As the world becomes increasingly interconnected, pursuing higher education at premium international universities has become a cherished goal for many Indian students. The Union Education Premier Abroad scheme serves as a key enabler, providing financial support to deserving students aiming for full-time postgraduate courses at recognized institutions abroad. In this comprehensive guide, we will delve into the essential details of the Union Education Premier Abroad scheme, making it accessible and understandable for prospective students.

1. Eligibility:

The first step in understanding the Union Education Premier Abroad scheme is grasping who is eligible to apply. To qualify for this scheme, the student must be an Indian national who has secured admission in a full-time postgraduate course at a premium university abroad through recognized entrance examinations conducted by universities, institutions, or approved authorities.

2. Purpose/Expenses Considered:

One of the critical aspects of any education loan is understanding what expenses it covers. The Union Education Premier Abroad scheme considers various expenses, including:

- Tuition fees payable to the college/school/university.

- Hostel/mess charges.

- Examination/library/laboratory fees.

- Insurance premium for the student borrower.

- Caution deposit, building fund/refundable deposit supported by institution bills/receipts.

- Travel expenses/passage money for studies abroad.

- Purchase of books/equipment/instruments/uniforms.

- Purchase of a computer/laptop at a reasonable cost if required for the course.

- Any other expenses required to complete the course, such as study tours, project work, thesis, etc.

It's important to note that reasonable lodging and boarding charges are considered, provided they do not exceed 10% of the total tuition fees for the entire course.

3. Quantum of Loan:

The Union Education Premier Abroad scheme ensures significant financial support, offering a minimum loan amount of Rs.7.50 Lakhs and a maximum of Rs.150.00 Lakhs. This range caters to the diverse financial needs of students pursuing higher education at premium international institutions.

4. Eligible Master’s Degrees Abroad:

The scheme provides a list of courses eligible for the loan in the top 150 premier institutes. This comprehensive list, found in Annexure -I, covers various disciplines, ensuring that students have a wide array of options to choose from.

5. Margin:

Understanding the margin is crucial as it represents the percentage of the total amount that the student needs to provide. The Union Education Premier Abroad scheme imposes a margin of 15%, irrespective of the loan amount. Scholarships received by the student are considered as a margin, and the borrower is required to deposit the scholarship amount in the bank account.

6. Reimbursement of Fee (for 1st year students):

For students who have paid the first term fee to secure admission, the Union Education Premier Abroad scheme allows reimbursement of the fee paid within 6 months of securing admission, provided they produce the original receipt/proof of payment. Additionally, if the borrower arranges funds to pay the term fee during the sanction process, reimbursement can be requested upon presenting the original receipt/proof of payment.

7. Mess Charges/Living Expenses:

Living expenses are a significant part of studying abroad. In cases where mess charges/living expenses are not mentioned in the fee structure provided by the institute, a reasonable amount is considered based on the living expenses of the country. These expenses are allowed within the overall sanctioned limit.

8. Interest Rate:

The interest rate is a critical factor that influences the cost of the loan. In the Union Education Premier Abroad scheme, the interest rate is determined based on the quantum of the loan and collateral provided:

- Up to Rs. 40 Lakh: EBLR + 0.50% (without collateral), EBLR + 0.25% (50% collateral), EBLR (100% collateral).

- Above Rs. 40 Lakh: EBLR + 2.00% (50% collateral), EBLR + 1.50% (100% collateral).

Understanding these interest rates helps students make informed decisions and plan their finances effectively.

9. Processing Charges:

Processing charges are fees associated with the loan application process. The Union Education Premier Abroad scheme stands out by not levying any processing charges. However, an upfront fee of Rs. 5000 is charged to the student, refundable if the loan is availed within 3 months from the date of sanction.

10. Legal & Valuation Charges:

Legal and valuation charges are incurred when property is mortgaged as security for the educational loan. These charges, not included in the loan amount, must be borne by the borrower. The charges cover the professional fee for title deed verification and the professional fee payable to the bank's approved valuer for the valuation of the property proposed to be mortgaged.

