Punjab National Bank Abroad Education Loan Details | GyanDhan

Published date: 19 Oct 2020 Updated on: 19 Oct 2020   Education loan is the best bet when it comes to financing abroad education. Keeping in mind the rising demand among Indian students for abroad studies, there are several Indian banks and other financial lenders in India that offer abroad education loans. One of the popular public sector banks that provide study abroad loans is the Punjab National Bank (PNB). The abroad education loan scheme of PNB is named as ‘PNB Udaan’.  In this blog, we will delve deep into the details of PNB education loan for abroad. Let’s traverse through the important points to know about PNB Udaan abroad education loans such as eligibility criteria, interest rates, repayment period, moratorium period, margin money, and more. If you are also looking for an abroad education loan, you can check your loan eligibility to know if you qualify for a loan. What are the eligibility criteria for Punjab National Bank abroad education loan? The applicant should be a resident Indian. The applicant should have got a merit-based admission to a recognized university abroad The applicant should be more than 18 years and less than 45 years of age (if employed) and 35 years of age (if unemployed). Which courses and universities are eligible for PNB abroad education loan? The requirements for a PNB abroad education loan are very rigid in terms of universities and the courses for which an applicant is going. A few specifications are:   For Undergraduate Courses   Only technical or professional courses For Graduate Courses Popular courses like MS, MBA, etc. For Vocational Courses   Popular courses such as courses conducted by CPA in the USA or CIMA in London   What are the expenses covered in PNB abroad education loans? Expenses covered in PNB loans for abroad studies are:  Fee payable to college and hostel. Examination/Laboratory/Library fee. Travel expenses for studies abroad. Life insurance premium for student (if applicable). Refundable deposit supported by institution receipts. Purchase of books/instruments/equipment/uniforms. Purchase of laptop (if required). Other expenses such as study tours, thesis, project work, etc. How much loan amount is possible from Punjab National Bank for abroad studies? As per PNB abroad education loan rules collateral security must be provided for educations loans of more than INR 7.5 Lakh. Unsecured loans are available up to INR 7.5 Lakh. The maximum possible amount for secured education loans from Punjab National bank are: From a branch- INR 40 Lakh From a regional processing center- INR 60 Lakh From a corporate center (after special permission)- above INR 60 Lakh   What is the interest rate of PNB abroad education loans? The bank has a list of colleges for which it provides loans with lesser interest rates. PNB education loan interest rate is 9.55% for the non-listed colleges while 8.80% for the listed colleges. What is the PNB abroad education loan process? Punjab National bank education loan process differs according to the loan amount that a student has applied for. The local branch can only approve loans under INR 40 lakh. If a student needs more than 40 Lakh, he/she must visit the regional processing center to get the loan sanctioned. For abroad education loans of more than INR 60 Lakh, the student has to get special permission from the corporate center- the highest office of Punjab National Bank.   Maximum Loan Amount   From a branch- INR 40 Lakh From a regional processing center- INR 60 Lakh From a corporate center (after special permission)- above INR 60 Lakh Eligibility Should be a resident Indian   Should have got a merit-based admission to a well-ranked & recognized university abroad   Interest Rate 9.55% (Non-listed colleges) 8.80% (Listed colleges) Margin Money 15% Repayment Period 15 Years Moratorium Period 1 year after the course completion Processing Fees 1% of the total loan amount What are the documents required for Punjab National Bank Education Loan? Documents to be submitted by the student Admit letter from the college Loan application form Passport copy Residence proof- Aadhar Card, Voter ID, etc. Identity proof- PAN Card, Driving Licence, etc. Scorecard of tests such as GRE, IELTS, GMAT, or TOEFL (whichever is applicable). University ranking printout Past academic certificates     2 Passport size photos Documents to be submitted by the co-applicant Residence proof- Aadhar Card, Voter ID, etc. Identity proof- PAN Card, Driving Licence, etc. Latest salary slips (for the last 3 months) Income tax receipts of the last 2 years Form 16 of the last 2 years Employer’s ID Card (if employed) Balance Sheet for the last 3 years and P&L statement (if self-employed) Proof of Business Address (if self-employed) 2 Passport size photos   What is the margin money in PNB abroad education loan? The loan margin for PNB abroad education loan is 15%. Although, this margin can change on a case by case basis. In general cases, 15% of the total expenses the student has to pay on a pro-rata basis.  What collaterals are accepted by Punjab National Bank for abroad education loans? There are two kinds of collaterals accepted to get a PNB Education Loan- Immovable collaterals such as a house, flat, a plot with boundaries, etc. Liquid securities such as fixed deposits, LIC policy (the current value), or government bond. What collateral documents are required for PNB abroad education loans? Registered sale agreement and property title deed Original registration receipt for the sale agreement Allotment letter by the municipal corporation or any government authority such as CIDCO, MHADA, HUDA, etc. (if applicable) Encumbrance Certificate (EC), commonly known as Link Document, of the last 30 years.  Copy of municipality approved plot layout or building plan Latest property tax bill bearing the same address For liquid securities, the documents required are much lesser. What is the repayment policy of PNB abroad education loans? The repayment policy and tenure of Punjab National Bank abroad education loan are somewhat similar to other government banks. The moratorium period of 1 year after the course completion. The maximum repayment tenure is 15 years. There is no prepayment penalty for the loan.  Have any queries on abroad education loans? Post them in the discussion section below for a prompt reply. How GyanDhan helps in abroad education loans? If you are looking for an abroad education loan, be it from public sector banks, private banks, or NBFCs, GyanDhan is the best place to contact. We have tied up with government banks, private banks, and NBFCs to provide the best deal on education loans to the students. Whether you need a secured or an unsecured education loan, we would recommend you to check your eligibility to gauge if you are qualified for an education loan. Our counselor will get back to you and understand your case in detail and will suggest you the best loan options for you.  Our loan assistance service is entirely free of cost and we don’t charge even a single penny from the students. We provide a customized document checklist to avoid any confusion. We work closely with the lender throughout the loan process, keep you informed about the proceedings, and also resolve any hindrances if occur. Also, the entire process is online so you don’t have to run from pillar to post to get your loan approved- you just have to contact us with your requirements and relax as all of the efforts are our responsibility from there onwards. In a nutshell, we strive to make the loan process easy, simple, and swift for you!

This is a companion discussion topic for the original entry at https://www.gyandhan.com/blogs/pnb-abroad-education-loan

How can I check the PNB education loan status?

Is PNB education loan interest rate lesser than SBI?

In the case of PNB loans, there is no way to check it online, You will have to contact the bank personnel on your own.

No, the interest rates of SBI abroad education loan is lesser. SBI interest rate starts from 8.3% pa after insurance while the interest rate for PNB loan starts from 8.80% pa (listed colleges).

how long i have time to payout the loan amount.

Hi @Puran_Karnot

It depends on the bank you have chosen for your education loan.
Can you please mention the bank and the branch you have approached?