Union Bank Education Loan

Union Bank Education Loan


  • Basic education.
  • To pursue graduation / higher education
  • To pursue technical / professional / management courses


  • Indian citizen
  • Secured admission to the concerned institute in India or abroad through appropriate selection process and cleared the qualifying examination, if any
  • Courses covered in India
    • Graduation / post-graduation / diploma courses from recongnized universities
    • Technical / professional / management courses
  • Courses covered outside India
    • Graduation / post-graduation degrees offered by recongnized universities
    • Certified degree courses conducted by CIMA, London, CPA, USA and other such institutes
    • Diploma courses abroad are not covered

Quantum Of Loan

  • For studies in India - maximum upto Rs. 10 Lakhs. The quantum of loan is higher for the institutes covered under Special Education Loan schemes. Please check the Special Offers Tab above for further details.
  • For studies outside India- maximum Up to Rs. 20 Lakhs

Margin, I.E. Your Share

  • For loans upto Rs. 4 Lakhs, no margin is required
  • For loans above Rs. 4 Lakhs, margin is 5% for studies in India and 15% for studies outside India
  • Scholarship / assistantship will be included in the margin

Moratorium Period

  • The moratorium period is minimum of the following two.
    • Course period + 1 year
    • Course period + 6 months after commencement of job


Quantum of loan Maximum repayment tenure (after the course & moratorium period)
Upto Rs 7.50 Lakh 10 years
Above Rs 7.50 Lakh 15 years
  • Upto Rs.4.00 lakhs - NIL
  • Above Rs.4.00 lakhs
    • For Studies in India - 5%
    • For Studies Abroad - 15%

Rate Of Interest And Processing Charges

  • Please click here to know our latest rate of interest
  • If interest is regularly serviced during the course and moratorium period, i.e. prior to the commencement of repayment, then the student is eligible for interest rebate. Please contact the nearest branch for details.
  • No processing charges.
  • Wherever applicable, Valuation / Legal / Stamp Duty / CERSAI / Memorandum registration charges as per actuals


The security required is as mentioned below.

Quantum of loan Security
Upto Rs 4 Lakh No security is required.
Above Rs 4 Lakh & upto Rs 7.50 Lakh Suitable third party guarantee acceptable to the bank to be taken.
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.
In all the above cases, parent/spouse have to necessarily join in as co-applicant.


Life insurance of the student is recommended to the tune of the loan amount

Other Conditions

Documents should be executed both by the student and parent / guardian as joint borrower.

  1. The loan shall be sanctioned / disbursed from the branch nearest to the place of domicile of the student
  2. Loan would be disbursed directly to the institute
  3. Loan can be availed during subsequent years of the course
  4. Legal and valuation charges have to be borne by the borrowers.
  5. If the loan is take-over by other bank/FI, then a charge of 2% on the average loan outstanding for the past 12 months will be levied.

Central Goverment Interest Subsidy Scheme

The Ministry of HRD has launched Central Government scheme of Interest Subsidy on educational loans for economically weaker sections of the society. 

The students who satisfy all the following parameters would be eligible for the interest subsidy. 

§ The student has secured admission to any of the approved courses after Class XII in Technical and Professional streams from recognized institutes in India only and availed educational loan from any of the scheduled banks, including Union Bank of India, to pursue the course. 

§ The student belongs to Economically Weaker Section (EWS) with an annual gross parental / family income from all sources not exceeding Rs 4.50 Lakhs. 

The other features of the scheme are as follow :

  • Subsidy for loan amount upto Rs 10 Lakhs (even if loan is more than Rs 10 Lakhs).
  • Student to submit proof of income from the competent authority appointed by the state government.
  • Scheme applicable for disbursements from the academic year 2009 (even if the loan was sanctioned earlier).
  • Subsidy for the course and moratorium period only.
  • Student will be eligible for interest subsidy only once either for the first undergraduate degree course or the post graduate degree / diploma course in India.

Padho Pardesh Scheme


The objective of the Scheme is to award interest subsidy to meritorious students belonging to economically weaker sections of notified minority communities declared as minority communities in terms of section 2 (c) of National Commission for Minorities Act, 1992, on the interest payable during the period of moratorium ( i.e. course period plus one year or six months after getting job whichever is earlier) for Education Loans for Overseas studies to pursue approved courses of studies abroad at Masters , M. Phil and Ph.D. levels only once either for Masters or Ph.D. levels.

Important features of the scheme are as under:

  • The Scheme is applicable to students who have availed educational loans from 2013-14 (1st April, 2013) onwards and have a family income up to Rs. 6 lakhs per annum.
  • Subsidy shall not be available to those students who either discontinued the course mid-stream due to any reason or those who are expelled from the institutions on disciplinary or academic grounds. If a student violates any conditions of the scheme, the subsidy will be discontinued forthwith.
  • The scheme is applicable for higher studies abroad.
  • After the period of moratorium is over, the borrower/s will bear the Principal installments and interest beyond moratorium period.
  • Total income from all sources of the employed candidate or his /her parent’s, guardians in case of unemployed candidate shall not exceed Rs. 6.00 lakh per annum.
  • INCOME CERTIFICATE should be submitted from the competent authority of the State/Union Territory.
  • The students obtaining benefits under this scheme shall not be given interest subsidy if he gives up Indian Citizenship during the tenure of the loan.
  • The Branch to ensure that Students from the minority communities, who may also belongs to SC/ST/OBC category, do not avail interest subsidy from other sources for the same purpose.

The eligible students should contact our branches from where they have availed / availing educational loans for further details.

ACSISOBCEBC Scheme - Dr. Ambedkar Central Sector Scheme of Interest Subsidy on Educational Loan For Overseas Studies For Other Backward Classes (OBCs) & Economically Backward Classes (EBCs)

National Backward Finance & Development Corporation (NBCFDC), Ministry of Social Justice and empowerment, GOI has implemented the scheme of interest subsidy on educational loans for overseas studies for the students belonging to the Other backward classes (OBCs) and Economically backward classes (EBCs). Interest charged during the course and moratorium period is reimbursed by the National Backward Finance & Development Corporation (NBCFDC), Ministry of Social Justice and empowerment, GOI. The scheme is in force from 01/04/2014.

Salient Features:

  • Subsidy will be provided for higher studies abroad viz. Masters , M. Phil and Ph.D. levels.
  • Family income for Other backward classes (OBCs) is upto Rs. 3 Lakh.
  • Family income for Economically backward classes (EBCs) is upto Rs. 1 Lakh.
  • Student has to submit income either of ITR, Form 16 or income certificate from competent authority appointed by the state government.
  • Scheme applicable for loans sanctioned from 01.04.2014 onwards.
  • Subsidy for the course and moratorium period only.

The eligible students should contact our branches from where they have availed / availing educational loans for further details.

Vidya Lakshmi

Government of India has launched Vidya Lakshmi portal for providing single window for students to access information and make applications for educational loans. Students can apply education loan through Vidya Lakshmi portal(Click here for Vidya Lakshmi portal)

List of Accrediated Universities/Institutions of Hotel Management and Catering Technology 

                                                                                                                                 For further details, please click here