United Bank of India Education Loan for Abroad Studies | GyanDhan
Updated on: 12 May 2021
Education loans are the best financing options to fund overseas educational expenses. In India, students who want to go for studying abroad have multiple options in terms of lenders including public-sector banks, private-sector banks, and non-banking financial companies (NBFCs). One of the major government banks offering study abroad loans is the United Bank of India.
One of the largest government banks in India, the United Bank of India offers education loans to students for both education in India and abroad.
In the blog, we will explore the eligibility criteria, features, documents required, etc. for the United Bank education loan.
So let’s start...
What are the eligibility criteria for abroad education loans at the United Bank of India?
The applicant must be between the age of 18-35 years.
The applicant must be an Indian resident
The applicant must be pursuing either PG Diploma, Graduation, or Post Graduation
The applicant must have secured (confirmed) admission in any college or university recognized in India or abroad.
Which courses are eligible for abroad education loans at the United Bank of India?
Students interested in pursuing the below-mentioned courses can avail of education loans for their overseas education -
Undergraduate degrees/diplomas
Postgraduate degrees/diplomas
PhDs and Doctoral Programmes
Certificate courses and some special courses
What are the expenses covered under abroad education loans from the United Bank of India?
College and hostel/accommodation fee
Library/Laboratory/Examination fee
Flight tickets/travel expenses for traveling abroad
Expenses of books/education-related instruments and equipments/uniforms/stationery
Laptop/tablet (if applicable)
Other education-related expenses (thesis, project works, study tours, etc.)
What is the maximum amount that can be received from the United Bank of India for overseas education?
For education loans up to INR 4L, the applicant has to provide co-borrower’s security which could be the applicant’s parent’s/husband’s. No third-party guarantee/ tangible security is required for the same.
For education loans above INR 7.5L, the applicant has to submit co-borrower’s security as well as a tangible security equivalent to 100-133% of the loan to be pitched in as collateral. The collateral can be in the form of property/FDs/shares etc.
Maximum Loan Amount provided by the bank -
Up to INR 10L for studies in India
Up to INR 20L for overseas education
Up to INR 15L for education at IITs/IIMs/ISBs
However, the above-mentioned amounts are subjective to margin requirements.
What is the interest rate of abroad education loans at the United Bank of India?
Interest rates on education loans at the United Bank of India range between 10.65% - 11.40%
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What is the process of applying for an abroad education loan from the United Bank of India?
An application for an education loan from the United Bank of India can be submitted both online as well as offline. The interested student can visit the nearest bank branch office to fill the application and submit the required documents or he/she can also visit the bank’s official website to apply online.
United Bank of India Education Loan Details
Eligibility
The applicant must be an Indian resident between the age of 18-35 years and must have secured (confirmed) admission in any college or university recognized in India or abroad.
Maximum Loan amount
Up to INR 20L for overseas education
The above-mentioned amount is subjective to margin requirements.
Interest Rate
Ranges between 10.65% - 11.40%
Margin Money
0% for loans up to INR 4L. 15% for loans above 4L.
Moratorium Period
1 year after the course period or 6 months after securing a job.
Repayment Period
10 years for loans up to INR 7.5L. 15 years for loans above INR 7.5L.ss
Prepayment Charges
NIL
Processing Fees
NIL
What are the documents required while applying for an abroad education loan from the United Bank of India?
Documents to be submitted by the applicant (student) -
2 passport size photos
Previous academic records/certificates
Report cards of exams such as GMAT/GRE/IELTS/TOEFL etc (whichever applicable)
Residence Proof (Aadhar card/Voter ID etc)
Identity Proof (Driving license, PAN card, etc.)
Admit letter from the college overseas
A copy of college/university ranking
Copy of passport
Loan application form
Documents to be submitted by the co-applicant -
2 passport size photos
Residence Proof (Aadhar card/Voter ID etc.)
Identity Proof (Driving license, PAN card, etc.)
Salary slips of the last three months
Income Tax receipts of the past 2 years
Form 16 of the last two years
Employer’s ID card (if employed)
Past 3 year’s balance sheet and P & L statement (if self-employed)
Proof of business address (if self-employed)
What is the margin money in abroad education loans from the United Bank of India?
The margin requirement on abroad education loans for students at the Union Bank of India is 0% for loans up to INR 4L and 15% for loans above INR 4L.
What type of collateral is accepted by the United Bank of India for secured abroad education loans?
The following two types of collateral are accepted at the Union Bank of India -
Immovable assets such as property, plot, flat, house, etc.
Liquid securities such as FDs, government bonds, LICs, etc.
What collateral documents are required to acquire abroad education loans from the United Bank of India?
Registered sale agreement and property title deed
Original registration receipt for the sale agreement
Allotment letter by the municipal corporation or any government authority such as MHADA, CIDCO, HUDA, etc. (if applicable)
Encumbrance certificate (EC), commonly known as link document of the last 30 years
Copy of municipality approved plot layout or building plan
Latest property tax bill bearing the same address
For liquid securities, the documents required are fewer
What is the repayment policy of abroad education loans from the United Bank of India?
The loan interest repayment at the Union Bank of India starts immediately after the disbursement of the first loan installment. UBI offers quarterly or monthly rests for repayment. The repayment of education loans typically starts after the 1 year moratorium period which starts post-course completion or 6 months after securing a job (whichever is easier). The maximum repayment tenure for abroad education is 15 years after the commencement of repayment.
How does GyanDhan help in acquiring abroad education loans?
GyanDhan is a one-stop solution to all the issues that revolve around acquiring education loans for abroad education. With so many banks willing to extend support to students interested in studying overseas, it can be overwhelmingly difficult to choose a bank/loan lending institution that sits well with your future plans. GyanDhan helps put things in line with its collaboration with various loan lending institutions ranging from public banks, private banks to NBFCs and other lenders. It extends additional support by analyzing each student’s background and financial situation and providing him/her with a loan (secured/unsecured) from an institution best suited for him/her. You may check your eligibility for education loans and reach out to GyanDhan to get in touch with a counselor.
The services provided to students at GyanDhan are free of cost. Absolutely no charge is applicable for any of the amenities. In fact, each student is given a personal counselor who remains in constant contact with the student throughout the complete process of the loan application. The counselor works closely with the student in pacing all the required documents and ensuring they are adequate for loan approval. The counselor also remains in constant contact with the lender, to keep a track of the loan approval status as well as resolve any issue that may arise. From providing a customized document checklist to offering loan options, picking up documents, and securing an abroad education loan, GyanDhan has it sorted for you once you approach them. With GyanDhan you are just a missed call away from securing an education loan to study abroad.
This is a companion discussion topic for the original entry at https://www.gyandhan.com/blogs/united-bank-of-india-education-loan