Union Bank Of India

Union Education


The scheme aims at providing financial assistance on reasonable terms

  • To poor and needy to undertake basic education
  • To the meritorious students to pursue higher / professional / technical education


A. Students in India

  • School education including plus 2 stage
  • Graduation/Post Graduation course
  • Professional courses
  • Technical courses
  • Management courses

B. Students Abroad

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

Loan Amount:

Need based finance subject to repaying capacity of the parents/students with margin and the following ceilings.

  • Studies in India – Maximum Rs 7.50 lacs
  • Studies abroad  – Maximum Rs 15 lacs


No margin may be insisted upon for loan upto Rs 4.00 lacs. However, for loans of higher amounts, the margin requirement may be 5% for inland studies and 15% for studies abroad

  • Scholarship/assistance to be included in margin
  • Margin may be brought in on year-to-year basis as and when disbursement are made on a pro-rata basis.


No collateral security will be insisted upon for loans upto Rs 4.00 lacs. However, for loans above this amount, collateral security of suitable value or co-obligation of  parents/guardians/third party along with the assignment of future income of the student for payment of installments is required.

An LIC Policy/Convertible Whole Life Assurance Policy for a sum not less than loan amount be taken out in the name of the student and got assigned in Bank’s favour.


Repayment holiday/Moratorium: Course period + 1 year 0r 6 months after getting job/starts earning, whichever is earlier.
The loan to be repaid in 5-7 years after commencement of repayment

Rate of Interest

Upto Rs 4.00 lacs : PLR i.e 11.75% presently
Above Rs 4.00 lacs : PLR+1% i.e 12.75% presently -Simple interest to be calculated during Repayment holiday / Moratorium Period

Comments (1)

Said this on 3-2-2008 At 01:34 pm
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