When you start comparing public sector banks for a study abroad education loan India, SBI and UBI almost always end up on the shortlist.
SBI education loan for abroad studies is backed by India’s largest lender. SBI has funded lakhs of students over the years and has one of the biggest education loan portfolios in the country. Union Bank of India education loan, while smaller than SBI, has steadily grown its overseas education lending.
As a GradRight advisor, this is easily one of the most common questions I hear from students and parents at sessions and events like ShiftEd, which bring together parents, students, lenders, and international institutions:
Which public sector bank actually works better for studying abroad?
Instead of going by reputation or what someone else picked, let’s break down how SBI vs UBI education loans really differ. Plus, how to decide which one fits your plans, budget, and risk comfort better.
Key Factors of Comparison Between SBI vs UBI Education Loans
If you’re trying to choose between SBI education loan for abroad studies and Union Bank of India education loan abroad, here’s what really matters
1. Loan Amount Range
Under Global Ed-Vantage loan SBI, study abroad loans can go up to around ₹3 crore, depending on your university, course, and collateral. For select top universities, SBI also offers collateral-free loans up to about ₹50 lakh. Anything beyond that usually needs property or other security.
Union Bank of India education loans abroad are available up to around ₹1.5 crore with collateral. For unsecured loans, most students typically get up to about ₹40 lakh.
So if your total study abroad cost is on the higher side, Global Ed-Vantage loan SBI can feel more flexible.
2. Interest Rates
SBI education loan for abroad studies offers study abroad loans at floating interest rates. This is linked to the external benchmark. The exact rate depends on your profile and collateral. Generally, rates start around 9%–10% and adjust over time based on RBI rates and bank policy.
Union Bank of India education loan abroad rates are also linked to the External Benchmark Lending Rate (EBLR). The effective interest can range from around 9.25% to 9.75% for secured loans. It can sometimes be slightly higher for larger sums or special overseas programs.
Student takeaway: Do not decide only based on the headline rate. The final rate you get depends on your co-applicant’s profile, the collateral you offer, and the scheme.
3. Collateral and Co-Applicant Requirements
With SBI, smaller loans up to about ₹7.5 lakh often don’t need collateral. Once you go above that, the bank usually asks for security like property, with a parent or guardian coming in as the co-borrower.
Union Bank of India works a bit differently. Loans up to ₹4 lakh are typically collateral-free. Between ₹4 lakh and ₹7.5 lakh, some branches may accept a third-party guarantee instead of property. Above ₹7.5 lakh, collateral is generally required, and under certain schemes, secured loans can go up to around ₹1.5 crore. UBI may also ask for a life insurance cover linked to the loan.
In both cases, a financially stable co-applicant is a must. SBI’s collateral structure is usually more clearly defined, while UBI can be more flexible at the branch level if your paperwork is strong.
4. What the Loans Cover
Both SBI education loan for abroad studies and Union Bank of India education loan abroad generally cover:
- Tuition fees
- Living and hostel expenses
- Travel and visa costs
- Insurance and library/exam fees
The coverage is similar, so you’ll want to confirm specific items with the bank before signing. A key practical point of difference is how smoothly the funds get disbursed on time.
5. Eligibility Requirements
For both banks, the basic criteria are similar.
You should have:
- Indian citizenship
- Confirmed admission at a recognised foreign university
- A financially sound co-applicant
- Good academic record (often >50%)
What matters more than eligibility is the perceived employability of the course, destination country, and co-applicant’s financial strength, which influence the sanction decision.
6. Repayment Terms and Flexibility
SBI study abroad loan moratorium generally includes course duration + up to 1 year after completion. Repayment tenure can extend up to 15 years. Prepayment is usually allowed without penalty.
Union Bank of India also offers a moratorium for the course period + 12 months. They also have repayment tenure up to 15 years and usually no prepayment penalty (some cases may vary if transferring loans).
Advisor tip: Both banks are similar here, but you should ask exactly how interest accrues during moratorium.
7. Application Process and Turnaround Time
SBI lets you apply both online and at the branch. Their process is quite standardised, so if your documents are in place, things usually move faster and more smoothly.
Union Bank of India offers a typically branch-centric application. However, digital options are improving. Their turnaround time thus varies from branch to branch.
Tip: Start your loan application early and prepare all documents in advance. This impacts processing time more than bank choice.
Quick Comparison Snapshot
| Feature | SBI | Union Bank of India |
| Max Loan Amount | Up to ~₹3.0 Cr with collateral; ₹50L collateral-free for select cases (Global Ed-Vantage loan SBI) | Up to ~₹1.5 Cr secured; ~₹40L unsecured (UBI overseas education loan) |
| Interest Rates | Floating, benchmark-linked (approx 9–10% and above) | Floating, EBLR-linked (approx 9.25–9.75%+) |
| Collateral Requirement | Yes above ₹7.50L | Yes above ₹7.50L |
| Co-Applicant | Yes | Yes (may also need term life insurance) |
| Coverage | Tuition, living, travel, insurance | Same |
| Repayment | 15 years + moratorium | 15 years + moratorium |
| Processing | Standardised + online | Branch-centric |
Who Should Choose Which Bank?
SBI education loan for abroad studies might suit you better if:
- Your total expenses are high (e.g., top-tier international programs).
- You want a structured, widely recognised education loan.
- You have collateral ready and want bigger loan ceilings.
Union Bank of India education loan abroad might suit you better if:
- Your funding requirement is moderate and aligned with ₹40 lakh–₹1.5 crore levels.
- You prefer more flexibility at your local branch.
- You are comfortable handling some documentation directly with the bank.
Beyond the Basic Comparison: Making the Right Final Choice
Choosing between SBI vs UBI education loan isn’t just about advertised rates. Your co-applicant’s income, academics, university, collateral, and the bank’s risk assessment all matter.
GradRight makes it easier. Enter your details once and get real, personalized offers from SBI, UBI, and other lenders. Compare them side-by-side and pick the best bank for study abroad education loan for your needs.
“Risk comes from not knowing what you are doing.” — Warren Buffett
With clear comparisons, you make informed, confident choices. And don’t just take my word for it. See what students who used GradRight have to say:
“GradRight made my education loan process easy and smooth.”— Aparna Nandan, Master’s student in the US
An international education loan can have a life-long impact on your finances and quality of life. So don’t depend on guesswork to choose your lender. Compare options with GradRight and make sure the decision is well-informed, practical, and 100% right for you.
