Rewriting the rules of financial access, the Union Bank of India (UBI) has launched an exclusive education loan scheme for Indian students planning to study abroad. As one of India’s leading nationalized banks, UBI has been a trusted name for decades. Now, with its ‘Special Union Education Loan Schemes for Premier Institute Abroad Studies’, the bank is making a significant difference in the lives of ambitious students.
If you are worried about the steep financial requirements that come along with the dream of pursuing higher education abroad, then it's time to let go of all your worries. With UBI’s collateral-free education loans taking away the daunting requirement of pledging assets, you can now focus on other important aspects of studying abroad.
Our latest article is your all-in-one guide to understanding how this new education loan scheme works, its eligibility requirements, and a lot more. So, let’s begin!
The scheme is specifically for students aiming to pursue postgraduate courses at the top international universities and institutions. UBI did a university categorization and curated a list of leading universities across the world. Category A comprises 160 globally renowned universities, on the other hand, Category B consists of 100 universities.
Unlike most education loans offered by nationalised banks that demand property or other assets as collateral, this scheme offers up to INR 40 lakhs without collateral for students admitted to universities listed under Category A. For Category B universities, students can avail loans up to INR 30 lakhs without collateral. Eligible courses span across disciplines such as STEM, Management, Medicine, Economics, Psychology, Architecture, Health Sciences and Arts. Therefore, ensuring that students from diverse academic backgrounds can benefit.
With this scheme, the Union Bank of India ensures that finances are no longer a barrier for deserving students. Moving ahead, let’s have a quick overview of its key features.
This Union Bank of India education loan scheme is designed with features aimed at ensuring financial ease for students and their families. Let’s have a glance at them below:
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Maximum Loan Amount |
Up to INR 30 lakhs for Category B
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Starts at 10.00% per annum for
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Considering that you are now familiar with all the basic information of this loan scheme, the next question that might be coming to your mind will be who can apply? Well, the answer to it lies ahead.
To apply for this scheme for Abroad Studies, applicants and their co-applicants must meet the following criteria:
For Applicants:
Must be an Indian citizen.
Should have secured admission to a full-time postgraduate course at an eligible university (Category A or B).
For Co-applicants:
Must be the parent or guardian of the applicant.
The co-applicant must have a stable income and a good financial history.
We are sure that you have fulfilled this requirement, so going forward in this article we will be checking the supporting documents needed for profile and financial verification.
To ensure a smooth loan application process, prepare the following documents way before you plan to apply.
Document Checklist for Applicants
Unconditional Admission Letter from the University or Institution
Previous Academic Records, Certificates & Transcripts
Valid Passport
Aadhaar Card or Voter ID for Proof of Residence
Course & Expenses Fee Structure
Document Checklist for Co-applicants
PAN Card or Aadhaar Card for Identity and Address Proof
Salary Slips, IT Returns or Bank Statements for Income Proof
These are all the documents you need, additionally, you will require some recent passport-sized photographs to initiate the loan process.
As mentioned earlier, this non-collateral education loan scheme has been carefully designed with student-friendly features. Hence, applying for this loan is easy and convenient.
Step 1: Initial Inquiry
Start by visiting a Union Bank of India branch or their official website to gather preliminary information and verify eligibility.
Step 2: Start & Submit your Application
Create an account on the Vidya Lakshmi Portal and select Union Bank as your preferred bank. Then complete the loan application form, attach the necessary documents and submit it.
Step 3: Document Review, Verification & Loan Processing
The bank reviews your application, verifies all documents, and evaluates your eligibility. This process is completed within 15 working days.
Step 4: Loan Approval & Disbursement
The bank officials will notify you about the loan approval via email and provide the loan agreement to sign. After this, the loan amount is directly disbursed to the university for tuition fees. The living expenses are credited to your account in installments.
Summing up this article, we hope that by now you have all the required clarity on this collateral-free education loan scheme by the Union Bank of India. If you are still unsure where to start? Then, let Team Élan step in! Whether you need assistance with the student loan interest rates, document preparation or application process, we are here to help. Visit our head office or connect with us online to get personalised information and expert assistance.
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