UBI Union Kisan Shiksha Suvidha Education Loan

Union Bank of India Union Kisan Shiksha Suvidha (UKSS) Education Loan for Students from Agrarian Family

This Union Bank of India study loan helps students from agricultural families finance and pursue their graduate or postgraduate degrees from recognised educational institutions in India or abroad. The loan is available for medical, engineering or management courses. The maximum loan amount is Rs. 15 lakh for courses in India and Rs. 30 lakh for foreign studies.

Features of Union Kisan Shiksha Suvidha (UKSS) Education Loan Scheme

Why this Loan?

  • The loan is meant to help students who have secured admission into a higher education course in a recognised institution in India or abroad offering medical, engineering or management programmes
  • This Union Bank of India Education Loan is disbursed as a series of payments over the required number of years and not as a lump sum
  • The loan can be taken for all expenses directly related to the course including for fees, purchase of books, laptops, hostel fees, lab fees, examination fees, etc.
  • The loan can be taken in later years of the course also if not taken at the start of the course and no other education loan has been taken from other banks or financial institutions

Loan Amount

  • The maximum loan amount for studying in India is Rs. 15 lakh and for studying abroad is Rs. 30 lakh
  • The minimum loan has to be over Rs. 7.5 lakh

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  • Details of interest rates are not yet available on the Union Bank website as of November 2020
  • UBI mentions that if interest is paid regularly during the course and moratorium period, then the student becomes eligible for a rebate on the interest rate


  • The repayment period for this loan is 15 years
  • The loan amount for each year is repayable in 12 equated monthly instalments, with the first instalment becoming due after the end of moratorium period
  • The moratorium period for this loan is course duration + 12 months

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Security Needed

  • The borrowers will have to mortgage their agricultural land as collateral security in states where mortgaging agricultural land for purposes other than agricultural activities is allowed
  • The agricultural land should be properly demarcated with boundaries and easily accessible or marketable
  • If the agricultural property is already mortgaged for a loan with UBI, then the value of the property in excess of 133% of the total outstanding of the existing loan will be considered as eligible collateral for this education loan scheme


  • The applicant must be an Indian national
  • Must belong to the agrarian community with over 50% of the family income coming from agriculture or allied activity
  • The student must have secured at least 60% marks at the Class 12, HSC or equivalent level

Eligible Courses

  • Medical, engineering or management courses leading to graduate, postgraduate degree
  • The institutions must be accredited by NAAC or NBA, recognised as Institutions of National Importance or be Central Funded Technical Institutions
  • Medical courses should have been approved by the National Medical Commission (NMC) (formerly known as Medical Council of India)

Borrower Contribution to Total Cost (Margin Money)

  • Study in India: Students studying in India need to pay 5% of total course expenses as margin money
  • Study Abroad: Students studying overseas 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. 20 lakh in which case the borrower has to provide margin money of Rs. 1 lakh for studying in India (5% of Rs. 20 lakh) or Rs. 3 lakh for studying abroad (15% of Rs. 20 lakh) while UBI offers the rest.

Processing and Other Charges

  • Details of processing charges are not available

Uses of the Loan

  • Admission acceptance fee
  • Tuition fee payable to college, school or university
  • Hostel or mess charges
  • Examination, library and laboratory fees
  • Any caution deposit, building fund or refundable deposit required by the institution
  • Cost of books, equipment, instruments and uniforms
  • Reasonable cost of a computer or laptop, if needed for the course
  • Cost of study tours, project work, thesis, etc.
  • Travel expenses or passage money for foreign studies
  • Insurance premium for the student borrower
  • Any other expenses required to complete the course

Other Features to Know

  • Parent(s) of the student are compulsorily required to be co-applicants. Married students can have their spouse or parents-in-law also as co-applicants
  • The student’s life insurance cover equivalent to the loan amount is mandatory for this loan
  • The bank may ask for the student’s progress report to be submitted with the bank at regular intervals
  • The loan is disbursed directly to the school, bookseller or publisher, computer seller, and so on and not to the applicant(s)
  • The applicant must pay applicable margin money upfront for each disbursement

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
  • For studying abroad, a self-attested copy of the passport is also required along with a self-attested form issued by the institute for visa purposes

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

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