Looking for a Union Bak of India Education Loan to Study at ISB?

Look no further. This page summarises the information you will need on Union Bank of India’s Education Loans for Indian School Business (ISB).

Union Bank of India Education Loan for ISB Students

This loan is meant for students pursuing Post Graduate Programme in Management (PGPM), Post Graduate Programme in Management for Working Professionals (PGP-PRO) and Post Graduate Programme in Management for Senior Executives (PGP-MAX) from ISB Hyderabad, Mohali and the proposed campus in Mumbai. The maximum loan amount is capped based on the course you are pursuing.

Features of Education Loan for ISB Students

Why this Loan?

  • The loan is meant for you if you have gained admission into a Indian School of Business (ISB) for Post Graduate Programme in Management (PGPM), Post Graduate Programme in Management for Working Professionals (PGP-PRO) and Post Graduate Programme in Management for Senior Executives (PGP-MAX)
  • The Union Bank of India Education Loan for ISB is disbursed to the institution as required to pay the fees or other approved charges

Loan Amount

  • The maximum loan amount is capped at Rs. 40 lakh for PGPM, Rs. 31 lakh for PGP-PRO and  Rs. 41 lakh for PGP-MAX programme

Interest

  • Post Graduate Programme in Management (PGPM): UBI charges only the External Benchmark Lending Rate (EBLR) which the sum of the RBI Repo Rate of 4.00% and a margin of 2.80%. The EBLR rate and thus the effective rate for this loan is 6.80%
  • Post Graduate Programme in Management for Working Professionals (PGP-PRO): The interest rate for this programme is EBLR and a premium of 0.20%, which brings the effective interest rate for this loan to 7.00%
  • Post Graduate Programme in Management for Senior Executives (PGP-MAX): The interest rate for this programme is also the same as that for PGP-PRO. It is the sum of the EBLR and a premium of 0.20%, which brings the effective interest rate for this loan to 7.00%

Repayment

  • The repayment period for this loan is 15 years or up to 60 years of age of borrowers, whichever is earlier
  • The moratorium period for this loan is course duration + 12 months

Security Needed

  • No collateral is required to avail this loan
  • Parents or spouse (if married) must be co-obligators or guarantors for PGP-PRO and PGP-MAX programmes
  • No third-party guarantee is needed for the flagship PGPM programme

Eligibility

  • The applicant must be an Indian national
  • The student should have gained admission into an ISB Hyderabad/ISB Mohali/ISB Mumbai (proposed) in one of the three programmes, namely Post Graduate Programme in Management (PGPM), Post Graduate Programme in Management for Working Professionals (PGP-PRO) or Post Graduate Programme in Management for Senior Executives (PGP-MAX)

Eligible Courses

  • Post Graduate Programme in Management (PGPM), Post Graduate Programme in Management for Working Professionals (PGP-PRO) and Post Graduate Programme in Management for Senior Executives (PGP-MAX) at ISB Hyderabad/ISB Mohali/ISB Mumbai (proposed)

Borrower Contribution to Total Cost (Margin Money)

  • Post Graduate Programme in Management (PGPM): Students do not need to pay margin money
  • Post Graduate Programme in Management for Working Professionals (PGP-PRO): Students need to pay 15% of total course expenses as margin money
  • Post Graduate Programme in Management for Senior Executives (PGP-MAX): Students need to pay 15% of total course expenses as margin money

Note: Margin money refers to the amount the borrower contributes to the overall amount required. Suppose a course costs Rs. 40 lakh. Now if the margin is 15%, this means the borrower will have to contribute Rs. 6 lakh towards course fees while UBI covers the rest. This amount is given to the bank which then distributes it to the institute, etc.

Processing and Other Charges

  • There are no processing charges for this loan

Uses of the Loan

  • Admission acceptance fee, tuition fees, exam fees, library fees, laboratory fees
  • Hostel charges or mess charges and living expenses
  • Cost of books and of equipment such as desktop or laptop, uniforms, etc.
  • Caution deposit or any other refundable deposit. This has to be deposited in the loan account as soon as it is refunded
  • Insurance premium
  • Certain expenses such as expenses for student exchange programme including tuition fee payable at the institute abroad along with lodging and boarding expenses, travel expenses for passage abroad and living expenses are only allowed for the PGPM programme

Other Features to Know

  • Life insurance of the student for an amount equal to the loan value is mandatory
  • The student’s progress reports may have to be submitted with the bank at regular intervals
  • The loan is disbursed directly to the college, bookseller or publisher, computer seller, and so on and not to the applicant(s)

Documents Needed

  • Application Form duly filled and signed by applicant and/or guarantor along with details of applicant and/or guarantor and family
  • A declaration/ affidavit from the borrower confirming that, no educational loans have been availed from other banks
  • Two Passport Size Photographs of student, applicant and/or guarantor
  • Photocopy of PAN Card of the student that needs to be submitted at the time of application or during the course period
  • Personal Identification Proofs (Any One): Electoral I-Card, Passport, Driving License, PAN Card or Aadhaar Card
  • Residential Address Proof (Any One): Electricity Bill, Landline Telephone Bill, Electoral or Voter ID Card or Passport
  • Admission Letter, Course Details and Prospectus as proof of admission
  • Fee Details with Demand of Fee by the Institution
  • All Proofs of Past Academic Record including Mark Sheets and Certificates
  • For the co-borrower, documents as age, ID, signature, address, employment/business/income proofs are required

Reference Facts:

  • Union Bank of India Website: www.unionbankofindia.co.in and www.unionbankonline.co.in (net banking)
  • Headquarters: Mumbai, Maharashtra
  • Call Centre Toll-Free Number: 1800 2222 44, 1800 208 2244