PNB Education Loan: Interest Rate, Features, and Benefits

PNB offers a wide range of study loans in Punjab and across India. These loans have helped many people achieve their academic goals without compromising on quality or budget. Punjab National Bank (PNB), the leading public sector bank in India, has been at the leading edge of providing students with easily accessible and affordable education finance options. 

Let’s understand their education loans, interest rates, features, and other benefits. 

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Overview of PNB Education Loan

PNB education loans are known for their competitive interest rates, flexible repayment options, and attractive features. Here's why you should consider PNB for your education loan:

Competitive Interest Rates: PNB education loan interest rates start at a compelling 8.20% per annum, making them a competitive option in the market.

Flexible Repayment: PNB understands that students might require breathing room after completing their education. They offer flexible repayment options with a maximum tenure of up to 10 years. Additionally, a moratorium period on interest payments during the course and up to 6 months after course completion can be availed.

Scholarship Benefits: PNB offers scholarship benefits to meritorious students, further reducing the financial burden. Details regarding eligibility and the application process can be found on the PNB website.

Loan Coverage: PNB education loans cover a significant portion of your educational expenses, including tuition fees, hostel fees, examination fees, and even laptop costs.

Simplified Application Process: PNB strives to make the application process student-friendly. You can apply online or visit your nearest PNB branch for assistance.

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PNB Education Loan, Types, Interest Rate and Features

PNB has a total of 6 schemes under its belt. Before we dive deep into each one of them, here is a glance at what these schemes are called, along with their basic features and other attributes:

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Eligibility Criteria for PNB Education Loans

PNB is aware of how expensive schooling is becoming both domestically and internationally. Financial limitations shouldn't prevent a student from receiving a top-notch education. That's why they offer a variety of PNB education loan schemes to help you achieve your academic goals.

Here's an overview of the many PNB education loan choices available:

1. PNB Saraswati Education Loan

This plan seeks to give financial help to meritorious students pursuing higher education in India. PNB Saraswati education loans are available to students accepted to accredited universities offering courses recognised by the government, UGC, AICTE, AIBMS, ICMR, etc. 

This covers courses at prestigious universities such as XLRI, NIFT, NID, IIMs, IITs, and IISc. Regular Degree or Diploma courses, as well as recognised courses given in India by international institutions, are included.

Eligibility:

1. Must be an Indian resident.
2. Admission via an entrance exam or merit-based selection procedure to a higher education programme at accredited Indian universities. (Admissions under the management quota taken into account on merit)
3. PNB education loans without collateral are offered for loan amounts of up to Rs.7.50 lakhs, with a parent or guardian as a co-borrower.
4. For loans beyond Rs.7.50 lakhs, a parent or guardian must be a co-borrower along with physical collateral security.

2. PNB Pratibha Scholarship Scheme

PNB Pratibha targets pupils accepted to the best universities in the nation, including medical schools, engineering colleges, business schools, and other respectable establishments.

Eligibility:

1. Indian Resident
2. Admission to conventional full-time Degree, Diploma, or Postgraduate Degree courses
3. Premier Institutes listed diploma courses.
4. Suitable for certain part-time programmes (more information may be found on the PNB website).
5. Has to be co-borrowed by a guardian or parent.

3. PNB Kaushal Loan Scheme

PNB Kaushal is meant to provide funding for skill development courses. This programme may help fill the gap for courses provided by accredited institutions or Industrial Training Institutes (ITIs).

Eligibility:

• Indian citizenship
• Enrollment in an ITI or accredited school course
• Requires a parent or guardian as a co-borrower

4. PNB Pravasi Shiksha Loan

Are you an OCI (Overseas Citizen of India) or a student born overseas whose parents are Indian and want to continue your study in India? Your ambition might come to pass with the PNB Pravasi Shiksha Loan. Students just like you are served by this programme, including those who were born with foreign citizenship because of their parents' foreign deputations.

Eligibility:

1. Must be an OCI or a student born overseas to Indian parents.
2. Received official acceptance into a reputable Indian university for a higher degree.
3. Eighteen years old minimum.
4. Higher education in India is much more accessible with no collateral needed.

5. PNB PM Cares Education Loan

PNB PM Cares Education Loan Scheme is not only about money. For kids who have lost one or both of their parents to COVID-19, it is a ray of hope. Along with financial aid for postsecondary education, this all-inclusive programme provides health insurance and other services to guarantee their welfare until they become self-sufficient at age 23.

Eligibility:

1. Children who, between March 11, 2020, and December 31, 2021, lost one or both parents, legal guardian(s), or adoptive parents as a result of COVID-19.
2. Must have been under 18 years old when the parents died.
3. Indian Resident.
4. Completed HSC (10+2 or equivalent) and was accepted into a recognised Indian university for further study via merit-based selection or entrance exams.

6. PNB Honhaar

This program is intended especially for Delhi citizens who want to register in certificate or degree programmes (such as bachelor's, master's, and doctorate degrees) at accredited local universities. Use this programme to close the financial gap for your academic goals if you have finished your Class X and Class XII at Delhi schools.

Eligibility:

• Indian citizen residing in Delhi.
• Finished classes X and XII in Delhi schools.
• Admitted to Delhi University via entrance exams or merit-based selection to a certificate or degree programme (including bachelor's, master's, and doctorate degrees).

