PNB Education Loan: A Comprehensive Guide

One of the most crucial investments for a successful future is education, yet it may be very expensive. Many youngsters believe that going to college is a fantasy that will cost a lot of money. A Punjab National Bank (PNB) education loan will help you attain your academic ambitions. This article will explain everything you need to know about PNB Education Loans, including their characteristics, eligibility requirements, benefits, and application process.

PNB Education Loan Overview

Max Loan Amount50 Lacs
CollateralNot Required
MoratoriumAvailable
TAT10 Times More than Banks
Disbursal Time7 Days
Approval RateHigher than Banks
Special USPMarks Based Approval
% Financed100% of Fees

Types of Education Loans Offered by PNB

  • Unsecured Loans: There may be provisions for loans up to a specific maximum without the need for security, even if the majority of PNB’s education loan programs require collateral. Eligibility conditions may vary based on the program, and these loans are often for smaller amounts.
  • Secured Loans: Physical collateral, such as fixed deposits, insurance policies, government assets, and real estate, is accepted for loans over Rs. 7.50 lakhs through programs such as PNB Udaan, PNB Saraswati, and PNB Scholar. The collateral protects the bank by guaranteeing repayment of the loaned amount and providing a line of defense in the event of default. To ensure a secure financial arrangement for both the bank and the borrower, the collateral’s realizable value must be 110% of the loan amount.

Key Facts and Features

  • No Income Criteria: Because there are no income limitations for candidates, a diverse range of students can engage in the program. This openness is compatible with PNB’s purpose of promoting education as a tool for empowerment.
  • Quantum of Finance: The loan amount is set by need, offering students planning to study abroad greater flexibility in fulfilling their financial demands. Collateral collateral is required for loans over Rs. 7.50 lakh to protect the overseas education loan. They can offer up to 1.5 crore, but they can go above and beyond depending on the student’s need.
  • Rate of Interest: The current Rate of Interest (ROI) for loans over Rs. 7.50 lakhs is RLLR + 0.75, meaning that the effective ROI is 10.50%. Overdue amounts for loans over Rs. 4 lakhs are subject to a 2% punitive interest charge. Additionally, there is an ROI discount for the top 50 universities and a girl-kid discount of 0.50%.
  • Study Level & Courses: The program offers a large range of courses and study levels overseas, including professional and technical courses focused on a career, post-graduation programs like MCA, MBA, and MS, and degrees and diplomas in several subjects approved by regulatory agencies.
  • Tenure & Repayment: The loan tenure may be up to 15 years after the moratorium period ends. The repayment holiday or moratorium term is equal to the duration of the course plus an extra year. The principal is raised by the interest accrued during the moratorium, and repayment is made in Equated Monthly Instalments (EMI).
  • Disbursement: There are a number of ways to send money for study expenses, including using foreign travel cards, SWIFT, transfer to institutions, or banks that have been approved by Forex. Remittances are processed through the borrower’s savings account, ensuring compliance with the RBI’s Liberalized Remittance Systems.
  • Funding & Margin: A 15% margin applies to studies abroad costs over Rs. 4 lakhs. This implies that each distribution requires the student to provide their portion. During the moratorium period, interest is applied on a monthly simple basis, and for loans over Rs. 4 lakhs, penal interest is assessed for past-due sums. If the borrower decides to consistently service the interest during the moratorium term, they can receive a 1% interest concession.

Documents Required

  CategoryDocuments Required
ApplicationApplication form
PhotographsPassport-size photographs
Identity ProofPAN Card, Aadhaar Card, Passport, Voter’s ID, Driving License
Address ProofVoter’s ID, Driving License, Aadhaar Card, Passport
Academic DocumentsExam results cards for grades 10 and 12 marks for additional education, Mark sheets for entrance exams, GRE, IELTS, TOEFL, and GMAT, documents related to scholarships (where appropriate), Evidence of admission
Financial DocumentsIncome proof of co-borrower or guarantor, Collateral documents, Bank statements
Additional RequirementsAny other document requested by the bank

How to Apply for a PNB Education Loan?

  • Select the Finest Loan Choice: Choose the PNB student loan plan that best suits your needs after evaluating your criteria.
  • Go to the Branch: Visit the PNB branch that is closest to you and schedule a meeting with a student loan officer to begin the application process.
  • Request the Required Files: Request a list of the documents you will need to submit your loan application.
  • Send in Your Documentation: To finish your loan application, bring the completed documents back to the bank.

Conclusion

The PNB Education Loan is an excellent financial option for those who wish to pursue higher education both domestically and abroad. With enticing features like quick disbursement, flexible return options, and loans without collateral, it ensures a smooth route to achieving academic goals. By understanding the eligibility requirements, loan types, and application process, students may make educated judgments about how to get funds for their academic objectives.

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