Punjab National Bank (PNB) Education Loans
Punjab National Bank (PNB) Education Loans
Jan 15, 2024
18 Mins
Understanding Education Loans
An education loan is a financial arrangement that provides funds to individuals pursuing higher studies, either in India or abroad. Repayment of the loan typically begins after the completion of the educational program, with a grace period of 6 months provided to students to secure employment.
The repayment amount is determined based on your chosen interest option, allowing you to decide whether you want to commence repayment during the moratorium period or after it. The moratorium period, which includes your education duration plus an additional 6 or 12 months for job placement, marks the time during which you are not obligated to make loan payments.
Interest on the loan starts accruing from the disbursement of funds, resulting in a significant amount to repay by the time of your graduation. Alternatively, parents or guardians can opt to start repaying the loan during the moratorium period, with interest calculated at a simple rate. This approach substantially reduces the outstanding loan balance upon graduation.
There are four main types of education loans available in India:
Undergraduate Education Loan: These loans are designed for students who have completed their secondary education and are seeking higher studies, either within India or abroad.
Postgraduate Education Loan: Targeting individuals pursuing postgraduate degrees after completing their undergraduate courses, these loans can be utilized for studies in India or overseas.
Parents Availing Education Loan: In this scenario, parents take out loans to fund the education of their children. This unsecured loan is not limited to graduate or postgraduate programs and can cover elementary and higher secondary courses.
Career Growth Education Loans: These loans are provided to young individuals looking to enhance their careers through courses, training, certifications, or any educational pursuit contributing to their professional growth.
About PNB
PNB, founded in 1894, was established to serve the people and foster the country's economic development. Headquartered in New Delhi, it ranks among India's oldest financial services companies. The bank boasts 80 million customers, 6,937 branches, and approximately 16,684 ATMs spread across 764 cities.
Introduction to PNB Education Loans
Education is an area where individuals are willing to invest significantly to secure a prosperous future. As a prominent education loan provider, PNB understands the needs of students and offers highly competitive education loans with favorable interest rates. Each year, a considerable number of students gain admission to top universities and colleges in India and abroad, supported by PNB education loans.
Advantages of PNB Education Loan
Here are some of the advantages of applying for an education loan with PNB:
Low interest rates.
Minimal paperwork.
No processing fees.
Swift disbursal of funds.
No prepayment charges.
0.50% concession for female students.
Key Highlights of PNB Education Loan
Eligibility Criteria: Students who have secured admission.
Loan Tenure: Up to 15 years.
Loan Amount: No cap.
Interest Rate: Up to MCLR + 2.60%.
Processing Fees: Nil.
Features of PNB Saraswati Education Loan for Studies in India
Objective:
To provide term loans to Indian students pursuing higher education within India.
Loan Amount:
Up to 10 Lakhs for studies in India and up to 20 Lakhs for studies abroad.
Margin:
No margin is required for loans up to INR 4 Lakhs; 5% margin for loans exceeding INR 4 Lakhs for studies in India.
Repayment Period:
The tenure extends up to 15 years, with a moratorium period of up to 12 months after completing the course.
Security:
Parents or guardians are co-applicants, and tangible collateral is accepted, along with third-party guarantees. Loans up to 4 Lakhs do not require security.
Processing Fees:
No processing fees for availing of PNB education loans.
Courses Covered
Approved courses leading to graduate or postgraduate degrees and PG diplomas conducted by recognized colleges/universities approved by UGC/Government/AICTE/AIBMS/ICMR, etc.
Courses such as ICWA, CA, CFA, etc.
Courses conducted by prestigious institutions like IIMs, IITs, IISc, XLRI, NIFT, NID, etc.
Regular degree/diploma courses like aeronautical, pilot training, shipping, nursing, or any other discipline approved by regulatory bodies.
Advanced Diploma in Banking Technology offered by PNB IIT Lucknow.
Approved courses offered in India by reputed foreign universities.
