Punjab National Bank Education Loan
Last Updated : April 17, 2020, 12:20 p.m.
To give wings to your dreams Punjab National Bank (PNB) introduces a wide range of loans for educational purposes. And to get your desired loan, you are required to meet the loan eligibility criteria as per the bank rules. Once you meet the criteria there would be no issue in the loan procedure. You can apply for the Punjab National Bank Education Loan online by going to the Vidya Lakshmi Portal. The online application form is filled and submitted online and you will be notified if it is accepted via mail or message from the bank. To fulfill your dream of higher education, you just need to focus on studies. Because Punjab National Bank offers you the desired amount to secure admission to a renowned institute or university in India or abroad.
You can make use of the education loan to achieve your dreams by getting the right education. And the borrower needs to have a co-applicant who is eligible to pay the borrowed amount. Your co-applicant in Punjab National Bank Education Loan can be your parent, guardian, in-laws or spouse if you are married. The loan is purely for education for the people and giving the best interest rates to the loan amount. Punjab National Bank Education Loan interest rates are based on the repo linked lending rate of the bank which is 7.05%. You can find out more about the loan features and their benefits in the further mentioned details.
List of PNB Education Loan Plans
PNB SARASWATI – Education Loan
For the needy and bright students who can’t get admission due to the lack of funds, Punjab National Bank offers them education loans. You can borrow up to INR 7.5 lakh from the bank under the Credit Guarantee Fund Scheme For Education Loans (CGFSEL). You can get the benefit of CGFSEL like the lowest interest rate that is 2% over the repo rate, and no collateral needs. The bank doesn’t levy any margin on loans up to INR 4 lakh and above it, a 5% margin is applied. You need to first secure admission in a well-known university or Institution so that you can get the help from Punjab National Bank.
As the purpose of the loan is to meet the educational requirements, the borrower must secure his admission first. PNB has approved education loans for students securing admission in the following institutions and universities.
- Graduate, Post Graduate degree and PG Diplomas conducted by Govt.
- Courses like ICWA, CA, CFA etc.
- IIMs, IITs, IISc, XLRI. NIFT, NID courses for education
- Degree or Diploma courses in Aeronautical, pilot training, shipping Nursing or any other discipline.
- Advance Diploma for the Banking Technology course offered by PNB IIT Lucknow.
- Approved courses by foreign universities in India.
- Research Programmes recognized by designated academic authority or the regulatory body
| Particulars | Details |
|---|---|
| Loan | Above INR 7.50 lakh |
| Interest Rate | 7.55%-9.55% |
| Tenure | 15 years |
| Moratorium | Course duration + 1 year |
The PNB education Loan for the children of the bank staff is given at an attractive interest rate of 7.30%. Whether the co-borrower or guarantor any of them has a relation with PNB can get this benefit.
PNB PRATIBHA for Admission in Premier Institute
To borrow a loan to get admission in a popular technical institution in India, you can borrow money from PNB. Using the Pratibha Education Loan, one can borrow the desired amount of funds as per the Institution request. All expenses such as college, hostel, examination fees, library, etc, are managed by PNB education loan. You just need to secure admission in the institution by giving an entrance test or interview. The interest rate of your loan is based on the institution. Look at the below table to find out the PNB education loan interest rate for the Pratibha scheme.
| Institute name | Interest rate |
|---|---|
| XLRI Xavier School of Management (Xavier Labour Relations Institute), Jamshedpur | 7.20%-7.70% |
| National Institute of Technology (NIT), Jamshedpur | 7.20%-7.70% |
| Delhi College of Engineering(DCE), Delhi | 7.30%-7.80% |
There is a difference in the interest rate because PNB provides a lower rate of interest if you secure admission in a renowned institute of Jamshedpur in IITs, IIMs, XLRI and NITs.
PNB Udaan – Higher Education in Abroad
To pursue education abroad is your child’s dream, you can meet this up with the Punjab National Bank foreign education loan, PNB Udaan. For graduation, post-graduation or Ph.D. you can apply for PNB Udaan. And the applicant needs to be an Indian National as per the loan criteria. You can borrow a loan up to INR 1 crore that covers all your expenses from travel to admission fees. Also, your project works including during the course. The margin on your foreign education is 15% on the loan amount, and to manage it, you can use your scholarship or assistantship. The margin is levied on a year to year basis as per the disbursement of the loan. Look at the below table to know about the interest rate on PNB Udaan.
| Loan (INR) | Interest Rate (RLLR = 7.05%) |
|---|---|
| Up to 7.5 lakh | 9.05% |
| Above 7.5 lakh | 9.80% |
| Loan with collateral ( no limit) | 9.05% |
| PNB employees | 7.30% |
You get a maximum of 15 years to pay the entire borrowed amount and the interest in equated monthly installments. Plus, you have a 1-year moratorium period over your PNB education loan.
