PNB Education Loan For Abroad Studies

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pnb education loanThe Punjab National Bank is one of the most notable public banks currently functioning in India.  A PNB education loan for abroad studies is the funding method chosen by a lot of students who wish to study abroad with the help of an abroad education loan from PNB.

An abroad education loan application process can be a hectic affair if students do not go about the process in the right manner. One of the very first steps of having a hassle free abroad education loan process is to know all the important details about the PNB education loan process. Here, you will get the complete idea of how a PNB education loan for abroad studies, works. Details such as the interest rate of a PNB education loan, repayment policies, eligibility criteria, documents list, etc. will be described in length here.

 

PNB Education Loan Schemes

The Punjab National Bank has introduced different types of education loan schemes to cater to the different funding needs of different students. They are,

  1. The PNB Saraswati – This PNB education loan scheme has been introduced for meritorious students who seek education loans to fund their higher studies in India.
  2. The PNB Pratibha – This PNB education loan scheme is meant to aid students who wish to pursue their higher studies in India with the help of a PNB education loan.
  3. PNB Udaan – This PNB education loan scheme is designed exclusively for students who wish to pursue their higher studies abroad with the help of a PNB education loan for abroad studies.
  4. PNB ‘Honhaar’- This PNB education loan scheme is for students of Delhi (higher education and vocational training)
  5. PNB Bihar Student Credit Scheme-This Punjab National Bank education loan is meant for students from Bihar who wish to pursue higher education in India.

This article highlights the education loan details of the PNB Udaan education loan scheme which is the abroad education loan scheme of PNB.

PNB Education Loan Details

The PNB Udaan has been exclusively designed to cater to the financial needs of meritorious students who wish to study in universities abroad. This PNB education loan for abroad studies is beneficial to students in a lot of ways. A few important details about this PNB abroad education loan scheme are, as listed in the table below.

The Punjab National Bank education loan details

Important Parameters Values
Interest rate 10.25% (male candidates) 9.75% (female candidates)
Loan amount range
  • Rs. 8 Lakhs
  • From Branches: Rs.40 Lakhs
  • From Regional Processing Center: Rs.60 Lakhs
  • From Corporate head office: Rs.60 Lakhs+
Loan Margin 15%
Total Loan Tenure 15 years
Total Expenses Covered All expenses related to the course abroad
Processing Fees For loan amounts of upto Rs.4 Lakhs: Nil. For loan amounts above Rs.4 Lakhs: 0.9% to 1% of the total loan amount.Documentation charges: Rs.450Legal and valuation charges: Rs.250 + GST(applicable as prescribed by banks)
Moratorium Period Course period + 1 year

In order to know further about how you can get an abroad education loan from PNB, do get in touch with the efficient team of financial officers at WeMakeScholars.

Read More about Why You Should Apply For a Study Loan For Abroad Through WeMakeScholars?

The Punjab National Bank Education Loan Requirements

In order to have a smooth abroad education loan process, it is extremely essential to have thorough knowledge about your lending bank’s eligibility requirements. Similar to many other nationalized banks functioning in India, a list of the Punjab National Bank education loan requirements has been laid down by the bank  for students and co-applicants alike. 

PNB education loan requirements for students 

  1. The candidate must be an Indian national.
  2. The candidate must have secured admission to a university/college abroad on a merit basis.
  3. The candidate must not exceed 35 years of age if they are employed professionals and they should not exceed 45 years of age if they are unemployed.

Apart from the basic PNB education loan eligibility criteria, there are no specific Punjab National Bank education loan requirements listed for the co-applicants to be eligible for this PNB education loan for abroad studies. 

PNB has compiled a PNB education loan college list for abroad studies. It comprises the names of certain top universities located in different locations across the world for students seeking a PNB education loan for abroad studies. Students who have secured admission into any one of the institutions mentioned in the PNB education loan college list abroad  will be considered for a PNB education loan for abroad studies. Know more about the different PNB education loan eligibility criteria by applying here.

In order to know the Punjab National Bank education loan eligibility criteria laid down by the bank, do get in touch with the financial team of WeMakeScholars.

PNB Education loan eligible courses

The Punjab National Bank has listed different kinds of courses for which they lend education loans under the PNB Udaan scheme.

  1. Eligible Graduation courses under the PNB Udaan education loan scheme: Job-oriented courses & Technical Courses from recognized universities abroad.
  2. Eligible Post-Graduation(PG) courses: MBA, MCA, MS, 
  3. Eligible Professional courses: Courses conducted by CIMA- London, CPA in the USA, etc.
  4. Eligible Degree/Diploma/Licence courses*: Aeronautical engineering, pilot training, shipping, etc. provided these licence are recognized by the competent regulatory bodies for the purpose of employment, abroad.
  5. Students who have secured admissions into prestigious universities mentioned in the PNB education loan college list.

