Union Bank Education Loan Interest Rates: A Complete Guide

Union Bank Education Loan Interest Rate

Union Bank of India offers education loans to Indian and NRI students who wish to pursue higher education in India or abroad. These loans provide financial support for tuition fees, living expenses, and other related costs. In this blog post, we’ll explore the interest rates, eligibility criteria, and repayment options for Union Bank education loans.

Purpose of Education Loans

Union Bank provides education loans for meritorious students pursuing higher, professional, or technical education in recognized institutions. Whether you’re studying in India or abroad, Union Bank has you covered.

Student Eligibility

  • Indian nationals who have secured admission in India or abroad.
  • NRI students with Indian passports studying in India.
  • No age restrictions.

Eligible Courses

Courses Covered in India:

  • Graduation and post-graduation from recognized universities.
  • Technical, professional, and management courses.
  • PhD programs.

Courses Covered Abroad:

  • Graduation and post-graduation degrees from recognized universities.
  • Certified degree courses from institutes like CIMA (London) and CPA (USA).
  • Note: Diploma courses abroad are not covered.

Loan Quantum

  • Need-based finance with no maximum restriction.
  • For NRI students, the maximum quantum is ₹20 lakhs (₹30 lakhs for premium institutes).

Margin Requirements

  • Up to ₹4 lakhs: No margin.
  • Above ₹4 lakhs (studies in India): 5% margin.
  • Above ₹4 lakhs (studies abroad and NRI students): 15% margin.
  • Include scholarships and assistance in the margin.

Expenses Covered

Union Bank education loans cover various expenses, including:

  • Tuition fees.
  • Hostel and mess charges.
  • Examination, library, and laboratory fees.
  • Insurance premiums.
  • Caution deposits.
  • Purchase of books, equipment, and computers.
  • Travel expenses for studies abroad.
  • Admission acceptance fees.
  • Other course-related expenses.

Repayment Tenure

  • Maximum of 15 years (including moratorium period).
  • Accrued interest during the moratorium period is added to the principal for EMI calculation, Union Bank Education Loan Interest Eate. Click Here

Interest Rates

  • The interest rate ranges between 8% and 13% depending on factors like the course, university, loan amount, and repayment period.
  • Rates may vary if you’ve opted for a floating interest rate.


Union Bank’s education loans empower students to achieve their academic dreams without financial constraints. Whether you’re pursuing a degree in India or exploring international opportunities, Union Bank has flexible options tailored to your needs.

Remember to visit the Union Bank of India Education Loan page for detailed information and to apply online.

Feel free to ask any questions or share your experiences in the comments below! union bank education loan interest rate

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