PNB Concessional Education Loan

About PNB Concessional Education Loan

The PNB Concessional Education Loan is tailored for students with disabilities, providing financial assistance for various educational expenses. This loan covers both domestic and international studies, ensuring that students can pursue their academic aspirations without financial hindrance. Additionally, parents can explore a child investment plan to secure their child's future education, complementing the support provided by this education loan.

Interest Rate

Users seeking this loan benefit from its attractive interest rate position. The finance scheme offers education funding through loans, which maintains a yearly interest rate of 4% and provides students with affordable costs. The loan rate lacks any rebate programs or additional concessions because the provided rate represents the maximum available. Additionally, parents can consider a child education plan to enhance further financial support for their child's educational journey alongside this loan.

Repayment Tenure

The loan offers a flexible repayment structure:

• Repayment Period: The maximum repayment period follows National Handicapped Finance and Development Corporation (NHFDC) scheme norms and extends for ten years after repayment starts. Students need to start repaying their education loan a year following the date of graduation.

Investment

Secure

Secure your child’s future with or without you

Start Investing

₹10,000/Month

& Get

₹1 Crore^*

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Key Features of PNB Concessional Education Loan

• No Collateral: The loan program operates without requiring any form of collateral thus making it available to students who have disabilities.

• Zero Processing Fees: The loan processing eliminates all fees which decreases the financial weight students must bear.

• Comprehensive Coverage of Expenses: The loan covers tuition fees, hostel fees, books, instruments, uniforms, library and laboratory fees, caution deposits, and study tours. Additionally, it includes the cost of a two-wheeler up to ₹50,000 within the overall loan amount ceiling.

• Flexible Moratorium Period: Students receive one year of flexibility before repayment starts because the loan period starts one year after their graduation date gives them time to find employment.

• Digital Application Process: Applicants, and their families benefit from an online application process which simplifies the application requirements.

Eligibility Criteria

To be eligible for the PNB Concessional Education Loan, applicants must meet the following criteria:

• Nationality: Indian nationals only.

• Disability Requirement: Any student who exhibits a minimum disability level of 40% can access this loan through a disability certificate, which must be issued by authorities empowered by relevant government statutes, notifications and central, state and union territory government orders.

• Educational Requirement: The loan can be applied for by students admitted to a full-time program at recognised institutions in India or abroad.

Documents Required

Applicants and co-applicants are required to submit the following documents to avail the PNB Concessional Education Loan:

• Proof of Identity: Aadhaar Card, PAN Card, Passport, or Voter ID.

• Proof of Residence: Utility bill, Voter ID, or Aadhaar Card.

• Disability Certificate: Issued by authorized medical authorities.

• Application Letter to the Institution: Proof of admission to the course.

• Fee Structure of the Institution: Detailed breakdown of course fees.

• Academic Mark Sheets: 10th, 12th, and recent mark sheets.

• Proof of Income of the Co-applicant: Salary slips, Income Tax Returns (ITR), or bank statements.

• Passport-size Photographs: Recent photographs of the applicant and co-applicant.

Most Important Terms and Conditions

• Interest Rate: The loan carries a fixed interest rate of 4% per annum.

• Moratorium Period: Repayment begins after the course duration plus one year.

• Interest During Moratorium: Simple interest is charged during the moratorium period. Thereafter, compounding interest will be charged.

• Prepayment Charges: There are no prepayment charges for early repayment of the loan.

• Tax Benefits: Interest paid on the education loan is eligible for tax deduction under Section 80E of the Income Tax Act.