Union Bank of India Education Rate of Interest

Along with the loan, UBI offers a lot of subsidy schemes too.

  • The maximum loan limit is INR 20 Lacs.
  • No processing fee
  • No margin or security required for a loan up to INR 4 Lacs.

The bank offers attractive interest rates as per the guidelines of the RBI.

  • The RoI for a loan up to INR 4 Lacs is 11.85%.
  • The RoI for a loan from INR 4-7.5 Lacs is 11.60%.
  • The RoI for loan above INR 7.5 Lacs is 10.70%.
  • Girls are given a concession of 0.5%.
  • For those covered under the scheme CGFSEL, the interest rate for a loan up to INR 7.5 Lacs is 10.70%.


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EMI Payable

1,000 per month

Total Interest


Payable Amount


Total Interest
Principal Loan Amount

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Union Bank of India EducationLoan Eligibility

loan eligibility image
  • Indian National. The applicant should be a citizen of India or should have the passport of India.
  • 10+2. The candidate should have cleared 10+2 with essential grades.
  • Eligible Course. Graduate/Postgraduate/Diploma courses.
  • Eligible Institute. The candidate should have got admission in a recognized institute.
  • Admission Basis. The admission should have been on the basis of an entrance exam or on merit basis.

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Bank / FinancerChange bankChange bankChange bankChange bankChange bank
Applicable Rate of InterestUp to INR 4 Lacs:11.85%.
From INR 4-7.5 Lacs:11.60%
Above INR 7.5 Lacs: 10.70%.
Up to INR 7.50 Lacs: 10.55%
Above INR 7.50 Lacs: 10.80%
up to INR 7.5 Lacs: MCLR + 2.00%
above INR 7.5 Lacs: 2.60%
Upto 4 Lacs- 16.50%
Upto 7.5 Lacs- 17.50%
Above 7.5 Lacs- 15.50%
Max Loan with CollateralINR 20 LacsFor India: 10 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs and beyond based requirement
Max loan without collateralINR 20 LacsFor India: 10 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs and beyond based requirement
Processing FeeNilUp to INR 4 Lacs: Nil
Above INR 4 Lacs: INR 5000
Repayment Period15 years15 years15 years7 years
Loan for top institutionsNoYes, SBI Scholar Loan SchemeYes, PNB PratibhaNo
MarginUp to INR 4 Lacs: Nil
Above INR 4 lacs: 5%
For loan above INR 4 Lacs
In India: 5%
In abroad: 15%
Up to INR 4 Lacs - NIL
Above INR 4 Lacs - 5%
Upto loan 4 Lacs: No margin
Above 4 Lacs: for India: 5%
for Abroad: 15%
Age LimitNo age criteriano age limitNo age limitNo
Loan SecurityUp to INR 4 Lacs: No Collateral required
From INR 4 to 7.5 Lacs: Guarantee of a bank approved third party
Above INR 7.5 Lacs: Collateral Security equal to the amount of loan
Upto 7.50 Lacs: Only Parent/ Guardian as co-borrower. No Collateral Security or third party guarantee
Above INR 7.50 Lacs: Tangible security along with parents as co borrower
Upto INR 7.50 Lacs: Parent(s)/guardian be made joint borrower (s). No tangible Security and /or 3rd party guarantee is required.
Above INR 7.50 Lacs: Parent(s)/guardian be joint borrower(s). Tangible collateral security of suitable value acceptable to bank.
Third party guarantee
Collateral security
Additionally, assignment of LIC policy in favor of bank amounting 100% of education loan amount
Assignment of Future salaries in favor of Axis Bank
Eligibility concession for SC/STNoNo50% for SC/ST, and;60% for General category.No
Processing TimeN.A.20 days15 days14 Days
Prepayment chargesNilNilNilNil
Penal chargesNilPenal interest @ 2% to be charged for loans above Rs.4 lacs for the overdue amount and overdue periodNil@ 2% per month on the overdue installment/s
Mandatory insurance coverNot mandatoryYesyesyes
Travel expenesesyesyesyesyes
Bank transfter allowanceAvailable (2% on the average loan outstanding for the past 12 months will be levied.availableavailableNo such clause mentioned
Top up loan availabilityAvailableyesavailableunavailable
Interest Subsidy SchemesCSIS
Skill Loan Scheme
Padho Pardesh
Padho Pardesh
Skill Loan Scheme
Padho Pardesh
Skill Loan Scheme
Tax benifityesyesyesyes
Concession/benefitsNo margin required for loan upto INR 4 Lacs
No security required for loan upto INR 4 Lacs
0.50% concession to girl students
No processing fee
Concession to girl students
1% concession if interest is serviced during moratorium period including course period
0.5% concession to girl students
0.5% concession if interest is serviced during moratorium period including course period
Online application
There is no processing fee charged
No pre- payment charges are applied
No pre- closure charges are applied
Loan Disbursal period is 15 working days from the date of final submission of documents

