United Bank of India Indian and Foreign Education Loan

21 Mar, 2016

United Bank of India Indian and Foreign Education Loan – United Bank of India (UBI) boasts of a wide network of 1999 branches. 100% CBS enabled, the bank has three fully armed overseas branches, one each in Kolkata, New Delhi and Mumbai, respectively.

Education is a basic requirement that enables one to evolve knowledgeably, widen their standpoint and be efficacious in life United Bank of India aids young minds to educate them by offering financial assistance for higher studies.

Features and Benefits of UBI Education Loan

Purpose of Loan:

The purpose of the United Bank of India Education Loan is to offer financial support for prospective students to seek higher education. This is a commendable stage taken by the Government of India and Reserve Bank of India to provide equal educational opportunities for everyone. United Bank of India firmly trusts that no commendable student should be disadvantaged of an opportunity to pursue higher education due to lack of adequate finance.


Expenses Considered for United Bank of India Education Loan

  • Course fee/ tuition fee payable to the institution.
  • Hostel fee.
  • Fees towards library and laboratory.
  • Purchase of book, equipment, uniforms and others.
  • Money towards caution deposit, refundable deposit and building fund, if charged by the institution. All these have to be validated with bills issued by the institute.
  • Travel expenses and passage expenditures for overseas education.
  • Expenses for study trips, projects and thesis.
  • Cost of laptop/computer (if essential to complete the course), and the same should be hypothecated to United Bank of India.

Courses Eligible for UBI Education Loan

Studies/courses in India

  • Masters and Ph.D. in Arts, Commerce & Science
  • Professional courses like engineering, medicine, dentistry, veterinary, agriculture, computer, management, law, etc.
  • Certification in computer courses. These courses need to be conducted by well-known establishments, attributed to the Dept. of Electronics or institutions associated with a university.
  • Courses like CA, CFA, ICWA, etc.
  • Courses held by institutions like IIT, IIM, XLRI, NIFT, IISC, etc.
  • Courses provided in India by well-known international universities.
  • Evening courses held by sanctioned institutions.
  • Other courses offering diplomas or degrees validated by UGC, Government, AICTE, AIBMS, ICMS, etc.

Studies/courses abroad

  • Graduation – professional/technical courses accessible by reputed universities. These courses want to be job oriented.
  • Post-graduation degrees like MCA, MBA, MS, etc.
  • Courses conducted by CPA in United States of America and CIMA in London.

Quantum of Loan Amount

The significant of loan disbursed is classified on the place (India or abroad) where the course is being pursued.

  • For studies in India, the maximum loan amount that can be availed is Rs. 10 lakhs.
  • For studies abroad, the maximum loan amount that can be availed is Rs. 20 lakhs.

United Bank of India Education Loan Interest Rates

United Bank of India bids education system loan at affordable rates of interest for the convenience of students and parents. Debtors can enjoy a 1% concession on the regular interest rates, during the moratorium period, if the interest is serviced once-a-month and regularly during this duration.

Parents with revenue of up to Rs. 4.5 lakhs p.a enjoy an interest funding by the government, during the moratorium period. The interest rate table below clarifies the rate of interests in detail.

Loan Amount Interest Rates
Up to Rs. 4 lakhs Base Rate + 2% = 12.00% (at present)
Above Rs. 4 lakhs to Rs. 7.50 lakhs Base Rate + 2.75% = 12.75% (at present)
Above Rs. 7.50 lakhs Base Rate + 2% = 12.00% (at present)

Please note that the above mentioned rates are fluctuating rates of interest, and are subject to change.

Processing Fees

  • No processing fee is charged for studies/courses in India.
  • 20% of loan amount is charged for courses overseas.

Repayment Tenure

United Bank of India Education Loan reimbursement tenancy depends on the amount of loan availed, the nature of the course and place of study. It is explained in the table below.

Loan Amount Repayment Tenure
Up to Rs. 7.5 lakhs Up to 10 years
Above Rs. 7.5 lakhs Up to 15 years
Less than Rs. 4 lakhs Up to 7 years (only if the student’s income is enough to aid the EMIs)


  • No collateral security is obligatory for loans up to INR. 4 lakhs, only co-obligation of parent/ guardian. An assignment of income, once the student starts earning, after the moratorium period is compulsory.
  • For loan amount between INR. 4 lakh and INR. 7.50 lakh, a third party assurance is compulsory along with co-obligation of parent/ guardian.
  • For loans above INR 7.5 lakhs, co-obligation of parent/ guardian as well as tangible collateral security is mandatory. This liquid safety should cover the complete mortgage. The candidate also wants to submit the task of upcoming earnings of the student for EMI reimbursement.


  • No margin is appropriate on loan amount up to Rs. 4 lakhs.
  • 5% margin is appropriate on loan amount above Rs. 4 lakhs, for studies in India.
  • 15% margin is applicable on loan amount above Rs. 4 lakhs, for studies overseas.

Mandatory Documentation

  • Copy of mark sheet of the latest succeeding public exam, for schools/ colleges in India.
  • Proof of admission to the course for which the loan is applied.
  • Schedule of expenditures for the course (fee receipts obtained from the institute).
  • Two recent passport size photos of the borrower, co-obligates and guarantor.
  • Copy of any National identification Card of all the parties involved.
  • Collateral Papers.

United Bank of India Education Loan Student Eligibility

  • The candidate should be an Indian citizen.
  • The candidate must have acquired admission in any of the above-mentioned courses via a formal entrance examination or appropriate selection procedure.

For students getting admission in the above-mentioned courses through management quota, the significant of mortgage amount spent is a minimum of Rs. 5 lakhs and the maximum amount is as per the normal education loan system.

The rate of interest charged is as per the rates specified under UEL and the margin is 25%. Reimbursement period is a maximum of 5 years, irrespective of the loan amount, after accomplishment of moratorium period.


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