Union Bank Student Loan Scheme: Providing Financial Assistance for Higher Education.

by
                                                                                                  source

Union Bank of India, one of the largest public sector banks in India, offers a wide range of loans and financial products to its customers.                                                                        One such product is the Union Bank Student Loan Scheme, which is designed to provide financial assistance to students who wish to pursue higher education in India or abroad.

Under this scheme, Union Bank offers loans to students for a wide range of courses, including graduation, post-graduation, professional courses, and vocational training. The loan can be availed by students who have secured admission to recognized courses in India or abroad.

Here is a detailed overview of the Union Bank Student Loan Scheme:

Eligibility Criteria: To be eligible for the Union Bank Student Loan Scheme, the applicant must fulfill the following criteria:

  1. The applicant must be an Indian national.
  2. The applicant must have secured admission to a recognized course in India or abroad.
  3. The applicant must have a co-applicant, who could be a parent, guardian, or spouse.
  4. The co-applicant must have a steady source of income to repay the loan.

Loan Amount: Under the Union Bank Student Loan Scheme, the loan amount ranges from Rs. 50,000 to Rs. 15 lakhs for studies in India, and from Rs. 20 lakhs to Rs. 30 lakhs for studies abroad. The loan amount is decided based on the cost of education, including tuition fees, hostel fees, and other expenses.

Interest Rate: The interest rate on the Union Bank Student Loan Scheme is competitive and is decided based on the prevailing market conditions. The bank offers a concession of 0.50% on the interest rate for female students.

Repayment Period: The repayment period for the Union Bank Student Loan Scheme varies from 5 to 10 years, depending on the loan amount and the course duration.

Security: The security required for the Union Bank Student Loan Scheme varies depending on the loan amount. For loans up to Rs. 4 lakhs, no security is required. For loans above Rs. 4 lakhs and up to Rs. 7.5 lakhs, collateral security in the form of a third-party guarantee is required. For loans above Rs. 7.5 lakhs, tangible collateral security is required, such as land or a house.

Processing Fees: The processing fees for the Union Bank Student Loan Scheme are nominal and are decided based on the loan amount. The bank offers a concession of 50% on the processing fees for female students.

Documents Required

 The following documents are required to apply for the Union Bank Student Loan Scheme:

  1. Proof of identity and residence
  2. Admission letter from the educational institution
  3. Fee structure from the educational institution
  4. Proof of income of the co-applicant
  5. Bank statements of the co-applicant

The Union Bank Student Loan Scheme is an excellent initiative by Union Bank of India to provide financial assistance to students who wish to pursue higher education. The scheme offers competitive interest rates, flexible repayment periods, and minimal processing fees, making it an attractive option for students. However, it is important to carefully consider the loan amount, interest rate, and repayment period before applying for the loan, to ensure that it can be repaid without any financial burden.

Leave a Comment