How to apply for Union Bank of India Education Loan ?

Union Bank of India Education loan application form can be available online or offline at Bank branches.

Visit the official website for Union Bank of India Education Loan.

Click on Apply Now.

Fill out the form with essential details.

Upload the mandatory documents required.

Submit the form and take out a print out of the application.

Visit the bank branch for further formalities.

Applicants can directly visit the nearest branch and ask for an application form. The bank representative will then guide them with all the necessary information regarding eligibility, documents required and also which loan is best suitable.

Union Bank of India Education Loan Details

Loan Limit
INR 20 Lacs
Up to INR 4 Lacs: Nil
Above INR 4 lacs: 5%
Processing Fee
Loan Security
Up to INR 4 Lacs: No Collateral required
From INR 4 to 7.5 Lacs: Guarantee of a bank approved third party
Above INR 7.5 Lacs: Collateral Security equal to the amount of loan
Assignment of students future salary towards the bank
Loan Repayment
15 years

Expenses covered under Union Bank of India Student Loan Scheme

  • Tuition Fee
  • Examination Fee
  • Library/ Laboratory Fee
  • Hostel Fee
  • Cost of Books, equipment, instrument or uniforms
  • Miscellaneous expenses- study tours, project work, thesis, etc.
  • A reasonable cost of computer or laptop (if required).

Education Loan Documents Required ?

Admission letter with all essential details.

Attested copies of age proof, residence proof and birth date.

Self-attested passport size photograph.

Copies of qualifying courses.

Salary proof such as Latest salary slip, Form 16 and recent salary certificate.

Details of collateral security along with government approved valuation certificate (if any).

Schedule of Expenses of the course.

Copy of passport and visa for abroad courses.

Interest Subsidy Schemes

Credit Guarantee Fund Scheme for Educational Loans

HRD Ministry has launched this scheme to promote education amongst economically weaker sections and provide them with basic education right.

Central Scheme of Interest Subsidy (CSIS)

Formulated by the Govt. of India, a scheme to assist the students belonging to the economically weaker section.

Skill Loan Scheme

The bank offers 'Skill Loan Scheme' for students who aspire to gain knowledge and specialized training in one specific field.


Frequently Asked Questions


What schemes does Union Bank of India considers for its education loans?

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There are multiple other schemes offered by Union Bank of India apart from the basic education loan. These are: CSIS Scheme Padho Pardesh Skill Loan Scheme Credit Guarantee Fund Scheme for Education Loans (CGFSEL) ACSISOBCEBC Subsidy

In whose name is the loan granted?

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The loan is granted in the name of the student

Is the loan contract executed only in student's name?

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No, the loan can be executed both in name of student and co-borrower as both are equally responsible for repayment of loan.

What is the age limit for availing loan in Union Bank of India?

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There is no age restriction as stated by Union Bank of India. Borrowers must fulfil other eligibility criteria mentioned.

Are minors eligible to apply for Union Bank of India Education Loan?

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Yes, Minors aspiring for further studies can apply for education loan with help of legal representation from parents/ guardians.

What does margin on any loan mean?

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Margin amount is the amount that a borrower has to pay through his/ her own sources in form of a down payment as his/ her contribution towards the education.

