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Punjab & Sind bank provides education loan with no hidden costs, no administrative charges and with less paperwork. No security required for up to 4 lakhs. Pick your own EMI payment method and girl students get 0.50% concession. Apply now through CreditMantri!
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What Is an Education Loan?
An Education loan is the loan or funds acquired by an individual to pursue higher studies in India or abroad. The loan repayment commences for the student after completing the education and a period of 6 months is given as grace period to students to get or join a job.
The repayment amount will be determined by your choice of interest, you need to decide how you want to repay the loan. That is if you want to start paying during the time of moratorium period itself or after the moratorium period. The Moratorium period is the time of your education plus 6 months or 1 year given to get a job. It is only after this time that you are expected to pay the loan.
The loan interest starts to accrue at the time of dispersal of funds, so at the time of your graduation you have a huge amount to repay. The other option is your parents or guardian can start paying the loan during the moratorium period itself where it is calculated as a simple interest.
This way your loan amount at the time of graduation is drastically reduced.
There are 4 types of education loans in India
1. Under Graduate education loan - These are given to students who have completed their secondary education and looking to do higher studies in the form of under graduation. It can be done in India or abroad.
2. Post graduate education loan - These are education loans given to individuals who want to pursue post-graduation after completing under graduation course from a reputed university/college. Here also the loan can be for studying in India or abroad.
3. Parents availing education loan - This is the case where the parents take loan for the education purposes of their children. This is an unsecured loan and need not be for graduate or post-graduation courses but also for elementary and higher secondary courses.
4. Career growth education loans - These are loans provided to young people who want to pursue courses or trainings, certifications that will benefit their career growth.
Punjab & Sind Bank is a government-owned bank (79.62%), with headquarters in New Delhi. It operates with 1466 branches spread throughout India, out of which 623 branches are in Punjab state. Being one of the largest banks in India with its net profit at Rs. 121.35 crores and net NPA is 3.55% for the year ending 2014-15.
Education is one area where everybody is willing to spend a lot of money to live a prosperous life in the future. Being one of the major education loan providers, Punjab & Sind Bank understands the needs of the students and offers extremely competitive education loans at better interest rates. Every year, many students secure admissions in top universities and colleges in India and abroad with Punjab & Sind Bank education loans.
Following are some of the advantages of applying for an educational loan with Punjab & Sind Bank.
Objective: To provide term loan to Indian students for pursuing higher education in India and abroad where admission has been secured
Quantum of Loan: For studies in India, up to INR 10 Lakhs and for studies in abroad INR 20 Lakhs
Note: Higher quantum of loan may also be considered on course to course basis (eg: courses in IIMs, ISB etc.)
Up to Rs.4 lakhs: NO Security (Parents to be joint borrowers)
Above Rs.4 lakhs and up to Rs.7.5 lakhs
Course Period + 1 Year
Repayment of the loan will be in equated monthly instalments for a maximum period of 15 years for all categories.
No pre-payment penalty is to be levied for prepayment of loan any time after the commencement of repayment.
Studies in India:
Punjab & Sind Bank education loan can be repaid in following three ways.
Standing Instruction (SI): If you are an existing account holder with Punjab & Sind Bank, Standing Instruction is the best mode of repayment. Your EMI amount will be debited automatically at the end of the monthly cycle from the Punjab & Sind Bank account you specify.
Electronic Clearing Service (ECS): This mode can be used if you have a non-Punjab & Sind Bank account and would like your EMIs to be debited automatically at the end of the monthly cycle from this account.
Post-Dated Cheques (PDCs): You can submit post-dated EMI checks from a non-Punjab & Sind Bank account at your nearest Punjab & Sind Bank Loan Centre. A fresh set of PDCs will have to be submitted in a timely manner. Please note Post Dated Checks will be collected non-ECS locations only.
It is recommended that you opt for either the SI or ECS mode of payment for faster and less prone to error than the use of PDCs.
You can either apply online or visit a nearby Punjab & Sind Bank branch for the application. You can also download the education loan application form from the Punjab & Sind Bank official website, complete the form and submit it the bank representative.
You can also check your eligibility for an education loan through CreditMantri and apply for it.
1. What is the interest charged during moratorium period?
Only simple interest will be charged during the moratorium period. After the moratorium period the actual interest mentioned will be charged.
2. Can I take an education loan without a co-borrower?
No, a co-borrower is needed to take an education loan. The loan will be taken as a joint loan in collaboration with your parent/ guardian or spouse.
3. Is there a range on the rate of interest charged on Education Loan offered by Punjab & Sind Bank?
Yes, the interest rate ranges from 10.25 % - 13.25%. However, the it is subject to change at the sole discretion of the bank.
4. I am planning to study abroad. Am I eligible to apply for an Education Loan?
Yes, Punjab & Sind Bank offers up to INR 20 Lakhs for courses pursued abroad which also includes travel expenses and study tours.
5. Is there a processing fee for an education loan with Punjab & Sind Bank?
There are no processing fees for an education loan with Punjab & Sind Bank
6. Is there a way I can reduce the interest paid?
There is special subsidy provided according to Central Government subsidy for education loans. Punjab & Sind Bank also provides special interest rates for some premier institutions. The other option is your parent/ guardian or spouse can pay the loan amount during the moratorium period due to which the loan amount you need to repay is less.
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