*A special note for students who wish to borrow a PNB education loan to fund their diploma/certificate courses abroad:

  1. A PNB education loan for diploma/certificate courses (other than the ones mentioned above) can be considered by the bank only if the candidate fulfils one of the PNB education loan requirements. 
  2. The condition is that the candidates have to pledge liquid security as collateral against their PNB education loan. 
  3. Liquid securities can be pledged in the form of FDR/NSCs/ Surrender value of life insurance policies, along with relevant financial documents of co-applicants/joint borrower/guarantor ( generally, family members are considered).
  4. The value of this liquid security has to be equal to 125% of the total loan amount being borrowed by the candidates.

In order to get a personalized analysis of your financial profile and to know about your eligibility for a study abroad education loan, do get in touch with the financial team of WeMakeScholars.

Read more about Education loans from Government Banks- Issues & solutions

PNB Education Loan Interest Rate 2019

All PNB education loan interest rates are calculated on the basis of a benchmark lending rate called the MCLR (Marginal Cost of Funds Based Lending Rate). This method is followed by most nationalized banks functioning in India. Earlier, the interest rates of most loans were lent on the basis of a base rate. The PNB education loan base rate is set at 9.25% since June 2012. However, in a beneficial move by RBI, this system was stopped and MCLR took the place of the base rate. Hence, the interest rates of all such loans are calculated on the basis of the MCLR instead of the base rate. As a result, all these loans became cheaper.

The MCLR is not a constant figure. It is changed by most banks once in a year. The interest rate of PNB education loan for abroad studies is calculated every year taking these changes into account. The PNB education loan rate of interest is now calculated on the basis of MCLR as opposed to the PNB education loan base rate, which used to be a norm.

In addition to the MCLR, there is a certain percentage of premium added by the bank itself. Most banks call this a ‘spread’. This spread is different for the different categories of PNB education loans.

So, to put it straight, the final PNB education loan rate of interest for the PNB Udaan and the PNB Saraswati education loan schemes are calculated as MCLR + Spread. The exact PNB education loan interest rate figures are

8.40%(MCLR) + 1.85% (Spread) = 10.25% (For male candidates)

8.40%(MCLR) + 1.85% (Spread) – 0.5% = 9.75% (For female candidates)

As prescribed by most nationalized banks, female candidates are given a 0.5% concession on PNB education loan interest rates. This brings the PNB education loan ROI for female candidates to 9.75%.

abroad education loan

A General Checklist of PNB Education Loan Documents

The PNB Udaan loan scheme requires students to pledge collateral of some kind against their education loans.

The different types of collateral accepted by the PNB are listed below.

Types of collateral accepted by the PNB for education loans under the PNB Udaan Scheme:

Immovable property: PNB accepts immovable property residential flat, independent house,  non-agricultural land/ empty plots with defined boundaries as collateral security against the PNB education loan for abroad studies.

Liquid security: Liquid assets such as FDs (preferably opened with SBI), Govt Bonds, a life insurance policy with a fixed maturity date from government-approved national insurance providers, etc. are also accepted as tangible collateral security against a PNB abroad education loan.

Third-party collateral: The Punjab National Bank also accepts assets belonging to a third party (someone apart from the co-applicant) as collateral security against education loans. Like collateral belonging to uncle/ aunt/ other relatives/ family friends are acceptable as well.

In addition to knowing about the different types of collateral required by the Punjab National Banks for the PNB Udaan scheme, it is also essential to have an idea about the PNB education loan documents related to the pledged collateral. The below list of PNB education loan documents are the basic requirement for the same.

Collateral (immovable property) related documents checklist:

  1. Property title deed and registered sale agreement.
  2. Original registration receipt of the sale agreement.
  3. Allotment letter by the respective municipal corporation or any competent government authorized bodies such as HUDA, JDA, DDA, GIDC, MIDC, etc.
  4. Encumbrance Certificate (E.C) of the past 30 years. This document is commonly known as a ‘link document’.
  5. A copy of the municipality approved building plan/plot layout.
  6. Latest property tax bill or latest electricity bill bearing the same address.

The above list of documents is just a generic list. Immovable properties belonging to different regions require a different set of documents which are specific to the state/district/town. The list of PNB education loan documents of immovable properties belonging to certain specific areas requires the approval of the local governing bodies.

 

PNB Education Loan Documents Checklist

Candidates need to submit the following list of documents in order to avail of an abroad education loan under the PNB Udaan scheme. Kindly ensure that you have gone through the following list of  PNB education loan documents required by the bank.

General documents to be submitted by students/loan applicants:

  1. Duly filled PNB education loan application form.
  2. 2 Passport size photographs.
  3. Passport: compulsory for education loan for abroad studies.
  4. Identity Proof: Pan Card, voter ID card.
  5. Address proof: Aadhar card, Driving licence, a recent copy of telephone bill, electricity bill, water bill, piped gas bill, etc.
  6. Academic mark sheets of 10th, 12th, Undergraduate Degree (if applicable)
  7. Eligibility test scorecard: SAT/GRE/GMAT/TOEFL/IELTS scorecards.
  8. University ranking printout. To get the correct university ranking, contact our team.
  9. Admit letter from the university.

PNB education loan documents required to be submitted by co-applicants/guarantors:

  1. Identity Proof like PAN card, Passport, voter ID card.
  2. Address proof like an Aadhar card, driver’s licence, latest copy of gas bill/telephone bill/electricity bill/water bill/piped gas bill.
  3. 2 passport size photographs.
  4. Documents related to any ongoing loans from other banks/lenders.
  5. Loan account statement for one year.

