Eligible Courses
Studies in India:
- Various graduation courses / post-graduation courses and the diploma courses which are conducted by any of the recognized university of India.
- For various professional / technical and management courses.
Studies abroad:
- The degree courses of graduation as well as post-graduation and which are at the same time should be offered by some of the reputed university of the foreign national
- Degree courses which are conducted by CPA – USA or CIMA – London
- There are many diploma courses which are not covered under the scheme of union education
Expenses that can be considered for granting loan
There are many sundry expenses for which union scheme of education loan offers expense. These are given below
- Fee payable for college / hostel / school etc.
- Various travel expenses which can also include passage if the student wants to take admission in some of the university / college which is no Indian.
- Fee for the Regular courses considered which will give degree / diploma to the student
- Funds required for the project work / research work during Ph. D. or tours during the study program
Amount of loan granted
- Maximum quantum of loan is Rs. 10 lakhs for studying in India only
- Maximum quantum of loan is Rs. 20 lakhs for studying abroad only
Interest rates
You can easily get to know about the latest rate of interest. It is good to know the rate of interest from online website of union bank. The student is also eligible for interest rebate if interest is paid continuously during the period of course of the moratorium period. For more details you can go and contact to the nearest branch.
The currents rates are given below which are subject to change.
- 12.15 % for female and 12.65 % for male for the loan amount upto 4 lacs.
- 12.40% for male and 11.90 % for female for the loam amount ranges between 4- 7.50 lacs.
- 11.65 % for male and 11.15 % for female for loan amount more than 7.50 lacs
Processing fee
No service or processing charge for granting loan is taken from the student.
Repayment tenure
The moratorium period is considered the minimum time of any one of the given below
- Duration of course plus one year
- Duration of course plus 6 month post a good job
It is 15 years regardless of loan amount.
Security
Security is needed to be submitted as per the instructions below
- No security up to 4 lakhs of loan
- Third party suitable security if loan amount is less than 7.5 and greater than 4 lakhs
- Collateral security equal to the value of loan amount is needed to be submitted for loans above 7.5 lakhs
Margin
Margin is nil for amount less than 4 lakhs
5 % margin for loan amount more than 4 lakhs in India and 15 % margin for loan of amount more than 4 lakhs in abroad.
Required Documents
The documentation required to submit are listed below however they might change so need to contact nearest branch
- Application form
- Proof that the student has secured admission
- Proof of ID and residence
- Collateral security etc.