Punjab National Bank Abroad Education Loan

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. 

Eligibility Criteria for PNB Abroad Education Loan

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

• The applicant should be a resident of India.
• The applicant should have got merit-based admission to a recognized university abroad.
• The applicant should be more than 18 years and less than 45 years of age (if employed) and 35 years of age (if unemployed).

Eligible Courses 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:

Benefits of PNB Education Loan for Abroad 

Here are some of the benefits of choosing PNB for your education loan:

• Refund of Processing Fee: The processing fee for the PNB Udaan education loan, which is designed for studying abroad, is refunded after the first disbursement.
• Government Interest Subsidy Schemes: PNB considers courses that fall under government interest subsidy schemes, allowing students to receive interest subsidies during the moratorium period.
• Inclusion of Scholarships in Loan Margin: Any scholarship or financial assistance you receive is included in the loan margin, reducing your financial burden.
• Competitive Interest Rates: PNB offers competitive interest rates on education loans.
• Preference for Professional or Technical Courses: PNB gives preference to professional or technical courses that are likely to lead to good job opportunities in the future.

Expenses Covered in PNB Education Loan for Abroad

Expenses covered in PNB loans for abroad studies are: 

• Fee payable to college and hostel.
• Examination/Laboratory/Library fee.
• Travel expenses for studies abroad.
• Life insurance premium for student (if applicable).
• Refundable deposit supported by institution receipts.
• Purchase of books/instruments/equipment/uniforms.
• Purchase of laptop (if required).
• Other expenses such as study tours, thesis, project work, etc.

Maximum Loan Amount from PNB 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:

• From a branch- INR 40 Lakh
• From a regional processing center- INR 60 Lakh
• From a corporate center (after special permission)- above INR 60 Lakh

PNB Education Loan 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.

Accepted Collaterals for PNB Abroad Education Loans:

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

• Immovable collaterals such as a house, flat, a plot with boundaries, etc.
• Liquid securities such as fixed deposits, LIC policy (the current value), or government bond.

How to Apply for PNB Study Abroad Loan?

You have two options for applying for an education loan from PNB: offline and online.

Offline Application Process:

• Visit your nearest PNB branch during working hours.
• Request a physical application form and fill it out by hand.
• Submit photocopies of all required documents, including academic transcripts, admission letters, identity proof, address proof, income proof, and any collateral documents if needed.
• The bank will review your application, and you may be called for an interview if necessary.
• If your application is approved, you will receive an offer letter outlining the loan terms, which you can review and accept.

Online Application Process:

• Go to Punjab National Bank’s official website (https://www.pnbindia.in/).
• Locate the "Education Loan" section on the homepage or use the search feature to find it.
• Click on "Apply Now" or "Online Application" to access the education loan application form. Fill in all the necessary information, including personal details, educational information, and the required loan amount.
• Upload scanned copies of the necessary documents, such as academic transcripts, admission letters, identity proof, address proof, income proof, and collateral documents if required. Ensure that these documents meet the bank’s standards.
• Review all the provided information and uploaded documents. Make corrections if needed, then submit the application.
• PNB will process your application and may contact you for further verification or details.
• If your application is approved, you’ll receive an offer letter with the loan terms and conditions, which you can review and accept.

Documents Required for Education Loan in PNB 

PNB education loan documents required by the student: 

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

PNB education loan documents required by the co-applicant:

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

PNB education loan documents required for collateral:

• Registered sale agreement and property title deed
• 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
• For liquid securities, the documents required are much lesser.

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.

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.
• 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.
• 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.
• 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.
• 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.

How to get an Education Loan from Punjab National Bank for Abroad?

Application process for getting an 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.

Margin Money in PNB Foreign 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. 

Repayment Policy for PNB Abroad Education Loan 

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.

Best Bank For Abroad Education Loans in India | Public vs Private? | How to Choose a Best Lender?

Calculate EMI for PNB Abroad 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.
 

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!

Frequently Asked Questions