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PNB Education Loan

PNB Education Loan Application to Sanction: All you need to know

by Ankur Gupta

PNB education loan schemes are seasoned services for students across the nation, providing services for both domestic and international education. Punjab National Bank Education Loans, cover the needs of students in looking for simpler application process, lower interest rates and lesser norms of eligibility. Every PNB Student Loan is based on the needs of students for easy repayment options and curriculum centric demands. With numerous options of PNB Education Loan Schemes like, collateral free loans for specific institutions, low margin loan payment and Interest Subsidy for Education Loan; Punjab National Bank helps students to pursue higher education with more financial freedom.

PNB Education Loan: key information you should know

Unofficial sources of information often leave students with partial information about education loans. That’s the reason why they don’t have complete idea regarding the benefits they can get, and other concessions for any Bank Education Loan. All the features of different PNB Education Loan Schemes include important details.

Important points that you have to know before applying for Education Loan include:-

  • How early can you start paying your Education Loan back to PNB
  • How much Education Loan Subsidy can you get with PNB
  • How long can you take the loan for
  • PNB Education Loan Processes
  • Education Loan margin payments
  • Education Loan repayment terms of Punjab National Bank

PNB Education Loan: Comparison of Features

We’ve compared for you the Punjab National Bank Education Loan Interest Rates, PNB education loan process, etc.

PNB Education Loan Scheme→
Education Loan feature
PNB Saraswati PNB Pratibha PNB Kaushal PNB Udaan PNB Concessional Loan
Loan Amount Limit Need based compared to repayment capacity of Parents/benefactor Need based compared to repayment capacity of Parents/benefactor Min: ₹5000

Max: ₹150000

Need based compared to repayment capacity of Parents/benefactor Foreign Education Max: ₹2000000

Domestic Education Max: ₹1000000

Margin payment Upto ₹400000: NIL

Above ₹400000: 5% of the requested disbursement

For Annexure I institutions: NIL

For Annexure II Institutions: As for PNB Saraswati

NIL Upto ₹400000: NIL

Above ₹400000: 15%

NIL
Security/Education Loan Collateral Upto ₹750000: Parent as Co-borrowers, No collateral required

Above ₹750000: Tangible security as suited by bank

None; Parents have to become Co-borrowers Parent as Co-borrowers, No collateral required Upto ₹750000: Parent as Co-borrowers, No collateral required

Above ₹750000: Tangible security as suited by bank

NIL
Repayment Timeline Max upto 15 years Max upto 15 years Loan Amount

₹50000: 3 Years

₹50000-₹100000: 5 years

Above ₹100000: 7 years

Max upto 15 years Max upto 7 years
Repayment Compulsory commencement 1st year after Course Completion 1st year after Course Completion For one year long courses: within the six months of course completion

For courses above one year duration: Within 1 year of course completion

1st year after Course Completion For one year long courses: within the six months of course completion

For courses above one year duration: Within 1 year of course completion

Pre-Payment Charges NIL NIL NIL NIL NIL

PNB Education Loan Eligibility Criteria

There are some standard necessities of all Education Loans but various PNB Education Loan Schemes have their own Education Loan Eligibility needs.

The one standard need of Study loans by PNB is that the applicant should be an Indian National. Other than that the eligibility criteria for Education loans for PNB, is quite simple enough to follow. It is for your convenience that we have put together this information as stated below:-

PNB Study Loan Details Respective Education Loan Criteria for PNB
PNB Saraswati Education Loan
  • Secured admission to an institution of higher education on merit based acceptance or by clearing a dedicated entrance exam
  • Cases of Management Quota are considered on merit basis
PNB Pratibha Education Loan
  • Should have secured admission in Regular full time Degree / Diploma courses offered by Premier Institutes as listed in PNB Education Loan College Lists and Institution List as per Annexure I & II (find it at the end of this article)
  • Applicants with secured seats of Part-time Post Graduate Programmes in Management for Executives offered by IIM
  • Applicants with secured seats of Post Graduate Programme in Management for Senior Executives (PGPMAX) by ISB (Indian School of Business)
PNB Udaan
  • Only for study abroad courses where the academic qualification degree is provided by an overseas institution (in case if the applicant is pursuing an exchange program)
  • Applicants with secured seat in an overseas institution of repute (no list) by Merit or by clearing an Entrance test.
PNB Kaushal
  • Applicant with secured seat in one of the following:-
    • ITI (approved by Govt.)
    • Polytechnics (approved by Govt.)
    • NSDC/State Skill Corporation/NSQF/Sector Skill Councils affiliated colleges/training institutions/higher education schools
PNB Concessional Education Loan
  • any Student with 40% or more disability
  • as approved by Disability certificate issued by dedicated authorities of Statute / notifications / Govt. orders of Central / State / UT Government
PNB Honhaar
  • Students pursuing higher education in Delhi
  • With the necessity of having passed their HSC + 2 Years (or equivalent) from Delhi
  • Secured seat in Higher education institutions of New Delhi

For all the other PNB Study Loan Schemes the eligibility criteria can also be found over PNB Education Loan Official Website.

