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

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.
  

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 5.6.2006