Union Education - Union Bank of India Education Loan

PURPOSE

Basic education To pursue graduation / higher education To pursue technical / professional / management courses

ELIGIBILITY

Indian citizen Secured admission to the concerned institute in India or abroad through appropriate selection process and cleared the qualifying examination, if any Courses covered in India Graduation / post-graduation / diploma courses from recongnized universities Technical / professional / management courses Courses covered outside India Graduation / post-graduation degrees offered by recongnized universities Certified degree courses conducted by CIMA, London, CPA, USA and other such institutes Diploma courses are not covered under Union Education

QUANTUM OF LOAN

For studies in India - maximum upto Rs. 10 Lakhs. The quantum of loan is higher for the institutes covered under Special Education Loan schemes. Please check the Special Offers Tab above for further details. For studies outside India- maximum Up to Rs. 20 Lakhs

MARGIN, I.E. YOUR SHARE

For loans upto Rs. 4 Lakhs, the margin is nil For loans above Rs. 4 Lakhs, margin is 5% for studies in India and 15% for studies outside India Scholarship / assistantship will be included in the margin

MORATORIUM PERIOD

The moratorium period is minimum of the following two. Course period + 1 year Course period + 6 months after commencement of job

REPAYMENT

Quantum of loan Maximum repayment tenure (after the course & moratorium period) Upto ` 7.50 Lakh 10 years Above ` 7.50 Lakh 15 years

RATE OF INTEREST AND PROCESSING CHARGES

Please click here to know our latest rate of interest If interest is regularly serviced during the course and moratorium period, i.e. prior to the commencement of repayment, then the student is eligible for interest rebate. Please contact the nearest branch for details. No processing charges. Wherever applicable, Valuation / Legal / Stamp Duty / CERSAI / Memorandum registration charges as per actuals

SECURITY

The security required is as mentioned below. Quantum of loan Security Upto ` 4 Lakh No security is required. Above ` 4 Lakh & upto ` 7.50 Lakh Suitable third party guarantee acceptable to the bank to be taken. Above ` 7.50 Lakh Tangible collateral security of minimum value equivalent to the loan amount and interest accumulation during course & moratorium period, acceptable to the bank. In all the above cases, parent/spouse have to necessarily join in as co-applicant.

INSURANCE

Life insurance of the student is recommended to the tune of the loan amount

OTHER CONDITIONS

The loan shall be sanctioned / disbursed from the branch nearest to the place of domicile of the student Loan would be disbursed directly to the institute Loan can be availed during subsequent years of the course Legal and valuation charges have to be borne by the borrowers. If the loan is take-over by other bank/FI, then a charge of 2% on the average loan outstanding for the past 12 months will be levied.

CENTRAL GOVERMENT INTEREST SUBSIDY SCHEME

The Ministry of HRD has launched Central Government scheme of Interest Subsidy on educational loans for economically weaker sections of the society. The students who satisfy all the following parameters would be eligible for the interest subsidy. § The student has secured admission to any of the approved courses after Class XII in Technical and Professional streams from recognized institutes in India only and availed educational loan from any of the scheduled banks, including Union Bank of India, to pursue the course. § The student belongs to Economically Weaker Section (EWS) with an annual gross parental / family income from all sources not exceeding ` 4.50 Lakhs. The other features of the scheme are as follow : Subsidy for loan amount upto ` 10 Lakhs (even if loan is more than ` 10 Lakhs). Student to submit proof of income from the competent authority appointed by the state government. Scheme applicable for disbursements from the academic year 2009 (even if the loan was sanctioned earlier). Subsidy for the course and moratorium period only. Student will be eligible for interest subsidy only once either for the first undergraduate degree course or the post graduate degree / diploma course in India.