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Union Bank of India offers a personal loan for studying abroad, designed to provide comprehensive financial support for students aiming to achieve their academic dreams. With attractive interest rates, adaptable repayment terms, and coverage for a wide range of expenditures, this loan is a trusted solution for funding your global education journey.
This guide explores the key features, eligibility criteria, application process, and benefits of Union Bank of India’s personal loan for studying abroad, empowering you to make informed decisions as you plan your international education.
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Why Choose A Union Bank of India Personal Loan to Study Abroad?
Selecting the right financial partner is critical when funding your education abroad. Union Bank of India, a leading public sector bank established in 1919, offers several compelling reasons to choose its personal loan for education to study abroad:
- Attractive Interest Rates: The bank provides attractive interest rates, starting as low as 9.00% for secured loans under the Special Education Loan Schemes for Premier Institutes Abroad, making repayments manageable.
- Substantial Loan Amounts: Loan to study abroad is available up to INR 1.5 crore, sufficient to cover tuition, living expenses, travel, and other study-related costs.
- Flexible Repayment Terms: With a repayment tenure of up to 15 years with a moratorium covering your course plus one year, so you can study without repayment stress.
- No Collateral for Smaller Loans: Loans up to INR 4 lakhs require no collateral, making them accessible for students with limited assets.
- Comprehensive Expense Coverage: The loan covers tuition fees, accommodation, travel, insurance premiums, books, equipment, and even study tours or project work.
These features make Union Bank of India a reliable choice for students pursuing higher education abroad.
Also Read:
- Vidyalakshmi Education Loan: Features, Eligibility, & How to Apply
- Indian Bank Education Loan Interest Rates for Studying Abroad
Eligibility Criteria for UBI Personal Loan for Studying Abroad
Understanding the eligibility requirements is essential before applying for the loan. Union Bank of India has clear criteria to ensure the loan is accessible to qualified applicants:
- Nationality: You must be an Indian national.
- Age: Applicants should be at least 18 years old.
- Academic Requirements: Admission to a recognized institution is required for higher education. For undergraduate programs, completion of high school is required; for postgraduate programs, an undergraduate degree is necessary.
- Entrance Tests: You need to meet the university’s prerequisite entrance tests, such as GRE, GMAT, IELTS, or TOEFL.
- Co-Applicant: A co-applicant, such as a parent, spouse, guardian, or in-laws, who is an Indian national with a steady income and good credit history, is required.
- Courses and Countries: The loan supports studies in countries including the United States, United Kingdom, Australia, Canada, Germany, Ireland, New Zealand, and select European countries (e.g., Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Sweden, Switzerland). Eligible courses include regular graduate and postgraduate programs, as well as specialized courses like CIMA (London), CPA (USA), aeronautical engineering, pilot training, and shipping.
Meeting these criteria ensures a smooth application process and increases your chances of loan approval.
Union Bank of India Personal Loan Features and Benefits
Union Bank of India offers both secured and unsecured education loans, tailored to meet diverse student needs. Below is a detailed breakdown of the loan’s features:
Loan Amount
- Secured Loans: Up to INR 1.5 crore, with potential for higher amounts based on the student’s profile.
- Unsecured Loans: Up to INR 40 lakh.
Interest Rates
Education loan interest rates vary based on the loan type and collateral provided. The following table outlines the rates for the Special Education Loan Schemes for Premier Institutes Abroad (subject to change):
| Loan Type | Loan Amount | Collateral | Interest Rate |
| Category A | Up to INR 40 lakhs | No collateral | 9.50% |
| Category A | Up to INR 1.5 crore | 50% to <100% collateral | 9.25% |
| Category A | Up to INR 1.5 crore | 100% and above collateral | 9.00% |
| Category B | Up to INR 30 lakhs | No collateral | 9.75% |
| Category B | Up to INR 1.5 crore | 50% to <100% collateral | 9.50% |
| Category B | Up to INR 1.5 crore | 100% and above collateral | 9.00% |
Note: Interest rates are subject to change. Verify the latest rates on the Union Bank of India website.
