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  • Punjab and Sind Bank Education Loan

    Punjab and Sind Bank Education Loan
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    Overview:

    Founded in the year 1908, Punjab & Sind Bank (PSB) boasts of rich heritage. Currently, it is a very popular bank and has a widespread network across the nation.

    Acquiring education is essential for every individual. It shapes their personality and helps them attain success in all spheres of life. Punjab & Sind Bank helps the youth of our country to educate themselves by offering financial assistance in the form of Education Loan.

    Purpose of PSB Education Loan:

    PSB’s Education Loan gives an opportunity to students to pursue education/higher studies, by providing financial support at affordable rates of interest. The loan can be availed for various educational courses in India and abroad. To encourage students with varied interests, PSB’s Education Loan is also provided for vocational and skill development courses lasting between 2 months to 3 years.

    To attend to the increased financial needs of students studying abroad, PSB offers ‘Scheme for Additional Education Loan for Students Studying Abroad’.

    Features and Benefits:

    PSB Education Loan Course Eligibility:

    PSB offers financial assistance to students for three categories of courses – vocational education, studies in India and studies abroad. The features which make these courses eligible, to avail education loan from PSB, have been listed below.

    Vocational Education/Skill Development Courses:

    • Duration of the course should span from 2 months to 3 years.
    • The course needs to be supported or run by a ministry/government organization, an organisation supported by State Skill Mission/Corporation or National Skill Development Corporation.
    • The course should preferably bestow the student with a certificate or diploma degree.
    • State Level Bankers (SLBC) may add other skill development courses on the basis of good job prospects.

    Studies/Courses in India:

    • Courses leading to graduate/ post graduate degree and P.G diplomas.
    • The courses need to be conducted by colleges/universities recognised by UGC/ Govt. / AIBMS/ AICTE/ ICMR
    • Other courses like ICWA, CA, CFA, etc.
    • Courses conducted by management, design, and other institutes like IIM, IIT, IISc, XLRI, NIFT, NID, etc.
    • Courses like Aeronautical, pilot training, shipping, nursing or any other discipline. These courses should be approved by Director General of Civil Aviation/Shipping/Indian Nursing Council. It can also be approved by any other regulatory body.
    • Courses offered by reputed foreign universities, in India.
    • Other courses may also be considered on the basis of employability.

    Studies/Courses Abroad:

    • Undergrad professional/technical courses offered by reputed universities. These courses need to be job oriented
    • Post-graduation degrees like MCA, MBA, MS, etc.
    • Courses conducted by CPA in United States of America and CIMA in London.
    • Degree/diploma courses like aeronautical, pilot training, shipping, etc. The prerequisite being that these courses are recognised by competent regulatory bodies in India/abroad for the purpose of employment in India/abroad.

    Quantum of Loan Amount:

    The quantum of loan disbursed is classified on the place (India or abroad) and nature (regular or vocational) of the course. In case of vocational courses, the duration of the course is also a significant deciding factor. Please refer to the table below to get a detailed idea about the same.

    CATEGORY

    DURATION OF COURSE

    QUANTUM OF LOAN AMOUNT

    Vocational Education

    Up to 3 months

    Rs. 20,000

    Vocational Education

    3 to 6 months

    Rs. 50,000

    Vocational Education

    6 months to 1 year

    Rs. 75,000

    Vocational Education

    Above 1 year

    Rs. 1,50,000

    Studies in India

     

    Maximum up to Rs. 10 lakhs

    Studies abroad

     

    Maximum up to Rs. 20 lakhs

    PSB Education Loan Interest Rate:

    PSB offers Education Loans at affordable rates of interest for the convenience of students and parents. Female students are entitled to an additional concession of 0.50% on the existing interest rates. Borrowers are also entitled to an additional concession of 1% on account of service of interest during moratorium period. The aforementioned concessions are subject to the minimum base rate, as charged by the bank. The interest rate table below explains the rate of interests in detail.

    Higher studies in India and abroad:

    CATEGORY

    LOAN UP TO RS. 4 LAKHS - Rate of Interest

    LOAN FROM Rs. 4 LAKHS TO Rs. 7 LAKHS - Rate of Interest

    LOAN ABOVE Rs. 7.50 LAKHS - Rate of Interest

    General Public

    BR (10.25%) +3.00% = 13.25%

    BR (10.25%)+3.25% = 13.50%

    BR (10.25%)+2.50% = 12.75%

    Staff as Co-borrower

    BR (10.25%)+2.00% = 12.25%

    BR (10.25%)+2.25% = 12.50%

    BR (10.25%)+1.50% = 11.75%

    Concession in Interest (if collateral in addition to guarantee is given)

    No Concession

    0.50%

    No Concession

    For vocational courses the rate of interest charged is varies slightly for general public and if the co-borrower is a staff of PSB. The interest charged from general public is Base Rate (10.25%) + 3% = 13.25% while a PSB staff (as co-borrower) pays Base Rate (10.25%) + 2% = 12.25%.

