Latest news with #VidyalaxmiScheme
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Business Standard
4 days ago
- Business
- Business Standard
PNB cuts education loan rates by 20 bps under PM Vidyalaxmi Scheme
PNB has cut interest rates on its Vidyalaxmi education loans by 20 basis points, bringing down rates from 7.7% to 7.5% New Delhi Punjab National Bank (PNB) on Tuesday lowered interest rates on education loans provided through its Vidyalaxmi Scheme by 20 basis points (bps), from 7.7% to 7.5%. "This will make higher education more accessible for Indian students," PNB said in a press release. What is the Vidyalaxmi Scheme? The Vidyalaxmi Scheme is a special education loan product available to Indian nationals, including non-resident Indians (NRIs) and overseas citizens of India (OCIs). It provides collateral-free and guarantor-free loans to students who have secured admission on merit to 860 Quality Higher Education Institutions (QHEIs) across India. PNB has divided these institutions into three groups: Group II (AA): 152 institutes Group III (A): 623 institutes Revised rates The bank's education loan offering is need-based and requires parents or guardians to be joint borrowers. The revised interest rates start at 7.5%, depending on the institute group. The margin remains nil for loans up to Rs 4 lakh for all categories, while for Group III institutions, a 5% margin applies for amounts above that. For students from families with annual incomes up to Rs 4.5 lakh, the scheme includes a 100% interest subvention for technical and professional courses under the PM-USP CSIS, while other courses receive a 3% subvention under PM-Vidyalaxmi. Families with incomes between Rs 4.5 lakh and Rs 8 lakh can access a 3% interest subvention for all courses under PM-Vidyalaxmi. Eligibility and documents To be eligible for this loan, students must be Indian nationals, including NRIs and OCIs. Required documents include: KYC details: Aadhaar, PAN ID and address proof Previous qualifying self-attested mark sheets Entrance exam results Offer letter from the institution and fee structure Passport-size photographs Details of previous or existing loans, if any Proof of family income from a designated public authority Repayment period Parents or guardians must join as co-borrowers. The future income of the student is to be assigned to the bank for loan repayment. The repayment period for these loans is 15 years, excluding the moratorium period, which covers the course duration plus one year.
Time of India
4 days ago
- Business
- Time of India
PNB boosts education access with reduced loan rates under Vidyalaxmi scheme
NEW DELHI: State-owned Punjab National Bank ( PNB ) on Tuesday said it has reduced interest rates on its education loan offering under the Vidyalaxmi Scheme by 20 basis points. This initiative further strengthens the bank's commitment to enhance education accessibility, PNB said in a statement. The Vidyalaxmi Scheme is designed to provide comprehensive financial support to students towards quality-driven higher education, it said. This initiative is available to candidates who secure admission on merit to 860 identified Quality Higher Education Institutions (QHEIs) across India, it said. With the revision, the education loan would start from 7.5 per cent depending on institutions, it said. PTI Ready to navigate global policies? Secure your overseas future. Get expert guidance now!
Mint
5 days ago
- Business
- Mint
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. • 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 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. 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. 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. For all personal finance updates, visit here