Margin Money
- For loans above INR 4 lakhs, a 15% margin is required (10% for listed universities under secured loans).
Moratorium Period
- Course duration plus 12 months, allowing you to start repayments after completing your studies and securing employment.
Repayment Period
- Up to 15 years, providing ample time to repay the loan comfortably.
Collateral Requirements
- No Collateral: For loans up to INR 4 lakhs.
- Third-Party Guarantee: For loans between INR 4 lakhs and INR 7.5 lakhs.
- Tangible Collateral: For loans above INR 7.5 lakhs, such as immovable property (house, flat, open plots) or fixed deposits.
Expenses Covered
The loan covers a comprehensive range of expenses, including:
- Tuition fees
- Accommodation and living expenses (hostel, mess, boarding)
- One-way travel to the university
- Insurance premiums for the student
- Caution deposits (with receipts)
- Books, equipment, instruments, and uniforms
- Study tours, project work, or thesis-related expenses
- A computer/laptop if essential for the course
Processing Fees
- Secured loans: INR 10,000 + GST.
- Unsecured loans: INR 5,000 (refundable upon first disbursement).
This comprehensive coverage and flexible terms make Union Bank of India’s personal loan for studying abroad a robust financial solution.
How to Apply for Union Bank of India Personal Loan for Studying Abroad
Applying for the loan is a straightforward process, with options for both online and offline applications:
Online Application
- Visit the Union Bank of India website (www.unionbankofindia.co.in).
- Access to the “Education Loan” section.
- Complete the application form with your personal and academic details.
- Upload the required documents as specified.
Alternatively, you can apply through the Vidyalakshmi Portal(www.vidyalakshmi.co.in), selecting Union Bank of India as the loan provider.
Offline Application
- Visit the nearest Union Bank of India branch (with over 9,727 branches across India).
- Request the education loan application form.
- Fill out the form and submit it along with the required documents.
Documents Required
To ensure a smooth application process, prepare the following documents:
- Duly filled application form
- Identity proof (PAN card, passport, driver’s license, voter ID)
- Address proof
- Valid passport
- Academic records (10th, 12th, undergraduate results, entrance exam scores like GRE, GMAT, IELTS, TOEFL)
- Admission letter from the foreign university
- Statement of estimated education and living expenses
- Co-applicant’s documents: Identity proof, address proof, income proof (Income Tax Returns), and credit history
- Collateral documents (if applicable): Property papers, valuation reports, fixed deposit certificates
- Two passport-size photographs
Processing Time
- Standard processing time is approximately 7 business days.
- For loans requiring collateral, processing may take 15–30 days due to valuation and verification.
By preparing all documents in advance and ensuring accuracy, you can expedite the loan approval process.
Also Read:
- What Are Bank of Baroda Education Loan Interest Rates in 2025?
- HDFC Bank Personal Loan Interest Rate: Types, Calculation
Studying abroad is a significant investment in your future, offering opportunities for personal and professional growth. Union Bank of India personal loan for studying abroad makes this dream accessible by providing comprehensive financial support, attractive interest rates, and flexible repayment options. Whether you’re pursuing a degree in engineering, medicine, or the arts, this loan covers the essential expenses, allowing you to focus on your studies.
FAQs
Union Bank of India appears to be a strong option for funding studies abroad, with attractive interest rates (9.00%-9.75%), loans up to INR 1.5 crore, and flexible repayment terms of up to 15 years. It covers expenses like tuition and accommodation, making it suitable for many students.
For education loans, you need to be an Indian national with admission to a recognized foreign university and have a co-applicant with steady income. General personal loan eligibility may include age (18+), income proof, and credit history, but specifics should be checked on the bank’s website.
Interest rates for Union Bank of India’s foreign education loans range from 9.00% for fully secured loans (Category A) to 9.75% for unsecured loans (Category B), depending on loan amount and collateral. Always verify the latest rates on the bank’s official website (www.unionbankofindia.co.in).
For Union Bank of India, eligible students must be Indian nationals with admission to recognized foreign universities and have a co-applicant (e.g., parent) with steady income. Check their website for specific criteria, as they may differ.
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