Research programs recognized by designated academic authorities/regulatory bodies.
Expenses Covered
College/school/hostel fees.
Examination/library/laboratory fees.
Insurance premium for student borrowers, if applicable.
Caution deposits, building funds, or refundable deposits supported by institution bills/receipts.
Purchase of books, equipment, instruments, and uniforms.
Purchase of a computer at a reasonable cost if required for the course.
Any other expenses necessary to complete the course, such as study tours, project work, thesis, etc.
Eligibility Criteria: Who Can Apply?
Must be an Indian resident.
Must have secured admission to the educational institution.
Interest Rate for PNB Education Loan for Studies in India and Abroad:
Up to 7.5 Lakhs: MCLR + 2.00%.
Above 7.5 Lakhs: MCLR + 2.60%.
Features of PNB Udaan Education Loan for Studies Abroad
Objective:
To provide term loans to Indian students pursuing higher education in foreign countries.
Loan Amount:
Based on the applicant's need and repaying capacity, no margin is required for loans up to INR 4 Lakhs and a 15% margin for loans exceeding INR 4 Lakhs for studies abroad.
Repayment Period:
The tenure extends up to 15 years, with a moratorium period of up to 12 months after completing the course.
Security:
Parents or guardians are co-applicants, and tangible collateral is accepted, along with third-party guarantees. Loans up to 4 Lakhs do not require security.
Processing Fees:
No processing fees for availing of PNB education loans.
Courses Covered
Graduation: Job-oriented professional/technical courses offered by reputed universities.
Post-graduation: MCA, MBA, MS, etc.
Courses conducted by institutions like CIMA-London, CPA in the USA, etc.
Degree/diploma courses like aeronautical, pilot training, shipping, etc., provided these are recognized by competent regulatory bodies for employment abroad.
List of premier foreign universities and educational institutes.
Expenses Covered
College/school/hostel fees.
Examination/library/laboratory fees.
Insurance premium for student borrowers, if applicable.
Caution deposits, building funds, or refundable deposits supported by institution bills/receipts.
Purchase of books, equipment, instruments, and uniforms.
Purchase of a computer at a reasonable cost if required for the course.
Any other expenses necessary to complete the course, such as study tours, project work, thesis, etc.
Eligibility Criteria: Who Can Apply?
Must be an Indian resident.
Must have secured admission to the educational institution.
Interest Rate for PNB Education Loan for Studies in India and Abroad:
Up to 7.5 Lakhs: MCLR + 2.00%.
Above 7.5 Lakhs: MCLR + 2.60%.
Features of PNB Pratibha Education Loan for Studying in Premier Institutes in India
Objective:
To provide term loans to Indian students pursuing higher education in premier institutes in India.
Loan Amount:
Based on the applicant's need and repaying capacity, no margin is required for loans up to INR 4 Lakhs and a 5% margin for loans exceeding INR 4 Lakhs.
Repayment Period:
The tenure extends up to 15 years, with a moratorium period of up to 12 months after completing the course.
Security:
Parents or guardians are co-applicants, and tangible collateral is accepted, along with third-party guarantees. Loans up to 4 Lakhs do not require security.
Processing Fees:
No processing fees for availing of PNB education loans.
Courses Covered
Courses offered at premier educational institutions in India.
Expenses Covered
College/school/hostel fees.
Examination/library/laboratory fees.
Insurance premium for student borrowers, if applicable.
Caution deposits, building funds, or refundable deposits supported by institution bills/receipts.
Purchase of books, equipment, instruments, and uniforms.
Purchase of a computer at a reasonable cost if required for the course.
Any other expenses necessary to complete the course, such as study tours, project work, thesis, etc.
Eligibility Criteria: Who Can Apply?
Must be an Indian resident.
Must have secured admission to the educational institution.
Interest Rate for PNB Education Loan for Studies in India and Abroad:
Up to 7.5 Lakhs: MCLR + 0.60%.
