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Categories: Education Loan

PNB Education Loan Interest Rate: Details and Subsidy

PNB Education Loan interest rate provides students with a relative ease of funding their studies. But, the technical terms of any Education Loan Interest Rates are never clear enough for the students to understand. Figures like MCLR Rates, Security/Collateral based loan interest and overall interest rates make it impossible for any loan applicant to grasp. That’s the reason why Education Loan norms need to be simplified and explained in more details for the benefit of users. PNB Education Loan Interest Rate for all schemes are not only affordable but also simple enough to understand.

Latest: Revised PNB Education Loan Interest Rates December 2018 (based on RBI MCLR Rates). Find detailed chart below.

PNB Education Loan Interest Rate: All key information

Simple details of Education Loans can make all the difference between an expensive and affordable education loan. PNB Education Loan terms also contain peculiar details which you need to consider before taking the loan.

With respect to the various schemes of Punjab National Bank Education Loans, we’ve laid out the information about respective interest rates and guidelines.

PNB Education Loan Interest Rate for studies at IITs/IIMs/Xavier’s/NITs

Even after the students have secured their hard-earned seats at the elite educational institutions, their struggle does not end. The worries of tuition fees and living expenses rise as the next big concerns. In recent years, there has been a triple fold increase in the tuition fees of prominent IITs and IIMs.

PNB Education Loan schemes provide an opportunity to parents and students to keep a control over their Education Loan interest expenses.


PNB Education Loan Interest Rate details for IITs/IIMs/ and other elite institutions:
PNB education loan Interest rates Upto 750000 (7.5 Lakhs)

 

Corresponding Current Rates Above INR 750000 (7.5Lakhs) Corresponding Current Rates
Without Collateral Government MCLR Rate + 1.50% 10.00% Government MCLR Rate + 2.60% 11.10%
With Collateral (partial) Government MCLR Rate + 1.50% 10.00% Government MCLR Rate + 2.60% 11.10%
With Collateral (100% tangible) Government MCLR Rate + 1.50% 10.00% Government MCLR Rate + 1.85% 10.35%

PNB Education Loan Interest Rate for special institutions

It’s not that all hopes of lower interest rates are lost for those students who couldn’t get into IITs or IIMs. PNB Education Loan Schemes have provisions for a PNB Education Loan College List which includes other elite private and government-aided institutions. Students from these institutions can enjoy the low education loan interest rates and even collateral free loan services.


Interest rates of PNB Education Loan College List (Annexure 1 and 2) Non IITs/IIMs/NITs/Xavier’s Institutes:

Annexure 1 and Annexure 2 PNB Education Loan Interest Rates Upto INR 750000 (7.5 Lakhs) Corresponding Interest Rate Above INR 750000 (7.5 Lakhs) Corresponding Interest Rate
With Collateral Government MCLR Rate + 0.60% 9.10% Government MCLR Rate + 0.10% 8.60%
Without Collateral Government MCLR Rate + 1.50% 10.00% Government MCLR Rate + 2.60% 11.10%

PNB Education Loan Interest Rate for other Institutions

Even for the remaining institutions which are not included in the list of Punjab National Bank, the interest rates are easy. PNB Education Loan Process accommodates the needs of students in looking for partial collaterals as well. These interest rates have been explained here.

These rates also additionally apply directly to any PNB Student Loan applicants who are going for foreign education.


PNB education loan Interest rates Upto 750000 (7.5 Lakhs)

 

Corresponding Current Rates Above INR 750000 (7.5Lakhs) Corresponding Current Rates
Without Collateral Government MCLR Rate + 1.50% 10.00% Government MCLR Rate + 2.60% 11.10%
With Collateral (partial) Government MCLR Rate + 1.50% 10.00% Government MCLR Rate + 2.60% 11.10%
With Collateral (100% tangible) Government MCLR Rate + 1.50% 10.00% Government MCLR Rate + 1.85% 10.35%

Other PNB education loan schemes include PNB Honhaar for Delhi based students at MCLR + 2.0% interest rate, PNB Kaushal at MCLR + 1.50% interest rate and PNB Concessional Loan for Person with Disabilities at fixed 4.00% rate of interest.

PNB Education Loan Interest Rate related terms you need to know

Government MCLR Rate:

Government MCLR Rate for education loan is a standard percentage of interest that can be incurred on loans lent to bank’s customers. It varies from bank to bank depending upon the bank’s performance of loaned money/assets throughout the year and Central rates of CRR (Cash Reserve Ratio).

Current MCLR Rates of PNB education loan 2018-19 are listed as follows:-
PNB Education Loan Tenure < 1 year (variable ranges of duration) 1 year 3 years and above
Respective MCLR Rates 2018-19 7.90% to 8.40% 8.45% 8.60%

PNB Education Loan: commonly used education loan terms and terminologies

Partially Accruable Security

The collaterals both movable and immovable registered against the loan taken can be liquefied without permission based on a pre-signed agreement. Those collaterals which value lower than the amount of loan taken fall under this category.

100% Tangible Security

The collaterals both movable and immovable registered against the loan taken can be liquefied with permission as per the preset loan agreement between loan applicant and PNB. Collaterals like jewellery, fixed deposits, recurring deposits, property, real estate, etc. These collaterals do not include other bank guarantee or letter of intent, etc.

Annexure 1 and Annexure 2 PNB education loan college list

The list of institutions with respect to the loan limits and PNB Education Loan interest rate for various PNB Schemes include the list of various IITs, IIMs, NITs, IIITs, Delhi University Colleges, and State Universities, etc. You can find the list here.

Commonly you’d find many options on the internet marked as PNB Education Loan EMI Calculator and PNB Education Loan Interest Calculations but given the nature of volatile interest rates and risk of non-updated calculators, you can never be sure about these options. It’s always better to check with the PNB Education Loan Customer Care or official website for the EMI Calculations for your PNB Education Loan.

Punjab National Bank Education Loan Interest Rate Subsidy by Government Guidelines

Indian Government has been taking care of the students’ education and their financial concerns with its various policies of Scholarships and Fellowships. The CSIS Scheme for Education Loan Interest Subsidy as followed by PNB Education Loan Interest Rate rules provide for interest reimbursement paid against education loan for a certain period of time.

Key features of CSIS Subsidy for Punjab National Bank Education Loan

  • Collateral Free Education Loan to students with family income below INR 4.5 Lakh
  • Collateral Free Loan Limit upto INR 7.5 Lakh
  • Full Interest Rebate/Subsidy on education loan for the course duration
  • NMDFC (National Minorities Development and Finance Corporation) and National Handicapped Finance and Development Corporation (NHFDC) schemes also applicable with this scheme

Most students remain unaware about it and do not fill in the forms or demand for their interest subsidy and other tax benefits from the bank. Punjab National Bank makes sure that these notifications are provided to the student at the time of application.

Hidden world of Education Loan Expenses: Information that Students should know

Getting an education loan does not only requires knowledge about interest rates, there are other details that you should always know about. Students should also acquire information about education loan application process (specially for study abroad education loans) to optimize their loan rejection chances and acquire study finances early. Documents required for PNB education loan and PNB education eligibility still remain two major concerns of loan applicants. There are certain charges and expenses apart from PNB Education Loan Interest rate which remain hidden from applicants like Loan Processing fees, Loan Documentation Charges and Security Inspection charges.

Information regarding Scholarship adjustments of margin payments for loan is also something that students could find useful. To find all of this useful information at one place, you should visit our information portal and Edu Loan Services. Happy Learning!

Ankur Gupta

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