When considering taking an abroad education loan, it's important to be aware of all your options. To help you in your quest for knowledge about all the major lenders of education loans, this article will give you an inside look at the different benefits and features offered by the Union Bank of India. 

We've already covered other major public and private lenders in our previous articles.

Union bank Education Loan details

The Union Bank education loan scheme has been put together by keeping in mind the financial requirements of the students who wish to study abroad. Some of the features and benefits of the Union Bank education loan scheme are depicted in the following table.

Values	Parameters
Maximum Education Loan Available	Need-based financing is provided to those in need. NRI students may borrow a maximum of INR 20 Lakhs to INR 30 Lakhs for higher studies.
Eligible List of Courses for Union Bank Education Loan	Graduation / post-graduation degrees offered by recognized universities Certified degree courses conducted by CIMA, London, CPA, USA and other such institutes PhD courses Diploma courses abroad are not covered
Processing Fees	Nil for Indian students. Processing charges of 0.50% of the loan amount, subject to a maximum of Rs.10000/- plus GST for NRI students.
Expenses covered by a Union Bank Education Loan	All expenses related to the student's higher education within India or abroad can be covered under the education loan borrowed from Union Bank
Loan Repayment	A moratorium period of the entire course duration, plus six months is granted.In addition, the entire loan tenure spans 15 years.There is no additional fine for prepayment of education loan
Accepted Co-applicants	Parents (Father or Mother) or Guardians

Read about Abroad Education loan from Indian Government banks: Myths and solution

Union bank education loan interest rate

The Union Bank education loan interest rate is calculated as RBI repo rate + spread. It is important to note that the interest rates in Union Bank are decided on the basis of your co-applicant's CIBIL score. The higher the CIBL score, the higher the chances of you getting to avail a waiver on your education loan interest rate.

Quantum of loan	Effective ROI For Male Student	Effective ROI For Female Student
Up to ₹ 4.00 lakh	10.45%	9.95%
>₹4.00-₹7.50 lakh	10.20%	9.70%
Above ₹ 7.50 lakh	9.30%	8.80%

Female candidates get an automatic waiver of 0.5% on their education loan interest rate, which is the norm followed by most public banks. The Union Bank education loan interest rates mentioned in the table above are not constant. These figures change periodically according to the modifications made to the RBI's repo rate.

Union bank education loan margin

Loan margin or margin money in education loans can be defined as the loan applicant's financial contribution toward their higher education expenses. Students are required to contribute a certain percentage of the total expenses.

Very few public banks in India offer to cover a student's complete expenses with the help of the abroad education loans. The Union Bank education loan margin varies depending on the final education loan amount borrowed by applicants. The loan margin for the various different education loan amounts is depicted in the table below.

Loan Amount	Loan Margin
Upto INR 4 Lakhs	Nil
Above INR 4 Lakhs	5% (for studies in India) 15% (for abroad studies)
For NRI Students (Irrespective of loan amount)	15%

Union bank education loan eligibility criteria

Similar to the requirements of the other public banks in India, the Union Bank also requires students to fulfill certain requirements in order to be deemed eligible to apply for an education loan. Applicants, as well as individuals who are going to be co-applicants are expected to fulfill the following education loan eligibility criteria.

Eligibility criteria for students

1. Should be an Indian national.
2. Should have secured admission in India or abroad to pursue higher / professional/ technical education, through the appropriate selection process and cleared the qualifying examination, if any.
3. NRI student should hold an Indian Passport & has secured admission to a course for studies in India only.

Eligibility criteria for education loan co-applicants:

1. The parent(s) of the student has to compulsorily join in as co-applicant.
2. In case of a married person, co-applicant can be spouse/parent(s)/parent(s)-in-law.
3. In cases where both the parents are not alive, a close relative or guardian is to be taken as a co-applicant.

Union bank education loan documents

Providing the correct documentation is a crucial part of any education loan process. The Union Bank education loan process is no exception. A list of some of the important documents to be presented to the bank by loan applicants is listed in the following paragraphs. The set of documents to be submitted by students and their co applicants are different.

KYC documents

1. Photo-Identity proof of student, co-borrower(s), and guarantor (if any)
2. Residence proof of student, co-borrower(s), and guarantor (if any)
3. 2 passport size photographs of each of the student, co-borrower(s), guarantor (if any)
4. PAN card of student, co-borrower(s), guarantor (if any). If the student does not have a PAN card at the time of applying for a loan, branches should advise the student to apply for the same and furnish a copy at a later date.
5. Income proof of student wherever applicable
6. Income proof of co-borrower(s) and guarantor (if any)

Academic documents

1. Proof of admission (admission letter)
2. Mark sheet and certificates of all exams passed
3. Schedule of expenses for the course
4. Letter conferring scholarship, free-ship, studentship, etc

Security documents (if any)

1. Valuation certificate wherever applicable
2. Guarantee documents wherever applicable

Other documents

1. Credit information of student / co-borrower(s) / guarantor (if any)
2. Caste certificate wherever required (only for statistical purposes)

Also, read about Education loan documents required by Private and Government banks.

Union bank education loan: Requirement of security

Quantum of loan	Security
Above Rs.4 Lakh & up to Rs.7.50 Lakh	Nil
Above Rs.4 Lakh & up to Rs.7.50 Lakh	No security required, if the loan is covered under CGFSEL.
Above Rs.7.50 Lakh	Tangible collateral security of minimum value equivalent to the loan amount and interest accumulation during course & moratorium period, acceptable to the bank**

List of expenses covered by a Union bank education loan

The following expenses can be taken care of with the help of a Union Bank education loan

1. Tuition fee payable to college/ school/ university
2. Hostel/mess charges
3. Examination/ Library/ Laboratory fee
4. Insurance premium for the student borrower
5. Caution deposit, Building fund/ refundable deposit supported by Institution bills/ receipts
6. Purchase of books/ equipment’s/ instruments/ uniforms
7. Purchase of computer/laptop at a reasonable cost, if required for completion of the course
8. Travel expenses/ passage money for studies abroad
9. Admission acceptance fee
10. Any other expense required to complete the course - like study tours, project work, thesis, etc.

Read More: Expenses Covered By An Education Loan in India For Study Abroad

Union bank education loan disbursement process

Most government banks release education loan funds part by part, in a systematic manner. The tuition fees are credited into a student's university account and the living expenses are disbursed into a Foreign Travel Card which is issued at the time of the education loan disbursement after the loan agreement has been signed.

How to apply for a Union bank education loan

You can apply for education loans online these days through the Vidyalakshmi portal. VidyaLakshmi was created with the goal of processing large volumes of both domestic and abroad education loans in India. As a result, despite the fact that there are fewer applications for abroad education loans than domestic ones, your abroad loan application is nonetheless stuck in an endless "Wait" line due to the enormous number of Indian study loans.

You should approach and apply through WeMakeScholars, a Government-funded organization. WeMakeScholars works digitally and can process applications PAN India. We are associated with 10 plus public banks, private banks, and NBFCs, it might be a good alternative if you are specifically looking for an overseas education loan.

We connect you with multiple lenders online after assessing your profile and help you get the best deal possible. You can request a callback to get in touch with us.