Union Bank


"Union Bank is one of India's most prominent government owned banks which was established in the year 1919. The bank enjoys a widespread presence not only in India but also in countries like UAE, Abu Dhabi, Beijing, Sydney, London, Shanghai, Belgium, etc. Under its personal banking arm, Union Bank of India offers Union Education which is essentially an education loan meant for all those who wish to borrow funds in order to pursue higher education in India or abroad."

Loan Interest Rates:

Quantum of Loan Interest Rate (Male students) Interest Rate (Female students)
Up to Rs 7.50 lakh 12.25% (fixed) 11.75% (fixed)
Above Rs 7.50 lakh 12.00% (fixed) 11.50% (fixed)

For Vocational Training:
Male students 11.75% (fixed)
Female students 11.25% (fixed)

Loan Eligibility:

Courses Eligible For Loan:
  • Graduation / Post Graduation / Diploma courses offered by recognized universities / colleges.
  • Technical / management / professional courses
  • Graduation / Post Graduation / Diploma courses offered by recognized universities / colleges.
  • Certified degree courses offered by recognized institutes like CIMA (London) and CPA (USA) and such others.
  • Diploma courses offered outside India are not eligible for this loan.

Documents Required:
"To apply for the Union Bank of India Education Loan, applicants need to furnish the following documents."
  • Proof of identity - Passport, PAN Card, Employee Identity card or any other valid proof
  • Proof of address - Electricity bill, Telephone bill, Ration card or any other valid proof.
  • PAN Card
  • Bank statement for the last 12 months
  • Admission documents, Admission Letter, Admit Card.
  • Schedule of expenses including the fee structure and living expenses.
  • Mark sheets for Class X or equivalent onwards.
  • 3 photographs
  • Proof of any out-goes
  • Loan repayment statement (If any)
  • LIC Policies (If any)
  • Any other document asked for in the application form
  • Proof of Income:
    • Salaried Individuals - Last one year's Income Tax Returns, Form-16 / letter from employer, salary slips for the last 6 months.
    • Business Owners - Income Tax Returns for the last 3 years, Profit & Loss Balance Sheet.
    • Agriculturists - Income Certificate from concerned revenue officer (Tahsildar) or/and proof of land holding.

Candidate Education Loan Eligibility:
  • Must be an Indian citizen
  • Applicant must have gained admission to a recognized institute in India or abroad through an appropriate standardized selection process or by clearing the concerned qualifying examination.

Processing Fees:
"This loan does not carry any processing fee or any other charges."

Expenses Covered under Education Loan:

Loan Repayment:

Loan Amount Repayment Period
Up to Rs 7.50 lakh Within a maximum period of 10 years
Above Rs 7.50 lakh Within a period of 15 years after the repayment period begins

Security Required:

Quantum of Loan Security Required
Up to Rs 4 lakh No security required
Above Rs 4 lakh & up to Rs 7.50 lakh Suitable third party guarantee which is acceptable to the bank
Above Rs 7.50 lakh Tangible collateral security which is equal to the loan amount + interest combined, payable for the duration of the course and moratorium period, which is acceptable to the bank.


1.How is the interest calculated on the Union Bank Education Loan?
Ans. Interest on this loan will be calculated based on the reducing balance method at monthly intervals. No compounding interest will be charged during the moratorium period.

2.What are the methods by which I can repay my Union Bank Education Loan?
Ans. Your Union Bank education loan will be repaid in equated monthly installments (EMIs) in any of the following ways: (i) By authorizing your bank to directly debit the EMI amount from your Union Bank of India Savings account; (ii) Via the internet banking facility available on your Union Bank of India savings account; (iii) ECS (Debit) facility or (iv) By issue of Post Dated Cheques (PDCs).

3.Is it necessary to have a guarantor while applying for a Union Bank Education Loan?
Ans. Yes, the bank requires that the parent/guardian of the student applicant must join as co-borrowers on the loan.

4.How long will it take for my Union Bank education loan to be approved?
Ans. After the necessary documents have been submitted with the bank, it takes approximately 7 days for the loan to be sanctioned.

5.Does an applicant need to open an account with Union Bank in order to apply for their education loan?
Ans. No, it is not mandatory for an applicant to open an account in order to apply for the Union Bank Education Loan.