Above 7.5 Lakhs: MCLR + 2.10%.
Features of PNB Kaushal Education Loan for Vocational Education and Training
Objective:
To provide term loans to Indian students pursuing vocational courses.
Loan Amount:
A minimum of INR 50,000 and a maximum of INR 1,50,000.
Margin:
No margin is required.
Repayment Period:
For loans ranging from INR 50,000 to 3 years, loans between INR 50,000 and 1 Lakh have a repayment period of 5 years, while loans exceeding 1 Lakh have a repayment period of 7 years.
Security:
No security is required, but a third-party guarantee is necessary.
Processing Fees:
No processing fees for availing of PNB education loans.
Courses Covered
Development courses with durations ranging from 2 months to 3 years, ideally leading to a certificate/diploma/degree, etc., issued by a government organization or a government-recognized/authorized entity.
Expenses Covered
Tuition/course fees.
Examination/library/laboratory fees.
Caution deposit.
Purchase of books, equipment, and instruments.
Any other reasonable expenses are essential for course completion.
Eligibility Criteria: Who Can Apply?
Must be an Indian resident.
Must have completed 10th standard.
Must have secured admission to the educational institution.
Interest Rate
The interest rate for this scheme is MCLR + 1.50%.
Required Documents
To apply for a PNB education loan, you will need the following documents:
Letter of admission.
Completed Loan Application Form.
Two passport-size photographs.
Statement of the cost of study.
PAN card of the student and parent/guardian.
AADHAR card of the student and parent/guardian.
Proof of identity (Driving License/Passport/AADHAR/any photo identity).
Proof of residence (Driving License/Passport/Electricity bill/Telephone bill).
Bank account statement for the last 6 months for the student/co-borrower/guarantor.
IT return/IT assessment order for the previous 2 years of the parent/guardian/other co-borrower (if an IT payee).
A brief statement of assets and liabilities of the parent/guardian/other co-borrower.
Proof of income (salary slips/Form 16) of the parent/guardian/other co-borrower.
EMI Payment Methods
PNB education loans offer three repayment methods:
Standing Instruction (SI): Existing PNB account holders can opt for this mode, where the EMI amount is automatically debited at the end of the monthly cycle from the specified PNB account.
Electronic Clearing Service (ECS): Suitable for individuals with non-PNB accounts, this method facilitates automatic EMI debiting at the end of the monthly cycle from the non-PNB account.
Post-Dated Cheques (PDCs): Non-PNB account holders can submit post-dated EMI cheques at their nearest PNB Loan Centre. Timely submission of fresh PDCs is required. Please note that Post-Dated Cheques are collected at non-ECS locations only.
It is advisable to choose either the SI or ECS mode of payment for a faster, less error-prone repayment process compared to PDCs.
How to Apply for a PNB Education Loan
You can apply for a PNB education loan through the following methods:
Online application: Submit your application online through the PNB official website.
Visit a nearby PNB branch: You can apply in person by visiting a PNB branch.
Download the application form: Obtain the application form from the PNB official website, complete it, and submit it to a bank representative.
You can also assess your eligibility for an education loan through CreditMantri and proceed with your application.
Understanding Education Loans
An education loan is a financial arrangement that provides funds to individuals pursuing higher studies, either in India or abroad. Repayment of the loan typically begins after the completion of the educational program, with a grace period of 6 months provided to students to secure employment.
The repayment amount is determined based on your chosen interest option, allowing you to decide whether you want to commence repayment during the moratorium period or after it. The moratorium period, which includes your education duration plus an additional 6 or 12 months for job placement, marks the time during which you are not obligated to make loan payments.
Interest on the loan starts accruing from the disbursement of funds, resulting in a significant amount to repay by the time of your graduation. Alternatively, parents or guardians can opt to start repaying the loan during the moratorium period, with interest calculated at a simple rate. This approach substantially reduces the outstanding loan balance upon graduation.