Should the student's margin be paid upfront in the starting?

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Margin can be paid on a year to year pro rata basis whenever bank disburses loan amount as per requirement.

Where can I avail Union Bank of India Education Loan?

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You can either contact your nearest branch for the application form or details regarding the loan or apply online from the official website.

Is there any provision to apply for loan online?

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Yes, you can apply online through Vidyalakshmi portal to avail for this loan.

Can I view my loan statement online if I am an existing education loan borrower?

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Yes, by creating a login on Union Bank of India web portal, you can view all details related to education loan online.

Is there any minimum aggregate marks to meet the eligibility criteria to avail Union Bank of India education loan?

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Yes, a student must have secured a minimum aggregate marks in their last qualifying examination (10+2 or Graduation). Relaxation in the marks is given to SC/ ST students

What is the discount/ rebate offered by Union Bank of India?

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0.50% concession is given to girl students 2% concession to students who have secured admission to any top premier institutes listed under List A and B provided by the bank Eligibility criteria and margin on education loan is relaxed for SC/ST students

What all is included in tangible collateral security?

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Mostly Union Bank of India asks tangible security in lieu of the loan amount sanctioned along with assignment of future salaries in favour of Union Bank of India. Tangible security includes documents related to land/ building/ government security/ public sector bonds/ units of UTI, NSC, Life insurance policy/ bank deposits/ shares or debentures. The value of the security should be equal to the education loan amount.

Can I place my family property as collateral?

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Yes, but it will need consent of all family members involved.

Is scholarship or assistantship included in the margin?

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Yes any scholarship or assistantship will be a part of margin charged on education loan.

What is Moratorium Period?

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Course Period plus one year, or six months after getting a job

What is tenure of an education loan?

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Tenure of education loan provided by Union Bank of India is maximum 15 years

What does MCLR stands for?

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MCLR stands for Marginal Cost of funds based Lending Rate. It refers to the minimum interest rate of bank below which it cannot lend.

What all expenses are covered under this course?

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Expenses covered by Union Bank of India education loan are: Tuition/ college/ hostel fee Examination/ lab/ library fee Books/ uniform/ instruments Caution deposit Passage money for studies abroad, etc.

I have taken admission through management quota. Am I eligible?

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This depends totally on bank?s discretion as whether a student meets other eligibility criteria or not.

What do you mean by reputed or recognized institutes?

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Institutes that are affiliated to state/ central universities and comes under UGC or AICTE are considered as recognized institutes. Reputed institutes are those which are well known and have standard course of repute. More often, banks provide the list of institutes they consider for loan. (You can contact nearest branch for the same)

Are there any special benefits if I have secured admission to one of the top premier institutes?

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Union Bank of India offers 2% concession to students who secure admission to top premier institutes. Also, there is no margin implied and no collateral security asked while availing education loan from Union Bank of India.

What is the processing fee or prepayment charges?

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The education loan offered by Union Bank of India does not carry any prepayment charges/ processing fee/ documentation charges.

Will cost of my computer be covered under the loan sanctioned?

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Reasonable cost for the computer or laptop well be covered under the loan if it is required to complete the course.

Why is Pan Card necessary?

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Pan Card is one of the mandatory document required by banks these days. It is mandatory because: Easy to assess Income Easy to trace borrowers

Are diploma or certificate courses considered under Union Bank of India education Loan (both for India and Abroad)?

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Diploma courses are eligible under Union Bank of India Education Loan. Regular degree or diploma courses like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping.

Is a co-borrower necessary for loan?

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Yes, it is mandatory to have a co-borrower to avail loan from Union Bank of India.

Who can be my co-borrower?

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Your parent/ spouse/ guardian can be a co-borrower. A co-borrower should be your immediate family member, should have a steady source of income, and a good credit history.

What all documents are required from the co-borrower?

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Documents required from the co-borrower are: Attested copies of age proof, residence proof and birth date. Self-attested passport size photograph Income proof and/or copy of income tax return file Details of collateral security along with government approved valuation certificate (if any).

How many guarantors do I need to borrow loan from Union Bank of India?

