Objective
The Scheme aims at providing financial assistance to deserving students who have secured admission for pursuing/are pursuing regular courses in the Identified educational institutions.

Punjab National Bank is now offering concession in interest in education Loan Scheme. The concession in interest rates is available to new borrowers who will avail education loan from the bank w.e.f. 01.04.2007.

The bank has taken this step to make education loan scheme more customer friendly thus facilitating aspirant students to avail education loan on comfortable & affordable terms. Bank has reduced interest rates on education loan up toRs.4.00 lac under PNB Sarvottam Shiksha Scheme

Further, Interest is charged monthly on simple basis during the repayment holiday/moratorium period & concession of 1% in rate of interest is also allowed provided the same is serviced regularly during study period.

Punjab National Bank has tied up with Kotak Mahindra Insurance to provide life insurance cover for education loan borrowers

The insurance would cover study period as well as repayment period, he said, adding in case of any mishap, the insurance company would take care of the loan repayment rather than the aggrieved parents.

Eligibility
a) All types of professional/technical courses conducted by identified institutions as per list annexed

b) A student is eligible for loan provided he/she is an Indian National
Secured admission to Professional / Technical courses of one of the identified educational institutions      through Entrance Test / Selection process.
In case of education in the foreign University / Institution (for which HO approval is required for its      coverage under the Scheme), the student should have got necessary Passport / VISA formalities      completed.

c) Expenses considered for Loan
Fee payable to College / Institute / Hostel.
Examination / Library / Laboratory fee.
Purchase of books / equipments / instruments.
Boarding & Lodging expenses in Boarding Houses subject to production of Bills verified by the student      borrower.
Travel Expenses / Passage money for studies abroad.
Purchase of computers - essential for completion of the Course.
Any other expense required to complete the course - like study tours, project work, thesis, etc.

Quantum Of Finance
Need based finance, subject to repaying capacity of the parents / students, arranging margin and the following ceilings

Studies in India	Maximum Rs. 7.50 lacs
Studies abroad	Maximum Rs.15.00 lacs

Margin

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

Note:
Margin may be brought-in on year-to-year basis as and when disbursements are made on a pro-rata basis.

Security

Upto Rs. 4.00 lacs	No security
Above Rs.4 lacs & upto Rs.7.50 lacs	A suitable 3rd party guarantee, which can be waived if parents of the student has sufficient means
Above Rs 7.5 lacs	Collateral Security of Suitable value or suitable 3rd party guarantee

NOTE :
The documents should be got executed by both the student and the parent / guardian.
The security can be in the form of land / building / Govt. Securities / Public Sector Bonds / Units of UTI , NSC , KVP, LIC Policy, Gold, Shares / Debentures, Bank Deposit in the name of the student parent / guardian or any other third party with suitable Margin.

Wherever the land / building is already mortgaged, the unencumbered portion can be taken as security on II charge basis provided it covers the required Loan amount.

In case the loan is given for purchase of Computer, the same to be Hypothecated to the Bank.

Rate of interest

Upto Rs.4.00 lacs	BPLR –2.25%+0.50% term premia
Above Rs.4.00 lacs & upto Rs.15 lacs	BPLR + 0.5% term premia –0.75%

The interest to be debited monthly on simple basis during the Repayment holiday/ Moratorium period.
Penal interest @ 2% be charged for amounts above Rs.4 lacs for the overdue amount and overdue      period.
1% Interest concession for servicing of interest during the study period regularly is allowed at the time      of start of repayment period of loan.

Repayment
Repayment Holiday/ Moratorium
Course period + 6 months.
In case of medical students, course period will include internship and house job period, if any.

The loan is to be repaid in 5-7 years after commencement of repayment
The accrued interest during the repayment holiday period to be added to the principal and repayment in Equated Monthly Instalments (EMI) be fixed.

