Union Bank of India (UBOI)

Eligibility

Students who secure admission in Indian School of Business (ISB) at Hyderabad / Mohali campus for the academic year 2023-24 only for the Post Graduate Programme in Management (PGPM) course.

The scheme does not cover executive courses (other than PGP-PRO & PGP-MAX) and short duration courses / programmes at ISB.

Purpose

To meet tuition fees, cost of books, caution deposit (refundable)*, hostel charges, mess charges, desktop/laptop/tablet**, living expenses, insurance premium, student exchange programme, admission acceptance fee, etc.

Quantum of Loan

Rs.46.50 lakh

Margin

Nil

Rate of Interest

EBLR-0.75%

• Rate of Interest mentioned above is applicable for both male and female students.
• No further concession/rebate for servicing interest during course/moratorium period is to be allowed.
• Servicing of interest during course/moratorium period is optional.
• If the loan is taken over by any other bank/FI, then normal education loan rate of interest, as applicable on the date of sanction, to be charged ab-initio. However, no take over charges to be levied.

Course Duration

1 year

Processing charges

Nil

Repayment period

Maximum repayment tenure (after course/moratorium period) will be 15 years.

Moratorium period

Course period + 1 year

Co-Applicant / Guarantor

Nil

Security

No collateral security or third-party guarantee is required, irrespective of the loan amount.

Insurance

• Term life insurance policy to be obtained & assigned in favour of the bank.
• The policy should be in the name of student, for a sum not less than the loan amount and for the tenure covering course, moratorium and repayment period.
• The premium of the insurance can be included in the loan amount if requested by the student subject to maximum limit.
• Insurance to be mandatory as there is no other security proposed/available. However, student may have the option to approach any insurance company for lesser premium or branch to arrange for the same.

2nd educational loan

Students, who have earlier availed educational loan from our or any other bank for graduation studies, may approach us for sanction of (second) educational loan under this special scheme. As most of the students would have completed a few years of employment, they may continue to repay or may request for a repayment holiday from the bank with whom the loan is outstanding. In such cases, the guidelines are as under: If the repayment of the first loan is yet to commence, anyone of the following to be ensured:

• Repayment holiday to be extended for first loan by the bank concerned.
• Student / Parents/Spouse to undertake repayment of loan.

If the repayment of the first loan has commenced, both the following conditions are to be ensured:

• Account status is 'Regular' as on date of sanction of loan for ISB study.
• Repayment holiday to be obtained for first loan or student / parents to undertake repayment of the same.
• In both the above scenarios, it should be ensured that the total of outstanding balance of first loan and the limit proposed to be sanctioned under the special educational loan scheme for ISB (for academic year 2023-24) should not exceed maximum quantum of loan specified in Point No. 3 as above.

Take-overof education loan of ISB students

To permit the following:

• To permit takeover of educational loans of only those students who have availed housing loan from our bank and are in standard category (outstanding) with us.
• If the student is having housing loan (in standard category) with any other bank / FI, then take over of his/her loan taken for studies at ISB be permitted if and only if he/she is willing to shift his/her housing loan also to us (even if the loans are from two different banks/FIs).

Other Terms & Conditions

NRI students are not covered under the scheme.

• Passport details, if any and PAN details to be obtained mandatorily before completion of course and to be updated in system.
• All other terms & conditions as per Union Education Scheme for studies in India to be complied with.

Loan for 2nd term of academic year 2023-24

• The loan can also be granted if the student applies for 2nd term fee along with reimbursement of 1st term fee (academic year 2023-24).
• The admission acceptance fee and laptop/tablet expenses in such cases will not be reimbursed.

Eligibility

The student should be an Indian National and Secured admission in full time Post Graduate Courses in the Premium University Abroad through entrance examinations conducted by recognized universities / institutions and other approved authorities.

