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Punjab National Bank Education Loan
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13%
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Punjab National Bank (PNB) Education Loans
What Is an Education Loan?
An Education loan is the loan or funds acquired by an individual to pursue higher studies in India or abroad. The loan repayment commences for the student after completing the education and a period of 6 months is given as grace period to students to get or join a job.
The repayment amount will be determined by your choice of interest, you need to decide how you want to repay the loan. That is if you want to start paying during the time of moratorium period itself or after the moratorium period. The Moratorium period is the time of your education plus 6 months or 1 year given to get a job. It is only after this time that you are expected to pay the loan.
The loan interest starts to accrue at the time of dispersal of funds, so at the time of your graduation you have a huge amount to repay. The other option is your parents or guardian can start paying the loan during the moratorium period itself where it is calculated as a simple interest.
This way your loan amount at the time of graduation is drastically reduced.
There are 4 types of education loans in India
1. Under Graduate education loan - These are given to students who have completed their secondary education and looking to do higher studies in the form of under graduation. It can be done in India or abroad.
2. Post graduate education loan - These are education loans given to individuals who want to pursue post-graduation after completing under graduation course from a reputed university/college. Here also the loan can be for studying in India or abroad.
3. Parents availing education loan - This is the case where the parents take loan for the education purposes of their children. This is an unsecured loan and need not be for graduate or post-graduation courses but also for elementary and higher secondary courses.
4. Career growth education loans - These are loans provided to young people who want to pursue courses or trainings, certifications that will benefit their career growth.
About PNB
PNB Private was founded in 1894 by luminaries from different parts of India with the intention of serving the people and develop the economy of the country. Headquartered in New Delhi, it is one of the oldest financial services company in India. The bank has 80 million customers, 6937 branches and around 16,684 ATMs across 764 cities.
An Introduction to PNB Education Loans
Education is one area where everybody is willing to spend a lot of money to live a prosperous life in the future. Being one of the major education loan providers, PNB understands the needs of the students and offers extremely competitive education loans at better interest rates. Every year, a large number of students secure admissions in top universities and colleges in India and abroad with PNB education loans.
Advantages of PNB Education Loan
Following are some of the advantages of applying for an educational loan with PNB.
- Low interest rate
- Less paperwork
- No processing fees
- Faster Disbursal
- No prepayment charges
- 0.50% concession for girl students
Key Highlights of PNB Education Loan
| Eligibility Criteria | Students who have secured the admission |
|---|---|
| Loan Tenure | Up to 15 years |
| Loan Amount | No cap |
| Interest Rate | Up to MCLR + 2.60% |
| Processing Fees | Nil |
Features of PNB Saraswati Education Loan for Studies in India
Objective: To provide term loan to Indian students for pursuing higher education in India
Quantum of Loan: Up to 10 Lakhs for studies in India and up to 20 Lakhs for studies overseas
Margin: No margin required for loans up to INR 4 Lakhs, 5% of margin for loans above INR 4 Lakhs for studies in India
Repayment Period: The tenure is up to 15 years and the moratorium period is up to 12 months after completing the course.
Security: The parents or the guardian will be the co-applicant or the loan and the primary debtor. Tangible collateral will be accepted as security by the bank with the third-party guarantee. No security required for loans up to 4 Lakhs.
Processing Fees: There are no processing fees for availing PNB education loan.
Courses Covered
- Approved courses leading to Graduate/ Post Graduate degree and PG Diplomas conducted by recognized colleges/ universities recognized by UGC/ Govt. / AICTE/ AIBMS/ ICMR etc.
- Courses like ICWA, CA, CFA etc.
- Courses conducted by IIMs, IITs, IISc, XLRI. NIFT, NID etc.
- Regular Degree/Diploma courses like Aeronautical, pilot training, shipping Nursing or any other discipline approved by Director General of Civil Aviation/Shipping/ Indian Nursing Council or any other regulatory body as the case may be.
- Advance Diploma in Banking Technology offered by PNB IIT Lucknow.
- Approved courses offered in India by reputed foreign universities.
- Research Programmes recognized by designated academic authority/ regulatory body.
