Punjab National Bank Education Loan

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Punjab National Bank Education Loan

Founded in the year 1894 and commenced its operations in 1895 from Lahore, present day Pakistan, it was the first Swadeshi Bank purely for and by Indians with an authorized capital of ₹2 lacs and working capital of ₹20,000/-. The founding and managing board of the bank included members from different parts and faiths across India. Post the partition, the bank wound up its operations across Pakistan and shifted base to New Delhi. One of the earliest Indian national banks ever, PNB has withstood its ground throughout and has been witness of various events of pre- and post-independent India. Currently with an employee base of more than 1,00,000 lac and with presence across 5400 domestic branches, its network is second only to SBI among the nationalized banks.

Overview of variants in education loan schemes offered by PNB

Scheme Name Details
PNB Pravasi Shiksha Loan Eligibility:

  • Loan scheme for merit students who are OCIs (Overseas Citizens in India), i.e., students who are born outside India and have come to pursue higher education in India.
PNB Saraswati Eligibility:

  • Loans for Indian national students who have secured admission for UG/ Engineering/ PG/ MBA/ PhD/ Specialized courses in recognized colleges / universities under AICTE/ UGC/ Union Govt/ State Govt/ ICMR/ ICAI/ ICSI/ etc.
PNB Pratibha Eligibility:

  • The loan scheme is for students of Indian nationals who have secured admission by way of merit into recognized colleges / institutes / universities for regular degree/ dual-degree / diploma / management courses etc.
PNB Udaan Eligibility:

  • Loan scheme for students of Indian nationals who wish to pursue higher education abroad and so have secured admission for – professional or technical or job-oriented courses / MBA / MD / MS degrees / Doctoral programmes etc.
PNB Kaushal Eligibility:

  • Loan scheme to provide financial support for students wanting to pursue skill development courses from either Industrial Training Institutes or in any Polytechnic institutes or in any Skill Development and Training Institutes affiliated to NSDC or in any state government promoted skill development programmes and workshops that leads to a diploma or certificate courses
PNB HONHAAR Eligibility:

  • Loan scheme to provide financial assistance to students wanting to pursue higher education or skill development courses, but only limited to Delhi.
Concessional Education loan Eligibility:

  • Loan scheme to students or persons with disabilities (PwDs) under all the existing education loan schemes of PNB
PNB Bihar Student Credit Card Scheme Eligibility:

  • Loan scheme that provides financial support to students of Bihar wanting to pursue higher education in colleges or universities recognized by Govt of Bihar. that are within or outside of the state.

Further details under each scheme mentioned in above table

Note: Repo Linked Lending Rate (RLLR) is 6.65% w.e.f 1st June 2020.

1. PNB Pravasi Shiksha Loan

The scheme is aimed at providing financial assistance to students who are OCIs (Overseas Citizens in India) and have secured admission for higher education to universities / institutes / colleges in India as recognized by Govt of India.

Because the loan facility is for OCI students, OCI card and passport are mandatory KYC documents.

Courses such as regular degree / Post Graduate degree / Executive / Diploma / MBA degrees are covered under the scheme.

The Rate of Interest under this scheme is RLLR + 2.15%

The loan amount under the scheme is need based however, collateral security is mandatory. The collateral security could be an immovable property (other than agricultural property or land) in India in the name of guarantor or co-borrower, which has a value of up to 125% of the loan amount. If not immovable property, security can also be of financial investments with a value of up to 125% of the loan amount.

The loan amount covers all the expenses of the course and throughout the course period. If the student opts for accommodation that is not provided by the college / university, the expenses for the same will not be included in the loan amount.

There is no minimum age limit to avail the loan facility. The repayment period is of 10 years excluding the moratorium period which covers the entire course period with an additional 6 months.

