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  • United Bank of India Education Loan

    United Bank of India Education Loan
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    United Bank of India (UBI) boasts of a wide network of 1999 branches. 100% CBS enabled, the bank has three fully equipped overseas branches, one each in Kolkata, New Delhi and Mumbai, respectively.

    Education is a basic necessity that enables one to evolve intellectually, broaden their perspective and be successful in life United Bank of India helps young minds to educate themselves by offering financial assistance for higher studies.

    Help your child shape his/her future with United Bank of India’s Education Loan.

    Features and Benefits of UBI Education Loan:

    Purpose of Loan:

    The purpose of the UBI Education Loan is to offer monetary support for prospective students to pursue higher education. This is a commendable step taken by the Government of India and RBI to provide equal educational opportunities for everyone. UBI firmly believes that no deserving student should be deprived of an opportunity to pursue higher education due to lack of adequate finance.

    Expenses Considered for United Bank of India Education Loan:

    • Course fee/ tuition fee payable to the institute.
    • Hostel fee.
    • Fees towards library and laboratory.
    • Purchase of book, equipment, uniforms and others.
    • Money towards caution deposit, refundable deposit and building fund, if charged by the institute. All these have to be validated with bills issued by the institute.
    • Travel expenditures and passage expenses for overseas education.
    • Expenses for study trips, projects and thesis.
    • Cost of laptop/computer (if essential to complete the course), and the same should be hypothecated to UBI.

    Courses Eligible for UBI Education Loan:

    Studies/courses in India:

    • Masters and Ph.D. in Arts, Commerce & Science
    • Professional courses like engineering, medicine, dentistry, veterinary, agriculture, computer, management, law, etc.
    • Certification in computer courses. These courses need to be conducted by recognised institutions, accredited to the Dept. of Electronics or institutes associated with a university.
    • Courses like CA, CFA, ICWA, etc.
    • Courses held by institutes like IIT, IIM, XLRI, NIFT, IISC, etc.
    • Courses provided in India by renowned international universities.
    • Evening courses held by approved institutions.
    • Other courses offering diplomas or degrees validated by UGC, Government, AICTE, AIBMS, ICMS, etc.

    Studies/courses abroad:

    • Graduation - professional/technical courses offered by reputed universities. These courses need to be job oriented.
    • Post-graduation degrees like MCA, MBA, MS, etc.
    • Courses conducted by CPA in United States of America and CIMA in

    Quantum of Loan Amount:

    The quantum of loan disbursed is classified on the place (India or abroad) where the course is being pursued.

    • For studies in India, the maximum loan amount that can be availed is Rs. 10 lakhs.
    • For studies abroad, the maximum loan amount that can be availed is Rs. 20 lakhs.

    UBI Education Loan Interest Rates:

    UBI offers education scheme loan at affordable rates of interest for the convenience of students and parents. Borrowers can enjoy a 1% concession on the regular interest rates, during the moratorium period, if the interest is serviced monthly and regularly during this period.

    Parents with an income of up to Rs. 4.5 lakhs p.a enjoy an interest subsidy by the government, during the moratorium period. The interest rate table below explains the rate of interests in detail.

    Loan Amount

    Interest Rates

    Up to Rs. 4 lakhs

    Base Rate + 2% = 12.00% (at present)

    Above Rs. 4 lakhs to Rs. 7.50 lakhs

    Base Rate + 2.75% = 12.75% (at present)

    Above Rs. 7.50 lakhs

    Base Rate + 2% = 12.00% (at present)

    Please note that the above mentioned rates are floating rates of interest, and are subject to change.

    Processing Fees:

    • No processing fee is charged for studies/courses in India.
    • 0.20% of loan amount is charged for courses abroad.

    Repayment Tenure:

    UBI Education Loan repayment tenure depends on the amount of loan availed, the nature of the course and place of study. It is explained in the table below.

    Loan Amount

    Repayment Tenure

    Up to Rs. 7.5 lakhs

    Up to 10 years

    Above Rs. 7.5 lakhs

    Up to 15 years

    Less than Rs. 4 lakhs

    Up to 7 years (only if the student’s income is sufficient to serve the EMIs)


    • No collateral security is required for loans up to INR. 4 lakhs, only co-obligation of parent/ guardian. An assignment of income, once the student starts earning, after the moratorium period is mandatory.
    • For loan amount between INR. 4 lakh and INR. 7.50 lakh, a third party guarantee is required along with co-obligation of parent/ guardian.
    • For loans above INR 7.5 lakhs, co-obligation of parent/ guardian as well as tangible collateral security is mandatory. This liquid security should cover the entire loan. The applicant also needs to submit the assignment of future earnings of the student for EMI repayment.


