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Get education loans from Union Bank of India at lower interest rates and less paperwork. No security is required for up to 4 lakhs. No hidden costs and administrative charges. Apply now through CreditMantri!
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What Is an Education Loan?
An Education loan is the loan or funds acquired by an individual to pursue higher studies in India or abroad. The loan repayment commences for the student after completing the education and a period of 6 months is given as grace period to students to get or join a job.
The repayment amount will be determined by your choice of interest, you need to decide how you want to repay the loan. That is if you want to start paying during the time of moratorium period itself or after the moratorium period. The Moratorium period is the time of your education plus 6 months or 1 year given to get a job. It is only after this time that you are expected to pay the loan.
The loan interest starts to accrue at the time of dispersal of funds, so at the time of your graduation you have a huge amount to repay. The other option is your parents or guardian can start paying the loan during the moratorium period itself where it is calculated as a simple interest.
This way your loan amount at the time of graduation is drastically reduced.
There are 4 types of education loans in India
1. Under Graduate education loan - These are given to students who have completed their secondary education and looking to do higher studies in the form of under graduation. It can be done in India or abroad.
2. Post graduate education loan - These are education loans given to individuals who want to pursue post-graduation after completing under graduation course from a reputed university/college. Here also the loan can be for studying in India or abroad.
3. Parents availing education loan - This is the case where the parents take loan for the education purposes of their children. This is an unsecured loan and need not be for graduate or post-graduation courses but also for elementary and higher secondary courses.
4. Career growth education loans - These are loans provided to young people who want to pursue courses or trainings, certifications that will benefit their career growth.
United Bank of India is an Indian government-owned financial services company headquartered in Kolkata, India. The bank operates with a three-tier organizational setup consisting of its head office in Kolkata, 36 regional offices and 2054 branches spread all over India.
Education is one area where everybody is willing to spend a lot of money to live a prosperous life in the future. Being one of the major education loan providers, United Bank of India understands the needs of the students and offers extremely competitive education loans at better interest rates. Every year, many student’s secure admissions in top universities and colleges in India and abroad with United Bank of India education loans.
Following are some of the advantages of applying for an educational loan with United Bank of India.
Objective: To provide term loan to Indian students for pursuing higher education in India and abroad where admission has been secured
Quantum of Loan:
Margin: No margin required for loans up to INR 4 Lakhs, 5% of margin for loans above INR 4 Lakhs for studies in India and 15% of margin for above 4 Lakhs for studies overseas
Repayment Period: 15 Years
Processing Fees: Nil
Study in India:
1.00% interest concession is allowed during moratorium period only, if the interest is serviced monthly & regularly during the moratorium period.
For loan up to Rs.4.00 Lakhs - Nil
For loan above Rs.4.00 Lakhs
Objective: To provide term loan to Indian students for pursuing higher education in India’s premier institutions where admission has been secured
Quantum of Loan: Maximum of Rs.30 Lakhs
No concession in interest will be given, even if interest is serviced during the moratorium period.
The loan is to be repaid in 10 years after commencement of repayment. The repayment will commence after a moratorium/ repayment holiday which is Course period plus 1 year or 6 months after getting job, whichever is earlier.
To ensure security to student's and borrower's life and against their loan liability and additional loan component for payment of one-time premium for such insurance coverage may be sanctioned by Bank on request from the borrower(s).
For List A Institutes
For List B Institutes
0.25% interest concession for girl students during moratorium period and repayment period under B Category Institutes
For List B Institutes
The list of documents required are representative, for actuals do refer the respective lender
United Bank of India education loan can be repaid in following three ways.
Standing Instruction (SI): If you are an existing account holder with United Bank of India, Standing Instruction is the best mode of repayment. Your EMI amount will be debited automatically at the end of the monthly cycle from the United Bank of India account you specify.
Electronic Clearing Service (ECS): This mode can be used if you have a non-United Bank of India account and would like your EMIs to be debited automatically at the end of the monthly cycle from this account.
Post-Dated Cheques (PDCs): You can submit post-dated EMI cheques from a non-United Bank of India account at your nearest United Bank of India Loan Centre. A fresh set of PDCs will have to be submitted in a timely manner. Please note Post Dated Cheques will be collected non-ECS locations only.
It is recommended that you opt for either the SI or ECS mode of payment for faster and less prone to error than the use of PDCs.
You can either apply online or visit a nearby United Bank of India branch for the application. You can also download the education loan application form from the United Bank of India official website, complete the form and submit it the bank representative.
You can also check your eligibility for an education loan through CreditMantri and apply for it.
1. What is the interest charged during moratorium period?
Only simple interest will be charged during the moratorium period. After the moratorium period the actual interest mentioned will be charged.
2. Can I take an education loan without a co-borrower?
No, a co-borrower is needed to take an education loan. The loan will be taken as a joint loan in collaboration with your parent/ guardian or spouse.
3. Is there a range on the rate of interest charged on Education Loan offered by United Bank of India?
Yes, the interest rate ranges from 8.50 % - 10.90%. However, the it is subject to change at the sole discretion of the bank.
4. I am planning to study abroad. Am I eligible to apply for an Education Loan?
Yes, United Bank of India offers up to INR 20 Lakhs for courses pursued abroad which also includes travel expenses and study tours.
5. Is there a processing fee for an education loan with United Bank of India?
There are no processing fees for an education loan with United Bank of India
6. Is there a way I can reduce the interest paid?
There is special subsidy provided according to Central Government subsidy for education loans. United Bank of India also provides special interest rates for some premier institutions. The other option is your parent/ guardian or spouse can pay the loan amount during the moratorium period due to which the loan amount you need to repay is less.
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