How to Secure a Union Bank Education Loan Sanction Letter for Your Study Abroad Visa?

The Union Bank of India was established on November 11, 1919. Union Bank of India overseas education loan helps Indian students from diverse financial backgrounds to accomplish their educational dreams.

Union Bank of India abroad education loan offers up to 100% of the total cost of attendance. The loan products are classified into different categories. Of them, list A and B institutions are eligible for a no-collateral loan of up to INR 40 Lakhs at a moderate interest of 8.75% - 9.00%.

At a Glance: Union Bank of India Overseas Education Loan

There is no limit set for the maximum amount through a Union Bank of India student loan for studying abroad. For categories A and B institute, the loan quantum is INR 1.5 Cr. Union bank of India education loan interest rate differs with the loan product a student chooses.

The maximum loan amount has no set limit, allowing flexibility based on the student's requirements. Interest rates typically range between 8.25% and 11.00%, depending on the loan and applicant profile. A nominal processing fee is applicable, which is usually around INR 10,000 plus GST.

For margin money, there is no requirement for loans up to INR 4 lakhs. However, for amounts exceeding INR 4 lakhs, a 15% margin is required. The moratorium period includes the duration of the course plus an additional year, giving students ample time before beginning repayment.

The repayment tenure extends up to 15 years, offering manageable EMIs. Collateral is generally required, except for students enrolling in colleges listed under categories A and B abroad.

Why Union Bank Education Loan to Study Abroad?

Union Bank of India overseas education loan benefits are tailored to your study abroad dreams. The top reasons why the Union Bank of India abroad education loan can be your top pick include the following:

• Flexible loan options

• Competitive interest rates

• Holistic coverage of educational and living expenses

• Easy plans for repayment

• Security and support, including insurance

Eligibility Criteria for a Union Bank of India Abroad Education Loan

The eligibility criteria for a Union Bank overseas education loan are centred around citizenship, college of study, and the course selected.

• Be an Indian citizen
• Get admitted to a university abroad listed by the UBI
• Get admitted to a program eligible for funding (MS, MBA, CMA, Law, etc.)

Union Bank of India Education Loan Interest Rate

The Union Bank of India education loan interest rate is calculated as EBLR + spread. The rates change according to the RBI guidelines and market conditions. Major factors influencing your Union Bank of India education loan interest rate are the type of loan, the institute of studying abroad, collateral availability, and the collateral value.

Under the Union Education Loan category, loans of up to INR 7.5 lakhs are offered at an effective interest rate of 10.25%. For amounts above INR 7.5 lakhs, the interest rate is 10.75% for male applicants and 9.85% for female applicants.

For the Premier Abroad loan scheme, interest rates vary based on the category of the institute and collateral provided:

• Category A Institutes:

  Loan amounts range from INR 7.5 lakhs to INR 40 lakhs at an interest rate of 8.75% without collateral. For loans up to INR 1.5 crore, the rate is 8.50% if the collateral value is less than 100%, and 8.25% if the collateral covers more than 100% of the loan.

• Category B Institutes:

  Loans of up to INR 30 lakhs are available at 9.00% without collateral. For loan amounts up to INR 1.5 crore, the rate is 8.75% if the collateral value is less than 100%, and 8.25% if the collateral fully or more than fully covers the loan amount.

Union Bank of India Abroad Education Loan Application Process

Union Bank of India student loan for study abroad can be applied online or offline. The application process is simple and hassle-free.

• Visit the official website
• Click ‘Apply for an education loan"
• Fill in the details
• Submit the required documents
• Wait for the bank’s decision

Alternatively, you can visit a nearby branch and apply for an education loan.

Documents for the Union Bank of India Student Loan for Studying Abroad

The documents required for a Union Bank of India overseas education loan include your academic, personal, and financial proofs.

To apply, you will need several important documents. These include an admission letter from the university, identity proof, address proof, academic records, and income proof of any co-applicant(s). If the loan requires security, collateral documents must also be submitted.

Union Bank of India Overseas Education Loan vs Student Visa USA

A Union Bank of India overseas education loan helps you finance tuition fees, living expenses, travel costs, and other expenses.

Student Visa USA (F-1 Visa) allows international students to legally enter, stay, and study at a SEVP-approved university in the United States.

If you are taking a loan from the Union Bank of India, a loan sanction letter is mandatory to demonstrate financial capability during your student visa interview for the USA. Together, the education loan funds your studies, while the visa legally permits your education abroad.

An education loan from the Union Bank of India helps you study abroad without financial concern, with or without collateral. Check your eligibility before making an application. For detailed guidance and application assistance that saves you processing time and money, connect with Nomad Credit.

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