Union Bank Education Loan
The Union Bank Education Loan is a financing option designed to assist students in financing their education expenses in India or abroad. With loan amounts of up to ₹200 lakhs and a repayment tenure of up to 15 years, starting at an attractive interest rate of 8.65% p.a., this loan caters to students aged between 18 and 65 years with a valid passport, good credit score, and an offer letter from a recognized educational institution. The loan covers a wide range of expenses including tuition fees, hostel fees, examination fees, books and stationery, lab fees, travel expenses, living expenses, insurance premiums, and incidental costs. Notably, the interest paid on the loan is eligible for tax benefits under Section 80E of the Income Tax Act, 1961. To apply, individuals can conveniently visit the Union Bank website or their nearest branch, ensuring an accessible path to secure the necessary funds for their educational pursuits.
Education loan Eligibility:
- Age: The borrower must be between 18 and 65 years of age.
- Passport: The borrower must have a valid passport.
- Credit score: The borrower must have a good credit score.
- Offer letter: The borrower must have a valid offer letter from a recognized educational institution.
- Course: The course must be offered by a recognized educational institution.
- Loan amount: The loan amount must be up to ₹200 lakhs.
- Repayment tenure: The repayment tenure must be up to 15 years.
- Interest rate: The interest rate starts from 8.65% p.a.
- Security: The loan can be secured by a residential property, third-party guarantee, or NSC/KVP.
Here are some of the additional eligibility criteria for Union Bank Education Loan:
- The borrower must be a citizen of India.
- The borrower must have a valid PAN card.
- The borrower must have a valid Aadhaar card.
- The borrower must have a valid income tax return for the last two years.
Documents Required:
Personal Documents:
- Passport size photograph of the borrower and co-borrower (if applicable)
- Proof of identity of the borrower and co-borrower (e.g., PAN card, Aadhaar card, voter ID card, etc.)
- Proof of address of the borrower and co-borrower (e.g., electricity bill, telephone bill, rent agreement, etc.)
- Income proof of the borrower and co-borrower (e.g., salary slips, IT returns, bank statements, etc.)
Educational Documents:
- Admission letter from the educational institution
- Course details
- Fee structure
- Mark sheets for Class X or equivalent onwards
Security Documents (if applicable):
- Property title deed
- Title insurance
- National Savings Certificate (NSC)/Kisan Vikas Patra (KVP)
- Third-party guarantee
Process to apply for education loan:
Gather the required documents:
- Personal documents: Borrower's and co-borrower's passport size photographs, proof of identity (PAN card, Aadhaar card, voter ID card, etc.), proof of address (electricity bill, telephone bill, rent agreement, etc.), and income proof (salary slips, IT returns, bank statements, etc.).
- Educational documents: Admission letter from the educational institution, course details, fee structure, and mark sheets for Class X or equivalent onwards.
- Security documents (if applicable): Property title deed, title insurance, NSC/KVP, and third-party guarantee.
- Visit the Union Bank of India website or a nearby branch to apply for an Education Loan online or in-person.
- Complete the application form, providing personal and educational details, as well as loan-related information.
- Submit the application form and required documents to the nearest Union Bank branch.
- Await loan approval, which typically takes 15 to 30 days. Once approved, you will need to sign the loan documents.
- Open a savings account with Union Bank of India, as the loan amount will be disbursed to this account.
- Pay the processing fees, usually 1% of the loan amount.
- Obtain a life insurance policy for the borrower and co-borrower (if applicable), as required by the loan.
- After a grace period of 6 months, begin repaying the loan according to the agreed terms.
Expenses Covered in education loan scheme:
- Tuition fee payable to college/ school/ university
- Hostel / mess charges
- Examination/ Library/ Laboratory fee
- Insurance premium for the student borrower
- Caution deposit, Building fund/ refundable deposit supported by Institution bills/ receipts
- Purchase of books/ equipment’s/ instruments/ uniforms
- Purchase of computer/laptop at reasonable cost, if required for completion of the course
- Travel expenses/ passage money for studies abroad
- Admission acceptance fee
- Any other expense required to complete the course - like study tours, project work, thesis, etc.
Courses covered in education loan scheme:
Courses covered in India:
- Graduation / post-graduation / diploma courses from recognized universities
- Technical / professional / management courses
- PhD courses
Courses covered outside India:
- Graduation / post-graduation degrees offered by recognized universities
- Certified degree courses conducted by CIMA, London, CPA, USA and other such institutes
- PhD courses
- Diploma courses abroad are not covered
Note: The information provided about education loans is sourced from official guidelines. However, for complete satisfaction and up-to-date details, we recommend visiting the official website of the respective financial institution. The official website will provide comprehensive and accurate information regarding eligibility, application process, documentation requirements, terms, and conditions.
