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United Bank of India Education Rate of Interest

The bank asks for no prepayment charges.

  • 0.50% concession to girl students
  • 1% concession if interest is serviced during moratorium period
  • Zero margin upto INR 4 Lacs
  • Zero Processing Fee

The interest rates are in accordance with the RBI guidelines.

  • Upto INR7.50 lac : MCLR-Y+2.20% i.e. 11.05%
  • Above INR 7.50 lac : MCLR-Y+2.15% i.e. 11.00%

CALCULATE YOUR EDUCATION LOAN EMI

Fill the Loan Amount
Fill the Interest Rate
Fill the Loan Tenure
EMI Payable

188 per month

Total Interest

1,280

Payable Amount

11,280

Total Interest
Principal Loan Amount

Looking for admission for India and Abroad?

Know Fees

United Bank of India Education Loan Eligibility

loan eligibility image
  • Indian National. The student should be a citizen of India.
  • 10+2 pass. One must have cleared 10+2 from a recognized board of institutions.
  • Eligible Courses. Admission to any professional/technical course
  • Admission Basis. Merit based/entrance-exam based admission

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Applicable Rate of Interest Upto INR 7.50 lac : 11.05%
Above INR 7.50 lac : 11.00%
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 Collateral INR 10 Lacs
For 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 collateral INR 10 Lacs
For 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 Fee Nil
Up to INR 4 Lacs: Nil
Above INR 4 Lacs: INR 5000
Nil
Nil
Repayment Period 15 Years
15 years
15 years
7 years
Loan for top institutions Yes, United Superb Education Loan Scheme
Yes, SBI Scholar Loan Scheme
Yes, PNB Pratibha
No
Margin Up 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 Limit No age criteria
no age limit
No age limit
No
Loan Security Upto INR 7.50 Lacs: Nil
Above INR 7.50 Lacs: Co-obligation of parents
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/ST No
No
50% for SC/ST, and;60% for General category.
No
Processing Time N.A
20 days
15 days
14 Days
Prepayment charges Nil
Nil
Nil
Nil
Penal charges Nil
Penal interest @ 2% to be charged for loans above Rs.4 lacs for the overdue amount and overdue period
Nil
@ 2% per month on the overdue installment/s
Mandatory insurance cover Yes
Yes
yes
yes
Travel expeneses Yes
yes
yes
yes
Bank transfter allowance No such clause mention
available
available
No such clause mentioned
Top up loan availability Available
yes
available
unavailable
Interest Subsidy Schemes CSIS
Padho Pradesh
Padho Pardesh
CSIS
Skill Loan Scheme
Padho Pardesh
CSIS
Skill Loan Scheme
CSIS
Tax benifit Yes
yes
yes
yes
Concession/benefits For Girl students: 0.50% concession from card rate
1.00% interest concession if the interest is servicedduring the moratorium period
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
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How to apply for United Bank of India Education Loan ?

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

Visit the official website for United Bank of India Education Loan and select your scheme

Click on Apply Now.

Fill out the form with your 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 you with all the necessary information regarding eligibility, documents required and also which loan is best suitable.

United Bank of India Education Loan Details

Loan Limit
INR 10 Lacs
Margin
Up to INR 4 Lacs: Nil
Above INR 4 Lacs: 5%
Processing Fee
Nil
Loan Security
Upto INR 7.50 Lacs: Nil
Above INR 7.50 Lacs: Co-obligation of parents
Tangible collateral security equivalent to loan amount
Assignment of future income of student for payment of installments.
Loan Repayment
15 years

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Expenses covered under United 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.
  • 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

Income proof and/or copy of income tax return file

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

Bank account statement of the applicant.

Copy of passport and visa for abroad courses

Interest Subsidy Schemes

Central Scheme of Interest Subsidy

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

Central Scheme of Interest Subsidy
  • The gross annual parents’ income should be less than INR 4.50 Lacs
  • Repayment of the loan has to be done after 12 months of course completion or 6 months after getting the job (whichever is earlier).

This scheme is applicable for technical and professional courses from govt. recognized institutes for courses after class XII.

Under IBA education loan scheme, the maximum loan limit is INR 10 Lacs.