Expenses Covered
- Fee payable to college/ school/ hostel
- Examination/ Library/ Laboratory fee.
- Insurance premium for student borrower, if applicable.
- Caution deposit, building fund/refundable deposit supported by Institution bills/receipts.
- Purchase of books/ equipments/ instruments/ uniforms.
- Purchase of computer at reasonable cost, if required for completion of the course.
- Any other expense required to complete the course - like study tours, project work, thesis, etc.
Eligibility Criteria: Who Can Apply?
- Must be an Indian Resident
- Applicant should have secured admission with the educational institution
Interest Rate of PNB Education Loan for Studies in India and abroad:
| Loan Amount | Rate of Interest |
|---|---|
| Up to 7.5 Lakhs | MCLR + 2.00% |
| Above 7.5 Lakhs | MCLR + 2.60% |
Features of PNB Udaan Education Loan for Studies Abroad
Objective: To provide term loan to Indian students for pursuing higher education in foreign countries
Quantum of Loan: Based on the need and repaying capacity of the borrower and co-borrower
Margin: No margin required for loans up to INR 4 Lakhs, 15% of margin for loans above INR 4 Lakhs for studies abroad
Repayment Period: The tenure is up to 15 years and the moratorium period is up to 12 months after completing the course.
Security: The parents or the guardian will be the co-applicant or the loan and the primary debtor. Tangible collateral will be accepted as security by the bank with the third-party guarantee. No security required for loans up to 4 Lakhs.
Processing Fees: There are no processing fees for availing PNB education loan.
Courses Covered
- Graduation: For job oriented professional/technical courses offered by reputed universities.
- Post-graduation: MCA, MBA, MS, etc.
- Courses conducted by CIMA- London, CPA in USA etc.
- Degree/Diploma courses like aeronautical, pilot training, shipping etc. provided these are recognized by competent regulatory bodies in abroad for the purpose of employment in abroad.
- List of Premier Foreign Universities and Educational Institutes
Expenses Covered
- Fee payable to college/ school/ hostel
- Examination/ Library/ Laboratory fee.
- Insurance premium for student borrower, if applicable.
- Caution deposit, building fund/refundable deposit supported by Institution bills/receipts.
- Purchase of books/ equipments/ instruments/ uniforms.
- Purchase of computer at reasonable cost, if required for completion of the course.
- Any other expense required to complete the course - like study tours, project work, thesis, etc.
Eligibility Criteria: Who Can Apply?
- Must be an Indian Resident
- Applicant should have secured admission with the educational institution
Interest Rate of PNB Education Loan for Studies in India and abroad:
| Loan Amount | Rate of Interest |
|---|---|
| Up to 7.5 Lakhs | MCLR + 2.00% |
| Above 7.5 Lakhs | MCLR + 2.60% |
Features of PNB Pratibha Education Loan for Studying in Premier Institutes in India
Objective: To provide term loan to Indian students for pursuing higher education in premier institutes in Indian
Quantum of Loan: Based on the need and repaying capacity of the borrower and co-borrower
Margin: No margin required for loans up to INR 4 Lakhs, 5% of margin for loans above INR 4 Lakhs
Repayment Period: The tenure is up to 15 years and the moratorium period is up to 12 months after completing the course.
Security: The parents or the guardian will be the co-applicant or the loan and the primary debtor. Tangible collateral will be accepted as security by the bank with the third-party guarantee. No security required for loans up to 4 Lakhs.
Processing Fees: There are no processing fees for availing PNB education loan.
Courses Covered
Courses offered at the premier educational institutions in India.
Expenses Covered
- Fee payable to college/ school/ hostel
- Examination/ Library/ Laboratory fee.
- Insurance premium for student borrower, if applicable.
- Caution deposit, building fund/refundable deposit supported by Institution bills/receipts.
- Purchase of books/ equipments/ instruments/ uniforms.
- Purchase of computer at reasonable cost, if required for completion of the course.
- Any other expense required to complete the course - like study tours, project work, thesis, etc.
Eligibility Criteria: Who Can Apply?
