EDUCATION LOAN SCHEME – ‘PNB SARVOTTAM SHIKSHA’

OBJECTIVE

The Scheme aims at providing financial assistance to deserving students who have secured admission for pursuing/are pursuing regular courses in the IDENTIFIED educational institutions.

Punjab National Bank is now offering concession in interest in education Loan Scheme. The concession in interest rates is available to new borrowers who will avail education loan from the bank w.e.f. 01.04.2007.

The bank has taken this step to make education loan scheme more customer friendly thus facilitating aspirant students to avail education loan on comfortable & affordable terms. Bank has reduced interest rates on education loan up toRs.4.00 lac under PNB Sarvottam Shiksha Scheme

Further, Interest is charged monthly on simple basis during the repayment holiday/moratorium period & concession of 1% in rate of interest is also allowed provided the same is serviced regularly during study period.

Punjab National Bank has tied up with Kotak Mahindra Insurance to provide life insurance cover for education loan borrowers

The insurance would cover study period as well as repayment period, he said, adding in case of any mishap, the insurance company would take care of the loan repayment rather than the aggrieved parents.

a) All types of professional/technical courses conducted by identified institutions as per list annexed

b) A student is eligible for loan provided he/she is an Indian National

• Secured admission to Professional / Technical courses of one of the identified educational institutions through Entrance Test / Selection process.
• In case of education in the foreign University / Institution (for which HO approval is required for its coverage under the Scheme), the student should have got necessary Passport / VISA formalities completed.

c) Expenses considered for Loan

• Fee payable to College / Institute / Hostel.
• Examination / Library / Laboratory fee.
• Purchase of books / equipments / instruments.
• Boarding & Lodging expenses in Boarding Houses subject to production of Bills verified by the student borrower.
• Travel Expenses / Passage money for studies abroad.
• Purchase of computers - essential for completion of the Course.
• Any other expense required to complete the course - like study tours, project work, thesis, etc.

Need based finance, subject to repaying capacity of the parents / students, arranging margin and the following ceilings

• Note: Margin may be brought-in on year-to-year basis as and when disbursements are made on a pro-rata basis.

NOTE : The documents should be got executed by both the student and the parent / guardian.

• The security can be in the form of land / building / Govt. Securities / Public Sector Bonds / Units of UTI, NSC, KVP, LIC Policy, Gold, Shares / Debentures, Bank Deposit in the name of the student parent / guardian or any other third party with suitable Margin.
• Wherever the land / building is already mortgaged, the unencumbered portion can be taken as security on II charge basis provided it covers the required Loan amount.
• In case the loan is given for purchase of Computer, the same to be Hypothecated to the Bank.

• The interest to be debited monthly on simple basis during the Repayment holiday/ Moratorium period.
• Penal interest @ 2% be charged for amounts above Rs.4 lacs for the overdue amount and overdue period.
• 1% Interest concession for servicing of interest during the study period regularly is allowed at the time of start of repayment period of loan.
  
  

To facilitate expeditious disposal of applications, a check-list regarding documents, security etc., alongwith application forms for Education Loans be provided to intending borrowers. An illustrative check-list is given below :

• Loan application on Bank's format.
• Passport size photograph.
• Proof of Address.
• Proof of Age.
• Proof of having secured pass marks in last qualifying examination.
• Letter of admission in professional, technical or vocational courses.
• Prospectus of the course wherein charges like Admission Fee, Examination Fee, Hostel Charges etc. are mentioned.
• Details of Assets & Liabilities of parents.
• In case loan amount is above Rs.4.00 lacs :
  · Particulars of Guarantors and details of their Assets & Liabilities, wherever applicable.
  · If immovable property offered as Collateral Security - copy of Title Deed, Valuation Certificate and Non-encumberance Certificate from approved Lawyer of the Bank.
• Photocopy of Passport & Visa, in case of study abroad.
• Any other document/information, depending upon the case and purpose of the loan

Updated as on 11.4.2007