Banks Offering Education Loan
Union Bank of India-Education Loan

Eligibility

· The courses should be recognized by the government and concerned authorities.

· Must have secured admission to professional or technical courses through an appropriate entrance test or selection process to the said university (in India/abroad)

Loan Amount

· A maximum of Rs. 7.5 lakh for pursuing education in India

· A maximum of Rs. 15 lakh to pursue education abroad.

Margin

· No down-payment for loans up to Rs. 4 lakh.

· In case of loans of more than Rs. 4 lakh, 5 per cent margin for studies in India and 15 per cent for studies abroad.

· Scholarship/assistance to be included in down-payment treated as a part of the loan.

Processing Fee

No processing fee applicable.

Pre-payment Fee

No prepayment charges payable if the loan is adjusted by the borrower from his own verifiable legitimate sources or genuine sale. However, 2 per cent will be charged on an average outstanding balance of last 12 months if loan is closed on take over by other banks /financial institutions.

Repayment Period

There is a repayment holiday or moratorium on loan for the course period + 1 year OR 6 months after job placement, whichever is earlier.

Starting from this point, the loan is to be repaid in 5-7 years after completion of course period/moratorium.

Documents

· Completed application form

· 2 Passport size photograph of each applicant and co-applicant

· Proof of income, salary certificate, Income tax returns etc of co-applicant

· Proof of Identity – PAN Card/ Voters ID/ Passport/ Driving License/College-I card

· Copy of admit card and rank card of qualifying admission test/entrance test, proof of admission, offer letter etc ( I-20) in the case of education abroad

· Proof of Residence – Recent Telephone Bill/ Electricity Bill/ Property tax receipt/ Passport/ Voters ID Bank Account statement/passbook for the previous six months

· Proof of Co-applicant business address in respect of businessmen/ industrialists

· Sale Deed, , Non encumbrance certificate, Land/ Building Tax paid receipt etc. (as applicable) in case collateral security is offered

Approved Courses

· Education loans for school education till Class XIIth for needy students

· For higher studies in India - graduation, post-graduation, professional and management courses.

· For higher studies abroad: graduation, post-graduation, professional and management courses.

· Post graduate courses include MCA, MBA, MS and courses conducted by Chartered Institute of Management Accountants (CIMA, London) and Certified Public Accountants (CPA, USA).

· Loans will be considered for eligible students if (Is it ‘only’ or ‘also’) they approach the bank one year after the commencement of the course.

· No collateral security required for loans up to Rs. 7 lakh and collateral security of suitable value, along with co-obligation of parents/guardian/third party, accompanied by an assignment of future income of the student for payment of installments is required (There is a contradiction in the statement. Which is true? Need collateral or not needed? State the exceptions clearly)

Union Bank Of India Loan Products:-
 
• Union Bank Of India Home Loan
 
• Union Bank Of India Credit Card
 
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