Union Bank of India Foreign Education Loan

Union Bank of India Foreign Education Loan

Union Bank of India Foreign Education Loan – Union Bank of India delivers education loan for studies in overseas for graduation, post-graduation, for job oriented courses and technical courses.

Bank delivers loan to deprived and poor students so that they can commence higher professional and technical education.

Objective & Purpose

The scheme targets at providing monetary support on reasonable terms to the deprived and needy students to undertake basic education and to meritorious students that they may seek higher or professional or technical education.

Union Bank of India Foreign Education Loan Eligibility

Student Eligibility

  • The candidate must be an Indian citizen.
  • Secured admission to the apprehensive institution in abroad through an applicable selection procedure and cleared the succeeding scrutiny.

Courses Eligibility (Indicative List):

Studies Abroad:

  • Graduation: For job-oriented professional or technical courses accessible by reputed campuses.
  • Post-Graduation: MCA, MBA, MS and such other courses.
  • Courses accompanied by CIMA, London, CPA, USA, and such other institute.

Expenses Considered For Loan

  • Fee payable to Institution/Hostel.
  • Examination/Library/Laboratory fees.
  • Purchase of Books/Equipment/Instruments/Uniforms
  • Caution Credit, Building Fund/refundable deposit supported by Institution Bills/receipts, subject to the condition that the amount does not exceed 10% of the total tuition fees for the entire course.
  • Travel Expenses/passage money for studies in abroad.
  • Purchase of computers-essential for completion of the course.
  • Insurance premium for the student borrower.
  • Any other expenditure required to complete the course, such as, Study Tours, Project Work, Thesis, etc.

 Quantum of Loan

Need-based finance subject to reimbursement capability of the parental or student with margin and up to the following ceilings:

  • For studies in abroad – Up to Rs. 20 lacs


No margin for loans up to Rs. 4.00 lacs. However, for loan of higher amounts, the margin obligation is 5% for inland in studies and 15% for studies in abroad.

Scholarship/assistance to be included in margin.

Margin maybe brought in on pro-rata basis as and when payment is made.

Union Bank of India Foreign Education Loan Repayment

Reimbursement holiday or Moratorium on loan: Course period + 1 year OR 6 months after job placement, whichever is earlier.

Opening from this point, the loan is to be reimbursed in 5-7 years after completion of course duration/moratorium.

Collateral Security

Up to Rs. 4.00 Lakhs: No guarantee security obligatory.

Above Rs. 4.00 Lakhs and up to Rs. 7.50 Lakhs: No guarantee security required. An appropriate third party guarantee is obligatory.

Above Rs. 7.50 Lakhs: Collateral safety of appropriate value is essential.


Life insurance of the borrower is obligatory to the tune of Loan Amount

Union Bank of India Foreign Education Loan Conditions

  • The Parent/Guardian of the candidate who is availing loan is required to join in as co-obligator/joint borrower.
  • Loan will be authorized/disbursed at the branch nearest to permanent residence/place of domicile of the parents.


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