Punjab National Bank Foreign Education Loan – The Punjab National Bank PNB regarded as one of the foremost bank in banking sector announced this scheme which objects at providing monetary assistance to eligible and commendable students for seeking higher education in abroad. viz., Graduation courses, Post-Graduation courses, Professional courses like ICWA, C.A., CFA, etc., Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer courses of reputed Institutes accredited to Department of Electronics or institutes affiliated to University. A candidate, who is seeking a vocational course from a documented body, university or nationally known institution or a reputed private institution, can apply for PNB educational loan as well.
PNB Education Loan Scheme
Candidates, who are eager to seek higher education in abroad, can count on various types of education loans accessible by the PNB, Punjab National Bank offers personalized educational loans for several kinds of academic programs in its two segments viz. ‘PNB VIDYALAKSHYAPURTI’ and ‘PNB SARVOTTAM SHIKSHA’.
Punjab National Bank Foreign Education Loan Eligibility
Punjab National Bank has laid down a set of eligibility norms for sanctioning the education loans.
- A candidate, who is an Indian national, can apply for the loan.
- A candidate is considered qualified for Punjab National Bank educational loan, if he gets self-proclaimed to a professional or job-related course through a selection procedure or into a foreign institute.
- A student applying for a graduate program can also get the loan if he acquires at least pass marks in the succeeding examination.
Expenses Considered For PNB Education Loan
- Fee payable to College / School / Hostel as tuition fees etc.
- Examination / Library / Laboratory fee.
- Purchase of books / equipment / 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 for completing the course.
- Purchase of computers/ Laptops etc. – essential for completion of the Course.
- Boarding and lodging expenses in documented Boarding Houses / private accommodations.
- Any other expenditure obligatory to complete the course – like study tours, project work, thesis etc.
Punjab National Bank Foreign Education Loan Requirements
While applying for the education loan, the borrower is required to furnish the following information / papers:
- Punjab National Bank Education Loan application on Bank’s format.
- Recent Passport size photograph.
- Proof of Address (Permanent) / ID Proof.
- Proof of Age.
- Proof of having secured pass marks in last succeeding examination.
- Letter of admission in technical, professional, or vocational courses.
- Brochure of the course wherein charges like Admission Fee, Hostel Charges, Examination Fee, etc. are mentioned.
- Details of Assets & Liabilities of parents.
- In case education loan amount is above Rs.4.00 lacs, detail of Assets & Liabilities of parents / co-obligates / guarantors.
- In case education loan is to be collaterally secured by mortgage of IP, Copy of Title Deed, Valuation Certificate and Non Encumbrance Certificate from approved Lawyer of the Bank to be obtained at the cost of the borrower.
- Photocopy of Passport & Visa, in case of study in abroad.
- Any other document / info, depending upon the case and purpose of the loan.
- The above checklist is only illustrative in nature. For details, please contact Punjab National Bank nearest Branch Office in your city.
Amount, Ceiling, Margin & Security of PNB Educational Loan
The amount of Punjab National Bank Loan is authorized assessing the need and the reimbursing ability of the parent or the student. Moreover, some ceilings and margins are also applied by Punjab National Bank.
You can borrow a maximum of Rs 10 lacs and Rs 20 lacs for studying in abroad respectively. The margin is 15% for studying abroad.
A candidate needs to present a 3rd party as assurance for borrowing of loan above Rs 4 lacs but upto 7.5 lac.
If the amount is above Rs 7.5 lacs, the bank asks for a collateral security or guarantee of a 3rd party.
The safety can be in the form of / Public Sector Bonds/ land / building / Mutual Funds/ Govt. Securities / Units of UTI, NSC, KVP, LIC Policy, Gold, Shares/ Debentures, Bank Deposit in the name of the student parent / guardian or any other third party with suitable Margin. The file should be implemented by both the student and the parent/guardian.
Punjab National Bank Foreign Education Loan Interest Rates
Upto Rs. 4 lacs: BPLR – 2.00%
Above Rs.4 lacs: BPLR – 1.25%
Term premium of 0.50% p.a. shall be extra for reimbursement period of 3 years & above.
The interest shall be deducted periodically on simple basis during the Reimbursement holiday / Moratorium period.
Penal Interest up to Rs. 25000/ – Nil and above 25000/- @ 2% is charged on the outstanding amount for overdue period.
1% Interest concession for servicing of interest during the study duration frequently is allowed at the time of start of reimbursement period of loan.
Mode of Repayment of PNB education loan
You can reimburse the principal sum and the interest in time duration of 5 to 7 years after you begin reimbursing after completion of course or getting job whichever is earlier.
In case, a student fails to complete his education in the specified time duration, he will be given a prolonged time of 2 years in maximum for completing the program.
It also comprises insurance coverage for the borrowers of educational loans in collaboration with Kotak Mahindra Insurance.