    • No margin is applicable on loan amount up to Rs. 4 lakhs.
    • 5% margin is applicable on loan amount above Rs. 4 lakhs, for studies in India.
    • 15% margin is applicable on loan amount above Rs. 4 lakhs, for studies abroad.

    Mandatory Documentation:

    • Copy of mark sheet of the latest qualifying public exam, for schools/ colleges in India.
    • Proof of admission to the course for which the loan is applied.
    • Schedule of expenses for the course (fee receipts obtained from the institute).
    • Two recent passport size photos of the borrower, co-obligant and guarantor.
    • Copy of any National ID Card of all the parties involved.
    • Collateral Papers.

    UBI Education Loan Student Eligibility:

    • The applicant should be an Indian citizen.
    • The applicant must have obtained admission in any of the aforementioned courses via a formal entrance exam or relevant selection procedure.

    For students getting admission in the aforementioned courses through management quota, the quantum of loan amount disbursed is a minimum of Rs. 5 lakhs and the maximum amount is as per the normal education loan scheme.

    The rate of interest charged is as per the rates specified under UEL and the margin is 25%. Repayment period is a maximum of 5 years, irrespective of the loan amount, after completion of moratorium period.

    UBI Superb Education Loan Scheme:

    Purpose of the Loan:

    UBI provides ‘Superb Education Loan Scheme’ to attend to the financial needs of students studying in the country’s premier management, medical, law, engineering colleges and other reputed institutes, as per the bank’s approved list.

    Expenses Considered for UBI Superb Education Loan:

    • Fee payable to the student’s college/school.
    • Student’s hostel fee, provided he/she opts to stay in a residential campus.
    • Fee payable for the purpose of examination, library and laboratory.
    • Purchase of books, equipment, instrument and uniform required for the course pursued.
    • Cost of laptops/computers only if essential for completion of the course.
    • Any caution deposit/refundable deposit/ building fund charged by the institution. Needs to be supported by receipts.
    • Travel expenses and expenses incurred while on exchange programme.
    • Any other expenses related to education/course.

    Quantum of Loan Amount:

    The quantum of loan disbursed under this loan scheme is a maximum of Rs. 30 lakhs.

    Rates of Interest:

    The rate of interest charged depends on the category of the institute and the gender of the student. Please refer to the table below for a detailed account of the same.

    Category of Institute

    Rate of Interest

    ‘A’ List Institutes (male/female students)

    Base Rate = 10.25% (at present)

    ‘B’ List Institutes (male students)

    Base Rate + 0.50% = 10.75% (at present)

    ‘B’ List Institutes (female students)

    Base Rate + 0.25% = 10.50% (at present)

    Repayment Tenure:

    The loan repayment tenure is up to 10 years (after the commencement of repayment). The repayment will commence after a moratorium/ repayment holiday, i.e. duration of the course plus 1 year or 6 months after getting a job, whichever is earlier.

    Life Insurance Coverage:

    To ensure security to the borrower's life, and against his/her loan liability, an additional loan component for such an insurance coverage may be sanctioned by the bank. This is subject to request from the customer.

    United Bank of India Education Loan FAQs:

    1. What is Moratorium Period?
    2. Moratorium period is the time given to a student to find a job after the course is completed. It is one year after completion of course or 6 months after securing a job, whichever is earlier.
    3. My parents’ annual income is less than Rs. 4.50 lakhs. Am I eligible for interest subsidy?
    4. Yes, you are eligible for interest subsidy (as per the government), as your parental income is taken into consideration.
    5. Can I apply for UBI Education Loan Online?
    6. Yes, UBI Education Loan can be applied online. Please download the application form available on the bank’s website. Once filled up, you can submit it to the nearest branch with all necessary documents.
    7. How does UBI’s Education Loan documentation work, in case of co-obligation?
    8. In case of co-obligation, documents should be executed by the parent/guardian and the student, as joint borrowers.
    9. If UBI Education Loan is availed to buy a laptop for the course, does it need to be hypothecated? If so, in whose name does that need to be done?
    10. In case the Education Loan is given for purchase of a computer/laptop for the student, the same is to be hypothecated to the Bank.
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