EDUCATION LOAN - PNB SARASWATI

The Scheme aims at providing financial assistance to deserving / meritorious students (Indian Nationals) for pursuing higher professional and technical education in India or abroad.

Studies in India

1. Approved courses leading to Graduate/ Post Graduate degree and PG Diplomas conducted by recognized colleges/ universities recognized by UGC/ Govt./ AICTE/ AIBMS/ ICMR etc.
2. Courses like ICWA, CA, CFA etc.
3. Courses conducted by IIMs, IITs, IISc, XLRI. NIFT, NID etc.
4. Regular Degree/Diploma courses like Aeronautical, pilot training, shipping, nursing etc., approved by Director General of Civil Aviation/Shipping, if the course is pursued in India.
5. Approved courses offered in India by reputed foreign universities.
6. Admission under Management Quota may also be considered.
7. For studying part-time job oriented courses (evening classes or otherwise), which are approved/recognized by the regulatory body/ authority.
8. Job oriented specialized programmes like maritime courses which are offered in collaboration with foreign institutions and may not be having recognition in India.

Studies abroad
i) Graduation: For job oriented professional/technical courses offered by reputed universities.
ii) Post graduation: MCA, MBA, MS, etc.
iii) Courses conducted by CIMA- London, CPA in USA etc.
iv) Degree/Diploma courses* like aeronautical, pilot training, shipping etc. provided these are recognized by competent regulatory bodies in India/abroad for the purpose of employment in India/abroad.
*Diploma Course and certificate courses shall not be covered under the eligible courses for study abroad except as mentioned above.

Eligibility:

Student eligibility

a) Should be an Indian National. b) Should have secured admission to a higher education course in recognized institutions in India or Abroad through Entrance Test/ Merit Based Selection process after completion of HSC(10 plus 2 or equivalent). OR Where the admission is purely based on marks scored in qualifying examinations, there is a cut off percentage of marks of 50% for SC/ST and 60% for General category.

Expenses considered for Loan

1. Fee payable to College / School / Hostel 2. Examination / Library / Laboratory fee. 3. Purchase of books / equipments / instruments / uniforms. 4. Caution Deposit / Building Fund / Refundable Deposit supported by Institution Bills / Receipts, 5. Travel Expenses / Passage money for studies abroad. 6. Purchase of computers at reasonable cost, if required for completion of the course. 7. Insurance premium for student borrower, if applicable 8. Any other expense required to complete the course - like study tours, project work, thesis etc.

Quantum of Finance

Need based finance, subject to employability and earning potential of the student with prescribed margin as per the following ceilings :-

	For studies in India: Maximum Rs.10.00 lacs.
	For studies abroad: Maximum Rs.20.00 lacs.

Margin

Upto Rs.4.00 lacs Nil. Above Rs.4.00 lacs Studies in India 5% Studies Abroad 15%

Security

Upto Rs.4.00 lacs:	Parent(s)/guardian be made joint borrower (s). No Security
Above Rs 4.00 lacs and Upto Rs 7.5 lacs:	Besides the parent(s)/guardian executing the documents as joint borrower(s), collateral security in the form of suitable third party guarantee will be taken
Above Rs 7.5 lacs:	Parent(s)/guardian be joint borrower(s).Tangible collateral security of suitable value acceptable to bank alongwith the assignment of future income of the student for payment of installments

The security can be in the form of land / building / Govt. Securities / Public Sector Bonds / Units of UTI, NSC, KVP, LIC Policy, Gold, Shares/ Mutual Funds/ Debentures, Bank Deposit in the name of the student parent / guardian or any other third party or any other tangible security acceptable to the bank with suitable Margin.

Rate of Interest

Click Here to view rate of interest

Repayment

Repayment of loan will be in equated monthly instalments (EMIs) for period as under:

For loans upto Rs.7.50 lac - upto 10 years
For loans above Rs.7.50 lac - upto 15 years

Repayment holiday/Moratorium:

Course period + 1 year or 6 months after getting job, whichever is earlier.
Note : No prepayment penalty is levied for prepayment of loan.

