Education Loan

Disbursement Process of PNB Education Loan

Disbursement Process of PNB Education Loan

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Read about PNB education loan disbursement process along with the required documents.

GyanDhan
Ananya Ghai
Updated on:  24 Jan 2024  | Reviewed By: 
Aman 
| 361 | 6  min read

Disbursement Process of PNB Education Loan

The sanction letter for an abroad education letter is only valid for six months and if the borrower does not disburse the amount within that time then the loan application can be declined resulting in repeating the whole process of securing an education loan again. Hence, it is crucial for applicants and co-applicants to take note of the disbursement process in advance. 

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Punjab National Bank Education Loan

Feature Description

Loan amount

Up to INR 60 Lakh

Rate of Interest

9.25% - 9.75%

Margin money

15%

Moratorium period

1 year after completing the course.

Repayment tenure

Up to 15 years

Processing fees

1% of the sanctioned amount

 

Check Your Education Loan Eligibility

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PNB Education Loan Disbursement Process

Punjab National Bank (PNB) is one of the leading public sector banks in India, providing a range of financial services to its customers. One crucial aspect of an abroad education loan is the disbursement process, which involves the transfer of funds to the borrowers. Below is a detailed explanation of the disbursement process of a PNB education loan.

  1. list items Receiving the sanction letter - After the bank has approved the loan they provide the borrower with the sanction letter of the education loan and the initial loan agreement is signed where the borrower will have to decide the following. Date of disbursement - Determine the exact date of the first disbursement based on your visa application or the last date of tuition fee payment. Coordinate with the university to align this date.  Disbursement amount - Decide the amount for the first disbursement, considering both tuition fees and living expenses. Ensure this aligns with your financial requirements during the initial period. Method of disbursement - Provide precise details for transferring funds, specifying whether it can be through wire transfer or forex transfer. The university will share this information in your admission package.
  2. list items Date of disbursement - Determine the exact date of the first disbursement based on your visa application or the last date of tuition fee payment. Coordinate with the university to align this date. 
  3. list items Disbursement amount - Decide the amount for the first disbursement, considering both tuition fees and living expenses. Ensure this aligns with your financial requirements during the initial period.
  4. list items Method of disbursement - Provide precise details for transferring funds, specifying whether it can be through wire transfer or forex transfer. The university will share this information in your admission package.
  5. list items Loan agreement - Upon receiving your decision, PNB will prepare a final loan agreement. Both the borrower and co-borrower have to physically visit the bank and sign the loan agreement.
  6. list items Documents for disbursement - Submit the necessary documents along with the signed final loan agreement to proceed with the disbursement. Ensure all required paperwork is complete and accurate.
  7. list items Opening a savings account - A separate savings account will be opened in the student’s name at PNB to disburse living expenses. Also, the tuition fee will be transferred to the university’s account or the student's account.
  8. list items Tuition fee reimbursement - In case you have already paid the tuition fees, reimbursement can be obtained by submitting a photocopy of the fee receipt to PNB.
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Documents Required for PNB Education Loan Disbursement Process

The following documents are required for the disbursement process of PNB education loan.

  1. list items Demand letter from university or college
  2. list items Self-attested final loan agreement
  3. list items Disbursement request form signed the borrower and co-borrower
  4. list items Receipt of margin money paid to the college/university along with the bank statement reflecting the transaction
  5. list items Academic records, marksheet, bonafide certificate etc
  6. list items Form A2 signed by borrower or co-borrower 
  7. list items Submit the original KYC documents for the student, co-borrower, and guarantor (if applicable).
  8. list items Complete two copies of the ECS mandate form, ensuring it is signed and stamped by your bank. One copy should be submitted to the bank manager for record-keeping after determining the disbursement date.
  9. list items Alternatively, the co-borrower can fill out a NACH form, providing account details for monthly interest payments deduction.
  10. list items As a security measure, the co-borrower must provide 9-12 post-dated cheques to cover potential lapses in interest payment for a specific month.

Find the complete list of documents required to apply for abroad education loan 

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How to get an Abroad Education Loan from Punjab National bank?

The application process for obtaining an education loan from Punjab National Bank (PNB) for overseas studies varies based on the requested loan amount. Local branches have the authority to approve loans up to INR 40 Lakh. However, if the borrower requires an amount exceeding this limit, a visit to the regional processing center becomes necessary for loan sanctioning. In cases where the abroad education loan surpasses INR 60 Lakh, the student must seek special permission from the corporate center, which represents the highest office of Punjab National Bank.

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Common Difficulties Faced by Students During Disbursement Process of PNB Education Loan

  1. list items Delays in the sanction letter - The approval process for education loans can be time-consuming, leading to stress and uncertainty for students and their families due to delays in receiving the sanction letter. 
  2. list items Delay in disbursement - Some lenders may fail to fulfill their commitment to disburse funds on a specified date, causing further inconvenience.
  3. list items Pre-visa disbursement - It is crucial to highlight that some lenders may offer the option of releasing funds before obtaining the student visa for studying abroad, while others may disburse funds only after the visa is approved.

The challenges faced by education loan borrowers can pose significant obstacles for students planning to study abroad. To ensure a smooth disbursement process, it is crucial for borrowers to seek expert guidance tailored to their specific education loan needs. GyanDhan serves as the ultimate solution for study abroad students, offering assistance throughout the entire education loan process, from selecting the best option to the actual disbursement. 

Our team of experts not only connects students with a variety of loan options but also provides personalized financial advice and facilitates end-to-end services related to abroad education loans – all at no cost. If any hurdles arise, our experts work directly with the banks to expedite the process promptly. Take the first step in your abroad education loan journey by checking your loan eligibility today!

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Frequently asked questions

How much processing time does it take to get an abroad education loan from PNB?

Once all the necessary documents are in order, the approval process is expected to take 5–7 working days. The required documents usually include proof of identity, proof of address for both you and your co-applicant, as well as the course admission/fee letter, among others.

Who can be a co-applicant for an abroad education loan at PNB?

For an abroad education loan from PNB, the borrower's parents, grandparents, spouse, and parents-in-law can be co-applicants.

Is there any concession on the interest rate for abroad education loans at PNB?

Yes, a 1% interest concession in the account is available if the interest is serviced during the study period when a repayment holiday is specified for interest/repayment under the scheme. The rate of interest applicable at any time shall not be below the base rate/MCLR of the Bank after providing a concession in the rate of interest.

What are the eligibility criteria for applying for an abroad education loan?

Any Indian National who has obtained admission to a premium institute as per the list is eligible for an education loan from PNB for studying abroad.

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