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You need at least 2 guarantors to avail loan from Union Bank of India.

What is the KYC requirement in education loan?

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KYC requirements are the documents as a proof of personal identification and residence proof of the applicant as well as the co-borrower.

What are maximum term for repayment?

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The maximum term for repayment is 15 years for Union Bank Education Loan

How can I repay the loan?

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You can repay the loan after the moratorium period by mode of EMI or through post- dated cheques.

What is EMI? How are they calculated?

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EMI stands for Equated Monthly Installments. It can be calculated by using the formula given below EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1] Here, P is Amount of Education Loan, R is Rate of Interest, n is Tenure of the Loan.

What are the charges for late EMI payment?

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24% per annum on outstanding amount is charged for the late EMI payment and INR 500 for every bounced cheque.

Is the loan disbursed in name of individual applicant or to the institute/ university directly?

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The loan is disbursed directly to the institute/ university that you have taken admission to. Hence, an applicant is supposed to submit institute brochure with proper division of the fee

If I am unable to complete my course in given tenure, will my repayment term be extended?

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It is completely on the banks discretion to extend the moratorium period or not. It can be extended for maximum 2 years based on student?s reason. You can contact your nearest branch for more details.

What is method of application of interest on education loan?

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The interest will be charged at simple rate from the date of disbursement till commencement of repayment of loan. After that, compound interest is charged on reducing balance.

If I am joining the course soon after current course, can I get an extension?

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Mostly, in such cases, you do not get an extension and even if you do there is a possibility that interest rates are higher.

What is interest rate of education loan?

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Interest rate education loan scheme provided by Union Bank of India are: The Interest Rate for Union Education Loan is Loan Amount Interest Rate (for Male Students) Interest Rate (for Female Students) Upto 7.50 Lacs 12.25% 11.75% Above 7.50 Lacs 12.00% 11.50%

What is interest subsidy on education loan?

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Union Bank of India offers CSIS- Interest Subsidy scheme for economically weaker sections and to promote education amongst them Padho Pardesh scheme for students who wish to pursue studies abroad Skill Loan Scheme for students who wish to pursue courses to enhance their skills and attain better career opportunities. CGFSEL for Economically Weaker Sections (EWS) of the society and to support them financially for their education needs. ACSISOBCEBC Subsidy scheme is for OBC category and economically backward classes to promote education amongst them

What documents do I need to submit to avail interest subsidy scheme?

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The documents that need to be submitted are: Income certificate issued by authorised authorities Bonafide student certificate Letter of undertaking or declaration signed by borrower/ co-borrower

What is employment verification in an education loan?

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The bank takes the responsibility to cross verify all the employment details of the applicant and co-borrower. If the banks fails to cross verify every detail provided, it might reject the loan application.

Are there any tax benefits in education loans?

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Under Section 80E of Income Tax Act, loan borrowers can avail the tax benefits. This benefit is only available over and above INR 1,50,000. Tax benefits can be availed once the borrower starts paying interest on loan. The deduction is available until borrower pays off full interest amount on loan or for maximum of 8 years (whichever is earlier).

Is it necessary to have bank account with the bank while availing loan from that particular bank?

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It is not necessary to have a bank account while availing the loan but it makes it easier for the borrower to get loan application approved.

Why do banks require insurance policy as security?

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The banks require insurance policy as security in lieu of education loan provided. The insurance policy should be equal or more to the amount of loan sanctioned. In case of untimely demise of the borrower, the bank recovers the amount from the insurance policy

Are there any additional benefits on availing loan from Union Bank of India?

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Union Bank of India provides Group Life Insurance Cover Scheme for education loan borrowers. The premium of which will be borne by the bank

What is credit score? Is it important for education loan?

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Credit Score is inclusive of various factors such as credit history (Loan history or credit card). If a student does not have a credit score, banks calculate it by considering factors such as University, College and the Course of admission. Banks consider the academic background of student and credit history of co-borrower.

If a student have any query, where or whom to contact?

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Customer Care Number:1800 22 2244 Local rates apply on every call Customer Care Id:customercare@unionbankofindia.co.in
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