2. PNB Saraswati

The loan scheme covers students who wan to pursue and have secured admission to higher education courses on merit by passing HSC or any other entrance examinations like –

  • UG/ Engineering/ PG/ MBA/ PhD/ Specialized courses in recognized colleges / universities under AICTE/ UGC/ Union Govt/ State Govt/ ICMR.
  • CA/ CWA/ CS
  • Technical Diploma course consisting of 3 years offered by any AICTE approved polytechnic institutes
  • Courses offered in Indian colleges / institutes by foreign universities
  • MBA from ISB Hyderabad, IIMs, IITs, IIFT, XLRI etc
  • Special courses or diploma in pilot training, aeronautical sciences, maritime studies, nursing studies etc.
  • Research or Doctoral programmes by recognized academic institutions, universities etc.

The quantum of loan is need based but it is also in consideration of the repaying capacity of parents / students after completion of course.

No margin is applicable for any loan amount of up to ₹4 lacs and an amount above ₹4 lacs will attract a margin of 5%.

For any loan amount up to ₹7.50 lacs, no collateral security is mandatory while parent(s) / guardian will be required to sign up as co-borrower and the rate of interest being RLLR+ 2.00%. Amount that is more than ₹7.50 lacs will require collateral and tangible security with rate of interest being RLLR + 2.75%.

Almost all expenses of the course (including study tours, hostels, library, equipment, books, project work etc.) are covered under the scheme.

The repayment period is of 15 years excluding the moratorium period which covers the entire course period with an additional 1 year.

3. PNB Pratibha

The loan scheme is availed by students of Indian nationals who have secured admission by way of merit into premier institutions or universities in India, as recognized by Govt of India.

The list of premier institutions – Click Here

The courses here would include:

  • Regular degree / post graduate degree courses by premier colleges
  • Engineering courses by premier institutes / universities
  • MBA / part time post graduate programmes offered by IIMs and ISB for executives
  • MBBS / MD by top medical colleges/ institutes in India

The quantum of loan is need based but it is also in consideration of the repaying capacity of parents / students after completion of course.

Almost all expenses of the course (including study tours, hostels, library, equipment, books, project work etc.) are covered under the scheme.

The repayment period is of 15 years excluding the moratorium period which covers the entire course period with an additional 1 year.

No margin is applicable under the said loan scheme. Only the co-obligation of parent(s) / guardian is required as joint borrowers for security.

Below describes the rate of interest facility under this loan scheme:

CGFSEL – Credit Guarantee Fund Scheme for Education Loan – introduced by Govt of India and applicable to all nationalized banks providing educational loans. Because the features of PNB Pratibha falls under the features of CGFSEL, such educational loans will be eligible for coverage under CGFSEL. Further information available at – Read More..

 

4. PNB Udaan

The scheme is introduced in order to provide for financial support to meritorious Indian national students wanting to pursue higher education abroad and have secured admission to foreign universities by way of required selection process for:

  • Job oriented / technical / professional graduation courses offered by universities / institutions
  • MBA/ MCA/ MS
  • Professional and self-study courses such as CIMA of UK and CPA / CFA of USA
  • Diploma / Certificate courses of aeronautical studies, pilot raining, maritime studies abroad.

Lis of foreign premier universities whose courses can be funded under the scheme: Click Here

The quantum of loan is need based but it is also in consideration of the repaying capacity of parents / students after completion of course.

No margin is applicable for any loan amount of up to ₹4 lacs and an amount above ₹4 lacs will attract a margin of 15%.

For any loan amount up to ₹7.50 lacs, no collateral security is mandatory while parent(s) / guardian will be required to sign up as co-borrower and the rate of interest being RLLR+ 2.00%. Amount that is more than ₹7.50 lacs will require collateral and tangible security valuing 125% of loan amount with rate of interest being RLLR + 2.75%.

Almost all expenses of the course (including study tours, hostels, library, equipment, books, project work etc.) are covered under the scheme.

The repayment period is of 15 years excluding the moratorium period which covers the entire course period with an additional 1 year.

5. PNB Kaushal

To avail the loan scheme, the applicant must have enrolled into courses offered by Industrial Training Institutes (ITIs) or any polytechnic institutes or any recognized centres for training of skill development or any training partners affiliated to NSDC or State Skill Corporation, which leads to issuance of degree / diploma / certificate as prescribed by the National Skill Qualification Framework.

