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United Bank of India Education Loan

United Bank of India Education Loan


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United Bank of India Education Loan

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.

About United Bank of India

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.

An Introduction to United Bank of India Education Loans

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.

Advantages of United Bank of India Education Loan

Following are some of the advantages of applying for an educational loan with United Bank of India.

  • Low interest rate
  • No hidden costs and administrative charges
  • Less paperwork
  • No processing fees
  • No security required for up to 4 Lakhs
  • 0.50% concession for girl students

Features of United Education Loan Scheme

Objective: To provide term loan to Indian students for pursuing higher education in India and abroad where admission has been secured

Quantum of Loan:

  • For study in India: Maximum Rs.10 Lakhs
  • For study abroad: Maximum Rs.20 Lakhs

Repayment Period: 15 Years


  • Up to Rs. 7.50 Lakhs: Co-obligation of parents without any collateral security and third-party guarantee.
  • Above Rs. 7.50 Lakhs:   Co-obligation of parents together with tangible collateral security of adequate value to cover the loan amount along with the assignment of future income of student for payment of installments.

Processing Fees: Nil

Courses Covered

Study in India:

  • Post-Graduation Courses: Masters and Ph.D.
  • Professional Courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer, etc.
  • Computer Certificate Courses of reputed Institutes accredited to Dept. of Electronics or Institutes affiliated to University
  • Courses like ICWA, CA, CFA, etc.
  • Courses conducted by IIM, IIT, IISC, XLRI, NIFT, etc.
  • Courses offered in India by reputed foreign Universities
  • AEvening Courses of approved Institutes
  • Other Courses leading to Diploma/ Degree, etc. conducted by Colleges/ Universities approved by UGC/ Govt./ AICTE/ AIBMS/ ICMS etc.

Studies abroad

  • Graduation: For job-oriented professional/ technical courses offered by reputed Universities.
  • Post-Graduation: MCA, MBA, MS etc.
  • Courses conducted by CIMA - London, CPA in USA etc.


1.00% interest concession is allowed during moratorium period only, if the interest is serviced monthly & regularly during the moratorium period.

Rate of Interest:

Up to Rs.7.50 Lakhs MCLR-Y+2.20% i.e. 10.95%

More than Rs.7.50 Lakhs MCLR-Y+2.15% i.e. 10.90%

For Girl students: 0.50% concession from card rate.


For loan up to Rs.4.00 Lakhs - Nil

For loan above Rs.4.00 Lakhs

  • For study in India - 5%
  • For study abroad - 15%

United Superb Education Loan Scheme

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

Expenses covered

  • Fees payable to College Hostel.
  • Examination/ Library/ Laboratory Fee.
  • Purchase of Books/ Equipments/ Instruments/ Uniforms.
  • Caution Deposit/ Building Fund/ Refundable Deposit supported by Institution Bills/ Receipts.
  • Purchase of Computers essential for completion of the Course.
  • Any other expenses required to complete the Course like study tours, project work, thesis, etc.

Rate of Interest

For Students in List A institutesMCLR-Y + 0.05% i.e. 8.85%
For Students in List B InstitutesMCLR-Y + 0.55% i.e. 9.35%
For Girl students0.25% concession from card rate
No concession in interest will be given, even if interest is serviced during the moratorium period.

Repayment of Loan

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.

Life Insurance Coverage 

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

Up to Rs.20 Lakhs-No collaterals

Above Rs.20 Lakhs-Tangible collaterals covering loan amount

For List B Institutes

Up to Rs.10 Lakhs-No collaterals

Above Rs.10 Lakhs-Tangible collaterals covering loan amount


0.25% interest concession for girl students during moratorium period and repayment period under B Category Institutes


For List A Institutes

Up to Rs.20 Lakhs-Nil,

Above Rs.20 Lakhs-5%

For List B Institutes

Up to Rs.10 Lakhs-Nil

Above Rs.10 Lakhs-5%

Documents Required

  • Letter of admission
  • Filled in Loan Application Form
  • 2 passport size photographs
  • Statement of cost of study
  • PAN Card of the student and Parent/ Guardian
  • AADHAR Card of the student and Parent/ Guardian
  • Proof of identity (Driving Licence/Passport/Aadhar/ any photo identity)
  • Proof of residence (Driving Licence/Passport/Electricity bill/Telephone bill)
  • Student/Co-borrower/ guarantor's bank account statement for last 6 months
  • IT return/ IT assessment order, of previous 2 years of Parent/ Guardian/ other co-borrower (if IT Payee)
  • Brief statement of assets & liabilities of Parent/ Guardian/ other co-borrower
  • Proof of income (i.e. salary slips/ Form 16) Parent/ Guardian/ other co-borrower

The list of documents required are representative, for actuals do refer the respective lender

EMI Payment Methods

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.

How to Apply for United Bank of India Education Loan?

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.

United Bank of India Education loan FAQ

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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