Union Bank of India Education Loan: Information on Interest Rates 2016 ✓ Documents ✓ Eligibility ✓ Fees and Charges of UBI Education loans.
Union Bank Education Loan Details:
|Interest Rates||11.05 – 12.55%|
|Max. Loan Amount||upto 25 Lakh|
|Loan Repayment||upto 15 years|
If your purpose of loan is – Education, Pursue Graduation or Post Graduation and Pursue Technical/ Management/Professional Courses than you are eligible for Union bank education loans.
ISB at Hyderabad & Mohali – Loan for one-year full-time ‘Post Graduate Programme (PGP) in Management course. Interest Rates starts from 9.65% (Floating)
Special Scheme for IIMs, XLRI, MDI, SPJIMR – Interest Rates starts from 9.65%
Special Scheme for IITs, NIFT, NITs, IISc, SIBM, IIFT, SCHMRD, VIT, NID, BITs, etc – Interest Rates starts from 11.00% for girls & 11.50% for Boys
✓ All Indian citizen’s are eligible who want to pursue further education
✓ Courses which are covered under Union Bank education loan scheme are – Graduation / post-graduation / diploma courses from recongnized universities, Technical / professional / management courses.
✓ Diploma courses abroad are not covered under Union Bank education loan schemes.
Union Education Loan Interest Rates 2016
Quantum of loan
Rate of Interest
For Male student
For Female student
|Up to 4.00 Lakh||12.55% (fixed)||12.05% (fixed)|
|> 4.00 Lakhs to 7.50 Lakh||12.30% (fixed)||11.80% (fixed)|
|Above 7.50 Lakh||11.55% (fixed)||11.05% (fixed)|
Maximum Loan Amount Limit
✓ ₹ 10 Lakh for Studies in India
✓ ₹ 20 Lakh for Studies in Abroad
Margin in Loan or Education loan
✓ For loans upto ₹ 4 Lakhs, the margin is nil for you, you can get 4 lakh of loan amount.
✓ For loans above ₹ 4 Lakhs, than you have to arrange 5% in case of studies in India & 15% in case of Abroad.
Repayment Options details
✓ 10 Years in case of loan amount Upto ₹ 7.50 Lakh loan amount
✓ 15 Years in case of loan amount above ₹ 7.50 Lakh
✓ Upto Rs. 4 Lakhs – No security is required.
✓ Above Rs. 4 Lakh & upto Rs 7.5 Lakhs – Suitable third party guarantee acceptable to the bank to be taken.
✓ Above Rs. 7.5 Lakhs – Tangible Collateral security of minimum value equivalent to the laon amount and interest accumulation during course & monatorium period, acceptable to the bank.
The loan shall be sanctioned / disbursed from the branch nearest to the place of domicile of the student
✓ Loan would be disbursed directly to the institute
✓ Loan can be availed during subsequent years of the course
✓ Legal and valuation charges have to be borne by the borrowers
Central Government Subsidy education loan 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 10 Lakhs (even if loan is more than 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 – Union Bank
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)
Can I prepay my education loan?
Yes, you can make your prepayment. There is no charge on pre payment if the loan is adjusted by the borrower from his own verifiable legitimate sources. However, a charge of 2% on the average balance of the preceding 12 months if the loan is taken over by any other Bank/ FI.
What are the tax benefits I get from my education loan?
Tax benefits can be claimed on the interest component of the education loan as per the Income Tax Act, 1961. An amount equal to the interest amount paid can be claimed for deduction under section 80E.
What are the steps involved in taking a loan?
There are three main steps –
Application – Whereby you submit a completely filled in application with all necessary documents
Sanction – Whereby you get an approval for a specific loan amount based on the value of your property and repayment capabilities
Disbursement – Whereby the loan amount is disbursed
The eligible students should contact our branches from where they have availed / availing educational loans for further details.
Other Available Products of Union Bank of India are –
- Union Bank Home Loan
- Union Bank Car Loan
- Union Bank Credit Card
- Union Bank Personal Loan
- Union Bank Loan Against Property
Source: Union Bank of India Website