The minimum and maximum quantum of loan that can be borrowed under this scheme is ₹5,000/- and ₹1,50,000/- respectively wherein for any course that is for a duration of up to 6 months, the loan amount is ₹50,000/- and for courses exceeding 6 months duration, the amount is up to ₹1,50,000/-

The rate of interest under this facility is – RLLR + 1.50% (up to maximum loan amount)

Although no collateral or third-party guarantee is required, the applicant’s parent will be required as joint borrower

Moratorium period under this scheme depends on the duration of the course.

  • For any course that is up to 1 year – moratorium period will be for 6 months from the completion of course.
  • For courses that are more than 1 year – the moratorium period will be applicable for 12 months from course completion.

Repayment period will be initiated after the completion of moratorium period.

  • Loan up to ₹50,000 – 3 years
  • ₹50,000 to ₹1 lac – 5 years
  • More than ₹1 lac – 7 years

6. PNB HONHAAR

The scheme is developed in order to provide financial assistance to Indian national students who have completed their Class X and Class XII in Delhi and have secured admission by way of HSC scores or entrance exams for higher education in Delhi only.

This scheme can be availed for any courses offered by colleges / universities in Delhi as well as specified Skill Development courses in the Delhi region by the Government.

The quantum of the loan is need based, however there is an upper limit of ₹10 lacs.

No margin is applicable under the said loan scheme. Only the co-obligation of parent(s) / guardian is required as joint borrowers for security.

The Rate of Interest under this loan facility is RLLR + 2.15%

Almost all expenses of the course (including study tours, hostels, library, equipment, books, project work etc.) are covered under the scheme. The scholarship amount will also be taken into account while computing the loan amount.

The repayment period is of 15 years excluding the moratorium period which covers the entire course period with an additional 1 year.

7. Concessional Education loan

The concessional loan can be availed by students with disability of 40% or more, provided a disability certificate is issued by the concerned authorities who are empowered by Government to issue such certificates.

The quantum of loan is need based with an upper limit of amount ₹10 lacs for studies in India and upper limit of amount ₹20 lacs for studies in abroad.

The repayment period is up to a maximum of 7 years excluding the moratorium period which is the entire course period and an additional 1 year or 6 months after securing a job, whichever is earlier.

8. PNB Bihar Student Credit Card Scheme

The above-mentioned loan scheme aims at providing financial assistance to the students of Bihar, who have passed their HSC from the institutions / colleges / schools recognized by the state and want to pursue higher education, but unable to do so owing to financial crisis.

Under the scheme, students of Bihar can pursue higher education within or outside of the State of Bihar for any technical / non-technical / medical / general courses offered by institutes / universities recognized by the Govt of Bihar or by Central Government.

The maximum age of availing the loan under this scheme is 25 years. The applicant will be mandatorily required to have Aadhar card / UID for verification.

The quantum of the loan will be need based but has an upper limit of amount ₹4 lacs. In case he student needs o avail above ₹4 lacs, he/she will have to apply for loan under PNB Saraswati/ PNB Pratibha/ PNB Udaan.

No margin is applicable under the said loan scheme. Only the co-obligation of parent(s) / guardian is required as joint borrowers for collateral security.

The repayment period is of 15 years excluding the moratorium period which covers the entire course period with an additional 1 year.

How to Apply for the loan

Online process – The above mentioned PNB Education loan schemes can be applied via online from Vidya Lakshmi Portal, which is a centralized portal specifically catering to students wanting to explore multiple options offered by various banks before choosing the appropriate loan scheme which is in tandem to the applicants’ needs.

Offline process – the applicant will have to visit the nearest branch of PNB and file for application of loan by filling out the required forms and submitting the copies of mandatory documents. In case the applicant does not own any savings account with PNB, he/she will first have to open a savings account before availing the loan facility.

 

 

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