PNB's attractive Education Loan Scheme is designed to provide better educational opportunities to bright and needy students and brings within their reach various types of education (professional,technical and vocational courses). The scheme enables the needy students to meet the following costs for higher studies in India and abroad. Administrative fees, books & stationery, instruments required for the course, monthly fees, examination fees, boarding and lodging expenses and air fare for joining the course abroad.

Eligibility

• Indian nationals, in the age group of 16-30 years.
  
• Students who have first class academic career or have secured 60% marks in their final examination. This is relaxable in certain categories.
  
• Aggregate income of the parents/guardian should not exceed Rs.3 lac p.a. This is relaxable in certain categories in case of study abroad.
  
• Employed persons intending to better their prospects can also avail loan for improving their educational qualifications and/or receive training in modern technology abroad.

Extent of Loan

This is co-related to expenses involved in taking up the course and the expected earnings after qualifying, subject to maximum of:
For studies in India: Rs. 5 lac
For studies abroad: Rs.10 lac

Security

Loan upto Rs. 1 lac: Co-obligation of parents/guardian/third party guarantee with net means equal to amount of loan.
Loan above Rs. 1 lac: Security acceptable to the bank, equivalent to 150% of the amount of loan.

Rate of Interest

• Loan upto Rs. 2 lac 13% p.a. + Interest Tax
  
• Loan above Rs. 2 lac 16% p.a. + Interest Tax
  

The Interest shall be charged at simple rate from the date of disbursement till the commencement of repayment of loan and thereafter, compound Interest is charged on reducing balance basis.

Repayment

Principal and Interest is repayable in monthly installment within seven years. Repayment will commence after two years of the completion of studies by the borrower or one month after his/her getting employment, whichever is earlier.

Disbursement
Payment of loan will be made directly to the institutions. The disbursement will be made either in annual installment or in lump sum, depending on the requirements and subject to certain conditions.