There are four main types of education loans available in India:
Undergraduate Education Loan: These loans are designed for students who have completed their secondary education and are seeking higher studies, either within India or abroad.
Postgraduate Education Loan: Targeting individuals pursuing postgraduate degrees after completing their undergraduate courses, these loans can be utilized for studies in India or overseas.
Parents Availing Education Loan: In this scenario, parents take out loans to fund the education of their children. This unsecured loan is not limited to graduate or postgraduate programs and can cover elementary and higher secondary courses.
Career Growth Education Loans: These loans are provided to young individuals looking to enhance their careers through courses, training, certifications, or any educational pursuit contributing to their professional growth.
About PNB
PNB, founded in 1894, was established to serve the people and foster the country's economic development. Headquartered in New Delhi, it ranks among India's oldest financial services companies. The bank boasts 80 million customers, 6,937 branches, and approximately 16,684 ATMs spread across 764 cities.
Introduction to PNB Education Loans
Education is an area where individuals are willing to invest significantly to secure a prosperous future. As a prominent education loan provider, PNB understands the needs of students and offers highly competitive education loans with favorable interest rates. Each year, a considerable number of students gain admission to top universities and colleges in India and abroad, supported by PNB education loans.
Advantages of PNB Education Loan
Here are some of the advantages of applying for an education loan with PNB:
Low interest rates.
Minimal paperwork.
No processing fees.
Swift disbursal of funds.
No prepayment charges.
0.50% concession for female students.
Key Highlights of PNB Education Loan
Eligibility Criteria: Students who have secured admission.
Loan Tenure: Up to 15 years.
Loan Amount: No cap.
Interest Rate: Up to MCLR + 2.60%.
Processing Fees: Nil.
Features of PNB Saraswati Education Loan for Studies in India
Objective:
To provide term loans to Indian students pursuing higher education within India.
Loan Amount:
Up to 10 Lakhs for studies in India and up to 20 Lakhs for studies abroad.
Margin:
No margin is required for loans up to INR 4 Lakhs; 5% margin for loans exceeding INR 4 Lakhs for studies in India.
Repayment Period:
The tenure extends up to 15 years, with a moratorium period of up to 12 months after completing the course.
Security:
Parents or guardians are co-applicants, and tangible collateral is accepted, along with third-party guarantees. Loans up to 4 Lakhs do not require security.
Processing Fees:
No processing fees for availing of PNB education loans.
Courses Covered
Approved courses leading to graduate or postgraduate degrees and PG diplomas conducted by recognized colleges/universities approved by UGC/Government/AICTE/AIBMS/ICMR, etc.
Courses such as ICWA, CA, CFA, etc.
Courses conducted by prestigious institutions like IIMs, IITs, IISc, XLRI, NIFT, NID, etc.
Regular degree/diploma courses like aeronautical, pilot training, shipping, nursing, or any other discipline approved by regulatory bodies.
Advanced Diploma in Banking Technology offered by PNB IIT Lucknow.
Approved courses offered in India by reputed foreign universities.
Research programs recognized by designated academic authorities/regulatory bodies.
Expenses Covered
College/school/hostel fees.
Examination/library/laboratory fees.
Insurance premium for student borrowers, if applicable.
Caution deposits, building funds, or refundable deposits supported by institution bills/receipts.
Purchase of books, equipment, instruments, and uniforms.
Purchase of a computer at a reasonable cost if required for the course.
Any other expenses necessary to complete the course, such as study tours, project work, thesis, etc.
Eligibility Criteria: Who Can Apply?
Must be an Indian resident.
Must have secured admission to the educational institution.
Interest Rate for PNB Education Loan for Studies in India and Abroad:
Up to 7.5 Lakhs: MCLR + 2.00%.
Above 7.5 Lakhs: MCLR + 2.60%.
Features of PNB Udaan Education Loan for Studies Abroad
Objective:
To provide term loans to Indian students pursuing higher education in foreign countries.
