Union Bank of India Education Loan | Education Loan in India | Student Loan in India

Student Education Loans by Union Bank of India

The scheme aims at providing financial assistance on reasonable terms
To poor and needy to undertake basic education
To the meritorious students to pursue higher / professional / technical education


A. Students in India

  • School education including plus 2 stage
  • Graduation/Post Graduation course
  • Professional courses
  • Technical courses
  • Management courses

B. Students Abroad

  • Graduation: For job oriented professional / technical courses offered by reputed universities.
  • Post Graduation : MCA, MBA, MS etc
  • Courses conducted by : CIMA-London, CAP in USA, etc


Loan Amount:

Need based finance subject to repaying capacity of the parents/students with margin and the following ceilings.

  • Studies in India – Maximum Rs 7.50 lacs
  • Studies abroad  – Maximum Rs 15 lacs



  • No margin may be insisted upon for loan up to Rs 4.00 lacs. However, for loans of higher amounts, the margin requirement may be 5% for inland studies and 15% for studies abroad
  • Scholarship/assistance to be included in margin
  • Margin may be brought in on year-to-year basis as and when disbursements are made on a pro-rata basis.



No collateral security will be insisted upon for loans up to Rs 4.00 lacs. However, for loans above this amount, collateral security of suitable value or co-obligation of  parents/guardians/third party along with the assignment of future income of the student for payment of installments is required.

An LIC Policy/Convertible Whole Life Assurance Policy for a sum not less than loan amount be taken out in the name of the student and got assigned in Bank’s favour.


Repayment holiday/Moratorium: Course period + 1 year 0r 6 months after getting job/starts earning, whichever is earlier.
The loan to be repaid in 5-7 years after commencement of repayment

Rate of Interest

Up to Rs 4.00 lacs : PLR i.e 11.75% presently
Above Rs 4.00 lacs : PLR+1% i.e 12.75% presently -Simple interest to be calculated during Repayment holiday / Moratorium Period.