UBI Bank


"United Bank of India (UBI) boasts of a wide network of 1999 branches. 100% CBS enabled, the bank has three fully equipped overseas branches, one each in Kolkata, New Delhi and Mumbai, respectively. Education is a basic necessity that enables one to evolve intellectually, broaden their perspective and be successful in life United Bank of India helps young minds to educate themselves by offering financial assistance for higher studies. Help your child shape his/her future with United Bank of India's Education Loan."

Loan Interest Rates:

Max. Loan Amount Interest Rate
Up to Rs. 4 lakhs Base Rate + 2% = 12.00% (at present)
Above Rs. 4 lakhs to Rs. 7.50 lakhs Base Rate + 2.75% = 12.75% (at present)
Above Rs. 7.50 lakhs Base Rate + 2% = 12.00% (at present)

Loan Eligibility:

Courses Eligible For Loan:
  • Masters and Ph.D. in Arts, Commerce & Science
  • Professional courses like engineering, medicine, dentistry, veterinary, agriculture, computer, management, law, etc.
  • Certification in computer courses. These courses need to be conducted by recognised institutions, accredited to the Dept. of Electronics or institutes associated with a university.
  • Courses like CA, CFA, ICWA, etc.
  • Courses held by institutes like IIT, IIM, XLRI, NIFT, IISC, etc.
  • Courses provided in India by renowned international universities.
  • Evening courses held by approved institutions.
  • Other courses offering diplomas or degrees validated by UGC, Government, AICTE, AIBMS, ICMS, etc.
  • Graduation - professional/technical courses offered by reputed universities. These courses need to be job oriented.
  • Post-graduation degrees like MCA, MBA, MS, etc.
  • Courses conducted by CPA in United States of America and CIMA inLondon.

Documents Required:
  • Copy of mark sheet of the latest qualifying public exam, for schools/ colleges in India.
  • Proof of admission to the course for which the loan is applied.
  • Schedule of expenses for the course (fee receipts obtained from the institute).
  • Two recent passport size photos of the borrower, co-obligant and guarantor.
  • Copy of any National ID Card of all the parties involved.
  • Collateral Papers.

Candidate Education Loan Eligibility:
  • The applicant should be an Indian citizen.
  • The applicant must have obtained admission in any of the aforementioned courses via a formal entrance exam or relevant selection procedure.

Processing Fees:
  • No processing fee is charged for studies/courses in India.
  • 0.20% of loan amount is charged for courses abroad.

Expenses Covered under Education Loan:

  • Course fee/ tuition fee payable to the institute.
  • Hostel fee.
  • Fees towards library and laboratory.
  • Purchase of book, equipment, uniforms and others.
  • Money towards caution deposit, refundable deposit and building fund, if charged by the institute. All these have to be validated with bills issued by the institute.
  • Travel expenditures and passage expenses for overseas education.
  • Expenses for study trips, projects and thesis.
  • Cost of laptop/computer (if essential to complete the course), and the same should be hypothecated to UBI.

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
Less than Rs. 4 lakhs Up to 7 years (only if the student's income is sufficient to serve the EMIs)

Security Required:

  • No collateral security is required for loans up to INR. 4 lakhs, only co-obligation of parent/ guardian. An assignment of income, once the student starts earning, after the moratorium period is mandatory.
  • For loan amount between INR. 4 lakh and INR. 7.50 lakh, a third party guarantee is required along with co-obligation of parent/ guardian.
  • For loans above INR 7.5 lakhs, co-obligation of parent/ guardian as well as tangible collateral security is mandatory. This liquid security should cover the entire loan. The applicant also needs to submit the assignment of future earnings of the student for EMI repayment.


1.What is Moratorium Period?
Ans. Moratorium period is the time given to a student to find a job after the course is completed. It is one year after completion of course or 6 months after securing a job, whichever is earlier.

2.My parents' annual income is less than Rs. 4.50 lakhs. Am I eligible for interest subsidy?
Ans. Yes, you are eligible for interest subsidy (as per the government), as your parental income is taken into consideration.

3.Can I apply for UBI Education Loan Online?
Ans. Yes, UBI Education Loan can be applied online. Please download the application form available on the bank's website. Once filled up, you can submit it to the nearest branch with all necessary documents.

4.How does UBI's Education Loan documentation work, in case of co-obligation?
Ans. In case of co-obligation, documents should be executed by the parent/guardian and the student, as joint borrowers.

5.If UBI Education Loan is availed to buy a laptop for the course, does it need to be hypothecated?If so, in whose name does that need to be done?
Ans. In case the Education Loan is given for purchase of a computer/laptop for the student, the same is to be hypothecated to the Bank.