Eligibility:

The subsidy is provided for a moratorium period of 1 year after course completion or 6 months after getting a job (whichever is earlier). After this, the loan amount should be paid in accordance with the education loan scheme.

Scheme Applicable Year:

  • This scheme is implemented in the academic year 2009 – 2010 from April 1, 2009.
  • Loan disbursed after April 1,2009, irrespective of the date of sanction shall only be covered under the scheme.
  • In case of loans sanctioned prior to April 1, 2009, for the courses beginning prior to the academic year 2009-10, the interest subsidy is available to the extent of disbursements made after April 1, 2009.

Canara Bank has been appointed as the nodal bank by the government to facilitate this scheme.

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Frequently Asked Questions

01

What schemes does UBI considers for its education loans?

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There are no other schemes offered by UBI apart from the basic education loans.

02

In whose name is the loan granted?

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The loan is granted in the name of the student

03

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

04

What is the age limit for availing loan in UBI?

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There is no age restriction for the applicant applying for education loan from UBI. He/ she should only meet the other stated eligibility criteria's.

05

Are minors eligible to apply for UBI 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.

06

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.

07

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.

08

Where can I avail UBI 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.

09

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.

10

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 UBI web portal, you can view all details related to education loan online.

11

Is there any minimum aggregate marks to meet the eligibility criteria to avail UBI 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

12

What is the discount/ rebate offered by UBI?

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  • 0.50% concession is given to girl students
  • 1% concession if interest is serviced during moratorium period
13

What all is included in tangible collateral security?

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Mostly UBI asks tangible security in lieu of the loan amount sanctioned along with assignment of future salaries in favour of UBI. 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.

14

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.

15

What is Moratorium Period?

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

16

What is tenure of an education loan?

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Tenure of education loan provided by UBI is maximum 15 years. Tenure of UBI Superb Education Loan is 10 years.

17

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.

18

What all expenses are covered under this course?

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Expenses covered by UBI education loan are:

  • Tuition/ college/ hostel fee
  • Examination/ lab/ library fee
  • Books/ uniform/ instruments
  • Caution deposit
  • Passage money for studies abroad, etc.
19

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.

20

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)

21

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

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UBI provides a special loan scheme with various benefits to students who have secured admission in top rated institutes like IITs, IIMs, XLRI, ISB, IIFT, NITs, etc.

22

What is the processing fee or prepayment charges?

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The education loan offered by UBI have no prepayment, processing or documentation charges.

23

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.

24

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
25

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

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

26

Is a co-borrower necessary for loan?

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Yes, it is mandatory to have a co-borrower to avail loan from UBI.

27

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.

28

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).
29

How many guarantors do I need to borrow loan from UBI?

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You need at least 2 guarantors to avail loan from UBI.

30

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.

31

What are maximum term for repayment?

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Maximum Term for repayment for Loan is 15 years for UBI Education Loan and 15 years

32

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.

33

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.

Or simply you can use the EMI calculator provision available on UBI’s official website.

34

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

35

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

36

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.

37

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

38

What is interest rate of education loan?

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The interest rate is different for different loan offered. Refer the tables below:

  • UBI Education Loan:
Upto INR7.50 lacMCLR-Y+2.20% i.e. 11.00%
Above INR 7.50 lacMCLR-Y+2.15% i.e. 10.95%
  • UBI Superb Education Loan:
For Students in List A institutesMCLR-Y + 0.05% i.e 8.85%
For Students in List B InstitutesMCLR-Y + 0.55% i.e 9.35%
  • UBI Education Loan for Vocational courses: Interest of rate on loan amount upto INR 1.50 lacs is BR + 2.00% = 12.45% per annum
39

What is interest subsidy on education loan?

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UBI offers CSIS interest subsidy on education loans offered.

40

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.

41

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).

42

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

.
43

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

44

Are there any additional benefits on availing loan from UBI?

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There are no additional benefits mentioned by the bank

45

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.

46

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

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Student can reach out to the nearest branch in case of any query.

  • Customer Care Number: 1800-345-0345
  • Customer Care Id:webmaster@unitedbank.co.in
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