Punjab National Bank Education loans

With the strong presence in all arenas of advances including personal, social, MSME, agriculture and corporate banking, it is a steadily growing bank in terms of branch network, business and various other parameters. Punjab National Bank, which started its operations in 1895, provides education loan under the loan name “Vidyalakshyapurti”. Its education loans are being provided at reasonable rate of interest at floating rates only.

Interest Rates

Charges

Flexibility

• Eligibility: To avail education loans of PNB, the applicant should be an Indian citizen, having a secured admission to professional or technical courses in India or abroad through entrance test or merit-based selection process.

• Loan Amount: The maximum amount sanctioned under educational loan would go up to Rs 10 lakh to study in India and Rs 20 lakh to study abroad. The amount shall include fee payable to college for tuition, examination, library, laboratory, purchase of books, equipment, instruments and uniforms, travel expenses, passage money for studying abroad, purchase of computers, insurance premium for student borrowers, boarding and lodging expenses in recognized boarding houses or private accommodations. Apart from this, any other expense required for completing the course like study tours, project work, thesis, etc. will also be provided. Caution deposit, building fund, refundable deposit supported by institution bills and receipts will be provided, if it does not exceed 10 per cent of the total tuition fee for entire course.  

• Repayment options:

1. The loan amount can be repaid in up to 5- 7 years after the repayment holiday.
2. Repayment will start from course period + 1 year, or 6 months after getting a job, whichever is earlier. Extension of time for completion of course may be permitted for a maximum period of 2 years.

• Margin is the percentage of study cost that borrower has to pay. There is no margin applicable for loan amount up to Rs 4 lakh; whereas for loans worth above Rs 4 lakh, 5 per cent of the study cost has to be paid by borrower for studying in India, and 15 per cent for studying abroad.

• Time taken for processing: The bank may take longer than the industry practice of 10 to 15 days, for processing of loan application.

• Security:

1. For loan amount up to Rs 4 lakh, no collateral security is required. Only co-obligation of the parent or guardian will work.
2. For loan amount between Rs 4 lakh and Rs 7.5 lakh, no collateral security is required. Co-obligation of the parent or guardian and additional third-party guarantee will work as security.
3. For an amount above Rs 7.5 lakh, co-obligation of parents or guardians, along with collateral security of suitable value will be taken.

• Special options:

1. 1 per cent concession will be given in interest rate, if the interest is serviced during study period.
2. Discount of 0.50 per cent in rate of interest is permitted to women beneficiaries for loans up to Rs 10 lakh to study in India and Rs 20 lakh to study abroad.
3. Discount of 0.50% in rate of interest permitted to students of IITs, IIMs, RECs, NITs, ITs, government recognized medical colleges, FMS Delhi, MDIGurgaon, and XLRI Jamshedpur.

Example

Other Details

• Pre-Sales Information: All information is easily accessible for customers to go through. Information on interest rate and some allied charges is also been given on website. Even the application of allied charges is not clear.
• Customer Support: You can apply online for the loan. For getting in touch with the bank for any type of queries, you will have to approach a branch. The customer care support system is not in place. The website displays the contact numbers and email addresses of heads of respective divisions only. No toll-free contact numbers have been provided.

Documents Required

1. Loan application on bank's format.
2. Passport size photograph
3. Proof of Address (Permanent) / ID Proof.
4. Proof of Age.
5. Proof of having secured pass marks in last qualifying examination.
6. Letter of admission in professional, technical or vocational courses.
7. Prospectus of the course, wherein charges like admission fee, examination fee, hostel charges, etc., are mentioned.
8. Details of assets & liabilities of parents.
9. Photocopy of passport & visa, in case of study abroad.

Ratings