PNB KAUSHAL- Skill Development Loan
To borrow a specific amount of loan to pursue short-term courses, you can apply for the PNB education loan. Because Punjab National Bank not only supports your higher education, but it also finances your additional courses. If you have a plan to pursue a diploma or IT course for some time, you must have secured admission in a course. Make sure the institute or education center must provide a degree, diploma or certificate issued by National Skill Qualification Framework (NSQF). Any institution that is run by Industrial Training Institutes (ITIs), Polytechnics or by the central or state education Boards are considered valid for the loan.
The borrower needs to submit the detailed list of fees applicable during the course period including the expenses of books, equipment, and instruments. Your moratorium period is decided as per your course duration. For example, suppose your course runs for one year, then the holiday payment should be of 6-months only. The maximum period of moratorium on your skill development is of 12 months if your course duration is above 1 year. Below are the mentioned details of the PNB Kaushal Education Loan.
| Particulars | Details |
|---|---|
| Loan | INR 5,000 to 1.5 lakh |
| Interest Rate | 7.30%-8.55% |
| Tenure | 7 years |
| Margin | Nil |
PNB HONHAAR Education Loan
This is a new scheme for the applicants who wish to secure admission in Delhi University. Punjab National Bank especially provides an education loan for Delhi students. You can borrow up to INR 10 lakh at an attractive interest rate of 9.20% per annum. A maximum tenure of 15 years is offered to the borrower to pay the education loan to the bank. And during this period you can also get a moratorium of 1 year during the tenure. To apply for the PNB Honhaar education loan, you need to meet the following criteria as per the PNB terms and conditions.
- Indian Citizen
- 10+2 certificate of Delhi CBSE Board
- Confirmation of admission in diploma or degree course
- The selection process should be of merit or entrance based
PNB doesn’t levy any margin to your borrowed amount, and the borrower can pay the loan early without any prepayment fees.
PNB PRAVASI SHIKSHA LOAN
For the Non-Residents Indian or Overseas students, PNB has brought the Pravasi Shiksha Loan with which they can secure their admission in Indian Universities or Institution. There is no limit on the amount you can borrow, and the bank puts a 20% margin on your loan. The loan can be paid over a maximum of 10 years by the co-borrower or the applicant guardian or parent. Punjab National Bank hasn’t set an age limit for this scheme as any individual can apply for the loan to get an education in India. But the applicant shouldn’t be a minor. And if the co-borrower is not an Indian resident then Passport is mandatory to submit. The payment of the loan can be made via NRE, FCNR(B) or NRO accounts.
PNB loan interest rate for this scheme is 9.20% per annum. And the interest rate remains the same throughout the tenure. So if you are an NRI and looking for a scheme that helps you borrow the loan for education in India, you can apply for PNB Pravasi Shiksha.
Apply for Punjab National Bank Education Loan
To get your loan, you just need to fill an application form and submit it to the bank. And you can do so by going to the nearest PNB branch. You can visit the Vidya Lakshmi online portal to apply for the desired PB education loan scheme. And the borrower needs to pay 1% of the loan amount to process his/her loan application further. And, as per the documentation, you need to submit the KYC and income proof with INR 250+GST for PNB Pravasi Shiksha Loan. Otherwise, there are no documentation fees required for the PNB loan.
The list of documents for the PNB education loan is as follows.
- KYC proof: Aadhar, PAN, Driving Licence, Voter ID card, 10+2 certificate of student and Passport.
- Income proof: Salary slip, Salary certificate, ITR, form 16 and Bank statement.
- Security Proof: FD receipt, property documents, tangible collaterals like insurance policies, bonds, etc.
The insurance covers your PNB education loan, you can get a Life Insurance Cover up to an amount equal to your loan amount including the interest accrued during the moratorium. And the insurance payment can be made along with the loan EMI payment. Both the liable amount is merged to make it easier for the borrower to pay them quickly.