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  • Union Bank of India Education Loan

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    Overview:

    Union Bank is one of India’s most prominent government owned banks which was established in the year 1919. The bank enjoys a widespread presence not only in India but also in countries like UAE, Abu Dhabi, Beijing, Sydney, London, Shanghai, Belgium, etc.

    Under its personal banking arm, Union Bank of India offers Union Education which is essentially an education loan meant for all those who wish to borrow funds in order to pursue higher education in India or abroad.

    Features / Benefits of the Union Bank Education Loan:

    This education loan is designed for all individuals who wish to pursue basic education, graduation / higher education or any technical / professional / management course by recognized institutions in India or overseas.

    Quantum of Loan:

    For studies in India, the maximum quantum of loan which can be obtained is Rs 10 lakhs. For studies abroad, the quantum of loan is capped at Rs 20 lakh.

    Repayment Tenure:

    Quantum of Loan

    Maximum Repayment Tenure

    Up to Rs 7.50 lakh

    10 years

    Above Rs 7.50 lakh

    15 years

    The moratorium period allowed with this loan can either be for the duration of the course period + 1 year or 6 months after getting a job, whichever occurs earlier.

    Interest Rates:

    The following tables list out the Union Bank Education loan interest rates not only for higher education as well as vocational training for male and female students.

    Quantum of Loan

    Interest Rate (Male students)

    Interest Rate (Female students)

    Up to Rs 7.50 lakh

    12.25% (fixed)

    11.75% (fixed)

    Above Rs 7.50 lakh

    12.00% (fixed)

    11.50% (fixed)

    For Vocational Education & Training

    Male students

    11.75% (fixed)

    Female students

    11.25% (fixed)

    Processing Fees:

    This loan does not carry any processing fee.

    Margin:

    For loans up to Rs 4 lakhs, no margin is required. However, for loans above Rs 4 lakhs taken for studies in India, a margin of 5% is required, while a margin of 15% is applicable if loan is taken for studies abroad. Any assistantship / scholarship secured will be included in the margin.

    Security:

    Quantum of Loan

    Security Required

    Up to Rs 4 lakh

    No security required

    Above Rs 4 lakh & up to Rs 7.50 lakh

    Suitable third party guarantee which is acceptable to the bank

    Above Rs 7.50 lakh

    Tangible collateral security which is equal to the loan amount + interest combined, payable for the duration of the course and moratorium period, which is acceptable to the bank.

    Please note, for all the above cases, the parent/spouse must be the co-applicant of the loan.

    Union Bank Education Loan Eligibility:

    In order to apply for the Union Bank education loan, the applicant must fulfil the following conditions:

    • Must be an Indian citizen
    • Applicant must have gained admission to a recognized institute in India or abroad through an appropriate standardized selection process or by clearing the concerned qualifying examination.

    Union Bank Education Loan Course Eligibility:

    Following is the broad category of courses which are eligible under the Union Bank education loan.

    In India:

    • Graduation / Post Graduation / Diploma courses offered by recognized universities / colleges.
    • Technical / management / professional courses

    Outside India:

    • Graduation / Post Graduation / Diploma courses offered by recognized universities / colleges.
    • Certified degree courses offered by recognized institutes like CIMA (London) and CPA (USA) and such others.
    • Diploma courses offered outside India are not eligible for this loan.

    Documentation Required for Union Bank of India Education Loan:

    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.

    Subsidy Schemes for Union Bank Education Loan:

