PNB's attractive Education Loan Scheme is designed to provide better educational opportunities to bright and needy students and brings within their reach various types of education (professional,technical and vocational courses). The scheme enables the needy students to meet the following costs for higher studies in India and abroad. administrative fees, books & stationery, instruments required for the course, monthly fees, examination fees, boarding and lodging expenses and air fare for joining the course abroad.

Eligibility

Indian nationals, in the age group of 16-30 years.
Students who have first class academic career or have secured 60% marks in their final examination. This is relaxable in certain categories.
Aggregate income of the parents/guardian should not exceed Rs.3 lac p.a. This is relaxable in certain categories in case of study abroad.
Employed persons intending to better their prospects can also avail loan for improving their educational qualifications and/or receive training in modern technology abroad.

Extent of Loan This is co-related to expenses involved in taking up the course and the expected earnings after qualifying, subject to maximum of:
For studies in India: Rs. 5 lac
For studies abroad Rs.10 lac

Security

Loan upto Rs. 1 lac:
Co-obligation of parents/guardian/third party guarantee with net means equal to amount of loan.
Loan above Rs. 1 lac Security acceptable to the bank, equivalent to 150% of the amount of loan.

Rate of Interest

Loan upto Rs. 2 lac 13% p.a. + Interest Tax
Loan above Rs. 2 lac 16% p.a. + Interest Tax
The Interest shall be charged at simple rate from the date of disbursement till the commencement of repayment of loan and thereafter, compound Interest is charged on reducing balance basis.

Repayment

Principal and Interest is repayable in monthly instalments within seven years. Repayment will commence after two years of the completion of studies by the borrower or one month after his/her getting employment, whichever is earlier.

Disbursement

Payment of loan will be made directly to the institutions.The disbursement will be made either in annual instalments or in lump sum, depending on the requirements and subject to certain conditions.

FAQs

Q1. Which are the types of education for which education loans are given ?
Education loans are given for pursuing professional, technical and vocational courses.

Q2. Which costs are financed under the scheme ?
The scheme enables the needy students to meet the following costs for higher studies in India as well as abroad administrative fees, books & stationery, instruments required for the course, monthly fees, examination fees, boarding and lodging expenses and air fare for joining the course abroad.

Q3.Who is eligible to get loan under the scheme ?<-!>
The following is the eligibility criteria for getting loan under the scheme :

Indian nationals, in the age group of 16-30 years.
Students who have first class academic career or have secured 60% marks in their final examination. This is relaxable in certain categories.
Aggregate income of the parents/guardian should not exceed Rs.3 lac. This is in certain categories in case of study abroad.
Employed persons intending to better their prospects can also avail loan for improving their educational qualifications and/or receive training in modern technology abroad.

Q4. How much loan amount I can avail ?
This is co-related to expenses involved in taking up the course and the expected earnings after qualifying, subject to maximum of:

For studies in India: Rs. 5 lac
For studies abroad Rs.10 lac

Q5. What is the security required by the bank ?
The following additional security in addition to the personal liability of the borrower is required :

Loan upto Rs. 1 lac: Co-obligation of parents/guardian/third party guarantee with net means equal to amount of loan.
Loan above Rs. 1 lac Security acceptable to the bank, equivalent to 150% of the amount of loan.

Q6. What is the rate of interest charged in the loan ?
The interest rates presently applicable to the education loan are as under :

Loan upto Rs. 2 lac 13% p.a. + Interest Tax
Loan above Rs. 2 lac 16% p.a. + Interest Tax

The Interest rates are subject to change from time to time.

Q7.What is the method of application of interest in the loan ?
The interest shall be charged at simple rate from the date of disbursement till the commencement of repayment of loan. Thereafter, compound interest is charged on reducing balance.

Q8. When does the repayment of loan commence ?
Repayment will commence after two years of the completion of studies by the borrower or one month after his/her getting employment, whichever is earlier.

Q9.What is the repayment schedule ?
Principal and interest is repayable in monthly instalments within seven years.

Q10.What is the relaxation in the minimum marks in the final examination & who is eligible to get this relaxation?
Condition of minimum marks of 60% is relaxable to 50% in the case of students who have secured admission in technical/professional courses as also students belonging to the SC/ST category.

Q11. In which case is the criteria of annual income of parents/guardian relaxed ?
The criteria of maximum income of parents/guardian is not applicable in the case of students going abroad for higher studies whose parents/guardian are employed with Central/State Govt., Statutory bodies/public undertakings, reputed joint stock companies, etc.