Educational loans


Bank Type : Goverment Bank
No. Of Branches : 240

About Bank

Union Bank of India was established on 11th November 1919 with its headquarters in the city of Bombay now known as Mumbai.

The Head Office building of the Bank in Mumbai was inaugurated by Mahatma Gandhi, the Father of the nation in the year 1921, and he said on the occasion:

"We should have the ability to carry on a big bank, to manage efficiently crore of rupees in the course of our national activities. Though we have not many banks amongst us, it does not follow that we are not capable of efficiently managing crore and tens of crore of rupees."

His prescient words anticipated the growth of the bank that has taken place in the decades that followed. The Bank now operates through over 4000+ branches across the country. The Bank's core values of prudent management without ignoring opportunities is reflected in the fact that the Bank has shown uninterrupted profit during all 93 years of its operations.

Union Bank has been playing a very proactive role in the economic growth of India and it extends credit for the requirements of different sectors of economy. Industries, exports, trading, agriculture, infrastructure and the individual segments are sectors in which the bank has deployed credit to spur economic growth and to earn from a well diversified portfolio of assets.

Resources are mobilized through Current, Savings and Term Deposits and through refinance and borrowings from abroad. The Bank has a large clientele base of over      49 million.

On the technology front the Bank has taken early initiatives and 100% of its branches are computerized. The Bank has also introduced Core Banking Solution with connectivity between branches. 100% of the business of the Bank is under Core Banking Solution making it a leader among its peers in infusion of technology. Many innovative products are developed using the technology platform to offer an array of choices to customers, adding speed and convenience to transactions. Technology will also enable the Bank to derive substantial cost reduction while creating the requisite capacity to handle the ever increasing volume of business in a competitive environment that offers immense opportunities.

At the end of March 2014 the Bank achieved total business level of Rs. 5,32,007 crore (Rupees five lakh thirty two thousand seven crore).

Behind all these achievements is a dedicated team of staff, which is truly cosmopolitan in its composition. Many generations of members of staff have contributed in building up the strong edifice of the Bank. The present team of over 31,000 members of staff distinguishes itself with its customer centricity, willingness to learn and adherence to values enabling us to be recognized as a caring organization where people enjoy their work and relationship with customers.

Loan Procedures



Basic education

To pursue graduation / higher education

To pursue technical / professional / management courses


Indian citizen

Secured admission to the concerned institute in India or abroad through appropriate selection process and cleared the qualifying examination, if any

Courses covered in India:

Graduation / post-graduation / diploma courses from recongnized universities

Technical / professional / management courses

Courses covered outside India:

Graduation / post-graduation degrees offered by recongnized universities

Certified degree courses conducted by CIMA, London, CPA, USA and other such institutes

Diploma courses abroad are not covered



For studies in India:

maximum upto Rs. 10 Lakhs.

The quantum of loan is higher for the institutes covered under Special Education Loan schemes. Please check the Special Offers Tab above for further details.

For studies outside India:

maximum Up to Rs. 20 Lakhs



For loans upto Rs. 4 Lakhs:

no margin is required

For loans above Rs. 4 Lakhs:

margin is 5% for studies in India and 15% for studies outside India

Scholarship / assistantship will be included in the margin



The moratorium period is minimum of the following two:

Course period + 1 year

Course period + 6 months after commencement of job


Upto Rs 7.50 Lakh:

10 years

Above  Rs 7.50 Lakh:

15 years


 Our latest rate of interest Can Be Download From The Documents Below

If interest is regularly serviced during the course and moratorium period, i.e. prior to the commencement of repayment, then the student is eligible for interest rebate. Please contact the nearest branch for details.

No processing charges.

Wherever applicable, Valuation / Legal / Stamp Duty / CERSAI / Memorandum registration charges as per actuals


The security required is as mentioned below:

Upto Rs 4 Lakh:

No security is required.

Above Rs 4 Lakh & upto Rs 7.50 Lakh:

Suitable third party guarantee acceptable to the bank to be taken.

Above Rs 7.50 Lakh:

Tangible collateral security of minimum value equivalent to the loan amount and interest accumulation during course & moratorium period, acceptable to the bank.

In all the above cases, parent/spouse have to necessarily join in as co-applicant.


Life insurance of the student is recommended to the tune of the loan amount


The loan shall be sanctioned / disbursed from the branch nearest to the place of domicile of the student

Loan would be disbursed directly to the institute

Loan can be availed during subsequent years of the course

Legal  and valuation charges  have to be borne by the borrowers.

If the loan is take-over by other bank/FI, then a charge of 2% on the average loan outstanding for the past 12 months will be levied.


The Ministry of HRD has launched Central Government scheme of Interest Subsidy on educational loans for economically weaker sections of the society. 

The students who satisfy all the following parameters would be eligible for the interest subsidy. 

The student has secured admission to any of the approved courses after Class XII in Technical and Professional streams from recognized institutes in India only and availed educational loan from any of the scheduled banks, including Union Bank of India, to pursue the course. 

The student belongs to Economically Weaker Section (EWS) with an annual gross parental / family income from all sources not exceeding Rs 4.50 Lakhs. 

The other features of the scheme are as follow :

Subsidy for loan amount upto Rs 10 Lakhs (even if loan is more than Rs 10 Lakhs).

Student to submit proof of income from the competent authority appointed by the state government.

Scheme applicable for disbursements from the academic year 2009 (even if the loan was sanctioned earlier).

Subsidy for the course and moratorium period only.

Student will be eligible for interest subsidy only once either for the first undergraduate degree course or the post graduate degree / diploma course in India.



The objective of the Scheme is to award interest subsidy to meritorious students belonging to economically weaker sections of notified minority communities declared as minority communities in terms of section 2 (c) of National Commission for Minorities Act, 1992, on the interest payable during the period of moratorium ( i.e. course period plus one year or six months after getting job whichever is earlier) for Education Loans for Overseas studies to pursue approved courses of studies abroad at Masters , M. Phil and Ph.D. levels only once either for Masters or Ph.D. levels.

Important features of the scheme are as under:

The Scheme is applicable to students who have availed educational loans from 2013-14 (1st April, 2013) onwards and have a family income up to Rs. 6 lakhs per annum.

Subsidy shall not be available to those students who either discontinued the course mid-stream due to any reason or those who are expelled from the institutions on disciplinary or academic grounds. If a student violates any conditions of the scheme, the subsidy will be discontinued forthwith.

The scheme is applicable for higher studies abroad.

After the period of moratorium is over, the borrower/s will bear the Principal installments and interest beyond moratorium period.

Total income from all sources of the employed candidate or his /her parent’s, guardians in case of unemployed candidate shall not exceed Rs. 6.00 lakh per annum.

INCOME CERTIFICATE should be submitted from the competent authority of the State/Union Territory.

The students obtaining benefits under this scheme shall not be given interest subsidy if he gives up Indian Citizenship during the tenure of the loan.

The Branch to ensure that Students from the minority communities, who may also belongs to SC/ST/OBC category, do not avail interest subsidy from other sources for the same purpose.

Education Loan Application Can Be Download From The Documents  Below



Union Bank Bhavan, 239, Vidhan Bhavan Marg, Nariman Point, Mumbai - 400 021, Maharashtra, India


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