United Bank of India Education Loan Rate of Interest
The bank asks for no prepayment charges.
- Maximum Loan Limit is INR 30 Lacs
- 0.25% concession to girl students
- No concession for interest is serviced during moratorium period
- Zero Processing Fee
The interest rates are in accordance with the RBI guidelines.
- For Students in List A institutes RoI is MCLR-Y + 0.05% i.e 8.85%
- For Students in List B Institutes RoI is MCLR-Y + 0.55% i.e 9.35%
CALCULATE YOUR EDUCATION LOAN EMI
1,000 per month
1,000
1,000
Looking for admission for India and Abroad?
United Bank of India Education Loan Eligibility
- Indian National. The student should be a citizen of India.
- 10+2 pass. One must have cleared 10+2 from a recognized board of institutions.
- Admission Basis. Merit based/entrance-exam based admission
- Eligible Institutes. Admission to premier institutes in India
- Eligible Courses. Admission to professional/technical course
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| Bank / Financer |  Change bank |  Change bank |  Change bank |  Change bank |  Change bank |
| Applicable Rate of Interest | For List A institutes : 8.85% For List B Institutes : 9.35% | For List AA Institutes, the interest is 8.75% for loan amount up to INR 30 Lacs without collateral For List A Institutes, the interest is 9.05% for IITs and NITs and 9.55% for other institutes For List B Institutes, interest rate is 10.20% for loan amount up to INR 20 Lacs and 9.95% if collateral security value is greater than loan amount For List C Institutes, interest rate is 9.05% for NITs and 10.05% for others | up to 3 Years: BR+1.50% Above 3 Years :1.50% + Term Premium where BR is at the rate of 10.00%. | Upto 4 Lacs- 16.50% Upto 7.5 Lacs- 17.50% Above 7.5 Lacs- 15.50% | |
| Max Loan with Collateral | INR 30 Lacs | For AA Category: 40 Lacs For A Category: 20 -30 Lacs For B Category: 20 Lacs For C Category: 7.5 Lacs | 7.50 Lacs to 15 Lacs | 10Lacs | |
| Max loan without collateral | INR 30 Lacs | For AA Category: 40 Lacs For A Category: 20 -30 Lacs For B Category: 20 Lacs For C Category: 7.5 Lacs | 7.50 Lacs to 15 Lacs | 10Lacs | |
| Processing Fee | Nil | Upto INR 4 Lakhs: No Above INR 4 Lakhs: INR 5,000 | Nil | Nil | |
| Repayment Period | 10 years | 15 years | 15 years | 7 Years | |
| Loan for top institutions | Yes, United Superb Education Loan Scheme | Yes, SBI Scholar Loan Scheme | Yes, PNB Pratibha | No | |
| Margin | List A: Upto INR 20 Lacs: Nil Above INR 20 Lac: 5% List B: Upto INR 10 Lac: Nil Above INR 10 Lac: 5% | Scholar Loan Scheme- Nil | 5%(above 4Lacs) | Upto loan 4 Lacs _ No margin Above 4 Lacs_ for India: 5% | |
| Age Limit | No age criteria | No age criteria | No age criteria | No age criteria | |
| Loan Security | List A: Upto INR 20 Lacs: No collaterals Above INR 20 Lacs: Tangible collaterals equal to amount of loan List B: Upto INR 10 Lacs: No collaterals Above INR 10 Lacs: Tangible collaterals equal to amount of loan | Upto INR 4 Lacs: Parents considered as co-borrower Between INR 4 to 7.50 Lacs: Parent as well as third party guarantee is required Above INR 7.50 Lacs: Tangible security along with parents as co borrower | Co-obligation of parents/guardian as joint co-borrowers | Third party guarantee Collateral security Additionally, assignment of LIC policy in favor of bank amounting 100% of education loan amount Assignment of Future salaries in favor of Axis Bank | |
| Eligibility concession for SC/ST | No | No | 50% for SC/ST 60% for General category. | No | |
| Processing Time | N.A | 20 days | 15 Days | 14 Days | |
| Prepayment charges | Nil | Nil | Nil | Nil | |
| Penal charges | Nil | Penal interest @ 2% to be charged for loans above Rs.4 lacs for the overdue amount and overdue period. | Nil | @ 2% per month on the overdue installment/s | |
| Mandatory insurance cover | Yes | Yes | Yes | Yes | |
| Travel expeneses | Yes | Yes | Yes | Yes | |
