Union Bank

Overview of Union Bank of India Education Loan

Union Bank of India (UBI) Education Loans offer students financial support to pursue higher education within India or abroad. As a major public sector bank backed by government-linked lending schemes, UBI provides flexible loan options with competitive interest rates, collateral-free paths for eligible cases, and structured repayment terms. EduFi partners with students to assess eligibility, select the most suitable UBI loan scheme, assist with documentation, and follow up with the bank for a smoother approval and disbursal process.

What Is a Union Bank of India Education Loan?

A Union Bank of India Education Loan is a term bank loan designed for Indian nationals who have secured admission to recognised full-time higher education programmes. These loans finance undergraduate, postgraduate, professional, and technical courses in India and international study destinations. The loans cover tuition fees, accommodation, books, travel, and related educational costs. Repayment typically begins after the moratorium period, which usually includes the course duration plus a grace period.

Why Union Bank of India Is a Preferred Choice for Students

Union Bank of India is a trusted nationalised bank with a long history of supporting student education through government-linked lending schemes. The bank’s education loans often start at competitive interest rates among public sector lenders and include features such as collateral-free loans for eligible students, concessions for premier institutes, and no processing fees on many schemes. These benefits, combined with branch and online application pathways, make UBI a reliable choice for students and families seeking affordable education financing.

Union Bank of India Education Loan Schemes

Union Education Loan (Inland & Abroad)
UBI offers standard education loan products for both studies in India and overseas. Loan amounts depend on course costs, student profile, and co-applicant credentials. Interest rates vary with borrower risk profile and type of course.

Union Special Education Loan Scheme (Premier Institutions)
This scheme focuses on students admitted to premier professional, technical, and management programmes. It provides attractive loan terms and competitive interest rates tailored for high-ranked institutions.

PM-Vidyalaxmi Scheme (Merit-Linked Loans)
Under the PMV national scheme, UBI participates in providing collateral-free and guarantor-free education loans to students meeting merit criteria in approved institutions, with broader eligibility across family income groups.

Tier-Specific Loan Variants
UBI also structures loan offerings with differentiated interest rates and terms based on the academic tier of the institute (Tier I premier vs Tier II technical & management).

Loan Amount & Coverage

Maximum Loan Amounts and Limits
Union Bank of India typically offers secured education loans up to ₹1.5 crore for high-value professional or overseas programmes. Unsecured or collateral-free loans are available up to ₹40 lakhs for eligible students, subject to admission, profile, and co-applicant strength.

What Expenses Are Covered
UBI education loans can be used to fund tuition fees, hostel and accommodation charges, books and study materials, equipment such as computers, travel costs for overseas study, insurance premiums, and other study-related expenses necessary to complete the programme.

Interest Rates & Repayment Terms

Current Union Bank of India Interest Rates (as of 2025)
Union Bank of India offers education loan interest rates typically in the range of 7.85% to 11.75% p.a., depending on the loan category, academic profile, and collateral/security status. Merit-linked schemes and loans for premier institutes can start as low as around 7.10% p.a. for highly eligible applicants.

Repayment Options and Tenure
Education loan repayment can extend up to 15 years after the moratorium period. During the study period and grace period, only interest accrues; after the moratorium, EMIs begin on a reducing balance basis.

Moratorium and EMI Details
The moratorium period generally covers the entire duration of the course plus 12 months (1 year) after completion.

Eligibility Criteria

Student Eligibility Requirements
Applicants must be Indian citizens with confirmed admission to a recognised full-time programme in India or abroad.

Co-applicant Requirements
A parent, guardian, or spouse with stable income is required as co-applicant.

Course Types and Countries Covered
Supported courses include engineering, medicine, management, and other professional degrees across the US, UK, Canada, Australia, and Europe.

Margin Requirements & Collateral Details
Loan Margin Explained
Margin is the portion of total cost funded by the student or family and varies by loan size and course.

When Collateral Is Required
Collateral is generally required for loans above ₹40 lakhs.

Unsecured / Non-Collateral Options
Eligible students may avail unsecured loans up to ₹40 lakhs under specific schemes.

Documents Required for Union Bank of India Education Loan

Checklist for Student Documents
Admission letter, academic records, ID proof, fee structure, visa documents (if applicable).

Checklist for Co-applicant Documents
KYC documents, income proof, and recent bank statements.

Additional Collateral Documents (If Applicable)
Property documents, valuation reports, and legal clearances.

Application Process (Step-by-Step)

How to Apply with EduFi
EduFi manages eligibility assessment, documentation, application submission, and follow-ups.

Timeline from Application to Sanction
Processing usually takes 15–30 days with complete documentation.

Common Benefits of Union Bank of India Education Loans

Interest Concessions
Concessions for meritorious students and premier institutions.

Flexible Repayment Terms
Extended tenures with structured moratorium.

Coverage of Living and Travel Expenses
Includes accommodation, travel, books, and supplies.

How EduFi Supports Your Union Bank of India Loan Application

Expert Eligibility Assessment
Profile-based loan recommendation.

Documentation Assistance
Error-free application support.

Personalised Lender Matching and Follow-Up
Active coordination with bank officials.

Union Bank of India Education Loan for Study Abroad

Popular Study Destinations Covered
US, UK, Canada, Australia, and Europe.

Country-Specific Loan Tips
Plan margins and living costs carefully.

Loan Margin & Disbursement for Abroad Studies
Disbursement in tranches as per fee schedule.

Frequently Asked Questions (FAQ)

What Is the Maximum Loan Union Bank of India Provides?
Up to ₹1.5 crore (secured) and ₹40 lakhs (unsecured).

How Long Does Union Bank of India Loan Processing Take?
Typically 2–4 weeks.

Can I Get a Loan Without Collateral?
Yes, up to defined limits for eligible profiles.

How Is the Loan Disbursed?
Directly to institutions in instalments.

Tools & Resources
Use Union Bank portals and the Vidya Lakshmi Portal for EMI and subsidy tracking.