1% interest concession may be provided by Incumbents to loanee for servicing of interest during study period regularly, when repayment holiday is specified for interest / repayment under the Scheme.

Interest concession to student borrowers for servicing of interest during study period regularly is to be allowed to borrowers at the time of start of repayment period of the loan and the rate of interest/EMI be fixed accordingly.

Upfront & Processing Fee:
Nil

Documentation Charges
Rs.300/- for loan amount upto Rs.4.00 lacs
Rs.500 for loan amount over Rs.4.00 lac

Check List
To facilitate expeditious disposal of applications, a check-list regarding documents, security etc., alongwith application forms for Education Loans be provided to intending borrowers. An illustrative check-list is given below :
Loan application on Bank´s format.
Passport size photograph.
Proof of Address.
Proof of Age.
Proof of having secured pass marks in last qualifying examination.
Letter of admission in professional, technical or vocational courses.
Prospectus of the course wherein charges like Admission Fee, Examination Fee, Hostel Charges etc.      are mentioned.
Details of Assets & Liabilities of parents.
In case loan amount is above Rs.4.00 lacs :
     Particulars of Guarantors and details of their Assets & Liabilities, wherever applicable.
      If immovable property offered as Collateral Security - copy of Title Deed, Valuation Certificate and      Non-encumberance Certificate from approved Lawyer of the Bank.
Photocopy of Passport & Visa, in case of study abroad.
Any other document/information, depending upon the case and purpose of the loan

Updated as on 11.4.2007

LIST OF APPROVED EDUCATIONAL INSTITUTIONS COVERED UNDER "PNB SARVOTTAM SHIKSHA" SCHEME FOR REGULAR COURSES ONLY
S.No.	NAMES OF EDUCATIONAL INSTITUTIONS
1	All IITs
2	All IIMs
3	All Govt. Medical Colleges
4	Delhi College of Engineering
5	BITS Pilani
6	Anna University, Chennai
7	IISc, Bangalore
8	XLRI, Jamshedpur
9	Jamnalal Bajaj, Mumbai
10	FMS, Delhi
11	SP Jain, Mumbai
12	NITIE, Mumbai
13	MDI Gurgaon
14	XIM, Bhubaneswar
15	NMIMS, Mumbai
16	AFMC, Pune
17	JIPMER, Pondicherry
18	PGIMER, Chandigarh
19	Tata Institute of Social Sciences, Mumbai
20	National Institute of Design, Ahmedabad
21	IT BHU, Varanasi
22	Madras Medical College, Chennai
23	Kasturba Medical College, Manipal
24	King Edward Medical College, Mumbai
25	Bangalore Medical College, Bangalore
26	Grant Medical College, Mumbai
For B.TECH/B.E./Medical/Post Graduation (Professional/Technical courses)
27	National Institute of Fashion Technology (NIFT), Delhi
28	National Institute of Technology (NIT), Durgapur
29	Dhirubhai Ambani Institute of Information & Comm. Technology, Gandhinagar
30	Nirma University, Ahmedabad
31	Institute of Chartered Financial Analysts of India (ICFAI)
32	All Indian Institute of Foreign Trade (IIFT)
33	Birla Institute of Technology & Management, Mesra - Ranchi
34	TA Pai Institute, Manipal
35	IMT Ghaziabad
36	Somaiya Institute of Management Studies & Research, Mumbai
37	KJ Somaiya Medical College, Mumbai
38	Symbiosis Institute of Management, Senapati Bapat Road, Pune
39	Shri Vile Parle Kelavani Mandal's Narsee Monji Institute of Mgmt. Studies, Mumbai
40	Thapar Institute of Engg. & Technology, Patiala
41	Bharati Vidyapeeth Deemed Univerisity, Pune
42	Vellore Institute of Technology, Vellore
43	Indian School of Business, Hyderabad
44	Kalinga Institute of Industrial Technology- Deemed University, Bhubneshwar

Click here for applying for education loan online