Loan Amount:
Based on the applicant's need and repaying capacity, no margin is required for loans up to INR 4 Lakhs and a 15% margin for loans exceeding INR 4 Lakhs for studies abroad.
Repayment Period:
The tenure extends up to 15 years, with a moratorium period of up to 12 months after completing the course.
Security:
Parents or guardians are co-applicants, and tangible collateral is accepted, along with third-party guarantees. Loans up to 4 Lakhs do not require security.
Processing Fees:
No processing fees for availing of PNB education loans.
Courses Covered
Graduation: Job-oriented professional/technical courses offered by reputed universities.
Post-graduation: MCA, MBA, MS, etc.
Courses conducted by institutions like CIMA-London, CPA in the USA, etc.
Degree/diploma courses like aeronautical, pilot training, shipping, etc., provided these are recognized by competent regulatory bodies for employment abroad.
List of premier foreign universities and educational institutes.
Expenses Covered
College/school/hostel fees.
Examination/library/laboratory fees.
Insurance premium for student borrowers, if applicable.
Caution deposits, building funds, or refundable deposits supported by institution bills/receipts.
Purchase of books, equipment, instruments, and uniforms.
Purchase of a computer at a reasonable cost if required for the course.
Any other expenses necessary to complete the course, such as study tours, project work, thesis, etc.
Eligibility Criteria: Who Can Apply?
Must be an Indian resident.
Must have secured admission to the educational institution.
Interest Rate for PNB Education Loan for Studies in India and Abroad:
Up to 7.5 Lakhs: MCLR + 2.00%.
Above 7.5 Lakhs: MCLR + 2.60%.
Features of PNB Pratibha Education Loan for Studying in Premier Institutes in India
Objective:
To provide term loans to Indian students pursuing higher education in premier institutes in India.
Loan Amount:
Based on the applicant's need and repaying capacity, no margin is required for loans up to INR 4 Lakhs and a 5% margin for loans exceeding INR 4 Lakhs.
Repayment Period:
The tenure extends up to 15 years, with a moratorium period of up to 12 months after completing the course.
Security:
Parents or guardians are co-applicants, and tangible collateral is accepted, along with third-party guarantees. Loans up to 4 Lakhs do not require security.
Processing Fees:
No processing fees for availing of PNB education loans.
Courses Covered
Courses offered at premier educational institutions in India.
Expenses Covered
College/school/hostel fees.
Examination/library/laboratory fees.
Insurance premium for student borrowers, if applicable.
Caution deposits, building funds, or refundable deposits supported by institution bills/receipts.
Purchase of books, equipment, instruments, and uniforms.
Purchase of a computer at a reasonable cost if required for the course.
Any other expenses necessary to complete the course, such as study tours, project work, thesis, etc.
Eligibility Criteria: Who Can Apply?
Must be an Indian resident.
Must have secured admission to the educational institution.
Interest Rate for PNB Education Loan for Studies in India and Abroad:
Up to 7.5 Lakhs: MCLR + 0.60%.
Above 7.5 Lakhs: MCLR + 2.10%.
Features of PNB Kaushal Education Loan for Vocational Education and Training
Objective:
To provide term loans to Indian students pursuing vocational courses.
Loan Amount:
A minimum of INR 50,000 and a maximum of INR 1,50,000.
Margin:
No margin is required.
Repayment Period:
For loans ranging from INR 50,000 to 3 years, loans between INR 50,000 and 1 Lakh have a repayment period of 5 years, while loans exceeding 1 Lakh have a repayment period of 7 years.
Security:
No security is required, but a third-party guarantee is necessary.
Processing Fees:
No processing fees for availing of PNB education loans.
Courses Covered
Development courses with durations ranging from 2 months to 3 years, ideally leading to a certificate/diploma/degree, etc., issued by a government organization or a government-recognized/authorized entity.