Purpose/ Expenses considered

• Tuition fee payable to college/ school/ university.
• Hostel / mess charges.
• Examination/ Library/ Laboratory fee.
• Insurance premium for the student borrower.
• Caution deposit, building fund/ refundable deposit supported by Institution bills/ receipts
• Travel expenses /passage money for studies abroad.
• Purchase of books/ equipment’s/ instruments/ uniforms
• Purchase of computer/laptop at reasonable cost, if required for completion of the course
• Any other expense required to complete the course - like study tours, project work, thesis, etc
• In case of University/institute in Germany, wherein these institutions/universities do not charge any tuition fee for their course. The expenses such as cost of books, hostel & mess charges, etc can be funded subject to a minimum margin of 30% of such expenses (irrespective of the loan amount).
• Reasonable lodging and boarding charges will be considered in case the student chooses/is required to opt for outside accommodation.
• These expenses can be considered subject to the condition that the amount does not exceed 10% of the total tuition fees for the entire course.
• It is likely that expenditure under Para 2.7, 2.8 &2.9 above may not be available in the schedule of fees and charges prescribed by the college authorities. Therefore, a realistic assessment may be made of the requirement under these heads. However, the maximum expenses included under Para 2.7, 2.8 &2.9 is to be capped at 20% of the total tuition fees payable for completion of the course.

Quantum of Loan

• Minimum: Rs.7.50 Lakhs
• Maximum: Rs.150.00 Lakhs

Eligible Master’s Degrees Abroad

The courses eligible for loan in top 150 premier institutes is enclosed in Annexure -I.

Margin

15% - Irrespective of the loan amount (Note: Any scholarship received by the student is to be treated as margin and borrower has to deposit the scholarship amount in the bank account.)

Margin should be brought-in on year-to-year basis as and when disbursements are made on a pro-rata basis. i.e. at all points of time the margin should be maintained in relation to the loan disbursed and total expenditure incurred.

Reimbursement of fee (for 1st year students)

If the student has paid the first term fee for securing the admission in the colleges/ universities and approaches us for loan along with reimbursement of the fee paid, then the same is permitted within 6 months of securing admission; on production of original receipt / proof of payment.

If the borrower temporarily arranges for the funds to pay the term fee during the sanction process, then the same can be reimbursed to the student, upon request and production of original receipt / proof of payment.

Mess charges/Living expenses

In cases where the mess charges/living expenses are not mentioned/indicated in the fee structure provided by the institute, a reasonable amount is to be considered based on the living expenses of the country. The mess charges/living expenses will be allowed within the overall sanctioned limit.

Interest rate

Processing charges

• No processing charges to be levied.
• However, an upfront fee of Rs.5000 to be charged to the student, which will be refunded if the student avails the loan within a period of 3 months from the date of sanction.
• If the student does not avail the loan within a period of 3 months from the date of sanction, then the deposit of Rs.5000 to be appropriated as processing charges.

Legal & valuation charges

• Wherever property is being mortgaged as security for educational loan, the borrower has to bear the professional fee charged by bank’s advocate for title deed verification and professional fee payable to bank’s approved valuer for valuation of the property proposed to be mortgaged.
• The above charges will not be part of loan amount and has to be paid by the borrower as and when incurred.

Repayment period

180 months /15 years (After moratorium period)

Moratorium period

Course period + 1 year

Co-applicant/Guarantor

Either of the parents or spouse to be made co-applicant / guarantor.

Security

• Up to Rs.40.00 lakh:No collateral security or third-party guarantee to be taken, irrespective of the income / means of the guarantor.
*However, if collateral is offered for the loan below Rs.40.00 Lakh interest concession is available.
• Above Rs.40.00 lakh:Tangible collateral security of minimum value of 50% of total loan amount and interest accumulation during the course and moratorium period, acceptable to bank. Interest concession of 0.50% is available if collateral offered is 100% or more.
• The property offered as security should be in the name of borrower / co-borrower or other immediate family members or any in the name of 3rd party; can be taken as security, property owner must join in as co-applicant or offer personal guarantee.
Note:
*Collateral free loans up to Rs.40 lakhs shall be made available for the students who have secured admissions based on merit. For students who secured admissions through management quota, tangible collateral security with minimum value of 50% of total loan amount and interest accumulation during the course and moratorium period shall be stipulated.

Insurance

• Term life insurance policy to be obtained & assigned in favour of the bank.
• The policy should be in the name of student, for an amount not less than the loan amount and for the tenure covering course, moratorium and repayment period.
• The premium of insurance can be included in the loan amount, if requested by the student.

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

ELIGIBILITY

Students who secure admission in full time medical courses (MBBS, MD, MS) in the premier institutes mentioned in the list through entrance examinations.

Eligible Colleges and Courses under this scheme are detailed in Annexure-I.

PURPOSE

To meet tuition fees, cost of books, caution deposit*, hostel charges, mess charges, equipment’s such as desktop/laptop**, living expenses, insurance premium, admission acceptance fee etc.

