Description

Punjab National Bank (PNB) is an Indian financial service and transnational banking company. It was instituted in 1894. The government of India nationalized Punjab National Bank and other 13 major commercial banks on 19 July 1969. It is a state-owned organization headquartered in New Delhi, India. As on 31st March 2017, the bank had a network of over 6,937 branches, 80 million customers and around 10,681 ATMs across the country. PNB has representative offices in Dubai (United Arab Emirates), Sydney (Australia), Shanghai (China), Kazakhstan and Oslo (Norway). It also has subordinate banking services in UK (PNB international) with several branches in Dubai, Kabul, Hong Kong and Kowloon.

Education is one area in which every student is willing to spend maximum possible 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. PNB offers multiple education loans and schemes to students and individuals in this regard.

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Features & Benefits

Under education loans, PNB offers different types of loans like PNB Saraswati, PNB Udaan and PNB Pratibha.

PNB Saraswati Education Loan

Objective

PNB Saraswati education loan is offered to the students who want to pursue higher education in India.

It is for students who secure admission in following courses:

  • Graduate/Post Graduate degree & PG Diplomas conducted by colleges/universities recognized by UGC/ Govt. /AICTE/AIBMS/ICMR etc.
  • Approved degree/diploma offered in India by recognized foreign universities.
  • Research programmes recognized by designated academic authority/regulatory body.

Expenses Covered

Saraswati Education Loan covers all course related expenses and fees for college/hostel, examinations/library/laboratory, caution deposit/building fund/refundable deposit (supported with relevant bills/receipts), books & equipment, course related travel, and insurance premium for student borrower.

Quantum of Loan

Amount of loan is subject to repayment capacity of the students/co-applicant (after completion of course)

Margin of loan

There is no margin for education loan upto Rs. 4 Lacs. For education loan above Rs. 4 Lacs, the margin is 5%.

Repayment tenure

Loans upto Rs 7.50 lacs should be repaid in 10 years and loans exceeding Rs 7.50 lacs must be repaid within 15 years, in equal monthly installments (EMIs). Applicants will be provided a moratorium period of ‘course period + 1 year’.

Security

For loan upto Rs. 7.50 lacs, parent(s)/guardian will be made co-applicant(s), and no tangible security or 3rd party guarantee is required.

For loan above Rs.7.50 lacs, parent(s)/guardian will be co-applicant(s), and tangible collateral security of suitable value is pledged to bank.

PNB Pratibha Education Loan

PNB Pratibha Education Loan is offered to meritorious students who secure admission in regular degree/ diploma in any of Indian premier institutes like IITs, IIMs, Top Medical Institutes, NITs, etc.

Expenses Covered

PNB Pratibha Education Loan covers all course related expenses and fees for college/hostel, examinations/library/laboratory, caution deposit/building fund/refundable deposit (supported with relevant bills/receipts), books & equipment, course related travel, and insurance premium for student borrower.

Quantum of Loan

Amount of loan is subject to repayment capacity of the students/co-applicant (after completion of course).

Confirmed Admission Letter: The candidate must have secured admission in premier institutions in India, which includes Business Schools, Engineer Collages, Medical Collages etc.

Margin of loan

There is no margin for education loan upto Rs. 4 Lacs. For education loan above Rs. 4 Lacs, the margin is 5%.

Security

Applicants are not required to provide any collateral security for PNB Pratibha Education Loan. Parents/guardians must be co-borrowers.

Repayment tenure

Loans upto Rs 7.50 lacs should be repaid in 10 years and loans exceeding Rs 7.50 lacs must be repaid within 15 years, in equal monthly installments (EMIs). Applicants will be provided a moratorium period of ‘course period + 1 year’.

PNB Udaan Education Loan

Objective

PNB Udaan education loan is offered to meritorious students for pursuing higher education abroad.

It is for students who secure admission in following courses

  • Graduation: Job oriented professional/technical courses conducted by reputed universities.
  • Post graduation: MBA, MCA, MS etc.
  • Courses conducted by CIMA- London, CPA in USA etc
  • Degree/diploma courses like aeronautical, pilot training, shipping etc. from reputed institutes/ colleges recognized by competent regulatory bodies in abroad.

