.)
24,939 65,278 90,217 9,75,061
35,909 84,380 1,20,289 9,39,153
39,199 81,090 1,20,289 8,99,954
42,791 77,498 1,20,289 8,57,163
46,712 73,577 1,20,289 8,10,450
50,994 69,294 1,20,288 7,59,457
55,663 64,625 1,20,288 7,03,791
60,768 59,521 1,20,289 6,43,024
66,335 53,954 1,20,289 5,76,689
72,414 47,874 1,20,288 5,04,275
79,050 41,239 1,20,289 4,25,225
86,294 33,995 1,20,289 3,38,930
94,202 26,087 1,20,289 2,44,729
1,02,834 17,454 1,20,288 1,41,894
1,12,257 8,031 1,20,288 29,636
29,637 435 30,072 0

How to Apply for Union Bank Education Loan Online/Offline

You can apply for a Union Bank education loan in the following ways:

Offline: You can visit the nearest branch of the bank or walk into the nearest Union Loan Point (ULP) which is the bank's special retail loan lending branch.

Online: You can also request a call back from the bank's representative by providing your contact details on the bank's official website.

Union Bank of India Education Loan Documents Required

To apply for the Union Bank of India Education Loan, applicants need to furnish the following documents.

  1. Proof of identity – Passport, PAN Card, Employee Identity card or any other valid proof
  2. Proof of address - Electricity bill, Telephone bill, Ration card or any other valid proof.
  3. PAN Card
  4. Bank statement for the last 12 months
  5. Admission documents, Admission Letter, Admit Card.
  6. Schedule of expenses including the fee structure and living expenses.
  7. Mark sheets for Class X or equivalent onwards.
  8. 3 photographs
  9. Proof of any out-goes
  10. Loan repayment statement (If any)
  11. LIC Policies (If any)
  12. Any other document asked for in the application form
  13. Proof of Income:
    • Salaried Individuals - Last one year’s Income Tax Returns, Form-16 / letter from employer, salary slips for the last 6 months.
    • Business Owners – Income Tax Returns for the last 3 years, Profit & Loss Balance Sheet.
    • Agriculturists – Income Certificate from concerned revenue officer (Tahsildar) or/and proof of land holding.

FAQ's

  1. How is the interest calculated on the Union Bank Education Loan?
  2. Interest on this loan will be calculated based on the reducing balance method at monthly intervals. No compounding interest will be charged during the moratorium period.

  3. What are the methods by which I can repay my Union Bank Education Loan?
  4. Your Union Bank education loan will be repaid in equated monthly installments (EMIs) in any of the following ways: (i) By authorizing your bank to directly debit the EMI amount from your Union Bank of India Savings account; (ii) Via the internet banking facility available on your Union Bank of India savings account; (iii) ECS (Debit) facility or (iv) By issue of Post Dated Cheques (PDCs).

  5. Is it necessary to have a guarantor while applying for a Union Bank Education Loan?
  6. Yes, the bank requires that the parent/guardian of the student applicant must join as co-borrowers on the loan

  7. How long will it take for my Union Bank education loan to be approved?
  8. After the necessary documents have been submitted with the bank, it takes approximately 7 days for the loan to be sanctioned.

  9. Does an applicant need to open an account with Union Bank in order to apply for their education loan?
  10. No, it is not mandatory for an applicant to open an account in order to apply for the Union Bank Education Loan.

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