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

United Bank of India Education Loan

United Bank of India, a wholly owned subsidiary of Punjab National Bank, offers a wide range of of education loans that cater to different requirements. These loans have competitive interest rates, a moratorium period, and other features that make higher education in India or abroad a dream come true for students across varying demographics. The bank also offers concessional loans for students with disabilities as well as government-sponsored interest subsidy schemes for students from minority communities.

United Bank of India Education Loan Interest Rates

These are the interest rates for United Bank of India's education loan schemes:

Schemes Maximum Loan Amount Interest Rates (p.a.)
PNB Saraswati Need based 8.80% p.a. onwards
PNB Pratibha Need based 6.90% p.a. onwards
PNB Uddan Need based 8.80% p.a. onwards
PNB Kaushal Rs.1.5 lakh 8.30% p.a. onwards
PNB Honhaar Rs.10 lakh 8.95% p.a. onwards
PNB Pravasi Shiksha Loan Need based 8.95% p.a. onwards

These interest rates are effective from 1 September 2020

Compare United Bank of India Education Loan Schemes for Students

1. PNB Saraswati

  • Interest rate: 8.80% p.a. onwards
  • Processing fee: Rs.250 + GST every 3 years if immovable property is taken as collateral
  • Collateral: None for loans up to Rs.7.5 lakh
  • Loan Tenure: 15 years
  • Eligibility: Indian nationals who are meritorious students seeking higher education in India

2. PNB Pratibha

  • Interest rate: 6.90% p.a. onwards
  • Processing fee: Rs.250 + GST every 3 years if immovable property is taken as collateral
  • Collateral: Parent or guardian as co-borrowers
  • Loan Tenure: 15 years after moratorium period
  • Eligibility: Indian nationals who are meritorious students getting admission in premier educational institutions in India (as per the bank's list)

3. PNB Uddan

  • Interest Rate: 8.80% p.a. onwards
  • Processing Fees: Rs.250 + GST every 3 years if immovable property is taken as collateral
  • Collateral: None for loans up to Rs.7.5 lakh
  • Loan Tenure: 15 years after moratorium period
  • Eligibility: Indian nationals who are meritorious students pursuing higher education abroad

4. PNB Kaushal

  • Interest Rate: 8.30% p.a. onwards
  • Processing Fees: Rs.250 + GST every 3 years if immovable property is taken as collateral
  • Collateral: Parent or guardian as co-borrowers
  • Loan Tenure: Up to 7 years
  • Eligibility: Indian nationals seeking to study skill development courses in India

5. PNB Honhaar

  • Interest Rate: 8.95% p.a. onwards
  • Processing fee: Rs.250 + GST every 3 years if immovable property is taken as collateral
  • Collateral: Parent or guardian as co-borrowers
  • Loan Tenure: 15 years after moratorium period
  • Eligibility: Indian nationals seeking higher education in New Delhi

6. PNB Pravasi Shiksha Loan

  • Interest rate: 8.95% p.a. onwards
  • Processing fee: Rs.250 + GST every 3 years if immovable property is taken as collateral
  • Collateral: Registered mortage or equitable of immovable property in the guarantor's name within India with value of 125% of loan amount or liquid security with value of 125% of the loan amount
  • Loan Tenure: 15 years after moratorium period
  • Eligibility: Students who are Overseas Citizens in India (OCI) or Overseas Citizenship by Birth who are pursuing higher education in India

United Bank of India Education Loan EMI Calculator

United Bank of India's education loan EMI calculator helps you understand exactly how much your Equated Monthly Instalment (EMI) will be for the education loan you take from the bank. This will help you plan your finances ahead and ensure that your EMIs are paid on time.

The EMI calculator is free, online, and easy to use. It displays the entire amortisation schedule for your loan with the EMI details of exactly how much your total interest amount will be and your total due.

All you have to do is adjust your loan amount, loan tenure, and interest rate, click on ''Calculate'', and the details will be displayed instantly on the screen.

