How Many Education Loan Schemes are there ?
There are 3 Education Loan Schemes namely:
PNB Saraswati: Regular Scheme for pursuing Higher studies in India & Abroad.
PNB Pratibha: Collateral free Education loans at lower ROI to those students getting admission in of 103 premier institutions in India, as identified by Bank.
What is the objective of Bank`s Education Loan schemes ?
PNB Saraswati -The Education Loan Scheme PNB Saraswati aims at providing financial support to meritorious students for pursuing higher education in India and abroad.
PNB Kaamgar- The Education Loan Scheme PNB Kaamgar aims at providing financial support from the banking system to those who have the minimum educational qualification, as required by the institution / organization running the course eligible under the scheme.
What are the eligibility criteria for Education Loan ?
Student should be Indian national.
PNB Saraswati Student should haves obtained admission in eligible course through merit based selection process. Where the admission is purely based on marks scored in qualifying examinations, cut off percentage of marks is fixed:
50% for SC/ST, and;
60% for General category.
Loan also available to students getting admission under Management Quota to meritorious student who has qualified for a seat under merit quota and chooses to pursue a course under Management Quota.
PNB Kaamgar Student should have secured admission in a course run or supported by a Ministry / Deptt./ Organization of the Govt. or a company / society / organization supported by National Skill Development Corporation or State Skill Missions / State Skill Corporations, preferably leading to a certificate / diploma / degree, etc. issued by a Govt. organization or an organization recognized / authorized by the Govt. to do so.
What is the minimum age for getting Education Loan ?
There is no specific restriction with regard to the age of the student to be eligible for education loan.
What are the courses covered for Education loan ?
Education loan under PNB Saraswati is available for all Approved courses leading to Graduate/ Post Graduate degree and PG Diplomas conducted by recognized colleges/ universities recognized by UGC/ Govt. / AICTE/ AIBMS/ICMR etc.
Loan is also available for part time courses and job oriented courses subject to employability and earning potential.
Education loans for study abroad is also available for job oriented professional/technical courses offered by reputed universities. ?
For Loans repayable up to 3 years:
PNB Kaamgar - Vocational / Skill development courses
What are the expenses considered for Education Loan ?
Finance is provided to meet all type of expenses which are necessary for completion of course and also include purchase of books, equipments, computer, travelling, study tours, boarding, lodging besides all types of fees.
How much loan amount one is eligible under Education loan ?
PNB Saraswati Need Based Finance to meet the expenses), subject to the following ceilings:
Studies in India - Max. Rs.10 lac
Studies abroad - Max. Rs.20 lac
However, Circle Heads and above have full discretion for sanctioning higher quantum of loan keeping in view the merits of the case.
For courses of duration:
upto 3 months
above 3 to 6 months
above 6 months to 1 year
above 1 year
What are the margin and security norms for Education Loan Schemes ?
Margin : Up to Rs. 4 Lacs –Nil
Above Rs. 4 Lacs– 5% (India), 15% (abroad)
Security : Up to Rs. 4 Lacs – Nil
Above Rs. 4 Lacs-7.50 Lacs-Personal guarantee
Above Rs. 7.50 Lacs – collateral security
(NIL under PNB Pratibha)
How interest is charged on Education loans and are there any concessions to students ?
Interest charged on simple basis during the moratorium
Concession of 1% ROI if interest serviced during moratorium period and thereafter installments are paid regularly.
Interest concession of 0.50% for women beneficiaries
Concession of 50 bps in ROI to students getting score of 80 & above under PNB Score.
What is the repayment period Under PNB Saraswati ?
For loans up to Rs 7.50 lacs: up to 10 years
For loans above Rs 7.50 lacs: up to 15 years.
What is the repayment period Under PNB Kamgaar ?
For courses up to 1 year - In 2 to 5 years
For courses above 1 year - In 3 to 7 years
Are there any processing charges one has to pay for availing Education loan ?
For studies in India, there is NIL processing fee, however, documentation charges of Rs.270/- for loans up to Rs. 4 lac and Rs.450/- above Rs.4.00 lac - exclusive of GST are charged.
For Studies abroad: Upfront fee @ 1% with a minimum of Rs.10,000/- which is refundable on availment of the loan.
Is there penalty for pre payment of loan ?
No prepayment penalty is levied.
Whether, Student can get second loan after completion of first course for other course ?
Second loan (Top up loans) to students for pursuing further studies can be considered on merits, within the overall eligibility limit taking into account genuineness, accessibility, future repaying capacity of the student borrower, recovery of loan and subject to security.
In case of Top up loan from date my repayment will commence ?
The repayment of loan will commence after completion of the second course and further moratorium period as provided under the scheme.
Whether Re-imbursement of fees is permitted in Education Loan scheme ?
Yes, reimbursement of fees paid by the student/ guardian at the time of admission or subsequent stages is permissible within six months from the date of payment of fees on individual merits of the case.
Whether Loan account can be transferred from one branch/ place to other branch/ place ?
Yes, to facilitate hassle free deposit of repayment dues, and to have proper monitoring.
Is Insurance cover for education loans students mandatory? Also is there any compulsion of getting cover from a particular company ?
No, it is optional and is on voluntary basis. Student can get himself/ herself insured from the company of choice and assign the policy in the Bank`s name.
However, Bank has made arrangement with MetLife to provide the insurance at competitive rate and easy terms and conditions.
What are the documents required for Education Loan ?
A.Loan application on Bank`s format.
Passport size photograph.
Proof of Address.
Proof of Age.
Copy of PAN of student Borrower.
Proof of having cleared last qualifying examination.
Letter of admission.
Prospectus of the course wherein charges like Admission Fee, Examination Fee, Hostel Charges etc. are mentioned.
Details of Assets & Liabilities of parents/co-obligants/guarantors.
In case 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 be obtained at the cost of the borrower.
Photocopy of Passport & Visa in case of study abroad.
Any other document/information, depending upon the case and purpose of the loan.
What if Student do not have PAN ?
If PAN is not available at the time of sanction, the same can be submitted within one year of disbursement of loan.
Is loan available to student from any branch of PNB ?
In normal course loan is sanctioned by the branch/Retail asset Branch nearest to the place of residence of the parents of the student. However, for sanctioning and disbursement at a branch other than the said branch/Retail Asset Branch, suitable powers have been vested by the Bank to its Circle Head who can consider the same on the merits of individual case, keeping in view the genuineness, accessibility and aspect of recovery of loan.