Punjab National Bank: Education Loans

Eligibility of PNB Education Loan

(i) Course Eligible

(a) Studies in India

• Graduation courses B.A, B.Com, B.Sc, etc
• Post Graduation course: Master & Ph.D.
• Professional courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer etc.
• Computer Certificate courses of reputed institutes accredited to Department of Electronics or institutes affiliated to University.
• Courses like ICWA, CA, CFA, etc.
• Courses condeucted by IIM, IIT, IISC, XLRI, NIFT etc.
• Courses offered in India by reputed foreign Universities.
• Evening Courses of approved Institutes.
• Other Courses leading to Diploma/ Degree etc.conducted by College/ Universities approved by UGC/ Govt./ AICTE/ AIBMS/ ICMR etc.
• Courses offered by National Institute and other reputed Private Institutes.

(b) Studies Abroad

Graduaton- For job oriented professional/ technical courses offered by reputed universities, Credentials of the Educational Institution may be got certified from authenticated sources/ Embassy in India Post- Graduation –MCA, MBA, MS etc.

Course conducted buy CIMA – London, CPA in USA etc.

(ii) Student eligibility

• Should be an India National.
• Secured admission to Professional/ Technical courses through the Entrance/ Selection process.
• Secured admission to foreign University Institutions.
• Student should have secured pass marks in the qualifying Examination for admission to Graduation Courses.

(iii) Expenses considered for Loan

Fee payable to College/ School/ Hostel.

Examination/ Library/ Laboratory fee.

Purchase of books/ equipment/ instruments/ uniforms.

Caution Deposit/ Building Fund/ Refundable Deposit supported by Institution Bill/ Receipts.

Travel Expenses/ Passage money for studies abroad.

Purchase of computers- essential for completion of the Course.

Any other expense required to complete the course- like study tours, project work , thesis, etc.

The fee paid by the student/ guardian at the time of admission may be reimbursed by taking the above amount into the loan amount. However, the request for reimbursement should be made within a maximum period of three months from the date of payment of such fee.

Quantum of Finance

Need based finance, subject to repaying capacity of the parents/ students with margin and the following ceilings:-

• Studies in India – Maximum Rs. 10 lacs.
• Studies abroad – maximum Rs. 20 lacs.

Loan Margin in Punjab National Bank

• Upto Rs. 4.00 Lacs NIL
• Above Rs. 4.00 Lacs: Studies in India 5% and Studies Abroad 15%
• Scholarship/ assistantship to be included in Margin.
• Margin may be brought in on year to year basis as and when disbursements are made are made on a pro-rata basis.

Security of Loan in Punjab National Bank (PNB)

i) upto 4.00 lacs : No Security

ii) Above Rs 4 lacs and upto Rs. 7.50 lacs: Collateral in the from of a suitable third party guarantee. The bank may, at its discretion, waive third party guarantee if satisfied with the net- worth/ means of parent who would be executing the document as “ joint borrower”.

iii) Above Rs. 7.5 lacs: Collateral security of Suitable vaulu along with the assignment of future income of the student for payment of instalments.

The document should be executed by the student and the parent/ guardian.

• The security can be in the form of land/ building/ Govt./ securities/ Public Sector Bonds/ Units of UTI, NSC, KVP, LIC Policy, Gold, Shares/ Debentures, Banks Deposit in the name of the student parent/ guardian or any other third party with suitable Margin.
• henever the land/ building is already mortgagedc, the unencumbered portion can be taken as security on II charge basis provided it covers the required Loan amount.
• In case the loan is given for purchase of Computer, the same to be hypothecated to the Bank.
• The interest to be debited monthly on simple basis during the Repayment the Repayment holiday/ Moratorium period.
• Penal Interest @ 2% be charged for above Rs. R.00 lacs for the overdue period.

Check List of PNB Education Loan

To facilitate expeditious disposal of applications, a check-list regarding documents, security etc., along with application forms for Education Loan be provided to intending borrowers. An illustrative borrowers can furnish all related documents/ papers in one lot, is give below.

Loan application on Bank’s format.

• Passport size photograph.
• Proof of Address
• Proof of Age
• Proof of having secured pass marks in last qualifying examination.
• Letter of the course wherein charges like admission fees, Examination Fee, Hostel Charges etc. are mentioned.
• Details of Assets. & Liabilities of parents.

In case loan amount is above Rs.4.00 lacs:

- Particular of guarantors and details of their Assets & Liabilities.

- If immovable property offered as Collateral Security – copy on Title Deed, Valuation, Certificate and Non- encumberance, Certificate from approved Lawyer of the Bank.

Photocopy of Passport & Visa, in case of study abroad.

Any other document / information, depending upon the case and purpose of the loan.

Punjab National Bank has currently two education Loan Scheme PNB Vidyalakshyapurti & PNS Sarvottam Shiksha.