EDUCATION LOAN SCHEME

For pursuing Vocational Courses in India

 

Objective

 

The Scheme aims at providing financial support from the banking system to those who, after passing 10th Class, wants to pursue employment oriented skill development courses offered by recognised institutions.

 

Eligibility Criteria

 

Student eligibility

i) Should be an Indian National.

ii) Student should have secured admission in a course run or supported by a Ministry / Dept./ Organization of the Govt. or a company / society / organization supported by National Skill Development Corporation or State Skill Missions / State Skill Corporations, preferably leading to a certificate / diploma / degree, etc. issued by a Govt. organization or an organization recognized / authorized by the Govt. to do so.

Courses Eligible

 

Vocational / Skill development courses of duration from 2 months to 3 years run or supported by a Ministry / Dept. / Organisation of the Govt. or a company / society / organization supported by National Skill Development Corporation or State Skill Missions / State Skill Corporations, preferably leading to a certificate / diploma / degree, etc. issued by a Govt. organization or an organization recognized / authorized by the Govt. to do so. State Level Bankers Committee (SLBC) / State Level Coordination Committee (SLCC) may add other skill development courses / programmes, having good employability.

 

Expenses considered for Loan

 

i) Tuition/ course fee

ii) Examination/ Library/ Laboratory fee.

iii) Caution deposit.

iv) Purchase of books, equipments and instruments.

v) Any other reasonable expenditure necessary for completion of the course.

 

Quantum of Finance

 

i) upto 3 monthsRs.20,000/-
ii) above 3 to 6 months Rs 50,000/
iii) above 6 months to 1 year Rs 75,000/-
iv)above 1 yearRs 1,50,000/-

 

Margin

 

NIL

 

Security

 

No collateral or third party guarantee. Parent(s)/guardian to execute loan documents alongwith the student borrower as joint borrower.

 

Rate of Interest

 

Click here for Rate of Interest

 

Repayment

 

i) The loan to be repaid after the moratorium period, in Equated Monthly Instalments (EMIs) as follows:

For courses upto 1 year - In2 to 5 years

For courses above 1 year -In3 to 7 years

ii) Repayment holiday/Moratorium:

Upon completion of the course, repayment to start after a moratorium periodas indicated below:

For courses of duration upto 1 year - 6 months from the completion of the course.

For courses of duration above 1 year - 12 months from the completion of the courses.

Note: No prepayment penalty to be levied for prepayment of loan.

 

Processing Charges/Upfront fee

 

NIL

 

Documentation Charges

 

As prescribed from time to time be recovered presently Rs.270/- exclusive ofservice tax and education cess

 

Check List

 

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

i) Loan application on Bank's format.

ii) Passport size photograph.

iii) Proof of Address.

iv) Proof of Age.

v) Proof of having cleared last qualifying examination.

vi) Letter of admission in vocational/ skill development courses.

vii) Prospectus of the course wherein charges like Admission Fee, Examination Fee, Hostel Charges etc. are mentioned.

viii)Details of Assets & Liabilities of parents/co-obligants.

ix) 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).

 

Additional Benefits provided to the students by PNB

 

i) Simple interest is charged during the Repayment holiday/ Moratorium period.

ii) A rebate of 0.50% in rate of interest permitted to women beneficiaries for existing as well as new girl student borrower's w.e.f. 08.03.2009. Rebate not to be allowed where such rebate has already been permitted in terms of PNB Mahila Sasaktrikaran Abhiyan.

iii) 1% interest concession be provided if interest is serviced during the study period and regular installments 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