Himachal Pradesh Gramin Bank Education Loan
Himachal Pradesh Gramin Bank is a regional rural bank sponsored by Punjab National Bank. It provides education loans to help the students in paying their education loans either in India or in other countries. This loan amount covers fees, books, hostel, and travel charges. The interest rates range from 11.00% p.a. to 13.00% p.a.
Students can apply for many types of courses like medical, engineering, management, or agriculture conducted by IIM, IIT, IISC, and so on. The bank also gives enough time to repay the loan after finishing the course. This loan helps students to continue their education without getting any money problems.
Purpose of Himachal Pradesh Gramin Bank Education Loan
The main purpose of the HPGB education loan is to cover all essential expenses related to the course, which include:
- Tuition and admission fees
- Hostel or accommodation charges
- Exam, library, and laboratory fees
- Cost of books, study materials, uniforms, and equipment
- Purchase of a computer or laptop (if needed in the course)
- Travel expenses for overseas studies
- Caution deposit, refundable fees, and other institutional charges (with proper receipts)
- Expenses for study tours, project work, research, or thesis
- Student insurance premium, if applicable
Documents Required
The following documents are needed to apply for an education loan at HPGB:
- Filled and signed application form with photos
- ID proof and address proof
- Income tax returns for the last two years with a CA certificate
- Bank statement/passbook of the last six months
- Guarantor form, admission letter, and fee details (optional)
- Academic certificates (optional)
- Course fee details (optional)
- Latest salary slips or Form 16 (in case of a salaried employee)
Types of Himachal Pradesh Gramin Bank Education Loan Schemes
Himachal Pradesh Gramin Bank offers two types of education loans, i.e., Education Loan Saraswati and Education Loan Pratibha:
A. Education Loan Schemes -Saraswati
The Saraswati Education Loan Scheme by Himachal Pradesh Gramin Bank is designed to help Indian students pursue higher education in India or abroad. To apply for this loan, the student must be an Indian national and should have secured admission to a recognized institution through an entrance exam or merit-based selection after completing the 12th grade. Also, if an admission is taken under the management quota, then it will not be covered in this loan.
1. Margin
Here is the margin requirement for the Saraswati Education Loan Scheme:
Loan Amount | Margin |
Up to Rs.4 Lakh | NIL |
Above Rs.4 Lakh | 5% (study in India)15% (study in abroad) |
Note: Scholarship/assistantship is included in the margin.
2. Security Requirements
Given below are the security requirements based on the loan amount:
Loan Amount | Security Details |
Up to Rs.4 lakh | Parent(s)/guardian to be joint borrower(s). No collateral security required. |
Above Rs.4 lakh to Rs.7.5 lakh | Parent(s)/guardian as joint borrower(s) + Suitable third-party guarantee. |
Above Rs.7.50 Lakh | Parent(s)/guardian as joint borrower(s) + Tangible collateral + Assignment of future income of the student. |
3. Repayment Terms
Repayment will begin after a holiday period, which includes the course duration plus one year, or 6 months after getting a job. The loan is paid back in monthly installments (EMIs), and interest during the study time can be paid every month or added to the loan amount.
- Loan up to Rs.7.5 lakh: Repayment period is up to 10 years.
- Loan above Rs.7.5 lakh: Repayment period is up to 15 years.
B. Education Loan Schemes -Pratibha
The Pratibha Education Loan Scheme is designed to support Indian national students who have secured admission in regular full-time degree or diploma courses at a premier institution in India. Moreover, the scheme does not require any collateral security, but the parents or guardians must join as co-borrowers to ensure financial responsibility.
1. Loan Amount
The loan amount is based on need and the repayment capacity of the borrower/parents. Given below are the maximum limits that are set according to the category of the institution:
Category of Institute | Maximum Loan Amount |
Top 10 Institutes (Annexure A) | Up to Rs.20 lakh |
71 Institutes (Annexure B) | Up to Rs.15 lakh |
81 Institutes (Annexure C) | Up to Rs.10 lakh |
2. Interest Rate & Repayment Terms
For loans up to Rs.20 Lakhs, the interest rate is determined by the bank based on the bank’s guidelines. Repayment options are available for both short-term and long-term durations, which are as mentioned below:
- For loans with a repayment period of three years or more
- For loans repayable in less than three years
Difference Between Pratibha and Saraswati Education Loan Schemes
Here is a quick comparison of both schemes:
Features | Saraswati Education Scheme | Pratibha Education Scheme |
Eligibility | All students with admission on merit | Students in premier institutions only |
Max Loan | Rs.10 lakh (India), Rs. 20 lakhs (Abroad) | Rs.10–20 lakh (India) |
Collateral | Required above Rs.7.5 lakh | No collateral needed |
Rate of Interest | 11% p.a. to 13% p.a. | 10% p.a. |
Processing Fee | 1% (refundable) | No processing fee |
Maximum Repayment Period | Up to 15 years | Up to 15 years |
FAQs on Himachal Pradesh Gramin Bank Education Loan
- What education loan schemes are offered by Himachal Pradesh Gramin Bank?
Himachal Pradesh Gramin Bank offers the Saraswati and Pratibha education loan schemes.
- What courses are covered under the education loan of Himachal Pradesh Gramin Bank?
It includes graduation, post-graduation, abroad studies, and professional courses like Engineering, Medical, Management, CA, and CFA. It also covers programs from institutions like IITs, IIMs, and IISc.
- Is there any margin required for applying Himachal Pradesh Gramin Bank Saraswati education loan?
Margin is not required for loans up to Rs.4 lakh. But, for the loans more than Rs.4 lakh, 5% for studies in India and 15% for studies in abroad is required.
- Who can apply for this Himachal Pradesh Gramin Bank education loan?
Any Indian student who has secured admission in a recognized full-time professional, technical, or academic course can apply.
- What are the document charges to apply for the Himachal Pradesh Gramin Bank education loan?
The documentation charges for loans up to Rs.4 lakh is Rs.270 and for the loans above Rs.4 lakh, the charges are Rs.450.
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