Education Loan Union Bank of India
- The scheme aims at providing financial assistance on reasonable terms:
- To the poor and needy students that they may undertake basic education
- To meritorious students that they may pursue higher or professional or technical education
- To pursue Technical/management courses
The student applying for UNION EDUCATION Loan ought to:
- Be an Indian National
- Has secured admission to professional or technical courses through an appropriate Entrance Test or selection process
- Has secured admission to a foreign University
- Has passed an appropriate qualifying examination
Studies in India
- School education up to +2
- Professional course
- Management course
- Special Education Loan Scheme for Students pursuing courses from approved institutions like IITs/IIMs/ /NIT XLRI/BITS/VIT/IISc/S.P. Jain Institute Of Management/Symbiosis Institute Of Management and T.S. Chanakya, Navi Mumbai- Nautical Science and MERI, Calcutta, Marine Engineering, MERI, Mumbai, Maritime Science.
- Graduation: For job-oriented professional or technical courses offered by reputed universities
- Post-Graduation: MCA, MBA, MS and such other courses
- Courses conducted by CIMA, London, CPA, USA., and such other institution
- The Parent/Guardian of the student who is availing loan from our bank shall be made co-obligator/joint borrower irrespective of the age of such students.
- The Loan Accounts of students applying through college/institutions will be sanctioned/disbursed at the branch nearest to permanent residence/place of domicile of the borrower student.
- Loan will be disbursed directly to the college/institute.
- Student to produce mark list of previous term/semester before availing next installment.
- Student /Parent to provide latest mailing address before availing next installment.
- In case of parents with transferable job, new address to be provided before availing installments.
QUANTUM OF LOAN
Need-based finance subject to repayment capacity of the parent or student with margin and upto the following ceilings
- For studies in India - Up to Rs. 10 lacs
- For studies abroad - Up to Rs. 20 lacs
- No margin for loans up to Rs. 4.00 lacs . However, for loan of higher amounts, the margin requirement is 5% for inland studies and 15% for studies abroad.
- Scholarship/assistance to be included in margin.
- Margin maybe brought in on pro-rata basis as and when disbursement is made.
- Repayment holiday or Moratorium on loan: Course period + 1 year OR 6 months after job placement, whichever is earlier.
- Starting from this point, the loan is to be repaid in 5-7 years after completion of course period/moratorium.
RATE OF INTEREST
For Male Student :
Up to Rs. 4.00 lakhs : 12.45% (Fixed)
Above Rs. 4.00 lakhs upto Rs.7.50 lakhs : 12.20% (Fixed)
Above Rs. 7.50 lakhs : 11.45% (Fixed)
For Female Student:
Up to Rs. 4.00 lakhs : 11.95% (Fixed)
Above Rs. 4.00 lakhs upto Rs.7.50 lakhs : 11.70% (Fixed)
Above Rs. 7.50 lakhs : 10.95% (Fixed)
- Upto Rs. 4 lakh : No security
- Above Rs 4 Lakh & upto Rs 7.5 lakh : a suitable third party / personal guarantee
However for loans above Rs 7.5 lakh, Collateral security of suitable value along with co-obligation of parents / guardian / third party / accompanied by assignment of future income of student for the payment of installments is required.
A Life insurance policy from Insurance company for a sum not less than the loan amount is required to be taken in the name of the student and duly assigned in favour of Union Bank.
- Loans can be considered for eligible students in case they approach the Bank in the subsequent year of the commencement of the course.
- Branches can issue Bank Guarantee, for payment seats wherever required.
- No Prepayment penalty if the loan is adjusted by the borrower from his own verifiable legitimate sources or genuine sale. However, 2% charged on an average o/s. balance of last 12 months if loan is closed on take over by other Banks / Financial Institutions
- No Pre-Payment penalty for self-closure. However, 2% charged on an average o/s. balance of last 12 months if loan is closed on take over by other Bank/FIs