PNB Bank Education Loan, Punjab National Bank Education Loans, PNB educational Loan Eligibility, Application Information, Details
The Scheme aims at providing financial assistance to deserving / meritorious students pursuing higher education in India or abroad. viz., Graduation courses – B.A., B.Com., B.Sc., etc., Post-Graduation courses, Masters & Ph.D; Professional courses, Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer etc., Computer Certificate courses of reputed Institutes accredited to Department of Electronics or institutes affiliated to University; Courses like ICWA, C.A., CFA, etc., courses conducted by IIM, IIT, IISc, XLRI, NIFT, etc., Regular Diploma/Degree courses conducted by Colleges/Universities approved by UGC/Govt./AICTE/AIBMS/ICMR, Regular Degree / Diploma courses like Aeronautical, Pilot training, Shipping etc. approved by DGCA/ etc., Courses offered by National Institutes and other reputed Private Institutes.
Students should approach the branch nearest to the place of domicile.Interest is charged monthly on simple basis during the repayment holiday/moratorium period & concession of 1% in rate of interest is allowed provided the same is serviced regularly during study period.
Punjab National Bank has tied up with Kotak Mahindra Insurance to provide life insurance cover for Student borrowers.
Student eligibility
Should be an Indian National.
Secured admission to Professional / Technical courses in India or abroad through Entrance Test / Merit based Selection process..
Expenses considered for Loan
Fee payable to College / School / Hostel
Examination / Library / Laboratory fee.
Purchase of books / equipments / instruments / uniforms.
Caution Deposit / Building Fund / Refundable Deposit supported by Institution Bills / Receipts, subject to the condition that the amount does not exceed 10% of the total tuition fee for entire course..
Travel Expenses / Passage money for studies abroad.
Purchase of computers - essential for completion of the Course.
Boarding and lodging expenses in recognized Boarding Houses / private accommodations
Any other expense required to complete the course - like study tours, project work, thesis etc.
Quantum of Finance:
Need based finance, subject to repaying capacity of the parents / students with margin and the following ceilings:-
For studies in India: Maximum Rs.10.00 lacs.
For studies abroad: Maximum Rs.20.00 lacs.
Margin
Upto Rs.4.00 lacs:
-
Nil.
Above Rs.4.00 lacs:
Studies in India
5%
Studies Abroad
15%
Security:
Co-Obligation of Parents. No Security..
Above Rs 4.00 lacs and Upto Rs 7.5 lacs:
Co-Obligation of Parents. 3rd party guarantee acceptable to the Bank.
Above Rs 7.5 lacs:
Co-Obligation of Parents. Collateral Security of suitable value along with Assignment of future income of the student for payment of installments.
The security can be in the form of land / building / Govt. Securities / Public Sector Bonds / Units of UTI, NSC, KVP, LIC Policy, Gold, Shares/ Mutual Funds/ Debentures, Bank Deposit in the name of the student parent / guardian or any other third party with suitable Margin.
The document should be executed by both the student and the parent/guardian.
Repayment Period:
Coursee period + 1 year OR 6 months after getting job, whichever is earlier.
The Principal and interest is to be repaid in 5-7 years after commencement of repayment. If the student is not able to complete the course within the scheduled time, extension of time for completion of course may be permitted for a maximum period of 2 years.
Upfront Fee
For Study in India - Nil
For Study abroad - @ 0.50% with a maximum of Rs. 5000/-(refundable on availment of the loan amount)
Documentation charges
Up to Rs. 4 lacs
Rs.300/- + Service Tax & Education Cess
Above Rs.4 lacs
Rs.500/- + Service Tax & Education Cess
Additional Benefits provided to the students by PNB
Reimbursement of related expenses such as admission fee, monthly fee, Boarding and lodging expenses in recognized Boarding Houses etc. already incurred by way of loan taken from own sources (to meet the contingency) by the applicant, if claimed within 3 (three) months of such payment and before consideration of the loan by the Bank.
Second time Education Loan can be sanctioned to the same student borrower for completion of next higher course.
