Union Bank Education Loan 2026
Union Bank of India has the lowest starting rate we track (6.75% for IIM students) and separate pricing for PM-Vidyalaxmi institutes, study abroad and medical studies abroad. Interest rate 6.75% – 10.00%, loan Premier institutes abroad up to ₹150 lakh; otherwise need-based, tenure Up to 15 years after the moratorium.
Rates as of 27 Sep 2026 (aggregator) · Checked 27 September 2026Union Bank Education Loan at a glance
- Lowest starting rate we track
- 0.50% concession for girl students
- Large limits for premier institutes abroad
- Processing fee not published
- Collateral-free limit reported inconsistently
Union Bank education loan interest rate & charges
| Feature | Union Bank |
|---|---|
| Interest rate | 6.75% – 10.00% |
| Rate details | BankBazaar (27 Sep 2026): 6.75% for IIM students and 6.85% for PM-Vidyalaxmi Tier I institutes, up to 10.00%. Studies in India under CGFSEL 9.50% – 10.00%; above ₹7.5 lakh 9.25% – 9.75%; premier institutes abroad 8.00% – 8.50%. |
| Processing fee | Not published in the sources checked — ask the branch |
| Loan amount | Premier institutes abroad up to ₹150 lakh; otherwise need-based |
| Tenure | Up to 15 years after the moratorium |
| Prepayment / foreclosure | No prepayment charge on floating-rate loans to individuals |
| Collateral-free limit | ₹7.5 lakh for CGFSEL-covered loans (BankBazaar also lists ₹4 lakh — confirm with the branch) |
| Moratorium | Course period + grace period |
| Margin | 5% (India) / 15% (abroad) |
| Concessions | 0.50% for girl students |
Special schemes & features
6.75% for IIMs; 6.85% for PM-Vidyalaxmi Tier I institutes
8.00% – 8.50%, up to ₹150 lakh
8.50% – 9.00% for medical studies abroad
9.50% for skill-development courses
Source: www.bankbazaar.com, 27 Sep 2026 (aggregator). Rates are indicative; your rate depends on your profile. Always check the Key Facts Statement (KFS) for the APR before signing.
EMI at Union Bank’s rates
| Loan amount | EMI @ 6.75% | EMI @ 8.38% | EMI @ 10.00% |
|---|---|---|---|
| ₹5,00,000 | ₹5,741 | ₹6,167 | ₹6,608 |
| ₹10,00,000 | ₹11,482 | ₹12,334 | ₹13,215 |
| ₹25,00,000 | ₹28,706 | ₹30,836 | ₹33,038 |
Tenure 10 years, reducing-balance method. Total interest on ₹10,00,000 at 6.75%: ₹3,77,889.
Union Bank education loan EMI calculator
Eligibility
- Indian national (some lenders also lend to NRI/OCI students)
- Confirmed admission to a recognised course in India or abroad, usually through an entrance test or merit-based selection
- Parent or guardian as co-borrower (spouse or parents-in-law for married students)
- Satisfactory credit history of the co-borrower; income matters more for larger or unsecured loans
- Collateral for loans above ₹7.5 lakh under the IBA model scheme (higher collateral-free limits for premier institutes)
- Margin money (your own contribution) of 5% for India or 15% for abroad on loans above ₹4 lakh
Documents required
- Student and co-borrower KYC: PAN, Aadhaar, passport (for abroad), photographs
- Admission letter and official fee schedule of the institute
- Marksheets of Class 10, 12, graduation and entrance-test scorecards
- Co-borrower income proof: salary slips / Form 16 or ITR for 2 years, 6 months’ bank statements
- Collateral papers for secured loans: title deed, encumbrance certificate, valuation and legal reports
- For studies abroad: I-20 / CAS / CoE or offer letter, visa (at disbursal), cost estimate, GRE/GMAT/IELTS/TOEFL scores
How to apply for Union Bank Education Loan
- Shortlist lendersCompare rate, collateral-free limit, margin and moratorium for your institute — premier institutes get much better terms.
- Apply online or via PM-VidyalaxmiApply on the bank’s website, at a branch or through the PM-Vidyalaxmi portal (pmvidyalaxmi.co.in) for participating banks.
- Submit documentsAdmission letter, fee schedule, academic records, KYC and co-borrower income proof; collateral papers if needed.
- Sanction & KFSCheck the sanction letter and Key Facts Statement for APR, moratorium terms and margin before signing.
- DisbursalFees are paid directly to the institution term by term; living and other costs are released in tranches.
Union Bank vs other lenders
| Lender | Rate | Processing fee | Tenure | EMI on ₹10,00,000 |
|---|---|---|---|---|
| Union Bank Education Loan | 6.75% – 10.00% | Not published in the sources checked — ask the branch | Up to 15 years after the moratorium | ₹11,482 |
| Bank of Baroda Education Loan | 6.85% – 9.90% | Nil up to ₹7.5 lakh and for premier institutes in India; studies abroad 1% (max ₹10,000), refunded for premier institutes; ₹8,500 per property mortgaged | Up to 120 EMIs (loans up to ₹7.5 lakh) or 180 EMIs (above ₹7.5 lakh) after the moratorium | ₹11,534 |
| Canara Bank Education Loan | 6.85% – 10.10% | Vidya Turant: nil (PM-Vidyalaxmi portal fee ₹200 + GST); Master’s-abroad scheme 0.50% (capped at ₹10,000 – ₹20,000) | Up to 15 years excluding the moratorium | ₹11,534 |
| SBI Education Loan | 6.90% – 9.90% | Student Loan: nil up to ₹10 lakh, ₹5,000 + GST for ₹10–20 lakh, 0.50% (max ₹25,000) above ₹20 lakh. Scholar Loan: nil. Global Ed-Vantage: 0.50% (min ₹10,000, max ₹50,000) + GST | Up to 15 years after the moratorium | ₹11,559 |
| Bank of India Education Loan | 7.00% – 9.80% | Studies in India: nil (portal fee ₹100 + GST); studies abroad: ₹5,000 (aggregator) | 15 years from start of repayment | ₹11,611 |
| PNB Education Loan | 8.10% – 11.25% | About 1% for study-abroad loans (aggregator); India loans as per PNB’s service-charge schedule | Up to 15 years | ₹12,186 |
| Credila Education Loan | 8.95% – 13.00% | 0.5% – 1% of the loan + GST | Up to 14 years | ₹12,641 |
| HDFC Bank Education Loan | 9.00% – 14.10% | Studies in India: 1% of loan or ₹1,000, whichever is higher; studies abroad: 1.5% + taxes | Up to 10 years for loans up to ₹7.5 lakh; up to 15 years above | ₹12,668 |
Frequently asked questions
What is the Union Bank Education Loan education loan interest rate?
Union Bank education loan rates start at 6.75% and go up to 10.00% p.a. (as of 27 Sep 2026 (aggregator)). The rate you get depends on your credit score, income and loan details.
What is the EMI for ₹10,00,000 from Union Bank?
At 6.75% for 10 years the EMI is about ₹11,482, with total interest of ₹3,77,889.
What is the processing fee?
Union Bank: Not published in the sources checked — ask the branch. GST at 18% applies on fees.
What is the maximum tenure?
Union Bank: Up to 15 years after the moratorium.
Can I prepay or foreclose the loan?
Union Bank: No prepayment charge on floating-rate loans to individuals.
Information compiled from the lender’s published rates and reputable aggregators for comparison only. FinancePortal is not affiliated with Union Bank Education Loan. Terms change — confirm with the lender.