Sanctioning Authority may consider telescoping of the repayment with stepped up installment with passage of time over the repayment period in cases where salary levels at the start of the career do not facilitate comfortable payment of EMI (e.g. professionals like Doctors)

Upfront Fee

For Study in India - Nil

For Study abroad - 1% with a minimum of Rs. 10,000/-(refundable on availment of the loan amount)

Documentation Charges

	Upto Rs. 4 lacs	Rs.270/- + Service Tax & Education Cess
	Above Rs.4 lacs	Rs.450/- + Service Tax & Education Cess

Additional Benefits provided to the students by PNB
Simple interest is charged during the Study period + Moratorium period. A rebate of 0.50% in rate of interest permitted to women beneficiaries for loans up to Rs. 10 lac for studies in India and Rs 20 lac for studies abroad for existing as well as new girl student borrowers wef. 08.03.2009. 1% interest concession may be provided for loanees if the interest is serviced during the study period/moratorium period and regular repayment of monthly installmets during repayment period. The loan be disbursed in stages as per the requirement/ demand directly to the Institutions/ Vendors of equipments/ instruments to the extent possible. Second time Education Loan can be sanctioned to the same student borrower for completion of next higher course.
Full interest subsidy is provided during the moratorium period to students, who have taken education loan and belong to Economically Weaker Section (EWS), with an annual gross parental family income upper limit of Rs.4.50 lakh per year from all sources. Detail is as under: Central Scheme to provide Interest Subsidy- (CSIS) The scheme provides full interest subsidy during the period of moratorium on education loans taken by EWS students for pursuing any of the approved courses of studies in technical / professional streams from recognized institutions in India. Applicability Linked with the existing education loan scheme of IBA and is restricted to students enrolling in recognized professional courses ( after class XII) in India, in educational institutions established by Act of Parliament, other institutions recognized by the concerned statutory body, IIMs and other institutions set up by the Central Government . Also applicable to the students of accredited universities/ institutions and recognized professional courses Moratorium Period Course Period plus one year or six months after getting job, whichever is earlier. Income Limit / Proof To avail the benefit, Income certificates issued by designated state authorities to be submitted. Details available with branches. Eligibility for Subsidy The interest subsidy shall be available to the eligible students only once, either for the first undergraduate degree course or the post graduate degrees / diplomas in India inclusive of integrated courses (graduate + post graduate). Interest subsidy under this scheme shall not be available for those students who either discontinue the course midstream or who are expelled from the Institutions on disciplinary or academic grounds. However, the interest subsidy will be available for the actual period of study, only if the discontinuation was due to medical grounds for which necessary documentation to the satisfaction of the Head of educational institution will have to be given.
Check List

While applying for the loan, the borrower is required to furnish the following information/papers:

	o Loan application on Bank's format.
	o Passport size photograph
	o Proof of Address.
	o Proof of Age.
	o Proof of having cleared last qualifying examination.
	o Letter of admission in professional, technical or vocational courses.
	o Prospectus of the course wherein charges like Admission Fee, Examination Fee, Hostel Charges etc. are mentioned.
	o Details of Assets & Liabilities of parents/co-obligants/guarantors.
	o In case loan is to be collaterally secured by mortgage of IP, Copy of Title Deed, Valuation Certificate and Non Encumbrance Certificate from approved Lawyer of the Bank to be obtained at the cost of the borrower.
	o Photocopy of Passport & Visa, in case of study abroad. Copy of PAN of student Borrower (If PAN is not available at the time of sanction, the same be obtained within one year of disbursement of loan).
	Any other document/information, depending upon the case and purpose of the loan.

*	(The above CHECKLIST is only illustrative, not exhaustive. For details, please contact our nearest Branch Office).     Click here for applying for education loan online   For more information visit https://www.pnbindia.in