11. Repayment Period:

Understanding the repayment period is crucial for students planning their post-education finances. The Union Education Premier Abroad scheme offers a repayment period of 180 months/15 years after the moratorium period, providing flexibility for borrowers to manage their repayments effectively.

12. Moratorium Period:

The moratorium period refers to the time during which the borrower is not required to make any repayments. In the Union Education Premier Abroad scheme, the moratorium period is the course period plus one year. This allows students to focus on their studies and transition into the workforce before beginning loan repayments.

13. Co-applicant/Guarantor:

Identifying who can be a co-applicant or guarantor is crucial for loan approval. In the Union Education Premier Abroad scheme, either of the parents or the spouse must be made co-applicant/guarantor. Additionally, having an SB account of the parent is mandatory.

14. Security:

Understanding the security requirements is essential for borrowers. The Union Education Premier Abroad scheme categorizes security based on the loan amount:

- Up to Rs. 40.00 lakh: No collateral security or third-party guarantee required.

- Above Rs. 40.00 lakh: Tangible collateral security of a minimum value of 50% of the total loan amount is required. An interest concession of 0.50% is available if collateral offered is 100% or more.

15. Insurance:

Insurance is a protective measure for both the borrower and the lender. In the Union Education Premier Abroad scheme:

- A term life insurance policy must be obtained and assigned in favor of the bank.

- The policy should be in the name of the student, covering an amount not less than the loan amount and for the tenure covering course, moratorium, and repayment period.

- The premium of the insurance can be included in the loan amount, if requested by the student.

Conclusion:

In conclusion, the Union Education Premier Abroad scheme is a beacon of hope for Indian students aspiring to pursue postgraduate studies at premium international universities. By comprehensively understanding the eligibility criteria, covered expenses, loan quantum, interest rates, and other essential details outlined in this guide, students can navigate the complex landscape of education finance with confidence.

For personalized assistance and guidance tailored to your unique profile, Klassfin stands ready to help you secure the best interest rates and unlock the doors to premium education opportunities abroad. Embark on your academic journey with the support you need to turn your dreams into reality.

