Punjab National Bank, or the PNB education loans to study abroad and in India under different loan schemes. You can avail of financial assistance at competitive interest rates. The PNB education loan repayment plan offers flexible options to help borrowers manage their loan repayments effectively. A proper plan lets you make timely payments and maintain a good credit rating. Let’s explore major details of PNB loan repayment plans and help you make informed decisions-
Overview of PNB Education Loan Repayment
Education loan, or any other loan taken must be paid back along with interest payments. Punjab National Bank allows you to repay the education loan in Equated Monthly Installments (EMIs). The tenure is up to 15 years, excluding the moratorium period.
The moratorium period is the repayment period, during which interest payments are not made. This period is calculated as the sum of course duration and 12 months after course completion, or 6 months after the job, whichever is earlier.
- Usually, the repayment begins after the moratorium period. However, making interest payments during this period (also called the holiday period) reduces the overall burden of the PNB education loan repayment.
- If the interest is not served during the moratorium period, it gets added and EMIs are calculated on accrued interest and principal amount.
- You also have the option to make part payments or prepay the loan without penalties in many cases.
Also Read: If you have not yet filled out the loan form, understand all about the PNB loan form-filling process in this step-by-step guide.
PNB Education Loan Repayment In case of Top-Up Loan
When applying for a top-up education loan with Punjab National Bank (PNB), the repayment process is structured to accommodate your educational journey. The repayment of the entire education loan (initial loan + top-up loan) will begin after you complete your second course of study.
- Following the completion of the second course, there is an additional moratorium period provided under PNB’s scheme. This period usually includes:
- The duration of the course.
- An additional grace period, which can range from 6 months to 1 year, allows students time to secure employment before they start repaying the loan.
Also Read: Is your loan application stuck? Learn all about PNB loan track status and explore various ways to keep track of your loan application form.
How to Repay PNB Education Loan?
When it comes to repaying an education loan from Punjab National Bank, borrowers have several options designed to accommodate their financial situations. These include choosing to repay using Standing Instructions, Electronic Clearance Service, and Post-Dated Cheques. PNB pre-approved personal loans have a similar repayment plan.
Standing Instructions (SI)
If you hold an account with PNB, you can set up a Standing Instruction. This allows the bank to automatically debit the EMI (Equated Monthly Installment) from your specified PNB account at the end of each month.
- This method ensures timely payments without the need for manual intervention, reducing the risk of missed payments.
Electronic Clearance Service (ECS)
For borrowers who do not have a PNB account, the ECS option allows automatic debits from any other bank account. You need to provide your bank details to set this up.
- Like SI, ECS facilitates automatic payments and helps maintain a good credit score by ensuring that EMIs are paid on time.
Post-Dated Cheques (PDCs)
Borrowers can submit post-dated cheques for their EMIs if they prefer not to use SI or ECS. This method requires you to provide a fresh set of cheques periodically.
- While this method offers flexibility, it is less convenient than SI or ECS and may not be accepted at all locations.
This was all about the PNB education loan repayment plan. To know about education loans, the best bank accounts for students, and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
FAQs
An effective repayment plan for a PNB education loan involves starting payments during the moratorium period to reduce the principal amount. Choosing automatic deductions like Standing Instruction or ECS can also help ensure timely payments.
The repayment period varies based on the loan amount and loan scheme. For abroad education loans, the repayment tenure is up to 15 years, but for schemes like pNB Kaushal, it ranges from 3 to 7 years.
Repayment is calculated based on the principal amount, interest rate, and tenure. Monthly EMIs are determined using the reducing balance method, where interest accrues on the outstanding principal.
You can repay your PNB education loan through Standing Instructions (SI), Electronic Clearing Service (ECS), or by submitting post-dated cheques. Automatic deductions are recommended for convenience.
PNB does not impose prepayment penalties for foreclosing an education loan early.