| Bank transfter allowance | No such clause mention | Yes | Branch Transfer allowance is available | No such clause mentioned | |
| Top up loan availability | Available | Available. Also, takeover loan facility is also available | Available | No such clause mentioned | |
| Interest Subsidy Schemes | CSIS Padho Pradesh | Skill Loan Scheme CSIS | Padho Pardesh CSIS Skill Loan Scheme | CSIS | |
| Tax benifit | Yes | Yes | Yes | Yes | |
| Concession/benefits | For Girl students: 0.50% concession from card rate 1.00% interest concession if the interest is servicedduring the moratorium period | Concession to girl students 1% concession if interest is serviced during moratorium period including course period | 0.5% concession to girl students 0.5% concession if interest is serviced during moratorium period including course period Online application | There is no processing fee charged No pre- payment charges are applied No pre- closure charges are applied Loan Disbursal period is 15 working days from the date of final submission of documents |
How to apply for United Bank of India Education Loan ?
United Bank of India Education loan application form can be available online or offline at Bank branches.
Visit the official website for United Bank of India Education Loan and select your scheme
Click on Apply Now.
Fill out the form with your essential details.
Upload the mandatory documents required.
Submit the form and take out a print out of the application.
Visit the bank branch for further formalities.
Applicants can directly visit the nearest branch and ask for an application form. The bank representative will then guide you with all the necessary information regarding eligibility, documents required and also which loan is best suitable.
United Bank of India Education Loan Details
Upto INR 20 Lacs: Nil
Above INR 20 Lac: 5%
List B:
Upto INR 10 Lac: Nil
Above INR 10 Lac: 5%
Upto INR 20 Lacs: No collaterals
Above INR 20 Lacs: Tangible collaterals equal to amount of loan
List B:
Upto INR 10 Lacs: No collaterals
Above INR 10 Lacs: Tangible collaterals equal to amount of loan
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Expenses covered under United Bank of India Student Loan Scheme
- Tuition Fee
- Examination Fee
- Library/ Laboratory Fee
- Hostel Fee
- Cost of books, equipment, instrument or uniforms
- Miscellaneous expenses- study tours, project work, thesis, etc.
- Reasonable cost of computer or laptop (if required)
Courses Covered Under United Bank of India Student Loan Scheme
In India
Professional Courses/ technical courses
Courses of Engineering, Medical, and Management domain
Other courses as per bank's guidelines
Education Loan Documents Required ?
Admission letter with all essential details
Attested copies of age proof, residence proof and birth date
Self-attested passport size photograph
Copies of qualifying courses
Income proof and/or copy of income tax return file
Details of collateral security along with government approved valuation certificate (if any)
Bank account statement of the applicant.
Copy of passport and visa for abroad courses
Interest Subsidy Schemes
Central Scheme of Interest Subsidy (CSIS)
Formulated by the Govt. of India, a scheme to assist the students belonging to the economically weaker section.
Frequently Asked Questions
What schemes does UBI considers for its education loans?
+ -There are no other schemes offered by UBI apart from the basic education loans.
In whose name is the loan granted?
+ -The loan is granted in the name of the student
Is the loan contract executed only in student's name?
+ -No, the loan can be executed both in name of student and co-borrower as both are equally responsible for repayment of loan
What is the age limit for availing loan in UBI?
+ -There is no age restriction for the applicant applying for education loan from UBI. He/ she should only meet the other stated eligibility criteria?s.
Are minors eligible to apply for UBI Education Loan?