• Student to deposit the money in the loan account immediately on refund from the institute. An undertaking to be obtained from the student in this respect.
• Laptop/desktop maximum amount Rs.1.00 lakh can be considered, and it is to be purchased after getting admission and for study purpose at these institutes.

Quantum of Loan

Maximum Upto Rs. 200.00 lakhs.

MARGIN

10% - Irrespective of the loan amount

INTEREST RATE

PROCESSING CHARGES

NIL

REPAYMENT PERIOD

180 months /15 years (After moratorium period)

Moratorium period

Course period + 1 year

CO-APPLICANT/GUARANTOR

• Either of the parents or spouse to be made co-applicant / guarantor.
• Income/means of the co-applicant / guarantor is not to be considered while sanctioning the loan.
• Minimum CIC score or equivalent CIC score of the co-borrower/guarantor shall be 650 & above and -1.

SECURITY

• Up to Rs.40.00 lakh:No collateral security or third-party guarantee to be taken, irrespective of the income / means of the guarantor.
However, if collateral is offered for the loan below Rs. 40.00 Lakh interest concession is available.
• Above Rs.40.00 lakh:Tangible collateral security of minimum value of 50% of total loan amount and interest accumulation during the course and moratorium period, acceptable to bank. Interest concession of 0.50% is available if collateral offered is 100% and above.

INSURANCE

• Term life insurance policy to be obtained & assigned in favour of the bank.
• The policy should be in the name of student, for an amount not less than the loan amount and for the tenure covering course, moratorium and repayment period.

LOANS TO STUDENTS IN SUBSEQUENT YEARS

• The loan can also be granted to the students, who seek a loan in the subsequent years / terms and who have not availed educational loan from other bank / FI for the initial years.
• The earlier year fees and desktop/laptop expenses would not be reimbursed.
• The loan will include tuition fees, cost of books, hostel charges, mess charges, living expenses, insurance premium etc. for the subsequent years.
• All other terms & conditions will be as per the Union Education Scheme for Inland Studies.

Eligible Individuals

• A Bachelor degree in any discipline
• Minimum completed age of 25 years
• A valid GMAT / GRE score
• Minimum 4 years of full-time work experience after completion of graduation.

Margin

Nil.

Quantum of Loan

Maximum up to Rs.35.00 Lakh

Interest rate

EBLR + 0.10% (floating)

• EBLR prevailing on the date of disbursement (whether partial or full) shall be applicable.
• The External Benchmark shall be reset at least once in three months or any other frequency as prescribed by Bank / RBI.
• The spread will remain fixed for 3 years for the borrower. The first reset will be 3 years from the date of sanction and subsequent resets will be every 3 years from the last reset date
• The premium component will remain fixed till maturity of the loan.

Repayment period

Maximum repayment period is 15 years (after completion of the course) or up to 60 years of age of the borrower, whichever is earlier

Moratorium period

Moratorium up to course period only. Repayment to start from the next month of completion of course.

OTHER TERMS & CONDITIONS INSURANCE

• Life insurance cover equivalent to the loan amount is mandatory, preferably to be done with our channel partners under tie-up arrangement with our Bank.
• All other terms and conditions as per Special Education Loan Scheme for Premier Management & Technical Institutes to be complied with.

Eligibility

Mere admission to the course would suffice for loan, as admissions are secured through a competitive merit-based admission test and rigorous selection process.

Purpose

• To meet tuition fees, cost of books, caution deposit*, hostel charges, mess charges, equipment such as desktop/laptop**, living expenses, insurance premium, expense for overseas student exchange programme, admission acceptance fee etc.
• *Student to deposit the money in the loan account immediately on refund from the institute. An undertaking to be obtained from the student in this respect.
• **Laptop/desktop cost can be reimbursed to the student if it is purchased for the purpose of study at these institutes.

QUANTUM OF LOAN

Maximum quantum of loan – Rs.20 Lakh

Margin

Reimbursement of fee (for 1st year students)

i. Admission acceptance fee (AAF)

As per the admission procedures, the student has to pay AAF to the institute within a short period of 15 days to confirm the selection. After this payment, the student approaches us for loan. In such cases, where the student has paid AAF to confirm the admission, he/she can be reimbursed the same once the loan is sanctioned (within the overall limit of Rs.20 Lakh) on production of original receipt and after adjusting the margin requirement. However, loan should not be disbursed for payment of AAF.

ii.Term fee

• If the student has paid the first term fee and approaches us for loan along with reimbursement of the fee paid, then the same is permitted on production of original receipt.
• If the student approaches us during the subsequent terms along with request seeking reimbursement of previous terms fee, then the same is permitted on production of original receipt.
• If there is a delay in sanctioning of loan by the field functionaries, and the borrower temporarily arranges for the funds to pay the term fee, then the same is permitted to be reimbursed to the student, upon request and on production of original receipt.