Punjab National Bank Education Loan Interest Rate: All schemes explained

Interest Rates are the deepest concerns of any parent or student while applying for education loan. But with low PNB Student Loan Interest rates and the respective PNB Loan Interest Subsidy provided by Govt. of India, PNB Study Loan Scholars need not worry. Some internal schemes of Punjab National Bank also provide interest subsidy based additional Education Loan benefits.

The complete details of the Education Loan PNB Interest Rate for each Loan Scheme has been mentioned below for your reference. It would be wise not to rely on any Education Loan Calculator PNB; that imposters would suggest you to refer. The reality of PNB education loan interest rates lie in one’s own calculation. Should you find yourself in any doubts regarding these calculations; you’re welcome to refer to the Buddy4Study Edu Loan Services.

PNB Study Loan Scheme Name Categories of Financial Indicators for Education Loan Interest Calculation Dedicated Punjab National Bank Education Loan Interest rate
PNB Saraswati/Udaan Upto ₹750000 (with or w/o Security) Govt. MCLR rate + 1.50%
Upto ₹750000 (for 200 Overseas Institutions of PNB Udaan Loan) (with or w/o security) Govt. MCLR rate + 1.85%
Above ₹750000 (with partially accruable security as set by bank) (any institution) Govt. MCLR rate + 2.60%
Above ₹750000 (with 100% tangible security) (any institution) Govt. MCLR rate + 1.85%
PNB Pratibha Upto ₹750000 for IITs, IIMs, NITs, XLRI-Jamshedpur Govt. MCLR rate + 0.50%
Above ₹750000 for IITs, IIMs, NITs, XLRI-Jamshedpur Govt. MCLR rate
Upto ₹750000 for other than IITs, IIMs, NITs, XLRI-Jamshedpur Govt. MCLR rate + 0.60%
Above ₹750000 for other than IITs, IIMs, NITs, XLRI-Jamshedpur Govt. MCLR rate + 0.10%
PNB Kaushal Upto ₹150000 Govt. MCLR rate + 1.50%
Any amount guaranteed or co-loaned by PNB Employee Govt. MCLR rate + 0.50%
More than ₹150000 Govt. MCLR rate + 0.10%
Concessional Loan to Persons with Disabilities Women Applicants 3.50%
Male Applicants 4.00%
PNB Honhaar Upto ₹1000000 Govt. MCLR rate + 2.00%

PNB Education Loan Documents Required

The list of documents required for PNB education loan is pretty detailed and very easy to compile; especially when you know which loan are you going to go for.

Pre Sanction Punjab National Bank Education Loan Documents required
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  1. Loan Application on bank format with photographs of borrower, co-borrowers and Guarantor
  2. Proof of Id/ Adhaar card, Pan card, Voter id, Driving License, Passport copy of borrower, co-borrower and guarantor
  3. Proof of address of borrower, co-borrower and Guarantor (Electricity/Water/MTNL Bill) or a gazzeted officer’s attested affidavit as proof of address (commonly tehsildar, magistrate or sarpanch)
  4. Copy of all documents of educational qualifications of student
  5. Relationship with PNB, mention account number of student/co-borrower (PNB Account)- if applicable
  6. Letter of admission in professional/technical/vocational courses with details

In case of PNB Udaan for international education– a provisional/conditional/permanent offer letter or letter of intent would also do.

