Education Loan

Punjab National Bank Abroad Education Loan

Punjab National Bank Abroad Education Loan

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Looking for a PNB student education loan? Here is a complete guide to Punjab National Bank's (PNB) education loan. Click now to check documents required, interest rates & more!

GyanDhan
Ananya Ghai
Updated on:  07 Sep 2023  | Reviewed By: 
Aman 
| 18.7K | 8  min read

Education loan is the best bet when it comes to financing abroad education. Keeping in mind the rising demand among Indian students for abroad studies, there are several Indian banks and other financial lenders in India that offer abroad education loans. One of the popular public sector banks that provide study abroad loans is the Punjab National Bank (PNB). The abroad education loan scheme of PNB is named ‘PNB Udaan’.

 


In this blog, we will delve deep into the details of the Punjab National Bank education loan abroad. Let’s traverse through the important points to know about PNB student loans for study abroad, its eligibility criteria, interest rates, repayment period, moratorium period, margin money, and more. 

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What are the eligibility criteria for Punjab National Bank abroad education loan?

The eligibility criteria for Punjab National Bank for study abroad is as follows:

  1. list items The applicant should be a resident Indian.
  2. list items The applicant should have got merit-based admission to a recognized university abroad.
  3. list items The applicant should be more than 18 years and less than 45 years of age (if employed) and 35 years of age (if unemployed).
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Which courses are eligible for PNB abroad education loan?

The requirements for a PNB student loan for study abroad are very rigid in terms of universities and the courses for which an applicant is going. 

A few specifications are:

For Graduate Courses

Popular courses like MS, MBA, etc.

For Vocational Courses

Popular courses such as courses conducted by CPA in the USA or CIMA in London.

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What are the expenses covered in the PNB student loan for study abroad?

Expenses covered in PNB loans for abroad studies are: 

  • list items Fee payable to college and hostel.
  • list items Examination/Laboratory/Library fee.
  • list items Travel expenses for studies abroad.
  • list items Life insurance premium for student (if applicable).
  • list items Refundable deposit supported by institution receipts.
  • list items Purchase of books/instruments/equipment/uniforms.
  • list items Purchase of laptop (if required).
  • list items Other expenses such as study tours, thesis, project work, etc.
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How much loan amount can be taken from Punjab National Bank for abroad studies?

As per PNB abroad education loan rules collateral security must be provided for education loans of more than INR 7.5 Lakh. Unsecured loans are available up to INR 7.5 Lakh. The maximum possible amount for secured education loans from Punjab National Bank are:

  1. list items From a branch- INR 40 Lakh
  2. list items From a regional processing center- INR 60 Lakh
  3. list items From a corporate center (after special permission)- above INR 60 Lakh

 

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What is PNB education loan for abroad interest rate?

PNB education loan college list abroad provides loans with lesser interest rates. PNB education loan interest rate is 9.55% for the non-listed colleges and 8.80% for the listed colleges.

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What collaterals are accepted by Punjab National Bank for abroad education loans?

There are two kinds of collaterals accepted to get a PNB Education Loan:

  • list items Immovable collaterals such as a house, flat, a plot with boundaries, etc.
  • list items Liquid securities such as fixed deposits, LIC policy (the current value), or government bond.
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What are the documents required for abroad education loan from Punjab National Bank?

PNB education loan documents required by the student: 

  • list items Admit letter from the college
  • list items Loan application form
  • list items Passport copy
  • list items Residence proof- Aadhar Card, Voter ID, etc.
  • list items Identity proof- PAN Card, Driving Licence, etc.
  • list items Scorecard of tests such as GRE, IELTS, GMAT, or TOEFL (whichever is applicable).
  • list items University ranking printout
  • list items Past academic certificates
  • list items 2 Passport size photos

PNB education loan documents required by the co-applicant:

  • list items Residence proof- Aadhar Card, Voter ID, etc.
  • list items Identity proof- PAN Card, Driving Licence, etc.
  • list items Latest salary slips (for the last 3 months)
  • list items Income tax receipts of the last 2 years
  • list items Form 16 of the last 2 years
  • list items Employer’s ID Card (if employed)
  • list items Balance Sheet for the last 3 years and P&L statement (if self-employed)
  • list items Proof of Business Address (if self-employed)
  • list items 2 Passport size photos

PNB education loan documents required for collateral:

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

 

Check Your Education Loan Eligibility

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How to get education loan from Punjab National bank for abroad?

