PNB cuts interest rates on education loan by 20 bps under the Vidyalaxmi Scheme

Punjab National Bank (PNB) has reduced interest rates on its education loan offering under the Vidyalaxmi Scheme by 20 bps. This initiative further strengthens the bank’s commitment to enhance education accessibility.

The Vidyalaxmi Scheme is meant to offer comprehensive financial support i.e., education loan to students towards quality-driven higher education. This initiative is available to candidates who secure admission on merit to 860 identified Quality Higher Education Institutions (QHEIs) across India.

Key features of the scheme

• Eligibility: It is applicable to Indian nationals which also includes NRIs, and OCIs who are pursuing their undergraduation/post-graduation degree or diploma courses in QHEIs.

• Quantum of finance: They have a need-based financing.

• Margin: For AAA and AA Institutes there is no requirement of margin and for other Institutes, there is no margin requirement up to Rs. 4 lakh whereas it is 5 percent for amounts above ₹4 lakh.

• Revised interest rate: The interest rate is institute-specific, and it starts from 7.50 per cent.

• Security: There is no collateral required; however, the rules require parents and guardians to be joint borrowers

Subsidy benefits

Additionally, there are subsidy benefits which are offered. When the annual income is upto ₹4.5 lakh, there is 100 percent interest subvention for technical & professional courses, whereas for other courses, there is 3 percent interest subvention.

On the other hand, when the annual income is between ₹4.5 lakh to ₹8 lakh, there is 3 percent interest subvention (PM-Vidyalaxmi) for technical/professional courses and 3 percent subvention for other courses.

Documents required

these are the documents required for education loan:

A. KYC Details (student): These include Aadhaar, PAN ID and Address Proof.

B. Previous Qualifying self-attested copy of mark sheets.

C. Entrance Exam Result

D. Offer letter from institution along with fee structure.

E. Passport-size photographs

F. Previous / existing loan from banks/lenders, banks may obtain suitable documentary evidence.

G. Proof of family Income from designated public authority of the state.

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