Mess charges

• In cases where the mess charges are not mentioned/ indicated in the fee structure provided by the institute, then Branches to sanction an amount of upto Rs.5000 (maximum) per month towards the mess charges.
• In cases where the mess charges are included in the fee structure, then it will be sanctioned as mentioned.
• The mess charges will be allowed within the overall limit of Rs.20 Lakh.

Living expenses

• Living expenses will be upto Rs.5000 (maximum) per month.
• Living expenses will be allowed within the overall limit of Rs.20 Lakh.

Student exchange programme

• The Institute releases the list of students going abroad on Student-Exchange Programme at the end of 1st year. Hence, the student may not know whether or not he is eligible for the said programme at the time of sanction of loan.
• The sanctioning authority can consider loan for the student exchange programme at the time of initial sanction or later on when the student gets to know that he has been selected.
• The expenses to be considered are tuition fee payable at the institute abroad along with lodging & boarding expenses, travel expenses for passage abroad and living expenses as mentioned above
• The student-exchange programme expenses will be allowed within the overall limit of Rs.20 Lakh.
• Loan to be disbursed only after obtaining proof of selection of the student. A copy of original receipt to be kept on records after completion of the programme.

Interest rate

• EBLR prevailing on the date of disbursement (whether partial or full) shall be applicable.
• The External Benchmark shall be reset at least once in three months or any other frequency as prescribed by Bank / RBI.
• The spread will remain fixed for 3 years for the borrower. The first reset will be 3 years from the date of sanction and subsequent resets will be every 3 years from the last reset date.
• The premium component will remain fixed till maturity of the loan.
• If loan is taken over by another bank/FI, then normal rate of interest, as applicable on the date of sanction, to be charged ab-initio. However, no take over charge to be levied.
• Servicing of interest during course/moratorium period is optional.

Processing charges

NILL

Repayment period

15 years (180 months).

Moratorium period

Course period + 1 year

Co-applicant

• Either of the parents / spouse (or guardian in case both parents are not alive) to join in as co-applicant.
• Minimum CIC score of the co-borrower/guarantor should be 700. CIC score of -1 can be accepted for co-borrower/guarantor.
• Parent’s or spouse’s income/means need not be reckoned for sanctioning the loan.

Security

Insurance

• Term life insurance policy to be obtained & assigned in favour of the bank.
• The policy should be in the name of student, for an amount not less than the loan amount and for the tenure covering course, moratorium and repayment period.

Other Terms & Conditions

• NRI students are not covered under the scheme.
• All other terms & conditions as per Union Education Scheme for studies in India are to be complied with.

Loans to students in subsequent years

• The loan can also be granted to the students, who seek a loan in the subsequent years / terms (i.e. academic year 2021-22 onwards) and who have not availed educational loan from other bank / FI for the initial years.
• The fee for earlier years / terms and laptop/desktop expenses would not be reimbursed.
• The loan will include tuition fees, cost of books, hostel charges, mess charges, living expenses, insurance premium, student exchange programme etc. required that academic year / term onwards.
• All other terms & conditions as mentioned in Para (3), (4), (6) to (16) above shall apply equally in this case also.

PURPOSE

• To the meritorious students to pursue higher / professional/ technical education in recognized institution in India & A

STUDENT ELIGIBILITY

• Should be an Indian national.
• Should have secured admission in India or abroad to pursue higher / professional/ technical education, through appropriate selection process and cleared the qualifying examination, if any.
• NRI student should hold Indian Passport & has secured admission to a course for studies in India only.

AGE OF THE STUDENT

• No restriction with regard to the minimum and maximum age.

CO-APPLICANT

• The parent(s) of the student has to compulsorily join in as co-applicant.
• In case of a married person, co-applicant can be spouse/parent(s)/parent(s)-in-law.
• In cases where both the parents are not alive, close relative or guardian to be taken as co-applicant.
• The co-applicant should be Indian national

ELIGIBLE COURSES

• Graduation / post-graduation / diploma courses from recognized universities
• Technical / professional / management courses
• PhD courses

• Graduation / post-graduation degrees offered by recognized universities
• Certified degree courses conducted by CIMA, London, CPA, USA and other such institutes
• PhD courses
• Diploma courses abroad are not covered

LOAN IN SUBSEQUENT YEARS OF COURSES

• Educational loans can also be considered for eligible students in case they approach the bank in the subsequent years of the course provided the student has not availed loan for initial years from any other bank / FI.