Application process for getting education loan from Punjab National Bank for abroad differs according to the loan amount that a student has applied for. The local branch can only approve loans under INR 40 lakh. If a student needs more than 40 Lakh, he/she must visit the regional processing center to get the loan sanctioned. For abroad education loans of more than INR 60 Lakh, the student has to get special permission from the corporate center- the highest office of Punjab National Bank.

Eligibility

Should be a resident Indian

Should have got a merit-based admission to a well-ranked & recognized university abroad

Interest rate

9.55% (Non-listed colleges)

8.80% (Listed colleges)

Margin money

15%

Repayment period

15 Years

Moratorium period

1 year after the course completion

Processing fees

1% of the total loan amount

 

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What is the margin money in PNB abroad education loan?

The loan margin for Punjab National Bank education loan for study abroad is 15%. Although, this margin can change on a case-by-case basis. In general cases, 15% of the total expenses the student has to pay on a pro-rata basis. 

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What is the repayment policy of PNB abroad education loans?

The repayment tenure of Punjab National Bank abroad education loan is somewhat similar to other government banks. The moratorium period of 1 year after the course completion. The maximum repayment tenure is 15 years. There is no prepayment penalty for the loan.

Have any queries on abroad education loans? Post them in the discussion section below for a prompt reply.

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How to calculate EMI for PNB education loan?

Gyandhan’s EMI calculator is an online tool helping you calculate the loan amount you need to pay monthly after taking an abroad education loan. This online tool also gives you an amortization schedule displaying the EMI break-up in terms of the principal repaid and monthly interest paid. In addition, it also details the amount of study loan that you have repaid to date and how much is outstanding. 

You will have to fill in the principal loan amount, loan tenure, and interest rate and it immediately calculates the education loan repayment details.

Calculate your Education Loan EMI

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How GyanDhan helps with abroad education loans?

If you are looking for an abroad education loan, be it from public sector banks, private banks, or NBFCs, GyanDhan is the best place to contact. We have tied up with government banks, private banks, and NBFCs to provide the best deal on education loans to students. Whether you need a secured or an unsecured education loan, we would recommend you check your education loan eligibility to gauge if you are qualified for an education loan. Our counselor will get back to you and understand your case in detail and will suggest you the best loan options for you.

Our loan assistance service is entirely free of cost and we don’t charge even a single penny from the students. We provide a customized document checklist to avoid any confusion. We work closely with the lender throughout the loan process, keep you informed about the proceedings, and also resolve any hindrances if occur. Also, the entire process is online so you don’t have to run from pillar to post to get your loan approved- you just have to contact us with your requirements and relax as all of the efforts are our responsibility from there onwards. In a nutshell, we strive to make the loan process easy, simple, and swift for you!

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Frequently Asked Questions

Punjab national bank is private or government?

PNB or Punjab National Bank is a public sector bank. In April 2020, Oriental Bank of Commerce and United Bank of India were merged with PNB.

What are the government loan schemes considered by the PNB?

Apart from the basic study loans, there are multiple other schemes offered by Punjab National Bank. These schemes are:

  • list items CSIS Scheme
  • list items PNB Kaushal
  • list items Credit Guarantee Fund Scheme for Skill Development
  • list items Concessional Education Loans to PWDs
  • list items Credit Guarantee Fund Scheme for Education Loans

What is the age limit to take an education loan from Punjab National Bank?

The applicant should be more than 18 years and less than 45 years of age (if employed) and 35 years of age (if unemployed).

Is travel expense covered in the PNB education loan?

Yes, all the travel expenses are covered under the PNB study abroad loans.

Check Your Education Loan Eligibility


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