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. Including in India or abroad. Students can apply through official website of bank or mobile application.
Planning your higher education abroad? Union Bank of India education loan is the perfect financial tool to support your study abroad dreams. It is simple to get. You can borrow between INR 4.00 lakhs and INR 1.5 crores. It depends on their course and profile. The interest rate for the loan is attractive. They typically start from 7.85%. Female students even get an extra 0.50% concession on ROI. It means you can save more money.
Collateral for education loan is not always needed. You can get up to INR 40 lakhs without any security for premier universities abroad. This reduces the burden on parents. Repayment of Union Bank education loan is also stress-free. You get up to 15 years to pay back the amount after finishing your higher studies.
Your expenses are fully covered. The education loans pay for tuition fees, hostel charges, and books so you can focus on learning. Applying is very fast. You can fill out the form online or visit a branch to get started. Choose a Union Bank of India education loan today to secure your future without financial worry.
- UBI Education Loan for Abroad Studies
- Union Bank Education Loan Interest Rate 2026
- Union Bank Education Loan Eligibility
- How to Apply for a Union Bank Education Loan?
- List of Documents Required for UBI Education Loan
- FAQs Related to Union Bank Education Loan
UBI Education Loan for Abroad Studies
The Union Bank of India education loan is a reliable choice for students planning to study abroad. It offers substantial funding up to INR 1.5 Crores to cover tuition costs, living expenses, and travel costs. With attractive interest rates and a flexible repayment tenure of 15 years, you can study without thinking about money. Know all terms and their meaning related to student loans before applying for it. The table below provides a quick overview of the key features and benefits.
| 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 2026
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 2 Crore |
50% to <100% Collateral |
9.75% |
| INR 2 Crore & Above |
100% & Above Collateral |
9.50% |
Union Bank Education Loan Eligibility
Students must meet the required eligibility criteria to apply for a Union Bank of India education loan. The main requirements are:
- The applicant must be an Indian citizen.
- The student must have secured admission to a recognised college, university, or institution in India or abroad.
- Admission should be based on the selection process required by the college or university.
- The student may need to provide scores from exams such as IELTS, TOEFL, GRE, or other tests if required for admission.
- NRI students must hold a valid Indian passport and should have secured admission to an eligible course in India.
Students should check the eligibility rules for their chosen Union Bank education loan scheme before applying, as requirements may vary by course and institution.
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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 the Official Website of Bank
- Visit the official website of Union Bank.
- Click on “Loan” and then click on the “Education loan” option.
- There, you can select the best scheme that suits your needs.
- Fill up the required details, and the bank representative will connect with you.
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.
List of Documents Required for UBI Education Loan
Here is 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. 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) |
Contact India’s leading education loan providers to get Education Loans to Study Abroad. For admission-related queries write to us in the comments below. Or request a call back from Shiksha Study Abroad.
FAQs Related to Union Bank Education Loan
Commonly asked questions
The interest rate of UBI student loan is between 7.85% to 11.75%. Totally depends on student's profile and specific loan scheme. Also, female students are eligible for a 0.50% concession on ROI.
Not always. Under the Premier Abroad scheme for Category 'A' institutes, students can avail of a loan up to INR 40 Lakhs without any collateral. For amounts exceeding this limit or for other categories, collateral coverage between 50% to 100% or more is typically required.
Loan repayment tenure is flexible. It allows students up to 15 years to repay student loan. This period begins after completion of course and moratorium period. It is calculated as course duration plus one year.
There is no fixed rate of interest for PM Vidya Lakshmi education loan. ROI completely depends on the bank loan scheme and profile of a candidate. If your CIBIL score is 700+ ROI can be less.
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Raj Vimal is an education writer and editor with over 8 years of experience. He helps Indian students find the right universities, visas, and courses abroad. Currently, he leads content strategies at InfoEdge India
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