Exploring Education Loans

An education loan is a financial aid mechanism for individuals pursuing higher education either in India or overseas. Typically, loan repayment starts after the course completion, with a 6-month grace period for job acquisition.

The repayment sum depends on your chosen interest model, allowing you the flexibility to either start repayment during the moratorium period or post it. This period includes the course duration plus an extra 6 to 12 months for job searching, during which loan repayments are deferred.

Interest accumulates from the loan's disbursal, leading to a notable sum by graduation. Alternatively, guardians can begin repayment during the moratorium at a simple interest rate, significantly reducing the debt at graduation.

Types of Education Loans in India

• Undergraduate Education Loan: Tailored for students completing secondary education and looking to pursue higher studies.
• Postgraduate Education Loan: Aimed at individuals pursuing postgraduate degrees either domestically or internationally.
• Parents Availing Education Loan: Parents take loans to finance their children's education, covering even elementary and secondary courses.
• Career Growth Education Loans: For young professionals seeking career-advancing courses or certifications.

Introduction to PNB

Established in 1894, PNB aims to serve the populace and promote economic development. With its New Delhi headquarters, it stands among India's oldest financial entities, embracing 80 million customers, 6,937 branches, and around 16,684 ATMs across 764 cities.

PNB Education Loans Overview

Investing in education is crucial for a secure future. PNB caters to students by offering competitive education loans with advantageous interest rates. Many students benefit from PNB education loans for admission into top universities both in India and abroad annually.

Benefits of PNB Education Loan

• Low interest rates.
• Minimal paperwork.
• Zero processing fees.
• Quick fund disbursal.
• No prepayment penalties.
• 0.50% interest concession for female students.

PNB Education Loan Highlights

• Eligibility: Students with admission confirmation.
• Loan Tenure: Up to 15 years.
• Loan Amount: Unlimited.
• Interest Rate: MCLR + 2.60% max.
• Processing Fees: None.

Features of PNB Saraswati Education Loan for Indian Studies

• Objective: To offer term loans for higher education in India.
• Loan Amount: Up to 10 Lakhs for local, up to 20 Lakhs for abroad study.
• Margin: No margin for loans up to INR 4 Lakhs; 5% for above 4 Lakhs.
• Repayment: Up to 15-year tenure with up to 12-month moratorium post-course.
• Security: Co-application by parents; tangible collateral and third-party guarantees. No security for loans up to 4 Lakhs.
• Processing Fees: None.

Eligible Courses

• Recognized graduate/postgraduate degrees and PG diplomas in universities approved by UGC/Government bodies.
• Professional courses like ICWA, CA, CFA, and prestigious institutions like IIMs, IITs, etc.
• Regular courses like aeronautics, pilot training, or courses from reputed foreign universities in India.

Covered Expenses

• Educational fees including school/college/hostel.
• Examination and library/laboratory fees.
• Insurance premiums, if applicable.
• Caution/building deposits with receipts.
• Cost of books, instruments, uniforms, computers, study tours, project works.

Eligibility Criteria for PNB Education Loan

• Indian resident with confirmed admission.

Interest Rates for PNB Education Loan

Up to 7.5 Lakhs: MCLR + 2.00%. Above 7.5 Lakhs: MCLR + 2.60%.

PNB Udaan Education Loan Features for Overseas Studies

• Objective: Term loans for higher studies abroad.
• Loan Amount: Based on needs and repayment capacity. No margin for loans up to INR 4 Lakhs; 15% above.
• Repayment: 15-year tenure with up to 12 months post-course moratorium.
• Security: Parental co-application; collateral accepted. No security for up to 4 Lakhs loans.
• Processing Fees: None.

Eligible Courses Abroad

• Graduate courses from reputed universities.
• Postgraduate programs like MCA, MBA, MS.
• International institutions like CIMA-London or CPA-USA.
• Aeronautical, pilot training, verified by regulatory bodies.

Expenses Covered

• Fees for college/school/hostel.
• Examination/library/laboratory expenses.
• Insurance premiums for student borrowers.
• Caution deposits, building funds with receipts.
• Essential study tools and resources.

Eligibility Criteria for PNB Education Loan

• Indian resident with confirmed admission.

Interest Rates for PNB Education Loan

Up to 7.5 Lakhs: MCLR + 2.00%. Above 7.5 Lakhs: MCLR + 2.60%.

PNB Pratibha Education Loan for Premier Indian Institutes

• Objective: Loans for education in premier Indian institutes.
• Loan Amount: Need-based with no margin requirement up to INR 4 Lakhs and 5% above.
• Repayment: 15-year tenure, up to 12-month grace period post-course.
• Security: Parent co-application; collateral and third-party guarantees acceptable. No security for loans up to 4 Lakhs.
• Processing Fees: None.

Eligible Courses

• Programs at top Indian educational institutes.

Expenses Covered

• College/school/hostel fees, essential study expenses.

Eligibility for PNB Education Loan

• Indian residents with confirmed academic admission.

Interest Rate for PNB Education Loan

Up to 7.5 Lakhs: MCLR + 0.60%. Above 7.5 Lakhs: MCLR + 2.10%.

PNB Kaushal Education Loan for Vocational Training

• Objective: Loans for vocational courses.
• Loan Amount: Min INR 50,000, max 1.5 Lakhs.
• Margin: Not required.
• Repayment: 3-7 years based on loan amount.
• Security: No collateral needed, third-party guarantee required.
• Processing Fees: None.

Eligible Courses

• Courses spanning 2 months to 3 years, certified by authorized entities.

Expenses Covered

• Tuition and essential course-related expenses.

Eligibility for Vocational Education Loan

• Indian residents, 10th standard completion, and confirmed course admission.

Interest Rate

MCLR + 1.50%.

Required Documentation

• Admission letter, loan application, ID proofs, income documents.

PNB Education Loan EMI Options

Payment Methods:

• Standing Instruction (SI): Automatic debit for PNB account holders.
• Electronic Clearing Service (ECS): For non-PNB holders, automation feature for EMI debit.
• Post-Dated Cheques (PDCs): Applicable at non-ECS zones, timely cheque submission required.

Applying for PNB Education Loan

• Online via the PNB website.
• In-person at a nearest PNB branch.
• Download and submit application forms through the official portal.
• Evaluate eligibility via CreditMantri.