Expenses Covered
Tuition/course fees.
Examination/library/laboratory fees.
Caution deposit.
Purchase of books, equipment, and instruments.
Any other reasonable expenses are essential for course completion.
Eligibility Criteria: Who Can Apply?
Must be an Indian resident.
Must have completed 10th standard.
Must have secured admission to the educational institution.
Interest Rate
The interest rate for this scheme is MCLR + 1.50%.
Required Documents
To apply for a PNB education loan, you will need the following documents:
Letter of admission.
Completed Loan Application Form.
Two passport-size photographs.
Statement of the cost of study.
PAN card of the student and parent/guardian.
AADHAR card of the student and parent/guardian.
Proof of identity (Driving License/Passport/AADHAR/any photo identity).
Proof of residence (Driving License/Passport/Electricity bill/Telephone bill).
Bank account statement for the last 6 months for the student/co-borrower/guarantor.
IT return/IT assessment order for the previous 2 years of the parent/guardian/other co-borrower (if an IT payee).
A brief statement of assets and liabilities of the parent/guardian/other co-borrower.
Proof of income (salary slips/Form 16) of the parent/guardian/other co-borrower.
EMI Payment Methods
PNB education loans offer three repayment methods:
Standing Instruction (SI): Existing PNB account holders can opt for this mode, where the EMI amount is automatically debited at the end of the monthly cycle from the specified PNB account.
Electronic Clearing Service (ECS): Suitable for individuals with non-PNB accounts, this method facilitates automatic EMI debiting at the end of the monthly cycle from the non-PNB account.
Post-Dated Cheques (PDCs): Non-PNB account holders can submit post-dated EMI cheques at their nearest PNB Loan Centre. Timely submission of fresh PDCs is required. Please note that Post-Dated Cheques are collected at non-ECS locations only.
It is advisable to choose either the SI or ECS mode of payment for a faster, less error-prone repayment process compared to PDCs.
How to Apply for a PNB Education Loan
You can apply for a PNB education loan through the following methods:
Online application: Submit your application online through the PNB official website.
Visit a nearby PNB branch: You can apply in person by visiting a PNB branch.
Download the application form: Obtain the application form from the PNB official website, complete it, and submit it to a bank representative.
You can also assess your eligibility for an education loan through CreditMantri and proceed with your application.
FAQs 🤔
What is an education loan, and how does it work?
An education loan provides funds for higher studies, with repayment starting after completing the education, often with a grace period.
What are the advantages of getting an education loan from PNB?
PNB offers low-interest rates, minimal paperwork, no processing fees, swift disbursal, and a 0.50% concession for female students.
What are the key eligibility criteria for PNB education loans?
Applicants should be Indian residents and have secured admission to the educational institution.
How can I repay my PNB education loan, and what are the options?
You can repay through Standing Instruction (SI), Electronic Clearing Service (ECS), or Post-Dated Cheques (PDCs), with SI and ECS recommended for faster and error-free processing.
Where can I apply for a PNB education loan?
You can apply online through the PNB official website, visit a nearby PNB branch, or download the application form from their website and submit it to a bank representative.
What is an education loan, and how does it work?
An education loan provides funds for higher studies, with repayment starting after completing the education, often with a grace period.
What are the advantages of getting an education loan from PNB?
PNB offers low-interest rates, minimal paperwork, no processing fees, swift disbursal, and a 0.50% concession for female students.
What are the key eligibility criteria for PNB education loans?
Applicants should be Indian residents and have secured admission to the educational institution.
How can I repay my PNB education loan, and what are the options?
You can repay through Standing Instruction (SI), Electronic Clearing Service (ECS), or Post-Dated Cheques (PDCs), with SI and ECS recommended for faster and error-free processing.
Where can I apply for a PNB education loan?
You can apply online through the PNB official website, visit a nearby PNB branch, or download the application form from their website and submit it to a bank representative.
Author
Pluto Team
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