Why For/Purpose /Objective:
Union Bank education loan scheme aims at providing financial assistance on reasonable terms:
- To the poor and needy students that they may undertake basic education
- To meritorious students that they may pursue higher or professional or technical education.
- Be an Indian National.
- Has secured admission to professional or technical courses through an appropriate Entrance Test or selection process.
- Has secured admission to a foreign University
- Has passed an appropriate qualifying examination
Studies in India:
- School education up to +2.
- Professional course
- Management course
- Special Education Loan Scheme for Students pursuing courses from approved institutions like IITs/IIMs/ /NIT XLRI/BITS/VIT/IISc/S.P. Jain Institute Of Management/Symbiosis Institute Of Management and T.S. Chanakya, Navi Mumbai- Nautical Science and MERI, Calcutta, Marine Engineering, MERI, Mumbai, Maritime Science.
- Graduation : For job oriented professional/technical courses offered by reputed universities.
- Post Graduation: MCA, MBA, MS. Etc.
- Courses conducted by CIMA-London, CPA in USA etc.
Quantum/ Amount of Loan
Need-based finance subject to repayment capacity of the parent or student with margin and upto the following ceilings
For studies in India - Up to Rs. 10 lacs For studies abroad - Up to Rs. 20 lacs
No margin for loans up to Rs. 4.00 lacs . However, for loan of higher amounts, the margin requirement is 5% for inland studies and 15% for studies abroad.
Scholarship/assistance to be included in margin. Margin maybe brought in on pro-rata basis as and when disbursement is made.
Rate of Interest:
For Male Student:
Up to Rs. 4.00 lakhs: 11.75% (Fixed)
Above Rs. 4.00 lakhs upto Rs.7.50 lakhs: 12.50% (Fixed)
Above Rs. 7.50 lakhs: 12.00% (Fixed)
For Female Student:
Up to Rs. 4.00 lakhs: 11.25% (Fixed)
Above Rs. 4.00 lakhs upto Rs.7.50 lakhs: 12.00% (Fixed)
Above Rs. 7.50 lakhs: 11.50% (Fixed)
For Special Education Loan Scheme
- Special scheme For IIM students: 10.50% for Male, 10.25 % for Female
- Special Scheme for BSc in Nautical Science, Marine Engg, Maritime Science: 11% Special Scheme IIT/NIFT students: 10.50% for male, 10.25% for Female
- Special Scheme for XLRI.BITS/VIT/IISC/SYMBOISIS/SP JAIN/NIT: 11.00%
- Special Scheme for students of ISB(Indian School of Business) only for Hyderabad : 10.50% for male , 10.00% for Female
- Special scheme for students of Asian Institute of Management : 11.00%
- Simple interest will be calculated during repayment holiday/moratorium period.
- Interest rate is fixed and will not undergo any change till the loan amount is repaid in full.
Repayment holiday or Moratorium on loan: Course period + 1 year OR 6 months after job placement, whichever is earlier.
Starting from this point, the loan is to be repaid in 5-7 years after completion of course period/moratorium.
Upto Rs. 4 lakh : No security
Above Rs 4 Lakh & upto Rs 7.5 lakh : a suitable third party / personal guarantee
However for loans above Rs 7.5 lakh, Collateral security of suitable value along with co-obligation of parents / guardian / third party / accompanied by assignment of future income of student for the payment of installments is required
A Life insurance policy from Insurance company for a sum not less than the loan amount is required to be taken in the name of the student and duly assigned in favour of Union Bank.
Loans can be considered for eligible students in case they approach the Bank in the subsequent year of the commencement of the course.
Branches can issue Bank Guarantee, for payment seats wherever required.
No Prepayment penalty if the loan is adjusted by the borrower from his own verifiable legitimate sources or genuine sale. However, 2% charged on an average o/s. balance of last 12 months if loan is closed on take over by other Banks / Financial Institutions.
The Loan Accounts of students applying through college/institutions will be sanctioned/disbursed at the branch nearest to permanent residence/place of domicile of the borrower student. No Pre-Payment penalty for self-closure. However, 2% charged on an average o/s. balance of last 12 months if loan is closed on take over by other Bank/FIs.
Delhi Tel: 011- 29531688 / 29537686,
Bangalore Tel: 080- 22262439 / 22958200,
Chennai Tel: 040- 8521939,
Hyderabad Tel: 040- 237166,
Kolkata Tel: 033- 22282282 / 22281399,
Mumbai Tel: 022- 23420281 / 23445180.