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Documents Required for PNB Bank Education Loan

Ensure you check your eligibility and arrange the following documents for a PNB education loan:

1. PNB Education Loan Application Form:

1. Fill out and sign the application form.
2. Attach two photographs.

2. Documents for the Applicant:

1. Identity Proof: PAN card, Aadhar card, passport (if studying abroad).
2. Proof of Residence: Voter ID card, Aadhar card, utility bills (electricity or telephone), ration card, bank account statement.

3. Documents for the Co-applicant:

• If Salaried:
  1. Bank account statement of the last 6 months.
  2. Payslips of the last 3 months.
  3. Last 2 years' Form 16.
  4. Employer ID card.
  5. Last 2 years' Income Tax Returns (ITR).
• If Self-employed:
  1. Business transactions of the last year.
  2. Last 3 years' ITR.
  3. Profit and loss account and balance sheet of the last 3 years.
  4. Address proof of the business.

4. Academic Documents of the Applicant:

1. Marksheets of 10th, 12th, and degree.
2. Proof of admission with the total duration of the course.
3. Structure of fees.
4. GMAT/GRE/IELTS scorecard.
5. University ranking.

5. Other Financial Documents:

1. For Financial Co-applicant:
   • Income proof (as listed above for salaried or self-employed co-applicants).

6. Additional Documents:

1. A declaration letter stating that any remaining expenses will be covered by the co-applicant (format provided by Propelld).
2. Notarized joint affidavit with the student and co-applicant (format provided by Propelld).
3. Advance payment receipt of the university (if available).
4. Pending loan account statement (if applicable).
5. Explanation letter for any gap in studies on Rs 100 stamp paper.

Organize these documents to ensure a smooth application process for your PNB education loan.

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PNB Education Loan Interest Calculator

Punjab National Bank (PNB) features an EMI and interest calculator on its official website. If you want to know the exact EMI and interest you will pay, you can visit the official PNB website. Meanwhile, here is a short calculation that will help you determine the PNB education loan interest rate:

Suppose your education loan demand follows as below:

1. Loan Amount: ₹12 lakh
2. Interest Rate: 10.5% per year
3. Paying during the moratorium?: No
4. Grace Period: 6 months
5. Tenure: 15 years

Based on this, you will be required to pay:

• EMI monthly: ₹13,320
• Total Payment (Principal + Interest): ₹23,97,600
• Total Interest Payable: ₹11,97,600

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How to Apply for a PNB Education Loan?

How to Apply for a PNB Student Loan

You can apply for a PNB student loan by visiting the nearest branch. Follow these steps to complete your application:

1. Choose the Best Loan Option: Evaluate your qualifications and select the best PNB student loan option for your needs.
2. Visit the Branch: To initiate the application process, go to your nearest PNB branch and meet with a student loan officer.
3. Request Necessary Documents: Ask for the list of required documents needed to proceed with your loan application.
4. Submit Your Paperwork: Return to the bank with the completed paperwork to finalize your loan application.

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If you are still facing any issues, Propelld can help you and make the process easier.

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Apply for Hassle Free Education Loan at Propelld

Yes, Propelld provides education loans with minimal documentation, at a TAT 10 times faster than banks! A leading NBFC in the education financing space, Propelld has empowered over 2 lakh students to achieve their academic dreams. 

Here are some of the most remarkable benefits of Propelld Education Loan: 

Benefits of Propelld Education Loan

FAQs

Is the PNB education loan application age restricted?

Indeed, depending on the length of the course and the payback term, the minimum age requirement is usually 18, and the maximum age limit is.

What documents are required when applying for a PNB education loan?

The typical PNB education loan documents required include proof of admission, mark sheets, income proof, identity proof, and address proof for the applicant and co-borrower/guardian.

Can I acquire a PNB education loan for part-time courses?

Indeed, PNB provides educational loans for certain part-time courses, such as management postgraduate programmes offered by a few selected universities.

Are there any tax advantages to PNB education loans?

Indeed, Section 80E of the Income Tax Act permits a tax deduction for interest paid on PNB education loans.

What institutions and colleges are qualified for the study abroad education loan programme offered by PNB?

Under the PNB Udaan programme, PNB finances education loans for reputable foreign institutions. Including universities that provide technical, professional, and job-oriented courses, as well as MCA, MBA, MS, and other accredited degrees and certifications. Visit the PNB education loan college list abroad.

How long is the repayment tenure for PNB education loans?

Depending on the particular plan and loan amount, PNB education loan payback terms usually run from 5 to 15 years.

Are there any processing fees or other charges associated with PNB education loans?

For school loans, PNB may levy processing, documentation, or other miscellaneous fees. The loan amount and plan may determine these fees.

Can I apply for a PNB education loan if I have an existing education loan from another bank?

Yes, if you satisfy the eligibility requirements and total loan limitations, you may apply for a PNB education loan even if you already hold an education loan from another bank.

Does PNB offer any concessions or special interest rates for meritorious students?

Yes, PNB may provide discounts or special interest rates for deserving students who have been accepted into top universities or have excelled academically.

Can I transfer my PNB education loan to another bank if I switch colleges or universities?

Yes, if the new bank accepts your transfer, you may usually move your PNB education loan to a different bank when you change courses or universities.