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PNB Concessional Education Loan
The process of funding university studies proves difficult, mainly for students with disabilities. The Concessional Education Loan from Punjab National Bank provides financial assistance to students with disabilities to access affordable, quality education.
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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.
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Loan Amount
₹
- ₹10 K
- ₹1,00,000
- ₹5,00,000
- ₹10,00,000
- ₹50,00,000
- ₹1,00,00,000
- ₹2,00,00,000
- ₹4,00,00,000
- ₹6,00,00,000
- ₹8,00,00,000
- ₹10 Cr
Interest Rate
%
- 1%
- 2
- 3
- 4
- 6
- 7
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- 9
- 11
- 12
- 13
- 14
- 16
- 17
- 18
- 19
- 21
- 22
- 23
- 24
- 26
- 27
- 28
- 29
- 30%
Loan Tenure
Yrs
- 1 Yr
- 2
- 3
- 4
- 6
- 7
- 8
- 9
- 11
- 12
- 13
- 14
- 16
- 17
- 18
- 19
- 21
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- 24
- 26
- 27
- 28
- 30 Yrs
Total Interest
Principal Amount
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:
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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.
Key Features of PNB Concessional Education Loan
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No Collateral: The loan program operates without requiring any form of collateral thus making it available to students who have disabilities.
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Zero Processing Fees: The loan processing eliminates all fees which decreases the financial weight students must bear.
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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.
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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.
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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:
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Nationality: Indian nationals only.
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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.
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Educational Requirement: The loan can be applied for by students admitted to a full-time program at recognised institutions in India or abroad.
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Documents Required
Applicants and co-applicants are required to submit the following documents to avail the PNB Concessional Education Loan:
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Proof of Identity: Aadhaar Card, PAN Card, Passport, or Voter ID.
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Proof of Residence: Utility bill, Voter ID, or Aadhaar Card.
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Disability Certificate: Issued by authorized medical authorities.
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Application Letter to the Institution: Proof of admission to the course.
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Fee Structure of the Institution: Detailed breakdown of course fees.
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Academic Mark Sheets: 10th, 12th, and recent mark sheets.
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Proof of Income of the Co-applicant: Salary slips, Income Tax Returns (ITR), or bank statements.
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Passport-size Photographs: Recent photographs of the applicant and co-applicant.
Most Important Terms and Conditions
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Interest Rate: The loan carries a fixed interest rate of 4% per annum.
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Moratorium Period: Repayment begins after the course duration plus one year.
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Interest During Moratorium: Simple interest is charged during the moratorium period. Thereafter, compounding interest will be charged.
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Prepayment Charges: There are no prepayment charges for early repayment of the loan.
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Tax Benefits: Interest paid on the education loan is eligible for tax deduction under Section 80E of the Income Tax Act.
FAQs
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Who can apply for the PNB Concessional Education Loan?
Indian students with a disability of 40% or more, validated by a disability certificate issued by authorised authorities, admitted to full-time courses in recognised institutions within India or abroad, can apply. Additionally, they may benefit from a child education allowance, which can further support their educational expenses alongside the PNB Concessional Education Loan. -
Can I get a tax benefit on the interest paid?
Yes, under Section 80E of the Income Tax Act, interest paid on an education loan is eligible for a tax deduction. -
How do I calculate my EMI?
You can use an Income Tax Calculator to estimate your EMI and repayment amount. -
Can a student apply for the loan without a co-applicant?
No, a parent or guardian must be a co-applicant for the loan. -
When does the repayment period start?
Repayment starts after the moratorium period, which includes the course duration plus one year. -
Does the loan cover coaching and tuition fees?
The loan covers tuition fees for the course but does not cover external coaching or private tuition fees.
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˜The insurers/plans mentioned are arranged in order of highest to lowest first year premium (sum of individual single premium and individual non-single premium) offered by Policybazaar’s insurer partners offering life insurance investment plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in
*All savings are provided by the insurer as per the IRDAI approved insurance
plan.
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CARG 8%; ₹50,45,591 @ CAGR 4%
+Returns Since Inception of LIC Growth Fund
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.