    1. Central Scheme for Interest Subsidy (CSIS):
    2. The Central Scheme for Interest Subsidy (CSIS) has been introduced by the Government of India in order to make quality education available to students belonging to the economically weaker sections of the society. The purpose of this scheme is to decrease the interest liability of individuals who have taken an education loan from any scheduled bank / regional rural bank (RRB) in order to pursue an approved technical / professional course from any recognized institution in India. Only students belonging to weaker sections of the economy, where the maximum annual family income is Rs 4.5 lakhs, at the time of availing the loan, are eligible to apply for this scheme.
    3. Padho Pardesh:
    4. The Padho Pardesh Scheme too has been introduced with the purpose of providing subsidy on interest for education loans for pursuing studies abroad. This subsidy scheme is designed especially for meritorious and deserving students belonging to the economically weaker sections of minority communities. In order to be eligible for this scheme, students must fulfill the following criteria:
      • They must have secured admission to approved courses at the Masters, M.Phil and Phd level.
      • Applicant must have taken a loan from a scheduled bank under the education loan scheme of the Indian Banks’ Association (IBA).
      • The income ceiling of the applicant’s parents/guardians in this case must not exceed Rs 6 lakhs per annum and proof for the same must be submitted in form of an Income Certificate issued from the concerned authority of the state / Union Territory.
    5. Special Education Loan Scheme:
    6. This loan scheme has been introduced for students who wish to pursue higher education at prestigious B-schools in India like IIMs, XLRI, SPJIMR and MDI. This scheme offers the following special features:

      1. Floating rate of interest with a Base Rate of 10.25%.
      2. No margin applicable on loan amount with this scheme.
      3. Applicants have the option to avail the loan either from their city of residence or the city where their educational institute is located.
      4. Avail a loan for up to Rs 20 lakh.
      5. No collateral security required.

    Union Bank Education Loan FAQs:

    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.

    Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

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    Union Bank of India Education Loan Reviews