  1. Fee structure Certificate from the respective institution of admission
  2. Details of assets/liability of borrower/co-borrower and guarantor (Property copy/LIC/FDR/Saving Balance/RC of car/Bike etc.)- if applicable
  3. Bank Statement of Saving account of Borrower, Co-borrower, Guarantor and related loan account statement if any for last 1 year.
  4. Post Dated Cheques-6 nos.
  5. Salary slip/Form 16/ITR of Parents if salaried or self Employed.
  6. Life Insurance of student to cover the loan amount.
  7. Collateral Security if Loan availed is more than 7.5 lac (Except PNB Education Loan College Lists Annexure 1)
Post Sanction Documents for education loan by Punjab National bank
  1. Demand Letter for each installment of institutional expenses sought from Loan Corpus
  2. Copies of receipts for institutional payments thus made.
  3. Affidavit of other academic demands (laptop, two wheeler, research, academic tour etc.) duly sanctioned/attested by academic authority
  4. Transcripts of the applicants’ academic progress (at intervals, as and when issued by the institution)

PNB Education Loan Subsidy: CSIS compliance provisions

Provisions of New CSIS Subsidy for Education Loan

Punjab National Bank was one of those trusted banks which were the first ones to comply with the needs of economically weaker section education loan applicants. The previous versions of CSIS (Central Sector Interest Subsidy Scheme) 2009, 2014 have seen the interest subsidies for the benefit of students. But this year as per the latest MHRD Education Loan CSIS guidelines, a collateral free education loan for upto INR 750000/- (7.5 Lakhs) will be provided to any loan applicants as an addition to previous provisions. This provision also accounts for provision of Education Loans without third party guarantee.

Existing CSIS Education Loan Interest Subsidy norms

The existing subsidy of CSIS for Punjab National Bank Education Loan allows Education Loan Interest waiver for the course duration to which loan is applied. This means if you start paying back your loan right from the first month after Education Loan disbursement; the PNB Education Loan Interest for the timeline of ‘repayment compulsory commencement’ (or moratorium period) will not be charged. The government would compensate the interest paid on education loan for the time period of your education. You can find more details about CSIS Scheme for Education Loan in India at official website of Government Vidyalakshmi Portal which is a government online education loan application portal.

What do these provisions mean for your Education Loan Interest Repayment?

What parents and loan applicants choose to do with this feature is; they increase the value of their monthly PNB Education Loan Installment (which PNB authorities do not limit in any case). Thus without the interest being paid during this duration, they are able to repay back the maximum principle amount; leaving very less amount to be paid after course completion.

Punjab National Bank education loan status, process and other benefits of PNB Study Loan

There are always concerns about how long will the process take and how will it go with the bank manager when people/parents/students apply for any education loan. The issue occurs most with overseas applicants who face student VISA issues and other documentation charges. We’re not going to leave you hanging with only partial information. The processing of the loan really depends on what kind of loan you have applied for. The additional processes which one might have to undergo while applying for an Education Loan with PNB under any scheme is provided as follows.

PNB Education Loan processing fees:
  • For Students pursuing education in India with the help of a PNB student loan = NIL
  • For students pursuing overseas education with the help of PNB Udaan or any other PNB Student loan scheme= 1% of the sanctioned loan amount (minimum INR 10000/-)
  • Education Loan Processing Fee Refund available for PNB Udaan Loan after 1st disbursement from loan corpus.

PNB Education Loan Documentation Charges:

  • For Student Loans sanctioned up to INR 400000, Documentation charges= INR 270 (fixed rate)
  • Education Loans sanctioned above INR 400000, Documentation charges= INR 450 (fixed rate)
  • Student loans towards academics at IITs and IIMs, Documentation Charges= NIL
PNB education loan security and collateral inspection charges
  • Will be done atleast once every three years post sanction of the Education Loan
  • Will incur charges of INR 250 (excluding taxes) every time it’s done.

With the development in technical services of Punjab National Bank, each Education Loan applicant will be provided with Mobile Banking and Internet Banking Services to check their education loan status and make their EMI payments online without visiting the branch.

Why Students prefer PNB Education Loan?

With their customized student aid loan schemes like PNB Education loan for abroad, commonly known as PNB Udaan Scheme and their strict CSIS (Central Sector Scheme of Interest Subsidy) compliance, Punjab National Bank Education Loans have become a trusted name for students of all educational levels and streams.

Punjab National Bank Education Loan Schemes at a glance

Buddy4Study will now inform you in detail about all the Punjab National Bank Education Loan options so that you can chose the best for your studies and career ahead. You can pick a PNB Education Loan option based on your current education level, financial need, regional needs and other indicators mentioned in the lists provided below.

PNB Saraswati

PNB Saraswati Education loan is aimed at assisting applicants and aspirants to universities and institutions of higher education approved by relevant education regulatory bodies like UGC/Govt./AICTE/AIBMS/ICMR etc. PNB Student Loan can also be applied for Diploma programs and higher education at international institutions for research programs.