+ -Yes, Minors aspiring for further studies can apply for education loan with help of legal representation from parents/ guardians.
What does margin on any loan mean?
+ -Margin amount is the amount that a borrower has to pay through his/ her own sources in form of a down payment as his/ her contribution towards the education.
Should the student's margin be paid upfront in the starting?
+ -Margin can be paid on a year to year pro rata basis whenever bank disburses loan amount as per requirement.
Where can I avail UBI Education Loan?
+ -You can either contact your nearest branch for the application form or details regarding the loan or apply online from the official website.
Is there any provision to apply for loan online?
+ -Yes, you can apply online through Vidyalakshmi portal to avail for this loan.
Can I view my loan statement online if I am an existing education loan borrower?
+ -Yes, by creating a login on UBI web portal, you can view all details related to education loan online.
Is there any minimum aggregate marks to meet the eligibility criteria to avail UBI education loan?
+ -Yes, a student must have secured a minimum aggregate marks in their last qualifying examination (10+2 or Graduation). Relaxation in the marks is given to SC/ ST students
What is the discount/ rebate offered by UBI?
+ -- 0.50% concession is given to girl students
- 1% concession if interest is serviced during moratorium period
What all is included in tangible collateral security?
+ -Mostly UBI asks tangible security in lieu of the loan amount sanctioned along with assignment of future salaries in favour of UBI. Tangible security includes documents related to land/ building/ government security/ public sector bonds/ units of UTI, NSC, Life insurance policy/ bank deposits/ shares or debentures. The value of the security should be equal to the education loan amount.
Is scholarship or assistantship included in the margin?
+ -Yes any scholarship or assistantship will be a part of margin charged on education loan.
What is Moratorium Period?
+ -Course Period plus one year, or six months after getting a job
What is tenure of an education loan?
+ -Tenure of education loan provided by UBI is maximum 15 years. Tenure of UBI Superb Education Loan is 10 years.
What does MCLR stands for?
+ -MCLR stands for Marginal Cost of funds based Lending Rate. It refers to the minimum interest rate of bank below which it cannot lend.
What all expenses are covered under this course?
+ -Expenses covered by UBI education loan are:
- Tuition/ college/ hostel fee
- Examination/ lab/ library fee
- Books/ uniform/ instruments
- Caution deposit
- Passage money for studies abroad, etc.
I have taken admission through management quota. Am I eligible?
+ -This depends totally on bank's discretion as whether a student meets other eligibility criteria or not.
What do you mean by reputed or recognized institutes?
+ -Institutes that are affiliated to state/ central universities and comes under UGC or AICTE are considered as recognized institutes. Reputed institutes are those which are well known and have standard course of repute. More often, banks provide the list of institutes they consider for loan. (You can contact nearest branch for the same)
Are there any special benefits if I have secured admission to one of the top premier institutes?
+ -UBI provides a special loan scheme with various benefits to students who have secured admission in top rated institutes like IITs, IIMs, XLRI, ISB, IIFT, NITs, etc.
What is the processing fee or prepayment charges?
+ -The education loan offered by UBI have no prepayment, processing or documentation charges.
Will cost of my computer be covered under the loan sanctioned?
+ -Reasonable cost for the computer or laptop well be covered under the loan if it is required to complete the course.
Why is Pan Card necessary?
+ -Pan Card is one of the mandatory document required by banks these days. It is mandatory because:
- Easy to assess Income
- Easy to trace borrowers
Are diploma or certificate courses considered under UBI education Loan (both for India and Abroad)?
+ -Diploma courses are eligible under UBI Education Loan. Regular degree or diploma courses like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping.
Is a co-borrower necessary for loan?
+ -Yes, it is mandatory to have a co-borrower to avail loan from UBI.
Who can be my co-borrower?
+ -Your parent/ spouse/ guardian can be a co-borrower. A co-borrower should be your immediate family member, should have a steady source of income, and a good credit history.
What all documents are required from the co-borrower?
+ -Documents required from the co-borrower are:
- Attested copies of age proof, residence proof and birth date.
