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Education Loan Union Bank of India

Investment Banking Education / January 31, 2017

  • 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
  • Graduation/Post-Graduation
  • 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.

Studies Abroad

  • 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.


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.


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