An abroad education loan is a type of loan that is specifically designed to help students finance their education abroad. This loan can be used to pay for tuition fees, living expenses, travel expenses, and other related costs. The loan is provided by financial institutions, such as Union Bank, and is offered to students who are looking to further their education overseas. More Indian students can pursue higher education thanks to Union Bank’s low-interest education loans with simple features. Without having to worry about money, students can enrol in the nation’s top technical and managerial colleges. Let’s dig deep into the details of the Union Bank Abroad Education Loan.
|Name of Loan||Union Education Loan|
|Eligibility Criteria||Student who has secured admission|
|Loan Tenure||Up to 15 years|
|Loan Amount||Above Rs 4 Lakh|
Benefits of an Abroad Education Loan
There are many benefits to taking out an abroad education loan. Some of the key benefits include:
- Flexible Repayment Terms: With Union Bank’s abroad education loan, you can choose from a range of repayment options to suit your individual needs. This means that you can tailor the loan to your specific financial situation, ensuring that you are able to repay the loan in a manageable and stress-free manner.
- Competitive Interest Rates: Union Bank offers competitive interest rates on their abroad education loans, ensuring that you are not overburdened with high-interest costs. This makes it easier for you to finance your education abroad, without the added stress of high-interest rates.
- No Collateral Required: Unlike many other types of loans, Union Bank’s abroad education loan does not require any collateral. This means that you can apply for the loan without having to put up any of your assets as security.
- Customized Loan Amounts: Union Bank offers customized loan amounts, based on your individual financial needs and circumstances. This means that you can apply for the exact amount of money that you need to finance your education abroad, without having to worry about taking out more than you can afford.
Must Read: Secured vs Unsecured Education Loans
Union Education Loan: Maximum Amount
The maximum loan amount that can be approved under the education loan program is unrestricted. The maximum amount for NRI students is Rs. 20 lakhs, and Rs. 30 lakhs for premium institutions
|Quantum of Loan||Effective ROI For Male Student||Effective ROI For Female Student|
|Up to ₹ 4.00 lakh||10.45%||9.95%|
Union Education Loan: Prime University List
|Havard University||Medical, Law, Economics & Econometrics, Art, Performing Arts, Design, STEM, Management Courses and Public Policy.|
|Standford University||Management Courses, STEM, Law, Economics & Econometrics, Art, Performing Arts, Design, and Medical.|
|University Of Oxford||Medical Courses, STEM, Law, Economics & Econometrics, Art, Performing Arts, Design Management, and All other Courses.|
|University Of Cambridge||Medical, STEM, Law, Economics & Econometrics, Art, Performing Arts, Design, Management, and All other Courses.|
|University of Toronto||Medical, STEM, Law, Economics & Econometrics, Art, Performing Arts, Design, and Management|
|University of Melbourne||Medical, STEM, Law, Economics & Econometrics, Art, Performing Arts, Design, and Management|
|University Of Queensland||Medical, STEM and Management|
|University Of Waterloo||STEM and Management|
|University of Rochester||STEM and Management|
Eligibility Criteria for an Abroad Education Loan
To be eligible for Union Bank’s abroad education loan, you must meet the following criteria:
- You must be a citizen of India.
- You must be at least 18 years of age.
- You must have a good credit history.
- You must be accepted into an overseas educational institution.
The below table gives an idea of the percentage required for the loan process:
Education Loan Security with Union Bank
Security Requirements are is as mentioned below:
|Quantum Of Loan||Security|
|Up to Rs.4 Lakh||No security is required. However, the loan has to be compulsorily covered under CGFSEL|
|Above Rs.4 Lakh & up to Rs.7.50 Lakh||Suitable third-party guarantee acceptable to the bank to be taken OR Loan to be covered under CGFSEL|
|Above Rs.7.50 Lakh||Tangible collateral security of minimum value equivalent to the loan amount and interest accumulation during the course & moratorium period, acceptable to the bank|
Repaying Your Abroad Education Loan
Repaying your abroad education loan with Union Bank is easy and stress-free. You can choose from a range of repayment options, including
- Monthly instalments: You can choose to repay your loan on a monthly basis, over a set period of time.
- One-time repayment: You can choose to repay your loan in full, at the end of the loan term.
What Does an Education Loan Cover?
- 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/ instruments/ uniforms
- Purchase of computer/laptop at a 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.
- 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
How to Apply for an Abroad Education Loan
Applying for an abroad education loan with Union Bank is simple and straightforward. All you need to do is follow these steps:
- Visit the Union Bank website and fill out the online loan application form.
- Provide the required documentation, such as proof of identity, proof of income, and proof of acceptance into an overseas educational institution.
- Wait for the loan application to be processed.
- Once the loan application has been approved, you will receive the loan amount directly in your bank account.
Must Read: Understanding the Education Loan Application Process
- Proof of identity
- Proof of Address
- PAN Card
- Bank Statement for the last 12 Months
- 3- Photograph
- Proof Of Out goes
- LIC Policies (If Any )
- Proof of Income
Union Education Loan Mode for EMI of Loan
Here’s an example to illustrate this:
Let’s say you have taken a Union Bank education loan for an amount of Rs.10 lakh at an interest rate of 8.30% p.a. with a loan repayment tenure of 15 years, then your EMI details will be:
- Equated Monthly Instalment (EMI): Rs.10,024
- Total interest due: Rs.7,51,492
- Total amount payable: Rs.17,51,492
Some Other Top Education Loan Providers
- ICICI Bank
- J&K Bank
- Bank Maharashtra
- Bank of Baroda
- Central Bank of India
What you need to know:
Minimum annual salary – N30 million.
Maximum loan amount accessible – N50 million.
Maximum tenor for loan repayment – 60 months.
Minimum salary domiciliation period with Union Bank – 1 month.
No collateral or any third-party guarantee is to be taken. No margin requirement
Paying off the education loan in the moratorium period. When you take a loan for higher studies, your EMIs start later.
Try for scholarships.
Apply for subsidies.
Increase the EMI volume.
Opting for a personal loan.
This was all about Union Bank Education Loan for study abroad. Stay tuned to Wings by Leverage Edu for more such informative blogs. If you want to know more about us our experts can help you explore the various programs offered around the world and assist you to find a suitable one as per your interests. Call us immediately at 1800 57 2000 for a free 30-minute counselling session.