Finance-related documents to be submitted by co-applicants/guarantors:

If the co-applicant is a salaried professional: 

  1. Salary slip/salary certificate.
  2. IT Returns documents of 2 years.
  3. The co-applicants bank salary account statement for the past 6 months. 

If the co-applicant/guarantor is self-employed/owns a business:

  1. Business address proof (if applicable)
  2. ITR documents for 2 years.
  3. TDS Certificate (Form 16A) if applicable.
  4. Certificate of qualification (for co-applicants who are doctors, CA and other similar professionals)
  5. Bank account statement for the last 6 months.
  6. All the above-mentioned documents are to be self-attested by the co-applicant.

PNB Education Loan Subsidy

The Indian government has introduced a number of interest subsidy schemes for students belonging to various special sections of the society. Two of these subsidy schemes are aimed at helping students belonging to economically backward classes who have borrowed abroad education loans for the purpose of studying abroad.

The third very important category is a tax saving subsidy scheme introduced by the government for all students who have borrowed abroad education loans.Candidates become eligible for any government education loan interest rate subsidy only if they apply for abroad education loans through government banks such as the PNB.

Eligible students can avail the benefits of the following education loan subsidy schemes when they borrow a PNB education loan for abroad.

  1. The Padho Pardesh education loan interest subsidy Scheme
  2. Dr Ambedkar Central Sector Scheme of education loan interest subsidy for students from Other Backward Classes and Economically Backward Classes who have taken education loans for overseas studies.

In order to know the further details about the provisions of these subsidy schemes, watch the 16th episode of Loanflix which discusses the various education loan interest rate subsidy schemes.

abroad education loan

Education loan income tax exemption under Section 80 E

Students who have borrowed an education loan to fund their higher studies abroad are exempted from paying a certain percentage of their interest amount as an income tax under the Section 80 E of the Income Tax Act of 1961.

Details on how you can get to avail a significant tax exemption under this provision is explained well in the 15th episode of Loanflix which is an informative web-series on the abroad education loan process, made available to you, exclusively on YouTube by the WeMakeScholars team.

How to Apply For a PNB Education Loan for Abroad Studies

  • The application procedure for the PNB education loan has become easier with the advent of the online application system. You may apply for a Punjab National Bank education loan here.
  • You can expect a transparent process and a prompt response rate when you apply for your PNB education loan here.
  • The application procedure is pretty simple. Candidates are required to read the instructions on the PNB education loan application form carefully before filling the same.

PNB Education Loan Status

  • Candidates will be receiving regular updates through our team regarding their PNB education loan status. 
  • They can even get in touch with the PNB education loan customer care section for the same purpose. Another alternative is to request a callback through the PNB education loan contact number the link to which will be given here. 
  • All the PNB education loan status tracking requests will be redirected here through the PNB education loan customer care section or the PNB education loan customer care number.

The PNB Education Loan Process

  1. The application procedure for the PNB education loan under the PNB Udaan scheme has been made easier with the PNB education loan online application system. Students are only required to fill the PNB education loan online application form here.
  2. On filling the PNB education loan online application form here, you will be contacted by our team in order to get to know your funding requirements better. After this step, you will be sent the documents checklist, which will have to be put together and submitted to the nearest and the fastest Punjab National Bank branch assigned to you by our team.
  3. Your education loan process will be a smooth journey from this point on. You will receive regular updates regarding your PNB education loan status by our team. You can even get in touch with our team in case of any hurdles in your PNB education loan process.
  4. The file containing your PNB education loan documents will be subjected to various levels of scrutiny by different bank officials. You may get in touch with our education loan team for clarification regarding any part of the PNB education loan process.

abroad education loan

PNB Education Loan Repayment

  • Students will be granted a moratorium period before they begin their PNB education loan repayment process. This moratorium period comprises of the entire course duration, plus an additional year. Students are not required to make any contribution during this moratorium period of the PNB education loan repayment process. 
  • Students are required to start the payment of the interest component of the PNB education loan taken under the PNB Udaan scheme, on the completion of this moratorium period.
  • The PNB education loan interest amount accrued during the moratorium period will be calculated on the basis of the simple interest concept.
  • The maximum repayment time granted to students for their Punjab National Bank education loan repayment procedure is 15 years. 

For further clarification on the Punjab National Bank education loan repayment policies and to avail any assistance regarding the PNB education loan processdo get in touch with the financial team of WeMakeScholars.

Calculating your PNB Education Loan for Abroad EMIs

Now calculating your PNB education loan for abroad interest amount has become a hassle free process with the PNB education loan EMI calculator. You can calculate your interest amount by entering your education loan amount, your PNB education loan for abroad interest rate and the loan tenure. This PNB education loan EMI calculator will give you the accurate values based on your PNB education loan for abroad interest rate. With this point, we come to the conclusion of this topic. Do get in touch with the financial team of WeMakeScholars today to understand the entire process of abroad education loan.

 

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Bibliophile, wanderer, major foodie. I write too :)

 

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