The Scheme enables all type of needy students viz., students of +2 stage, Graduation courses – B.A., B.Com., B.Sc., etc., Post-Graduation courses, Masters in Ph.D; Professional courses, Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer etc., Computer Certificate courses of reputed Institutes accredited to Department of Electronics or institutes affiliated to University; Courses like ICWA, C.A., CFA, etc., courses conducted by IIM, IIT, IISc, XLRI, NIFT, etc., Evening Courses of reputed Institutes; Diploma/Degree courses conducted by Colleges/Universities approved by UGC/Govt./AICTE/AIBMS/ICMR, etc., Courses offered by National Institutes and other reputed Private Institutes.

Students should approach the branch nearest to the place of domicile.

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. .

Further, Interest is charged monthly on simple basis during the repayment holiday/moratoriumperiod & 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.

Eligibility

Student eligibility

Should be an Indian National. Secured admission to Professional / Technical courses through Entrance Test / Selection process. Secured admission to foreign University / Institutions. Student should have secured pass marks in the qualifying Examination for admission to Graduation Courses.

Expenses considered for Loan

Fee payable to College / School / Hostel Examination / Library / Laboratory fee. Purchase of books / equipments / instruments / uniforms.Secured admission to foreign University / Institutions. Caution Deposit / Building Fund / Refundable Deposit supported by Institution Bills / Receipts. Travel Expenses / Passage money for studies abroad. Purchase of computers - essential for completion of the Course. Boarding and lodging expenses in recognised Boarding Houses / private accomondations Any other expense required to complete the course - like study tours, project work, thesis etc.

Quantum of Finance

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

	For studies in India: Maximum Rs.7.50 lacs.
	For studies abroad: Maximum Rs.15.00 lacs.

Margin

Security

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.

The document should be executed by both the student and the parent/guardian.

Rate of Interest

	Upto Rs. 4 lacs	BPLR+Term Premia minus 1.25
	Above Rs.4 lacs	BPLR + Term Premia

• Term premia of 0.50% p.a. shall be added for repayment period of 3 years & above.
• The interest shall be debited monthly on simple basis during the Repayment holiday/ Moratorium period.
• Penal Interest @ 2% be charged for above Rs.4.00 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.
  

Repayment

• The Principal and interest is to be repaid in 5-7 years after commencement of repayment. If the student is not able to complete the course within the scheduled time, extension of time for completion of course may be permitted for a maximum period of 2 years.

Upfront Fee

     Nil

Documentation Charges

	Upto Rs. 4 lacs	Rs.270/- + Service Tax & Education Cess
	Above Rs.4 lacs	Rs.450/- + Service Tax & Education Cess

Additional Benefits provided to the students by PNB

	Reimbursement of related expenses such as admission fee, monthly fee, Boarding and lodging expenses in recognized Boarding Houses etc. already incurred by way of loan taken from own sources (to meet the contingency) by the applicant, if claimed within 3 (three) months of such payment and before consideration of the loan by the Bank.
	Second time Education Loan can be sanctioned to the same student borrower for completion of next higher course.

Check List

While applying for the loan, the borrower is required to furnish the following information/papers:

	Loan application on Bank's format.
	Passport size photograph
	Proof of Address(Permanent) / ID Proof.
	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. *. If immovable property offered as Collateral Security - copy of Title Deed, Valuation Certificate and Non-encumbrance 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.