PNB EDUCATION LOAN FOR OVERSEAS CITIZENS OF INDIA
In our country there are numerous prestigious institutions where students from all over the world come to study. The costs of studying in these institutions are quite high. Indian students can easily get an education loan for this purpose. However, the bright students, who are overseas citizen of India or born abroad for various reasons, cannot apply for a regular education loan as they don’t have Indian nationality. To solve this problem Punjab national bank has offered an education loan called PNB Pravasi Shiksha Loan especially for OCI students who want to study in Indian universities. In this post we are going to discuss the key details of this education loan.
PNB Pravasi Shiksha Loan
PNB Pravasi Shiksha Loan provides education loan to the bright students who are overseas citizen of India and now wants to study in Indian universities. This loan supports the students in pursuing higher education in India by providing financial support to them.
Important Details
Students who were born in foreign countries as their parents were working with foreign govt. or international agencies, and now want to pursue their higher education in India after the return of their parents will get benefit from this scheme.
Key points
1) Eligibility
- The applicant must be 18 years old.
- Applicant should be an overseas citizen of India.
- The applicant was born in foreign soil as their parents were in these countries on Govt. or international agency deputation.
- The student must have secured admission in the institutions through merit based selection process.
2) Loan Amount
- The loan amount will be decided based on the financial requirement of the student up to a certain margin as per bank’s guideline.
- If the course fee is already paid then it will not be reimbursed by the bank under this scheme.
- Only the expenses after taking the loan will be covered under this scheme.
3) Repayment
- The repayment period starts after six months of the completion of the course. This period when the borrower does not have to pay the loan back is called repayment holiday or moratorium period.
- The maximum time given for loan repayment is maximum 10 years starting after the moratorium.
4) Processing fee
- The processing fee for this loan is the 1% of the total loan amount or ₹10000/- whichever is higher.
- This means that if the 1% of the loan amount is less than ₹10000 then the borrower has to pay a minimum sum of ₹10000 to the bank as processing fee.
- There is a Documentation fee of ₹450
- These fees are non- refundable.
5) Security
- It is mandatory to have an Indian resident as a guarantor who will offer his immovable property to the bank as collateral security.
- The property must be in the name of the guarantor.
- The value of the property must be equal to at least 125% of the loan amount.
- The immovable property must be other than agricultural or plantation property or farm house.
- Liquid security of value 125% can be in the form of pledge of Government Security, NSCs, KVPs, IVPs / PSU Bonds (where interest is being serviced regularly) / Bank’s FDR / LIC Policies (surrender value) etc.
6) Insurance Cover
- Life Insurance cover of equivalent to the total loan amount including the interest accrued during the moratorium period.
7) Margin
- A margin of 20% is required in this loan.
- The 20% of the course fee must be paid by the borrower.
8) Eligible Institutions
- This education loan can be availed for the courses offered by the Indian institutions.
- The list of the institutions is given below
9) Coverage
- All the necessary expenses for completing the course will be covered under this scheme.
- Expenses for one time to and fro travel to India.
- The expenses of the hostel accommodation offered by the institution will be covered under this scheme.
- However if the student opts for accommodation other than the hostel offered by institution, the cost will not be covered under the loan.
10) Rate of Interest
Floating ROI | Fixed ROI | |
For loan up to 10 years | For loan above 10 years | |
11.25% | 12.25% | 12.75% |
11) Required document for KYC
- All the required documents will be taken from the borrower by the bank officials.
- OCI card is mandatory for the OCI candidates.
- Loan application in the format provided by the bank.
- Passport size photograph.
- Proof of identity and address as per the guidelines of PNB.
- Proof of age as per the bank guidelines.
- Aadhar is mandatory as per Supreme Court decision.
- Photocopy of Personal Account Number (PAN).
- Photocopy of passport and visa.
- Proof of clearing the last qualifying exam.
- Letter of admission as the proof of admission.
- Details of the course fee provided by the educational institution. Eg. Prospectus.
- Bank can ask for any other additional documents if they find it necessary.
** Punjab National Bank holds the authority of changing the terms and conditions of PNB Pravasi Shiksha Loan without any prior notice.