Benefits of PNB Saraswati

Punjab National Bank Saraswati Education Loan, pays for all student expenses one can imagine from their post scholastic education, like Lab Fees, Hostel, Tuition, Books, study tours, purchase of accessories and technical aids for research and course completion.

The aim of this PNB Education Loan is to reach out to sub-urban students and rural students who get their hard earned seats into educational institutions but fall short of financial aid for the course expenses.

PNB Education Loan Partibha Scheme

PNB Pratibha Education Loan is for those meritorious students who secure admission seats in elite institutions of India as identified by Punjab National Bank in their annexures. Given the effort and merit that goes into securing admissions and the continued rise of institutional education fees in India (witnessed in both private as well as government institutions; almost three fold increase in Kendriya Vidyalaya and Top private management institutions) PNB Pratibha Education Loan aims at helping students and parents make the process of education as seamless as possible.

Benefits of PNB Pratibha

It covers all the expenses with a silver lining of ‘no-margin education loan’ for applicants placed in some selected PNB Education Loan College List. This means that unlike common education loans where the loan amount covers a substantial portion of the institutional expense but the applicant has to contribute some margin payment towards the same; PNB Pratibha absolves the applicant of such a financial load.

PNB Udaan

Aimed at aiding the foreign education aspirations of students, this Education Loan of PNB Bank offers financial assistance for the maximum headers to any student who’s looking for a PNB Education Loan for Abroad. Punjab National Bank Education Loan college list and overseas institution list includes a wide variety of institutions and courses. Unlike most other foreign education aids, this one covers almost all expenses that an Indian Scholar might need in a different country.

Benefits of PNB Udaan Education Loan for Abroad

It has also got very flexible repayment options and thus is coveted by most foreign applicants from India. Numerous Buddy4Study Scholars have opted for this loan to pay for their uncovered scholarship expenses and make their foreign studies a great experience.

While applying for a Foreign Education Loan with PNB do not forget to ask for the Padho Pardesh interest subsidy for minority communities. They also have a provision for that which might help you to further reduce your education loan repayment worries.

PNB Kaushal

For the more skill based education loans PNB Kaushal provides financial aid in form of one of the highest corpuses across the nation. The benefits of Punjab National Bank Skill Development Kaushal Education Loan ranges from no-margin loan disbursement, to collateral free education loan; and from no pre-payment charges to repayment timeline of 7 years. PNB Kaushal covers all ITI Education Loan, NSQF Education Loan, Polytechnic Education Loan and NSDC Loan requirements. With these skill loan scheme(s) of PNB Study Loan Kaushal is now being considered as a popular enabler of rural education in India.

PNB Concessional Loan for Differently Abled Scholars

Based on the guidelines of NHDFC Education Loan, this Education Loan for Person with Disabilities accounts for the best in class practices to help the aspirants for studies at both homeland and overseas. The PNB Concessional Loan also incorporates the corpus for Two-wheeler required for assistance of the applicant and also covers insurance of the person-with-disabilities loan applicants. The provision of no-collateral for Education Loans of low finance demand is also a treat to the scholars.

PNB Education Loan: Other Special Schemes

Other PNB Student Loan options include regional aids provided for variety of applicants from different regions and backgrounds like, PNB Bihar Student Credit Card Scheme which provides for young aspirants from the state of Bihar to seek Education Loan without collateral and loans without margin payment along with Education Loan EMI based options.

Another Education Loan scheme for regional aspirants is PNB Honhaar Education Loan Scheme for New Delhi students. One doesn’t even need to be a Delhi resident to avail this loan, the only PNB Education Loan Eligibility criteria detail to be followed is that the scholar must be studying in Delhi by clearing an entrance exam or on any other merit based selection process. With Education Loan corpus extending up to 10 lacs and a repayment timeline of 15 years this is surely a popular choice among Delhi Education Loan Schemes.

A Scholar’s companion: PNB Education Loan and Buddy4Study Edu Loan

Getting an education loan represents the interest and inclination of a student to take ownership of their educational journey. Punjab National Bank Education Loan Services enable this enthusiasm of students by making the loan process seamless and painless. With absolute compliance to the latest government norms without any hidden charges or deprivation of rightful services, Punjab National Bank has always been a partner of education and educators in India.

But getting an education loan is not only dependent on the good intentions of a bank. Most of it depends upon the accessibility of services which most education loan providers. It is for this reason Buddy4Study has come up with Buddy4Study Edu Loan services which help students from all sections and all corners of the nation have those services at their disposal which otherwise are only privy to the urban counterparts of rural prodigies.

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