PGB UDAAN Education Loan is a scheme the Punjab Gramin Bank provides for students interested in pursuing higher studies abroad. Many students apply for this loan scheme due to the favourable interest rate and other features such as low processing fees, minimal documentation charges, and comprehensive coverage of expenses.
If you are an Indian resident and have secured admission to a recognised foreign university, then you can apply for an education loan under this scheme. In this blog, we’ll look at the major features of this scheme along with eligibility criteria and other such details. So, let’s get started!
Table of contents
Purpose & Major Features of PGB UDAAN Education Loan
As already stated, this loan scheme aims to provide education loans to students interested in studying abroad. Apart from providing an education loan, the bank also offers an insurance premium to student borrowers on a case-to-case basis.
The scheme offers need-based finance to students subject to margin requirements as per the bank’s guidelines. The rate of interest for this loan scheme starts from 11.25% p.a. and there are no prepayment penalties. The image below encapsulates some of the other features of this loan scheme.
Also Read: You must read our blog on Why Education Loan Insurance is a must-have for students
Who is Eligible to Apply for this loan scheme?
The eligibility criteria on the bank’s website mention that a student should be a resident Indian to be eligible for this scheme. Additionally, the student should have secured admission to a higher education course in a recognised institution abroad through an entrance test or merit-based selection process. The student should have completed his/her HSC (10 plus 2 or equivalent) to be eligible for this scheme.
Maximum Amount of Loan Sanctioned
The bank’s website mentions that the loan is provided on a need-based basis which is subject to loan margin requirements as per the guidelines of the bank. Students must contact a bank’s representative or visit its nearest branch to know the maximum amount of loan that they can get under the scheme. The bank also provides the option of reimbursement of fees paid by the students within six months of payment. However, the reimbursement is considered on individual merits of the case and you will have to reach out to the bank’s representative to understand the details as per your specific case.
Also Read: Check Out this Blog on How To Apply For a Vidya Lakshmi Education Loan Through the YONO App?
Collateral Requirements Under the Loan Scheme
Below are the collateral or security requirements with respect to the scheme-
- For Loans up to INR 7.50 Lakhs: For students taking loans up to INR 7.5 Lakhs, co-obligation of parents along with collateral security in the form of a third-party guarantee is required. However, in some cases, the third-party requirement can be waived depending on the net worth of the student’s parents who would be executing the documents as joint borrowers.
- For Loans Above INR 7.50 Lakhs: When a student takes a loan above INR 7.50 Lakhs, his or her parent(s) or guardian should be included as joint borrower(s). A tangible collateral security of suitable value acceptable to the bank is also required. You’ll have to ask the bank to know more about property accepted as collateral security for education loan.
Rate of Interest Under the PGB UDAAN Education Loan
It is crucial to know about education loan interest rates while applying for a loan. As per the bank’s official website, the rate of interest rate for this scheme starts from 11.25% p.a. However, this rate of interest is subject to change from time to time and you’ll have to contact the bank to know about the latest interest rate when you apply for the loan.
FAQs on PGB UDAAN Education Loan
The aim of the PGB UDAAN education loan is to provide loans to students who want to study abroad for higher education.
The interest rate for this loan scheme starts from 11.25% p.a. However, the bank’s website mentions that this interest rate is subject to change. A student should contact the bank to check the latest interest rates.
The bank’s website mentions that a resident Indian who has completed his HSC (10 plus 2 or equivalent) and has secured admission to a recognised foreign university is eligible to apply for this loan scheme.
The bank provides a need-based finance under this scheme. In a few cases, the bank also provides reimbursement of fees paid within six months of payment by the student.
The following are the expenses covered under this scheme-
– Examination fees, Laboratory and Library fees, Hostel fees
– Passage Money and Travel expenses
– Purchase of books, study materials, equipment, and uniforms
– Purchase of a computer at a reasonable cost if certified as essential for completion of the course
– Other expenses like Project Work, Study Tour & Thesis, which are required for the completion of the course.
This blog was all about the details regarding the PGB UDAAN education loan scheme to study abroad. To know more about such loan schemes, the best bank accounts for students, forex and banking experience for global students, or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
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