This is the education loan supported by Union Bank of India. They provide the loan for the needy according to the merit. They provide support for all the technical and no technical educations available. The Bank provides a moratorium period for which the student is exempted for not paying the due amount, this is the period of the course and 1 year after the course is completed or 6 months after a job is received(whichever is prior).
During this period the student is not exempted from the interest the interest will be calculated for that period as well, the student is to pay the interest once the moratorium period is over. The bank provides a repayment period of up to 15 years (including the moratorium period) for the loan taken.
The Interest rate is Fixed type interest and it comes to 10.45 % - 11.60% (0.50% concession for girl students as per IBA norms).
A Fixed type interest rate is an Interest rate which is kept fixed throughout the entire period of the loan period. Any announcement from government or the bank will not change the interest rate once the loan is taken throughout the loan period.
There is no processing charge for the loan from the bank's side.
The Security for the amount taken from the bank are as follows.
- No security is needed Up to Rs 4 Lakhs.
- Rs.4 Lakhs to Rs.7.50 Lakhs – Collateral security in the form of suitable Third Party Guarantee.
- Above Rs.7.50 Lakhs – collateral security with required margin is required Single premium insurance policy on the life of the student to be taken covering the loan amount and period.