Disbursement Process of PNB Education Loan

The sanction letter for an education loan to study abroad is valid for only six months. If the loan amount is not disbursed within that time, the application might get canceled, and the borrower will have to go through the entire process of applying for the loan again. That is why it is very important for both students and their co-applicants to understand and plan the disbursement process in advance. 

Overview of Punjab National Bank Education Loan

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.

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  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.

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    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. 
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    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.
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    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.

   
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  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.

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  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.

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  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.

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  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.

Documents Required for PNB Education Loan Disbursement Process

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

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  Demand letter from university or college
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  Self-attested final loan agreement
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  Disbursement request form signed the borrower and co-borrower
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  Receipt of margin money paid to the college/university along with the bank statement reflecting the transaction
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  Academic records, marksheet, bonafide certificate etc
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  Form A2 signed by borrower or co-borrower 
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  Submit the original KYC documents for the student, co-borrower, and guarantor (if applicable).
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  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.
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  Alternatively, the co-borrower can fill out a NACH form, providing account details for monthly interest payments deduction.
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  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.

Learn more about the loan disbursement process for studying abroad in Hindi.

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

Application Process of 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.

PNB Education Loan Processing Time

Usually, the PNB overseas education loan is processed within 15-20 days and the loan disbursement is made within 72 hours after verifying the documents. However, with GyanDhan, this time can be reduced significantly as we have partnered with top banks for expedited loan approval and disbursement. We provide complete guidance from application to approval of your education loan. Contact us for more information.

Common Challenges in PNB Education Loan Disbursement

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  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.

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  Delay in disbursement - Some lenders may fail to fulfil their commitment to disburse funds on a specified date, causing further inconvenience.

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  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!

Also, go through:

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  SBI education loan disbursement process
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  BOB education loan disbursement process
• 
  HDFC Credila disbursement process

Frequently Asked Questions