- Must be an Indian Resident
- Applicant should have secured admission with the educational institution
Interest Rate of PNB Education Loan for Studies in India and abroad:
| Loan Amount | Rate of Interest |
|---|---|
| Up to 7.5 Lakhs | MCLR + 0.60% |
| Above 7.5 Lakhs | MCLR + 2.10% |
Features of PNB Kaushal Education Loan for Vocational Education and Training
Objective: To provide term loan to Indian students for pursuing vocational courses
Quantum of Loan: Minimum of INR 50,000 and Maximum of INR 1,50,000
Margin: No margin required.
Repayment Period: For loans of INR 50,000 – 3 years, for loans between INR 50,000 and 1 Lakh – 5 years and above 1 Lakh – 7 years.
Security: No security required, however, third-party guarantee will be taken.
Processing Fees: There are no processing fees for availing PNB education loan.
Courses Covered
The courses covered under PNB education loan are Development Courses of duration from 2 months to 3 years preferably leading to a Certificate /Diploma/Degree, etc. issued by a Government Organization or an Organization recognized/authorized by the Government to do so.
Expenses Covered
- Tuition/ course fee.
- Examination/ Library/ Laboratory fee.
- Caution deposit.
- Purchase of books, equipments and instruments.
- Any other reasonable expenditure found necessary for completion of the course.
Eligibility Criteria: Who Can Apply?
- Must be an Indian Resident
- Should have completed 10th standard
- Applicant should have secured admission with the educational institution
Interest Rate
The interest rate under the scheme is MCLR + 1.50%.
Documents Required
- Letter of admission
- Filled in Loan Application Form
- 2 passport size photographs
- Statement of cost of study
- PAN Card of the student and Parent/ Guardian
- AADHAR Card of the student and Parent/ Guardian
- Proof of identity (Driving Licence/Passport/Aadhar/ any photo identity)
- Proof of residence (Driving Licence/Passport/Electricity bill/Telephone bill)
- Student/Co-borrower/ guarantor's bank account statement for last 6 months
- IT return/ IT assessment order, of previous 2 years of Parent/ Guardian/ other co-borrower (if IT Payee)
- Brief statement of assets & liabilities of Parent/ Guardian/ other co-borrower
- Proof of income (i.e. salary slips/ Form 16) Parent/ Guardian/ other co-borrower
EMI Payment Methods
PNB education loan can be repaid in following three ways.
Standing Instruction (SI): If you are an existing account holder with PNB, Standing Instruction is the best mode of repayment. Your EMI amount will be debited automatically at the end of the monthly cycle from the PNB account you specify.
Electronic Clearing Service (ECS): This mode can be used if you have a non-PNB account and would like your EMIs to be debited automatically at the end of the monthly cycle from this account.
Post-Dated Cheques (PDCs): You can submit post-dated EMI cheques from a non-PNB account at your nearest PNB Loan Centre. A fresh set of PDCs will have to be submitted in a timely manner. Please note Post Dated Cheques will be collected non-ECS locations only.
It is recommended that you opt for either the SI or ECS mode of payment for faster and less prone to error than the use of PDCs.
How to Apply for PNB Education Loan?
You can either apply online or visit a nearby PNB branch for the application. You can also download the education loan application form from the PNB official website, complete the form and submit it the bank representative.
You can also check your eligibility for an education loan through CreditMantri and apply for it.
PNB Education loan FAQ
1. What is the interest charged during moratorium period?
Only simple interest will be charged during the moratorium period. After the moratorium period the actual interest mentioned will be charged.
2. Can I take an education loan without a co-borrower?
No, a co-borrower is needed to take an education loan. The loan will be taken as a joint loan in collaboration with your parent/ guardian or spouse.
3. I am planning to study abroad. Am I eligible to apply for an Education Loan?
Yes, PNB sets no upper limit on the loan amount for courses pursued abroad which also includes travel expenses and study tours. Higher amount can be obtained based on eligibility and creditworthiness.
4. Is there a processing fee for an education loan with PNB?
No, there are no processing fees on PNB education loan.
5. Is there a way I can reduce the interest paid?
There is special subsidy provided according to Central Government subsidy for education loans. PNB also provides special interest rates for some premier institutions. The other option is your parent/ guardian or spouse can pay the loan amount during the moratorium period due to which the loan amount you need to repay is less.