- Self-attested passport size photograph
- Income proof and/or copy of income tax return file
- Details of collateral security along with government approved valuation certificate (if any).
How many guarantors do I need to borrow loan from UBI?
+ -You need at least 2 guarantors to avail loan from UBI.
What is the KYC requirement in education loan?
+ -KYC requirements are the documents as a proof of personal identification and residence proof of the applicant as well as the co-borrower.
What are maximum term for repayment?
+ -Maximum Term for repayment for Loan is 15 years for UBI Education Loan and 15 years
How can I repay the loan?
+ -You can repay the loan after the moratorium period by mode of EMI or through post- dated cheques.
What is EMI? How are they calculated?
+ -EMI stands for Equated Monthly Installments. It can be calculated by using the formula given below
EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]
Here, P is Amount of Education Loan, R is Rate of Interest, n is Tenure of the Loan.
Or simply you can use the EMI calculator provision available on UBI’s official website.
What are the charges for late EMI payment?
+ -24% per annum on outstanding amount is charged for the late EMI payment
Is the loan disbursed in name of individual applicant or to the institute/ university directly?
+ -The loan is disbursed directly to the institute/ university that you have taken admission to. Hence, an applicant is supposed to submit institute brochure with proper division of the fee
If I am unable to complete my course in given tenure, will my repayment term be extended?
+ -It is completely on the banks discretion to extend the moratorium period or not. It can be extended for maximum 2 years based on student?s reason. You can contact your nearest branch for more details.
What is method of application of interest on education loan?
+ -The interest will be charged at simple rate from the date of disbursement till commencement of repayment of loan. After that, compound interest is charged on reducing balance
What is interest rate of education loan?
+ -The interest rate is different for different loan offered. Refer the tables below:
- UBI Education Loan:
| Upto INR7.50 lac | MCLR-Y+2.20% i.e. 11.00% |
| Above INR 7.50 lac | MCLR-Y+2.15% i.e. 10.95% |
- UBI Superb Education Loan:
| For Students in List A institutes | MCLR-Y + 0.05% i.e 8.85% |
| For Students in List B Institutes | MCLR-Y + 0.55% i.e 9.35% |
- UBI Education Loan for Vocational courses: Interest of rate on loan amount upto INR 1.50 lacs is BR + 2.00% = 12.45% per annum
What is interest subsidy on education loan?
+ -UBI offers CSIS interest subsidy on education loans offered.
What is employment verification in an education loan?
+ -The bank takes the responsibility to cross verify all the employment details of the applicant and co-borrower. If the banks fails to cross verify every detail provided, it might reject the loan application.
Are there any tax benefits in education loans?
+ -Under Section 80E of Income Tax Act, loan borrowers can avail the tax benefits. This benefit is only available over and above INR 1,50,000. Tax benefits can be availed once the borrower starts paying interest on loan. The deduction is available until borrower pays off full interest amount on loan or for maximum of 8 years (whichever is earlier).
Is it necessary to have bank account with the bank while availing loan from that particular bank?
+ -It is not necessary to have a bank account while availing the loan but it makes it easier for the borrower to get loan application approved
.Why do banks require insurance policy as security?
+ -The banks require insurance policy as security in lieu of education loan provided. The insurance policy should be equal or more to the amount of loan sanctioned. In case of untimely demise of the borrower, the bank recovers the amount from the insurance policy
Are there any additional benefits on availing loan from UBI?
+ -There are no additional benefits mentioned by the bank
What is credit score? Is it important for education loan?
+ -Credit Score is inclusive of various factors such as credit history (Loan history or credit card). If a student does not have a credit score, banks calculate it by considering factors such as University, College and the Course of admission. Banks consider the academic background of student and credit history of co-borrower.
If a student have any query, where or whom to contact?
+ -Student can reach out to the nearest branch in case of any query.
- Customer Care Number: 1800-345-0345
- Customer Care Id:webmaster@unitedbank.co.in
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