Union Bank of India Education Loan | Interest Rates | Eligibility | Information

Union Bank of India Education Loan: Information on Interest Rates, Documents, Eligibility, Fees and Charges of UBI Education loans.

First – Purpose of Loan – Basic Education, Pursue Graduation or Post Graduation and Pursue Technical/ Management/Professional Courses.


  • Indian citizen | Secured admission to the concerned institute in India or abroad through appropriate selection process and cleared the qualifying examination, if any
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Full Name:
Country of Study:
Course of Study:
Co-borrower’s* Income:
Email ID :
Residence City:
Course Name:
Required Loan Amount:
Applicant’s Income Status :

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* Co-borrower : Relative with good income who can support your education loan application. Typically it can be your Father, Mother, Brother, Sister, Spouse, Cousin, Paternal Uncle (Chacha), Paternal Aunt (Chachi), Maternal Uncle (Mama), Maternal Aunt (Mami), Grandfather, Grandmother

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 are not covered under Union Education


  • 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


  • For loans upto Rs. 4 Lakhs, the margin is nil
  • For loans above Rs. 4 Lakhs, margin is 5% for studies in India and 15% for studies outside India
  • Scholarship / Assistant ship 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


  • Upto Rs. 7.50 Lakh – 10 Years
  • Above Rs. 7.50 Lakh – 15 Years

Union Education Loan Interest Rates

Quantum of loan

Rate of Interest

For Male student

For Female student

Up to 4.00 Lakh 12.65% (fixed) 12.15% (fixed)
> 4.00 Lakhs to 7.50 Lakh 12.40% (fixed) 11.90% (fixed)
Above 7.50 Lakh 11.65% (fixed) 11.15% (fixed)
  • 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


  1. Upto Rs. 4 Lakhs  – NIL
  2. Above Rs. 4 Lakh & upto Rs 7.5 Lakhs – Suitable Third party guarantee acceptable to the bank to be taken.
  3. 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.

Life insurance of the borrower is compulsory to the tune of the loan amount


  • 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.



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 ` 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.

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

*Conditions apply. For further details, please visit nearest branch.

Source: Union Bank of India Website

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