Embarking on a journey of overseas education can be both exhilarating and financially challenging. In recognition of the aspirations of ambitious students seeking global academic excellence, Punjab National Bank (PNB) introduces the Udaan Scheme – a beacon illuminating the path to realizing educational dreams. With a focus on making international education accessible, the PNB Udaan Scheme serves as a reliable guide, in navigating the intricacies of financing education abroad. This innovative scheme offers aspiring students the wings to soar, providing tailored financial solutions that pave the way for a successful academic journey on foreign shores.
In this article, we will cover the types of
education loan for abroad studies
provided by Punjab National Bank while focusing on the PNB Udaan Scheme.
Punjab National Bank (PNB) offers various types of overseas education loans, and these loans can generally be categorized into two main types: secured and unsecured. Here's an overview of both:
Secured Loans: Under schemes like PNB Udaan, PNB Saraswati, and PNB Scholar, tangible collateral, including fixed deposits, insurance policies, government securities, and immovable properties, is accepted to secure loans exceeding Rs. 7.50 lakhs. The collateral serves as a safeguard, ensuring the repayment of the borrowed amount and providing the bank with a means of recourse in the event of default. The realizable value of the collateral is mandated to cover 110% of the loan amount, offering a secure financial arrangement for both the bank and the borrower.
Unsecured Loans: While most of PNB's education loan schemes involve collateral, there may be certain provisions for loans up to a certain limit without the need for collateral. These loans are typically for smaller amounts, and eligibility criteria may vary based on the specific scheme.
Embarking on a journey of international education is a dream for many, and Punjab National Bank (PNB) endeavours to turn this dream into reality through its Udaan Overseas Education Loan Scheme. Designed to support students aspiring to study abroad, the scheme offers financial assistance with favourable terms and conditions.
No Income Criteria: There are no specific income criteria for applicants, making the scheme accessible to a wide range of students. This inclusivity aligns with PNB's commitment to promoting education as a means of empowerment.
Quantum of Finance: The loan amount is need-based, providing flexibility to cover the diverse financial requirements of students planning to study abroad. For amounts exceeding Rs. 7.50 lakh, collateral security is necessary, to ensure the safety of the foreign education loan . They can provide up to 1.5 Cr but can exceed as per student requirements.
Funding & Margin: For studies abroad exceeding Rs. 4 lakhs, a margin of 15% is applicable. This means that the student needs to contribute their share on each disbursement. The interest is applied on a monthly simple basis during the moratorium period, and penal interest is charged for overdue amounts for loans above Rs. 4 lakhs. A 1% interest concession is available if the borrower chooses to service the interest regularly during the moratorium period.
Rate of Interest: For loans above Rs. 7.50 lakhs, the Rate of Interest (ROI) is presently RLLR + 0.75, resulting in an effective ROI of 10.50%. A 2% penal interest is charged for overdue amounts for loans exceeding Rs. 4 lakhs. There is also a girl child concession of 0.50% as well as an ROI concession for the 50 top-ranked universities available.
Study Level & Courses: The scheme covers a wide array of courses and study levels abroad, including job-oriented professional/technical courses, post-graduation programs like MCA, MBA, MS, and degrees/diplomas in various fields recognized by regulatory bodies.
Tenure & Repayment: The loan tenure extends up to 15 years after the completion of the moratorium period. The repayment holiday or moratorium period includes the course duration plus one year. The accrued interest during the moratorium is added to the principal, and repayment is through Equated Monthly Instalments (EMI).
Disbursement: Funds for study expenses are remitted through various channels, including Forex authorized branches, SWIFT, remittance to institutes, or Foreign Travel Cards. Remittances are routed through the borrower's savings account, ensuring compliance with RBI's Liberalized Remittance Systems.
Security Acceptable: Various forms of collateral are acceptable, such as Fixed Deposit Receipts (FDR), insurance policies, government securities, and immovable properties like houses, flats, or commercial buildings.
Security Margin: The realizable value of immovable collaterals should cover 110% of the loan amount, and the property owner must join as a Co-Borrower/Guarantor.
Co-Borrower Accepted: PNB is the only bank that allows both immediate as well as non-family members to mortgage their property for the loan.
Scholarship: If the student has received a scholarship from the university that amount will be considered a margin (10-15%) from the student loan.
Upfront Fees & Processing Time: An upfront fee of 1.0% of the loan application is charged, refundable if the first disbursement is made within six months of sanction. The processing time for the loan is approximately 7-10 days.
In conclusion, PNB's Udaan Overseas Education Loan Scheme provides a comprehensive and supportive financial framework for students aspiring to pursue education abroad. With flexible terms, competitive interest rates, and an efficient processing system, PNB aims to facilitate the academic aspirations of the next generation.
This scheme covers top-ranked universities in many different countries from across the world. Here’s a list of some of them:
ETH Zurich, Switzerland
Johns Hopkins University, United States
Cornell University, United States
University of Hong Kong, Hong Kong
LMU Munich, Germany
University of Melbourne, Australia
London School of Economics and Political Science, UK
The University of Tokyo, Japan
Monash University, Australia
McGill University, Canada and many more.
We, at ELAN Overseas Education Loans will help make your loan process simple, guiding you through every step of the way. Along with providing free online counselling for study abroad loan , we will help you further understand the loan process and schemes you can acquire for your overseas education journey.