PNB FOREIGN EDUCATION LOAN FOR STUDENTS STUDYING IN FOREIGN UNIVERSITIES.
Punjab National Bank provides education loan for students who are studying in recognized foreign universities or wants financial help after getting admission in these universities. The cost of studying in these foreign universities can be very costly. Pursuing higher education in foreign universities is a dream of many of the students. Completing this dream without any financial help can be hard for most of them. Not only is the fee of these courses but also the cost of living in these countries quite high. PNB Udaan Education loan is provided for the students who want to complete their higher education in foreign universities. In this post we are going to discuss the important details of this PNB foreign education loan.
PNB Udaan Foreign Education Loan
In PNB Udaan education loan financial support is provided to the meritorious students who want to pursue their higher education from the recognized foreign universities. This loan also covers the job oriented professional courses offered by different foreign universities of USA, UK etc.
Important Details
This loan is offered to the meritorious students who have secured admission in the courses offered by foreign universities of USA, UK, Canada and many other countries.
Key points
1) Eligibility
- Should be a resident of India.
- The student should have secured admission in full time course in the recognized foreign universities after passing higher secondary.
- The student must be admitted through merit based selection process. The case of the students who got admitted through management quota may be considered on case to case basis.
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 paid within six months then bank may consider reimbursing the fee. This is decided on a case to case basis.
3) Repayment
- The repayment period starts after one year 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 15 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.
- This processing fee will be refunded after the 1st disbursement of the loan.
5) Security
- For loans up to ₹7.5 lakhs parents or guardians have to become joint borrower. No tangible security or 3rd party guarantee is required.
- For loans above ₹7.5 lakhs the parents or guardians have to act as joint borrower and tangible security of acceptable value has to be made collateral to the bank.
- The loan of the students pursuing diploma or certificate course other than aeronautical, pilot training, shipping etc. may be considered if liquid security amounting 125% of the loan amount is made collateral to the bank.
6) Margin
- For loans up to ₹4 lakhs there is no margin amount to be paid by the borrower.
- For loans above ₹4 lakhs the margin percentage is 5%. This means that the borrower has to pay 5% of the course fee and bank will pay the rest.
- Any scholarship received by the student can be counted as margin.
- The student does not have to pay the whole margin amount at one. Instead the margin amount can be paid yearly throughout the course when the reimbursements are made.
7) Eligible courses and universities
- For Graduation courses offered by reputed foreign universities for job oriented professional and technical courses.
- For post-graduation courses like MCA, MBA, MS and others offered by reputed foreign universities.
- The courses offered by CPA in USA and CIMA-London.
- Degree or Diploma courses like aeronautical, pilot training, shipping etc. recognized by competent regulatory bodies of that country.
- Diploma and certificate courses other than aeronautical, pilot training, shipping etc. may be considered if the courses are recognized and accredited.
- PNB has provided a list of 200 universities which is given below
8) Coverage
- Total course fee according to the guideline of the bank.
- Hostel fee is covered under this education loan.
- If required the Insurance premium for student borrower will also be covered in this education loan.
- Caution deposit, Building fund and refundable deposits can be covered in the loan only if the valid receipt is produced by the students.
- The cost of book, uniforms, instruments and equipment will also be covered.
- Cost of purchasing computer will be provided if necessary.
- Cost of personal living expense and two-wheeler may also be covered under this scheme.
- Any other cost required for the completion of the course like study tours, project works and thesis.
9) Rate of Interest
Parameter | Rate of interest (other than female students) | Rate of interest (female students) | ||||
Floating | Fixed | Floating | Fixed | |||
For loan up to 10 years | For loan above 10 years | For loan up to 10 years | For loan above 10 years | |||
Loan irrespective of amount to student getting admission into specific institutes as mentioned in Annexure – B (where minimum 100% collateral security is available) | 9.25% | 10.25% | 10.75% | 9.25% | 10.25% | 10.75% |
Loan irrespective of amount (where minimum 100% collateral security is available) | 10.50% | 11.50% | 12.00% | 10.00% | 11.00% | 11.50% |
Loan upto Rs.7.50 lakhs
(covered under CGFSEL Scheme) |
11.25% | 12.25% | 12.75% | 10.75% | 11.75% | 12.25% |
Loan above Rs.7.50 lakhs | 11.25% | 12.25% | 12.75% | 10.75% | 11.75% | 12.25% |
10) Required document
- 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 for studies abroad.
- 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 Udaan Education Loan without any prior notice.