Annexure I - List of University Names

1. Harvard University - USA

2. Stanford University - USA

3. Massachusetts Institute of Technology (MIT) - USA

4. University of California Berkeley - USA

5. University of Oxford - UK

6. University of Michigan - USA

7. University of Washington - USA

8. Cornell University - USA

9. Columbia University New York - USA

10. Johns Hopkins University - USA

11. University of Cambridge - UK

12. University of Pennsylvania - USA

13. University of California Los Angeles (UCLA) - USA

14. Yale University - USA

15. University College London (UCL) - UK

16. University of California San Diego - USA

17. University of Toronto - Canada

18. University of Wisconsin Madison - USA

19. University of Minnesota System - USA

20. Pennsylvania State University - USA

21. Duke University - USA

22. Princeton University - USA

23. New York University - USA

24. Northwestern University - USA

25. University of Texas Austin - USA

26. University of Chicago - USA

27. University of British Columbia - Canada

28. Swiss Federal Institute of Technology Zurich - Switzerland

29. University of North Carolina Chapel Hill - USA

30. Tsinghua University - China

31. University of Southern California - USA

32. University of Illinois Urbana Champaign - USA

33. University of Florida - USA

34. Imperial College London - UK

35. Ohio State University - USA

36. University of California Davis - USA

37. University of California Irvine - USA

38. Carnegie Mellon University - USA

39. University of Maryland College Park - USA

40. University of California San Francisco - USA

41. University of Melbourne - Australia

42. Purdue University - USA

43. University of Edinburgh - UK

44. Michigan State University - USA

45. University of Pittsburgh - USA

46. Washington University Saint Louis - USA

47. Peking University - China

48. Rutgers, The State University of New Jersey - USA

49. University of New South Wales - Australia

50. Texas A&M University - USA

51. Boston University - USA

52. National University of Singapore - Singapore

53. University of Arizona - USA

54. California Institute of Technology (Caltech) - USA

55. University of Queensland - Australia

56. Arizona State University - USA

57. University of Sydney - Australia

58. Georgia Institute of Technology - USA

59. Vanderbilt University - USA

60. McGill University - Canada

61. University of Manchester - UK

62. University of Virginia - USA

63. University of Utah - USA

64. Utrecht University - Netherlands

65. University of Tokyo - Japan

66. Monash University - Australia

67. King's College London - UK

68. University of Amsterdam - Netherlands

69. University of Alberta - Canada

70. Emory University - USA

71. University of California Santa Barbara - USA

72. Universidade de São Paulo (USP) - Brazil

73. University of Copenhagen - Denmark

74. Brown University - USA

75. Shanghai Jiao Tong University - China

76. North Carolina State University - USA

77. Zhejiang University (National Che Kiang University) - China

78. Australian National University - Australia

79. University of Iowa - USA

80. Catholic University of Leuven - Netherlands

81. Virginia Polytechnic Institute and State University - USA

82. Technische Universität München - Germany

83. University of Hong Kong - Hong Kong

84. École Polytechnique Fédérale de Lausanne - Switzerland

85. University of Groningen - Netherlands

86. Chinese University of Hong Kong - Hong Kong

87. University of Waterloo - Canada

88. Indiana University Bloomington - USA

89. University of Leeds - UK

90. Nanyang Technological University - Singapore

91. University of Helsinki - Finland

92. Iowa State University - USA

93. University of Massachusetts Amherst - USA

94. Universität Zürich - Switzerland

95. University of Oslo - Norway

95. University of Rochester - USA

97. Kyoto University - Japan

98. University of Calgary - Canada

99. University of Maryland Baltimore - USA

100. Tufts University - USA

101. London School of Economics and Political Science - UK

102. Tulane University - USA

103. Binghamton University - SUNY - USA

104. Dartmouth College - USA

105. Florida State University - USA

106. Maastricht University - Netherlands

107. Newcastle University - UK

108. The University of Adelaide - Australia

109. The University of Western Australia - Australia

110. University of Miami - USA

111. University of Texas - Arlington - USA

112. Iowa State University - USA

113. Katholieke Universiteit Leuven (KU Leuven) - Belgium

114. New York Institute of Technology - USA

115. Boston College - USA

116. Case Western Reserve University - USA

117. Fordham University - USA

118. Northeastern University - USA

119. Temple University - USA

120. University of Georgia - USA

121. University of Tennessee - Knoxville - USA

122. Brandeis University - USA

123. Cardiff University - UK

124. College of William and Mary - USA

125. Colorado State University - USA

126. Deakin University - Australia

127. EDHEC - France

128. ESSEC - France

129. George Mason University - USA

130. George Washington University - USA

131. Georgia State University - USA

132. Loughborough University - UK

133. Macquarie University - Australia

134. Massachusetts Institute of Technology (MIT) - USA

135. Michigan Technological University - USA

136. Queen Mary University of London - UK

137. Queen's University - Kingston - Canada

138. Rice University - USA

139. RMIT University - Australia

140. Simon Fraser University - Canada

141. Southern Methodist University - USA

142. University of Montreal - Canada

143. University of Ottawa - Canada

144. York University - Canada

145. Frankfurt School of Finance and Management - Germany

146. HEC Paris - France

147. Freie Universität Berlin - Germany

148. Humboldt-Universität zu Berlin - Germany

149. KIT, Karlsruher Institut für Technologie - Germany

150. Ludwig-Maximilians – Universität München - Germany

151. IMD Business School, Lausanne - Switzerland

152. IE Business School, Madrid - Spain

153. London Business School, London - UK

154. City Univ- Cass Business School, London - UK

155. INSEAD Business School France/Singapore - France

156. Rotterdam School of Management - Netherlands

157. SDA Bocconi School of Management, Milan - Italy

158. IESE Business School, Barcelona - Spain

159. Warwick Business School (University of Warwick) - UK