QUANTUM

• Need based finance to meet the expenses will be considered taking into account margins norms.
• There is no restriction on maximum amount of loan that can be sanctioned under the education loan scheme.
• For NRI students Maximum quantum Rs.20 Lakhs & Rs.30 Lakhs for premium institutes.

MARGIN

EXPENSES CONSIDERED

• Tuition fee payable to college/ school/ university
• Hostel / mess charges
• Examination/ Library/ Laboratory fee
• Insurance premium for the student borrower
• Caution deposit, Building fund/ refundable deposit supported by Institution bills/ receipts
• Purchase of books/ equipment’s/ instruments/ uniforms
• Purchase of computer/laptop at reasonable cost, if required for completion of the course
• Travel expenses/ passage money for studies abroad
• Admission acceptance fee
• Any other expense required to complete the course - like study tours, project work, thesis, etc.

REPAYMENT TENURE

• The maximum repayment tenure will be 15 years (after course & moratorium period) Irrespective of quantum of loan.
• The accrued interest during the moratorium period (if not serviced) will be added to the principal amount while calculating Equated Monthly Installments (EMI) for repayment.

RATE OF INTEREST

• Please click here to know our latest interest rates
• 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.
• Simple interest will be calculated during course / moratorium period; subsequently compounding interest will be cha

EDUCATION LOAN SECURITY

The security required is as mentioned below:

INSURANCE

• Life insurance of the student is mandatory 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

PURPOSE

• To the meritorious students to pursue Medical / Engineering / Management courses leading to graduate / post graduate education.

STUDENT ELIGIBILITY

• Should be an Indian national.
• Belong to farming community with Primary source of income (above 50% of total income) should be from agriculture allied activity.
• Secured at least 60% marks at higher secondary level.
• No restriction with regard to the minimum and maximum age
• The parent(s) of the student has to compulsorily join in as co-applicant. In case of a married person, co-applicant can be spouse/parent(s)/parent(s)-in-law.

ELIGIBLE COURSES**

• Medical / Engineering / Management courses leading to graduate / post graduate education only from NAAC accredited institutions or accredited by NBA or Institutions of National Importance or Central Funded Technical Institutions. Medical courses should have been approved by Medical Council of India (MCI).

LOAN IN SUBSEQUENT YEARS OF COURSE

• Educational loans can also be considered for eligible students in case the student approach the bank in the subsequent years of the course provided the student has not availed loan for initial years from any other bank / FI.

QUANTUM

• Need based finance to meet the expenses worked out will be considered taking into account margins norms.
• The minimum quantum of loan under the Scheme should be above ₹7.50 lakh.
• The maximum quantum of loan under the Scheme will be Rs.15.00 lakh for inland studies & Rs.30.00 lakh for abroad studies

MARGIN

• Study in India – 5%
• Study Abroad – 15%

EXPENSES CONSIDERED

• Tuition fee payable to college/ school/ university
• Hostel / mess charges
• Examination/ Library/ Laboratory fee
• Insurance premium for the student borrower
• Purchase of books/ equipment’s/ instruments/ uniforms
• Purchase of computer/laptop at reasonable cost, if required for completion of the course
• Travel expenses/ passage money for studies abroad
• Any other expense required to complete the course - like study tours, project work, thesis, etc.

REPAYMENT TENURE

• The maximum repayment tenure will be 15 years (after course & moratorium period).
• The accrued interest during the moratorium period (if not serviced) will be added to the principal amount while calculating Equated Monthly Installments (EMI) for repayment.

RATE OF INTEREST

• Please click here to know our latest interest rates
• 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**.

SECURITY

1. Mortgage of Agricultural land as collateral security subject to following conditions:
• Agricultural properties will be accepted as Collateral Security for Education loans, only in States where it is permitted to mortgage Agricultural Land for purpose other than Agricultural Activities.
• Agricultural Land accepted as collateral security should be properly demarcated with boundaries and easily accessible/marketable.

INSURANCE

• Life insurance of the student is mandatory to the tune of the loan amount.