Here's an example:

Suppose you have taken an education loan from United Bank of India for an amount of Rs.10 lakh for a tenure of 15 years with an interest rate of 6.90% p.a., your EMI will look like this:

  • Equated Monthly Instalment (EMI): Rs.8,932
  • Total interest due: Rs.6,07,844
  • Total amount payable: Rs.16,07,844

The amortisation table for the above-mentioned loan will look like this:

Principal Paid (A) (Rs.) Interest Paid(B) (Rs.) Total Payment (A+B) (Rs.) Outstanding Loan Balance (Rs.)
29,310 51,083 80,393 9,70,690
41,507 65,680 1,07,187 9,29,182
44,465 62,725 1,07,190 8,84,717
47,632 59,558 1,07,190 8,37,085
51,024 56,166 1,07,190 7,86,061
54,659 52,530 1,07,189 7,31,402
58,551 48,639 1,07,190 6,72,851
62,722 44,468 1,07,190 6,10,129
67,187 39,999 1,07,186 5,42,940
71,975 35,215 1,07,190 4,70,965
77,100 30,088 1,07,188 3,93,864
82,593 24,598 1,07,191 3,11,271
88,476 18,715 1,07,191 2,22,796
94,777 12,414 1,07,191 1,28,019
1,01,527 5,662 1,07,189 26,492
26,492 305 26,797 0

How to Apply for United Bank of India Education Loan

You can apply for a United Bank of India education loan in the following ways:

Offline: You can visit the bank's branch that is nearest to you, obtain the application form, and submit it along with the required documents to the bank's representatives.

Online: You can apply for the education loan on the bank's official website using the steps given below:

Step 1: Visit the official website of the bank

Step 2: Hover your cursor over ''Products'' and navigate to '''Loans'' under it and click on ''Retail''

Step 3: On the new page, under Education Loans, click on ''Read More''

Step 4: Click on ''Read More'' under the loan you wish to apply for

Step 5: On the new page, click on ''Apply for Online Education Loan''

Step 6: You will be redirected to the application page where you have to click on ''Education Loan''

Step 7: Complete your application on the page you have been redirected to

Subsidy Schemes for United Bank of India Education Loan:

Concessional Educational Loan: Persons with Disabilities (PwDs) can avail a concession on any education loan offered by the bank under this scheme. The quantum of finance is need based but subject to Rs.10 lakh for studies in India and Rs.20 lakh for studies abroad. The maximum repayment tenure is 7 years after the commencement of loan repayment, which will be either 6 months of getting employment or after one year of completing the course. Eligibility is for students who have a disability certificate stating 40% or more disability.

Credit Guarantee Fund Scheme for Educational Loans (CGFSEL)

The Central Government provides interest subsidies on education loans under this scheme for students from economically weaker sections of society. There is no collateral security or third-party guarantee required with the maximum loan limit being Rs.7.5 lakh. The bank's interest rate for education loans under the scheme cannot exceed 2% p.a. over the base rate.

Credit Guarantee Fund Scheme for Skill Development (CGFSSD)

The maximum loan limit under this scheme is Rs.1.5 lakh without any collateral or security required. It is for Indian nationals who meet the eligibility criteria for educational institutions under the National Skill Qualification Framework (NSQF) and under the ''Skill Loan Scheme''.

Padho Pardesh: Under this scheme, the Central Government of India provides subsidies on interest of education loans to meritorious students belonging to economically weaker sections of minority communities for studies abroad. This is for admission into approved courses at the Masters, M.Phil., or PhD Level abroad.

Central Scheme for Interest Subsidy (CSIS):

The Central Scheme for Interest Subsidy (CSIS) was introduced by the Central Government to provide relief on the interest component of education loans that are outstanding as on the dates notified by the government from time to time. This is for students from economically weaker sections of society with a gross family income of up to Rs.4.5 lakh per year. The interest subsidy is applicable only one time, for either degree or post graduate degrees or post-graduate diplomas in India as well as for integrated graduate plus post graduate courses overseas.

Dr. Ambedkar Central Sector Scheme of Interest Subsidy on Educational Loans for Overseas Studies for Other Backward Classes (OBCs) and Economically Backward Classes (EBCs)

This is for meritorious students from Other Backward Classes and Economically Backward Classes for higher education abroad. Interest subsidy is provided for the interest component of the loan for the duration of the moratorium. This is for approved courses abroad at the Masters, M.Phil., and PhD. levels.

FAQ's

  1. What is Moratorium Period?

    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.

  2. My parents’ annual income is less than Rs. 4.50 lakhs. Am I eligible for interest subsidy?

    Yes, you are eligible for interest subsidy (as per the government), as your parental income is taken into consideration.

  3. Can I apply for UBI Education Loan Online?

    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.

  4. How does UBI’s Education Loan documentation work, in case of co-obligation?

    In case of co-obligation, documents should be executed by the parent/guardian and the student, as joint borrowers.

  5. 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?

    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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