Education Loan – FAQs

Q.Which banks are offering education loan to MR Students?

Ans. Most of the Nationalized Banks are offering education loans. However, there is Punjab National Bank branch at Manav Rachna campus

PNB representative Mr Pankaj Kumar- 7709285268 can help you with the queries of Education loan.

Q. What are the eligibility criteria for Education Loan?

Ans. ELIGIBILITY

a) Student should be an Indian National.

b) Should have secured admission from Our university i.e. cleared all eligibility criteria

Q. Would my entire fee be funded by the bank?

– Upto Rs 4 lacs

– Entire fee shall be funded by the bank

– Above 4 lacs -5% margin shall be required to be brought in by the student/guardian

*Scholarship/ assistantship may be considered in margin.

*Margin may be brought-in on year-to-year basis as and when disbursements are made on a pro-rata basis

Q.I am staying in city other than Delhi/NCR (e.g Lucknow), will I be given loan from Faridabad.

Ans. You shall be provided loan from the branch in your city.  PNB representative Mr Pankaj Kumar- 7709285268 shall help with the relevant branches

Q.What is the maximum amount I can avail?

Ans. For studies in India: Rs. 7.50 lacs

If the amount exceeds Rs. 7.5 lacs, then following security shall be required

Security Upto Rs.4.00 lacs: Parent(s)/guardian be made joint borrower (s).

No Security

Above Rs 4.00 lacs and Upto Rs 7.5 lacs:

Besides the parent(s)/guardian executing the documents as joint borrower(s), collateral security in the form of suitable third party guarantee will be taken

Above Rs 7.5 lacs:

Parent(s)/guardian be joint borrower(s).Tangible collateral security of suitable value acceptable to bank along with the assignment of future income of the student for payment of installments

*The security can be in the form of land / building / Govt. Securities / Public Sector Bonds / Units of UTI, NSC, KVP, LIC Policy, Gold, Shares/ Mutual Funds/ Debentures, Bank Deposit in the name of the student parent / guardian or any other third party or any other tangible security acceptable to the bank with suitable Margin.

NOTE :

The document should be executed by the student and the parent / guardian.

Q.Whether Re-imbursement of fees is permitted in Education Loan scheme?

Ans. Yes, reimbursement of fees paid by the student/ guardian at the time of admission or subsequent stages is permissible within six months from the date of payment of fees on individual merits of the case.

Q. In whose name the loan would be granted

Ans. Loan would be granted in Student’s name

Q.What is the rate of interest?

Ans. Interest cost varies from bank to bank depending up on the amount and repayment period. for further details on the Rate of interest respective bank’s representative may be contacted

Q.What is the method of application of interest in the loan?

Ans. The interest shall be charged at simple rate from the date of disbursement till the commencement of repayment of loan. Thereafter, compound interest is charged on reducing balance

Q.When does the repayment of loan commence?

Ans.Repayment will commence after Course period + 1 year OR 1 month after getting job, whichever is earlier.

Q.What is the Maximum Repayment Period?

Ans. Upto 180 months (15 years){PNB}

Repayment holiday/Moratorium:

Ans. Course period + 1 year or 1  month after getting job, whichever is earlier.

Q. is there any penalty in case of prepayment of loan?

No prepayment penalty is levied for prepayment of loan.

Q.Which are the Expenses considered for Loan?

Ans. Institute’s Term Fee & Hostel Fee are covered

Other Benefits

Interest on daily reducing Balance

* Concession of 1% ROI if interest serviced during moratorium period and thereafter installments are paid regularly.

* Interest concession of 0.50% for women beneficiaries for outstanding upto Rs 10 lacs & 0.25% for outstanding above Rs .10 lacs