Expenses Covered

PNB Udaan Education Loan covers all course related expenses and fees for college/hostel, examinations/library/laboratory, caution deposit/building fund/refundable deposit (supported with relevant bills/receipts), books & equipment, course related travel, and insurance premium for student borrower.

Quantum of Loan

Amount of loan is subject to repayment capacity of the students/co-applicant with margin.

Confirmed Admission Letter: The candidate must have secured admission in premier institutions abroad through entrance test/merit-based selection process after HSC (12 or equivalents).

Margin of loan

There is no margin for education loan upto Rs. 4 Lacs. For education loan above Rs. 4 Lacs, the margin is 15% for studying abroad.

Security

Upto Rs. 7.50 lacs: Applicants are not required to provide any collateral security for PNB Pratibha Education Loan. Parents/guardians must be co-applicants.

Above Rs. 7.50 lacs: Parent(s)/guardian should be co-applicant(s), and tangible collateral security of suitable value must be provided to bank.

Repayment tenure

Loans upto Rs 7.50 lacs must be repaid in 10 years and loans exceeding Rs 7.50 lacs must be repaid within 15 years, in equal monthly installments (EMIs). Applicants will be provided a moratorium period of ‘course period + 1 year’.

Special Note: Rates are subject to periodic change

Eligibility

PNB Saraswati Education Loan Eligibility

  • Citizenship: The borrower and the co-applicant must be an Indian citizen
  • Age: Minimum age of the borrower at the time of an education loan application should be 18 years
  • Confirmed Admission Letter: The candidate must have secured admission in a recognized university/institutions in India through entrance exam or merit based selection process after completion of HSC (12 or equivalent)

PNB Pratibha Education Loan Eligibility

  • Citizenship: The borrower and the co-applicant must be an Indian citizen
  • Age: Minimum age of the borrower at the time of an education loan application should be 18 years
  • Confirmed Admission Letter:The candidate must have secured admission in premier institutions in India, which includes Business Schools, Engineer Collages, Medical Collages etc.

PNB Udaan Education Loan Eligibility

  • Citizenship:The borrower and the co-applicant must be an Indian citizen
  • Confirmed Admission Letter:The candidate must have secured admission in premier institutions abroad through entrance test/merit-based selection process after HSC (12 or equivalents).

Documents Required

Punjab National Bank education loan documents required

  • Completed and signed application form of the respective loan – Pratibha, Saraswati, Udaan
  • Passport size photographs

Address Proof: Candidate and co-applicant (any one of the following)

  • Passport
  • PAN Card
  • Aadhaar Card
  • Driving License
  • Voter's ID
  • Electricity/Telephone Bill

ID Proof: Candidate and Co-applicant (Any one of the following)

  • PAN card
  • Aadhaar Card
  • Passport
  • Voter's ID
  • Driving License
  • Passport

Academic Documents :

  • HSC and SSC Marksheet/Certificate
  • Entrance exam Marksheets of GMAT/GRE/IELTS/TOEFL/CAT/CET (If applicable)
  • Scholarship Documents (If applicable)
  • Marksheet/Certificate of the last attended highest education

Admission Proof (If available) :

  • Proof of confirmed admission letter from university or institute

Co-Applicant's Bank Statement :

  • Last 12 months’ bank statement of the salary account or business receipts credited every month (If more than one account, provide the printed statements of all)

Co-Applicant's Income Documents :

In case of Salaried Employee -

  • Last three months’ salary slips and date of joining letter
  • Form 16 for the last 2 years from the employer or last 2 years’ ITR certificate
  • Last 6 months’ bank statement

In case of Self-Employed Co-Applicant(s) -

  • Last 2 years' Income Tax Returns/ Balance Sheet audited and certified by a CA
  • Last 8 months’ bank statement
  • Proof of business turnover

In case of Self-Employed Professional -

  • Last 8 months bank statements
  • Qualification Proof
  • Last 2 years’ ITR statement
  • Last 2 years’ Audited Financial Statements certified by CA

