Union Bank of India Education Loan: A Complete Guide
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Union Bank of India Education Loan provides financial support for students who want to pursue higher education in India or abroad. Students can apply through the official website of the bank, mobile application, the Vidya Lakshmi Portal, or by visiting the nearest bank branch. This loan covers a wide range of expenses, including tuition fees, hostel and living costs.
Under the Union Bank of India education loan, students can borrow between INR 4.00 lakhs and INR 1.5 crores to finance their higher studies. The student loan amount depends on the applicant’s profile and the co-applicant’s CIBIL score. Students can apply for a UBI student loan through both online and offline methods.
The Union Bank of India education loan interest rate starts from 7.85% and can go up to 11.75%, depending on the loan amount and the applicant's profile. The bank offers up to INR 40 lakhs without any collateral for studying abroad, while there is no upper limit on secured education loans. If you are planning to apply for a Union Bank education loan, this comprehensive guide is for you. We have covered every basic detail about borrowing a student loan from UBI to help you make a decision.
Related Reads:
- Union Bank of India Education Loan for Abroad Studies
- Union Bank Education Loan Interest Rate 2025
- Union Bank Education Loan Eligibility
- How to Apply for a Union Bank Education Loan?
Union Bank of India Education Loan for Abroad Studies
Union Bank of India is one of the popular public sector banks in India. It provides financial assistance to needy students who want to pursue higher education abroad or in India. The Union Bank of India Education Loan for abroad studies covers a wide range of expenses, including tuition fees, hostel and living costs, books, study materials, travel expenses, and even the purchase of a laptop or other device.
Also, borrowers can avail of income tax benefits on interest payments under Section 80E. Below, we have mentioned a quick overview of UBI student loans to help you gain a clear understanding of its key features and benefits.
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| Overview of Union Bank Education Loan |
|
|---|---|
| Loan Amount |
INR 4.00 Lakhs to 1.5 Crores (To Study Abroad and In India) |
| Union Bank Education Loan Interest Rate |
7.85% to 11.75% (Based on Profile of Students) |
| Loan Coverage |
|
| Repayment Tenure |
Up to 15 years |
| Moratorium Period |
Course Duration+ 1 Year |
| Tax Benefits |
Income tax benefit on interest paid under Section 80E. |
| Application Process |
Students can apply online and offline |
Union Bank Education Loan Interest Rate 2025
Having a clear understanding of the Union Bank of India Education loan interest rate is important if you are planning to borrow money for your higher studies. This public sector bank offers student loans at lower interest rates than private banks. Also, special concessions for female students.
Here is the table that contains detailed information about Union Bank Education Loan Interest Rate 2025 (scheme-wise):
- Union Education Loan (For Studying in India)
| Loan Amount |
Effective ROI |
|
|---|---|---|
|
|
For Male Students |
For Female Students |
| Up to INR 7.5 Lakhs |
11.00% |
11.00% |
| Up to INR 4.0 Lakhs |
12.25% |
11.75% |
| INR 4.00 Lakhs – INR 7.5 Lakhs |
12.00% |
11.50% |
| Above INR 7.5 Lakhs |
11.10% |
10.60% |
- Union Education Loan – Premier Abroad (For Studying Abroad)
| For Category ‘A’ Institutes |
||
|---|---|---|
| Loan Amount |
Collateral Coverage |
Rate of Interest |
| Up to INR 40 Lakhs |
No Collateral |
9.50% |
| Up to INR 150 Lakh |
50% to <100% Collateral |
9.25% |
| INR 150 Lakh and Above |
100% & Above Collateral |
9.00 |
| For Category ‘B’ Institutes |
||
| Up to INR 30 Lakhs |
No Collateral |
9.75% |
| Up to INR 150 Lakh |
50% to <100% Collateral |
9.50% |
| INR 150 Lakh and Above |
100% & Above Collateral |
9.00 |
- Union Education Loan – PM Vidyalaxmi Scheme
| Course Name |
Effective ROI |
|---|---|
| PM Vidyalaxmi - I (AAA) |
7.85% |
| PM Vidyalaxmi - I (AA) |
8.10% |
| PM Vidyalaxmi - I (AA/A) |
8.30% |
| PM Vidyalaxmi - I (BBB) |
9.00% |
| PM Vidyalaxmi - I (BB) |
9.50% |
- Union Education Loan – Non-PM Vidyalaxmi (Union Medicos)
| Loan Amount |
Collateral Coverage |
Effective ROI |
|---|---|---|
| Up to INR 40 Lakh |
Without Collateral |
10.00% |
| Up to INR 200 Lakh |
50% to <100% Collateral |
9.75% |
| INR 200 Lakh & Above |
100% & Above Collateral |
9.50% |
Union Bank Education Loan Eligibility
The Union Bank of India has announced the eligibility criteria for education loans. Applications will be accepted only from students who fulfill the below-mentioned eligibility requirements.