    CATEGORY

    Rate of Interest (p.a.)

    General Public

    BR (10.25%) + 3.00% = 13.25%

    Staff as Co-Borrower

    BR (10.25%) + 2.00% = 12.25%

    Margin:

    • No margin is applicable on loan amount up to Rs. 4 lakhs.
    • 5% margin is applicable on loan amount above Rs. 4 lakhs, for studies in India.
    • 15% margin is applicable on loan amount above Rs. 4 lakhs, for studies abroad.

    Processing Fees:

    No processing fee is charged on loans availed for vocational education or for students pursuing higher education in India and abroad. However, for students studying, a refundable security of Rs. 2000 (in lieu of processing fee) is to be kept as reserve in the savings account.

    Repayment Tenure:

    The repayment tenure depends on the amount of loan availed, the nature of the course and place of study. It is explained in the table below.

    Vocational Courses:

    Loan Amount

    Repayment Tenure

    Up to Rs. 50,000

    Up to 2 years

    Rs. 50,000 - Rs. 1 lakh

    2 - 5 years

    Above Rs. 1 lakh

    3-7 years

    Studies in India and abroad:

    Loan Amount

    Repayment Tenure

    Up to Rs. 7.5 lakhs

    Up to 10 years

    Above Rs. 7.5 Lakhs

    Up to 15 years

    Security:

    No security is required in case of vocational education and skill development courses. Parent(s) need to be joint borrower(s) while availing the loan.

    In case of Higher Education in India & abroad -

    For Loan amount up to Rs. 4 lakhs-

    • No security required. Parents need to be joint borrower(s).

    For loan amount above Rs. 4 lakhs and up to Rs. 7.5 lakhs-

    • Parent(s) to be joint borrower(s).
    • Collateral security is required in the form of suitable third party guarantee.

    For Loan amount above Rs.7.5 lakhs -

    • Parent(s) to be joint borrower(s).
    • Tangible collateral security of suitable value is required, along with the assignment of future income of the student.

    Scheme for Additional Education Loan for Students Studying Abroad:

    • PSB offers this scheme to attend to the increased financial needs of students studying abroad.
    • An existing Education Loan borrower pursuing higher studies abroad is eligible to avail this loan scheme.
    • The quantum of loan is Rs. 10 lakhs and is subject to the existing repaying capacity of the borrower/co-borrower.
    • The margin is 15% towards additional cost of study.
    • The rate of interest applicable depends on the slab in which the total education loan falls. Total loan = Existing sanctioned education loan + Fresh loan against property.
    • None of the concessions (except staff), as mentioned in the Education loan policy shall be applicable for this loan. Please visit the nearest branch for to attain more clarity on the interest rates.
    • Guarantee of property is a must in case of this loan.
    • The repayment tenure is up to 5 years and it commences one month after complete disbursement/payment of final semester fee, whichever is earlier.

    Punjab & Sind Bank Education Loan FAQs:

    1. Are female students and staff members eligible for a concession on PSB’s Education Loan?
    2. Yes, female students are entitled to an additional concession of 0.50% and members of staff (when co-borrowers) on the existing interest rates. All borrowers are also entitled to an additional concession of 1% on account of service of interest during moratorium period.
    3. Is a prepayment penalty levied on PSB’s Education Loan?
    4. No prepayment penalty is levied for prepayment of loan, any time after the commencement of repayment.
    5. Does PSB provide any loan scheme for students studying abroad?
    6. Yes, apart from a regular Education Loan, PSB provides ‘Scheme for Additional Education Loan for Students Studying Abroad’. This loan scheme meets out the increased financial needs for students studying abroad.
    7. Does the ‘Scheme for Additional Education Loan for Students Studying Abroad’ have any prepayment charges?
    8. No, there are no prepayment charges levied on this one.
    9. What is the processing fee if PSB’s Education Loan is availed for vocational courses?
    10. No processing fee is charged for vocational courses.
    11. How can I apply for PSB Education Loan online?
    12. You can apply for PSB Education Loan online by downloading the application form from the bank’s website and submitting it online after filling it up duly.
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