Punjab National Bank Education Loan

Eligibility Criteria:
You need to be an Indian Resident
You should be aged between 16 - 35 yrs.
COLLATERAL is required for all loans greater than Rs. 7.5 Lakhs.
All Loans require a co-applicant.
Should have secured admission to a higher education course in recognized institutions

Courses covered for PNB education loan
The Punjab National Bank provides student loan for the below given courses:
Job oriented professional courses offered by reputed universities
Job oriented technical courses offered by reputed universities
Post-graduation courses such as MBA, MCA and MS
Courses conducted by CIMA- London and CPA in USA
Diploma and degree courses such as pilot training, shipping, aeronautical etc. provided by recognized regulatory bodies abroad. The diploma courses other than these will not get an education loan from PNB.

Loan and Interest

Amt Of Loan Repayable in Less Than 3 years (BR@10%) Repayable in3 Years & Above
Up to Rs. 4 Lakh BR + 3.00% BR +2.50% + Term Premium (TP@0.50%)
Over Rs 4 Lakh & Up to Rs.7.50 Lakh BR + 4.00% BR + 3.50% + TP
Over Rs 7.50 Lakh BR + 2.00% BR + 2.00%

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-obligates/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.

Security needed to take education loan from PNB
There is no security needed to take education loan for upto Rs. 4 lakh. However, the guardian or parent must be the co-borrower. The candidates taking loan between Rs. 4 lakh and Rs. 7.5 lakh must provide collateral security in the form of suitable third party guarantee. For the loans above 7.5 lakh, the candidate must provide tangible collateral security suitable value acceptable to bank along with the assignment of future income of the student for payment of installments.

Repayment Period:
Loans up to Rs 7.50 lakhs must be repaid in a maximum period of up to 10 years and loans exceeding Rs 7.50 lakhs must be repaid within a maximum period of up to 15 years, in equal monthly installments (EMIs). Applicants will be entitled to repayment holiday period of either ‘course duration + 1 year’ OR ‘6 months after getting a job’, whichever occurs earlier.