Main Difference
The main difference between University and Institute is that the University is a academic institution for further education and Institute is a organisational body created for a certain purpose
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University
A university (Latin: universitas, “a whole”) is an institution of higher (or tertiary) education and research which awards academic degrees in various academic disciplines. Universities typically provide undergraduate education and postgraduate education.
The word “university” is derived from the Latin universitas magistrorum et scholarium, which roughly means “community of teachers and scholars.” While antecedents had existed in Asia and Africa, the modern university system has roots in the European medieval university, which was created in Italy and evolved from Christian Cathedral schools for the clergy during the High Middle Ages.
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Institute
An institute is an organisational body created for a certain purpose.
Often they are research organisations (research institutions) created to do research on specific topics. An institute can also be a professional body, or one involved in adult education, see Mechanics’ Institutes.
In some countries institutes can be part of a university or other institutions of higher education, either as a group of departments or an autonomous educational institution without a traditional university status such as a “university Institute”. (See Institute of Technology)
The word “institute” comes from the Latin word institutum meaning “facility” or “habit”; from instituere meaning “build”, “create”, “raise” or “educate”.
In some countries, such as South Korea and Japan, private schools are sometimes referred to as institutes, rather than schools. In Spain secondary schools are referred to as institutes.
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University (noun)
Institution of higher education (typically accepting students from the age of about 17 or 18, depending on country, but in some exceptional cases able to take younger students) where subjects are studied and researched in depth and degrees are offered.
“The only reason why I haven’t gone to university is because I can’t afford it.”
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Institute (noun)
An organization founded to promote a cause
“I work in a medical research institute.”
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Institute (noun)
An institution of learning; a college, especially for technical subjects
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Institute (noun)
The building housing such an institution
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Institute (noun)
The act of instituting; institution.
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Institute (noun)
That which is instituted, established, or fixed, such as a law, habit, or custom.
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Institute (noun)
The person to whom an estate is first given by destination or limitation.
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Institute (verb)
To begin or initiate (something); to found.
“He instituted the new policy of having children walk through a metal detector to enter school.”
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Institute (verb)
To train, instruct.
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Institute (verb)
To nominate; to appoint.
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Institute (verb)
To invest with the spiritual charge of a benefice, or the care of souls.
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Institute (adjective)
Established; organized; founded.