- Applicant should be an Indian citizen
- Must have an admission letter from a university/college to study in India or abroad.
- Applicant must have secured admission through entrance exams such as IELTS /TOEFL/GRE
- NRI students should hold an Indian Passport & have secured admission to a course for studies in India only.
How to Apply for a Union Bank Education Loan?
Eligible students can apply for a Union Bank of India education loan through the bank's mobile application, official website, offline by visiting a branch, or via the Vidyalakshmi Portal. The process of these application processes is different from each other. To have a better understanding, we have mentioned the step-by-step application process.
By Mobile Application:
- Visit the “Vyom” application of Union Bank (Only for Account Holder with Bank).
- Scroll down to “Loan” section and click on the “Education Loan” section.
- You’ll be redirected to the official website of bank.
- Fill up the details and the bank representative will connect you.
By Official Website of Bank
- Visit the official website of Union Bank.
- Click on “Loan” and then click on “Education loan” option.
- There you can select the best scheme which suits your needs.
- Fill up the required details and bank representative will connect with you.
- Visit the Vidya Lakshmi Portal and create a new account (If you don’t have one).
- Fill up the details asked there.
- Once, the registration process is done, you can apply for up to three education loan schemes of any bank.
- Select the “Union Bank of India education loan” option.
- You can track your loan application status here only.
By Visiting the Bank Branch
- Just visit any nearest branch of Union Bank of India.
- There you can directly connect with the bank representative regarding the education loan application.
Related Reads:
List of Documents Required for UBI Education Loan
Here is the list of documents required to apply for the Union Bank of India Education Loan. The bank officials take 10 to 20 days to approve your loan application. During this period, they verify your documents and assess your profile. Make sure to submit all the required documents at the time of application to ensure a quick approval process for your student loan. Check the list of documents required for education loan below:
| List of Documents Required for Student Loan |
|
|---|---|
| Application Form |
Education Loan application form with correct information |
| Government-Approved Identity Proof |
|
| Residence Proof |
|
| Passport Size Photos |
Latest Passport-Size Photograph of Applicant and Co-Applicant |
| Income Proof |
|
| Academic Documents |
|
| Other Documents |
Caste Certificate (If Needed) |
Union Bank of India is a well known public sector bank which offer education loans at lower ROI. With loan amounts ranging from INR 4.00 lakhs to INR 1.5 crores, flexible repayment options, and competitive interest rates starting from 7.85%, Union Bank Education loan provides financial support to needy students. Also, female students get special concessions in ROI.
Education Loans By Other Banks
| Axis Bank Education Loan | ICICI Bank Education Loan |
| Bank of Baroda Education Loan | Avanse Education Loan |
If you are planning to apply for Union Bank Student loan then, it is recommended that research well and read the terms and conditions. Want any expert guidance? Contact India’s leading education loan providers through Shiksha Study Abroad. For more queries. Do write to us in the comments below. Or request a call back from our Shiksha Study Abroad Counselling Services.
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