PNB Education Loan To Study Abroad 

May 04, 2022

PNB Education Loan To Study Abroad 

Punjab National Bank is among India’s notable nationalised banks with its headquarters in New Delhi. Among India’s leading moneylenders, there’s even a PNB education loan to help several students who are looking to realise their dreams of education abroad. Due to this rising influx, several banks and financial institutions are making provisions to help a large number of students achieve their goals. 

The PNB education loan to study abroad is PNB Udaan. It is for students looking to pursue their studies abroad and in need of financial assistance to go through with the same. In this article, we take a look at the specifics and features of the PNB education loan. 

Eligibility Criteria For PNB Education Loan

  • The applicant for Punjab National Bank’s education loan should be a resident Indian. 
  • They should have secured a merit-based education at a recognised university abroad.
  • The applicant needs to be between the ages of 18 and 45 (45 if employed and 35 if unemployed).

Courses And Universities Eligible For PNB Education Loan

Following are the courses that are covered under PNB Udaan. 

  • Undergraduate/Graduation: Only technical and professional courses by reputed universities.
  • Postgraduation: In-demand courses like MCA, MBA, MS, etc. 
  • Vocational Courses: Courses conducted by the CPA in the USA or CIMA in London.
  • Courses as defined under various Government Subsidy Schemes

PNB Education Loan Process

Maximum Loan Amount: The process of PNB Udaan slightly changes depending on the loan amount the applicant has applied for. From a local branch, the maximum amount that can be applied is INR 40 lakhs. The regional processing centre can sanction a loan amount of INR 60 lakhs. Special permission is required beyond that to approach a corporate centre. They have the authority to loan an amount of more than INR 60 lakhs. 

Interest Rate: The PNB education loan interest rate is 9.55% for non-listed colleges and 8.80% for listed colleges. 

Margin Money: Generally, the margin money for a PNB education loan is 15%. It might alter on a day to day basis but remains around 15% of the total expenses that student has to fund on a pro-rata basis. 

Repayment Period And Moratorium Period: The repayment period of PNB Udaan is 15 years. A moratorium period is the period of time you are exempted from paying back the loan. That period is for the entirety of the course and one year following the completion of the course.

Processing Fees: The processing fee of the education loan is 1% of the total loan amount. 

Expenses Covered In PNB Education Loan

Below are the expenses covered by the study abroad loan:

  • Fees payable for the course to the university/college
  • Hostel rent
  • Travel expenses for studying abroad
  • Purchase of books, stationery, uniform, etc.
  • Life Insurance Premium of the student (if applicable)
  • Cost of laptop (if purchased)
  • Other expenses such as study tours, project work, thesis, etc.

Documents Required For Education Loan In PNB

Documents required to be submitted by the applicant:

  • Admission letter from the university
  • Loan application form
  • Copy of your passport
  • 2 passport size photographs
  • Residence Proof (Aadhar Card, electricity or telephone bill)
  • Identity Proof (PAN Card, Driver’s License, etc.)
  • Mark sheet of GRE, GMAT, TOEFL, IELTS (whichever is applicable)
  • Past academic certificates
  • University ranking printout

Documents required to be submitted by the co-applicant:

  • Identity Proof
  • 2 passport size photographs
  • Residence Proof
  • Last 3 months’ salary slips
  • Income tax receipts for the last two years 
  • Form 16 for the last two years
  • Employee ID card (in case employed)
  • Proof of business (if self-employed)
  • Last 3 years’ balance sheet and P&L statement

Collaterals Accepted 

Collateral is an asset that is accepted by the bank as security from the loaner in order to extend a loan. Following are the two types of collaterals accepted by Punjab National Bank for their education loan:

  • Liquid securities such as government bonds or a fixed deposit
  • Tangible collateral such as a house, a property or a plot of land with fixed boundaries, etc.

Collateral Documents Required By PNB

  • Deed of registered sale agreement along with property title
  • Original registration receipt for the sale agreement
  • Allotment letter by the municipal corporation or any government authority such as CIDCO, MHADA, HUDA, etc. (if applicable)
  • Encumbrance Certificate (EC), commonly known as Link Document, of the last 30 years. 
  • Copy of municipality approved plot layout or building plan
  • Latest property tax bill bearing the same address
  • Documents required for liquid securities are much lesser

EMI Calculation On PNB Education Loan

An EMI calculator is an online tool that helps you calculate the loan amount and the specifics that you need to pay monthly upon availing of the education abroad loan.

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AlifyaWitten by Alifya Having earned a Masters degree in Advertising, Alifya has had her fair share of opportunities in the commerce sector, only to figure out that writing is her calling. Giving wings to this passion, she pens content for UniCreds.
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