For collateral - any one of the following documents of the immovable property

  • Title Deed of the property
  • Current maintenance bill along with receipts as provided by the society or builder
  • Latest property tax receipt
  • Original property registration receipt
  • Allotment letter provided by Municipal Corporation/Government Authorities like MHADA, CIDCO, HUDO, DDA, JDA etc

Interest Rates

PNB Saraswati Education Loan Interest Rate
Loan AmountRate of Interest as per Marginal Cost of funds based Lending Rate (MCLR)
Loan up to 7.50 lacMCLR+2.00%
Loan Above Rs, 7.50 lacMCLR+2.60%
PNB Pratibha Education Loan Interest Rate
Institutes/CollegesLoan AmountRate of Interest (Based on MCLR)
Admission to other than IITs, IIMs and XLRI JamshedpurLoan up to 7.50 lacMCLR+0.60%
Loan Above Rs, 7.50 lacMCLR+0.10
Admission to IITs, IIMs and XLRI JamshedpurLoan up to Rs. 7.50 lacMCLR+0.50%
Loan Above Rs, 7.50 lacMCLR
PNB Udaan Education Loan
Loan AmountRate of Interest (Based on MCLR)
Upto 7.50 lacs (for premier 200 educational institutes under PNB Udaan loan)MCLR+1.85%
Above 7.50 lacs (with tangible 100% tangible collateral security)MCLR+1.85%

FAQs

What is the Objective of Bank`s Education Loan Schemes?

PNB Saraswati -The Education Loan Scheme PNB Saraswati aims at providing financial support to meritorious students for pursuing higher education in India.

What is the Minimum Age for Getting Education Loan?

There is no specific restriction with regard to the age of the student to be eligible for education loan. However, the student applying for education loan should be at least 18-year old.

What are the Courses Covered Under Education Loan?

Education loan under PNB Saraswati is available for all Approved courses leading to Graduate/ Post Graduate degree and PG Diplomas conducted by recognized colleges/ universities recognized by UGC/ Govt. / AICTE/ AIBMS/ICMR etc.

Loan is also available for part-time courses and job oriented courses subject to employability and earning potential.

What are the Expenses Considered for Education Loan?

Finance is provided to meet all type of expenses which are necessary for completion of the the course and also include the purchase of books, equipment, computer, traveling, study tours, boarding, lodging besides all types of fees.

Are There any Concessions to Students?

  • Interest concession of 0.50% for women beneficiaries
  • Concession of 50 bps in ROI to students getting score of 80 & above under PNB Score.

What is the Repayment Period Under PNB Saraswati?

  • For loans up to Rs 7.50 lacs: up to 10 years
  • For loans above Rs 7.50 lacs: up to 15 years.

Is there any Processing Charge One Has to Pay For Availing Education Loan?

  • For studies in India, there is NIL processing fee, however, documentation charges of Rs.270/- for loans up to Rs. 4 lac and Rs.450/- above Rs.4.00 lac - exclusive of GST charged.
  • For Studies abroad: Upfront fee @ 1% with a minimum of Rs.10,000/- which is refundable after 1st disbursement.

Is there Penalty for Pre Payment of Loan?

No prepayment penalty is levied.

Whether Student Can Get the Second Loan after Completion of First Course for Other Course?

Second loan (Top up loans) to students for pursuing further studies can be considered on merits, within the overall eligibility limit taking into account genuineness, accessibility, and future repaying capacity of the student borrower, recovery of loan and subject to security.

Whether Reimbursement of Fees is permitted in Education Loan Scheme?

Yes, reimbursement of fees paid by the student/ guardian at the time of admission or subsequent stages is permissible within six months from the date of payment of fees on individual merits of the case.

Whether Loan Account can be transferred from One Branch/ Place to Other Branch/ Place?

Yes, to facilitate hassle-free deposit of repayment dues, and to have proper monitoring.

What if Students do not have PAN?

If PAN is not available at the time of sanction, the same can be submitted within one year of disbursement of the loan.