  • Page 1 of 1
    • Union Bank of India Education Loan
      "Good experience in Education Loan"
      UNION BANK OF INDIA
      0.5 5.0/5 "Blown Away!"
      It was a very pleasant experience with Union bank from sanction disbursal and repayment services for education loan which I had taken for my daughters. Very cooperative attitude of BRS Nagar Branch and very quick service too. I will recommend this for others too
      Was this review helpful? 1
      , ludhiana
      Reviewed on Jun 16, 2017
    • Union Bank of India Education Loan
      "Interest rate part has to be reduced"
      UNION BANK OF INDIA
      0.5 4.0/5 "Great!"
      I had taken an education loan during the year 2010 from Union Bank of India. My loan amount was 1.64 lakh, I had made some part payment on that. They had offered me good interest rate on education loan. The bank kept disbursing the funds on a yearly basis however interest is charged well before that, even before the loan amount is disbursed,
      Was this review helpful? 4
      , bangalore
      Reviewed on Mar 26, 2017
    • Union Bank of India Education Loan
      "Easy to reach union bank "
      UNION BANK OF INDIA
      0.5 4.0/5 "Great!"
      Indeed, I had taken an educational loan from UNION bank of INDIA and it is very good too. I had lost my points because of which credit score had not reduced. Actually at the time of availing this loan they advised me to re-pay the loan after a year, as per their instructions I started to pay my loan after a year. however it impacted my credit score now that I had paid the lumpusm amount my credit score is reverted back.
      Was this review helpful? 2
      , bangalore
      Reviewed on Jan 16, 2017
    • Union Bank of India Education Loan
      "Better service"
      UNION BANK OF INDIA
      0.5 4.0/5 "Great!"
      Union bank of India Educational loan process was very simple and easy to proceed. I am holding this Bank for about 5 years. This loan is ongoing there is no collateral security required and I did not face any issues till date on this loan.
      Was this review helpful? 1
      , bangalore
      Reviewed on Nov 30, 2016
    • Union Bank of India Education Loan
      "Good "
      UNION BANK OF INDIA
      0.5 3.0/5 "Satisfactory"
      I have closed the educational loan with the Union bank of India and the interest rate is around 11% something. Charges are the bestwith them like they used to charge very less like only the interest rate. Documentation process were huge with them..
      Was this review helpful? 0
      , delhi
      Reviewed on May 27, 2016
    • Union Bank of India Education Loan
      "Good in response..."
      UNION BANK OF INDIA
      0.5 4.0/5 "Great!"
      I have taken my Education loan from Union bank of India. They are very good in terms of response part. Only thing is, they are lacking while uploading necessary information. I closed it but which was not reflected on their on line portal and they took almost 2months for that. It should be improve.
      Was this review helpful? 7
      , chennai
      Reviewed on Feb 11, 2016
    • Union Bank of India Education Loan
      "Very nice"
      UNION BANK OF INDIA
      0.5 5.0/5 "Blown Away!"
      UNION Bank of INDIA education loan is fine, its a very nice its a good customer service. Its an excellent bank . My dad is working there so it was very easy for me to avail the loan. Based on my dad's bank statement, his pay slip, my KYC my pan and my University approval letter they have offered the loan . No drawback for this loan. I am holding this loan for a period of 5 years.
      Was this review helpful? 6
      , mumbai
      Reviewed on Nov 17, 2015
    • Union Bank of India Education Loan
      "Thanks to Union Bank"
      UNION BANK OF INDIA
      0.5 4.0/5 "Great!"
      It was not that easy to get a loan with Union Bank based on the education loan.I would like to thank them for providing a loan.It takes some time to get the final approval.They required standard documents to process the loan.They were requesting a third party guarantor which I felt difficulties to proceed.
      Was this review helpful? 4
      , gurgaon
      Reviewed on Oct 19, 2015
    • Union Bank of India Education Loan
      "Average service"
      UNION BANK OF INDIA
      0.5 2.0/5 "Expected more"
      I would say it was a average experience with Union Bank while applying for a education loan.They havenâ??t updated about the repayment time and they have sent a NPA notice for not paying the EMI.I have completed the loan within 2years and at the time of closing the loan experience was good with Union Bank.
      Was this review helpful? 2
      , bangalore
      Reviewed on Sep 08, 2015
    • Union Bank of India Education Loan
      "family bank"
      UNION BANK OF INDIA
      0.5 5.0/5 "Blown Away!"
      Union Bank of India has been like a family bank to me. My whole family has been using its services and it is very good. The response has been good too. I have taken my educational loan from them. The process was good. The rate of interest is as per the RBO norms. There was a processing fee but it was minimal.
      Was this review helpful? 4
      , bangalore
      Reviewed on Aug 28, 2015
    • Union Bank of India Education Loan
      "Amazing. "
      UNION BANK OF INDIA
      0.5 5.0/5 "Blown Away!"
      By considering my experience, I would say Union Bank of India as outstanding as they are customer centric. When I approached them for an educational loan they responded well and offered the interest as 10-12%. Processing charge is not that much and this is like my home bank.
      Was this review helpful? 12
      , mumbai
      Reviewed on Jun 16, 2015
    • Union Bank of India Education Loan
      "Genuine in banking..."
      UNION BANK OF INDIA
      0.5 4.0/5 "Great!"
      Infact the tenure of education loan is of 8 years but I have closed the loan in four years and I did not pay fore closure charge. For me Union Bank of India had offered 13.5% in simple rate and not in incremental basis. Simple rate is nothing but interest only for outstanding amount. The bank havenâ??t demanded for property documents for security reasons.
      Was this review helpful? 6
      , pune
      Reviewed on May 18, 2015
    • Union Bank of India Education Loan
      "Competitive interest rate"
      UNION BANK OF INDIA
      0.5 4.0/5 "Great!"
      Union bank Of india provided very low interest rate and its competitive as well including the processing charges. For educational loan, its 8.5% interest rate and I haven't faced any challenges in terms of communicating to the customer service team. I do pay the monthly payments by visiting the branch and the response provided is faster.
      Was this review helpful? 4
      , bangalore
      Reviewed on Dec 03, 2014
    • Union Bank of India Education Loan
      "Good bank"
      UNION BANK OF INDIA
      0.5 4.0/5 "Great!"
      Union Bank of India is a good bank they have provided me educational loan then and there itself as soon as I asked them, they always listen to their customer they provide 100% solution and it would be really good if they work on infra structure as everything is good and no much comments about bankbazaar.
      Was this review helpful? 2
      , new delhi
      Reviewed on Jun 04, 2014
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