Priya, from a modest background in rural Bihar fortunately secured admission to a prestigious engineering college in Delhi, a dream she’s nurtured since her childhood. Her family, while immensely proud, can barely afford the college fees, let alone the living expenses in a metropolitan city. That’s when PNB education loan seems like the perfect solution to help her pave out ways to a brighter future. However, Priya’s initial excitement quickly turns into anxiety as she faces the difficult task of gathering the necessary documents related to her education loan. Her father, a small-time farmer, struggles to provide consistent income proof, and the family’s land ownership papers are entangled in a complex bureaucratic process.
Her story is not unique. There are thousands of students across India who face similar difficulties when they apply for an education loan. Due to improper documentation at times the loan approval process gets delayed or the application gets rejected. Such instances often make the loan application process overwhelming for the students who are applying it for the first time.
Understanding these requirements is not merely a formality but very crucial if you want to make your dream attainable. PNB education loan application process is very simple and requires lesser though important documents. So, whether you’re a student planning your academic journey or a parent supporting your child’s dreams, the below guide will equip you with the knowledge you need to confidently navigate the PNB Bank education loan documentation process.
Education Loan and Documentation Problems
PNB education loans are one of the most convenient ways to finance education, but they also come with their fair share of difficulties, especially when it comes to gathering all the necessary documents to apply for student loans. Here are some of the common issues an applicant might face during the education loan application process:
- Incomplete or Missing Documents: Student loan application process requires a lot of documentation, and missing even one document can lead to rejection or delay of the loan application. Hence, it is advisable to create a checklist of all the important documents and ensure that all the documents are handy before a student applies for an education loan.
- Incorrect or Inconsistent Information: Providing inaccurate information in the education loan application form or any sort of discrepancies between documents can raise red flags for the lender. Thus, be meticulous while filling an education loan application form and make sure that all information is correct and consistent in the provided documents.
- Difficulty in Obtaining Certain Documents: At times, it can be challenging to obtain certain documents, such as income proof for self-employed individuals or legal documents for property which can be produced as collateral. So it is important to be prepared for such kinds of documents. Find alternative documents that can be submitted in lieu of the other documents.
- Digital Documentation Challenges: In this era of digitalisation, banks now prefer taking documents digitally, which can be challenging for those who are not tech-savvy or do not have access to the necessary technology. So it is better to be prepared with such scenarios. Students can take help to get their documents digitized to save time.
Documents Required for ICICI Bank Education Loan
Students who are applying for PNB bank education loan are required to submit the following documents:
- PNB education loan application form
- Age proof such as Aadhaar card, Birth certificate, Driving license, etc.
- Copy of PAN card
- Academic transcripts such as degrees and certificates of the last qualifying examination
- Admission letter
- Prospectus of the course wherein charges like Admission Fee, Examination Fee, Hostel Charges etc. are mentioned
- Any other document/information, depending upon the case and purpose of the loan
- Photocopy of passport and visa for studies abroad
- Collateral related documents
Note: Aadhaar card is mandatory for students where applicable, as per the Supreme Court’s decision.
Also Read: Canara Bank Education Loan – Benefits, Interest Rates and Scheme Details
PNB Bank Education Loan Documentation Charges
PNB education loan documentation charges are fees that lenders charge for processing and preparing the necessary paperwork for your student loan. These charges may vary significantly depending on the lender, the loan amount, the type of loan, and whether you’re studying in an institution in India or abroad. Below table enlists the documentation charges applicable on a student loan offered by the PNB bank based on various loan schemes:
Loan Type | Processing Fees | Documentation Charges |
For Studies in India | NIL | NIL |
For Studies abroad | 1% Minimum ₹10,000 (Refundable after 1st Disbursement) | 1% Minimum ₹10,000 (Refundable after 1st Disbursement) |
PNB Pravasi Shiksha Loan | 1% of the loan amount, Minimum ₹10,000 (Non-refundable) | 1% of the loan amount, Minimum ₹10,000 (Non-refundable) |
PNB Kaushal | NIL | NIL |
For Studies in India | NIL | NIL |
PNB Pravasi Shiksha Loan | ₹450 | ₹450 |
PNB Kaushal | NIL | NIL |
PNB Education Loan Application Process
PNB education loan application process involves several steps just to ensure that all the details and documents provided are accurate. Firstly, the applicant is required to check the eligibility based on nationality, academic qualifications, and age. Then, choose the appropriate loan scheme e.g., PNB Saraswati for India, PNB Udaan for abroad that suits your financial need. Collect all the necessary documents like academic records, admission letters, income proof, and identity proofs, etc. handy to avoid last minute hassle.
Now, the students can apply for an education loan either online or offline. For PNB education loan online application, students can simply visit the official website of Punjab National Bank, navigate to the education loan section, select the loan scheme and simply click on the ‘Apply online’ button. Follow the steps and submit the application form. On the other hand, for offline PNB education loan application, students can download the application form from the official website and submit it at the nearest PNB branch along with all the documents required for an education loan.
The bank will process the application and verify documents post submission. Upon approval, applicants will receive a sanction letter. Go through the letter and sign the loan agreement. The funds will be disbursed to the respective bank account. In case of big loan amounts, a co-applicant, and collateral might be required.
Also Read: Top Bank Loans for Education Funding in India
Frequently Asked Questions (FAQs)
What documents are required to apply for a PNB education loan?
Along with the education loan application form, applicants are required to submit the university acceptance letter, Class 10/12 marksheets & certificates, graduation marksheet, Aadhaar card, salary slips, ITR filings for the last three years as income proof, and other required documents. For the detailed list, kindly refer to the article above.
What is the PNB education loan interest rate?
PNB education loan interest rates range from 9.25% to 10.75% under the PNB Udaan study abroad scheme.
What is the processing time for PNB education loans?
Punjab National Bank generally takes 7–10 days to process a PNB education loan. An upfront processing fee of 1% is charged.
What is the maximum loan amount I can get from PNB education loan to study abroad?
Punjab National Bank provides need-based financing for students who are willing to pursue study abroad. Students with excellent academic backgrounds and good credit history may be eligible for higher loan amounts at competitive interest rates under PNB education loan schemes.