Public sector Punjab National Bank (PNB) has reduced the interest rates on their education loan by 0.20 percent on Tuesday, giving great relief to the students. The bank said that it has cut the interest rates of education loan by 20 basis points under the Vidyalakshmi scheme. According to PTI news, PNB said in a statement that this initiative further strengthens the bank’s commitment to increase the accession of education. Let us tell you, Vidyalakshmi Yojana is designed to provide extensive financial assistance to students for quality-driven higher education.
The initial interest rate will be so much
According to the news, after this decision of the bank, this loan is available to the candidates who acquire admissions in 860 identified quality higher education institutions (QHEI) across India on merit basis. With the amendment after the new announcement, education will start from 7.5 percent on the basis of loan institutes.
PM Vidyalakshmi is a special loan product of education loan without any bail and no guarantee. This education loan will be available to those students who take admission in quality higher education institutions in India on the basis of their qualifications. Under this, requirement based finance is provided to meet expenses.
Which documents are necessary for education loan
- The student’s KYC details consisting of Aadhaar, PAN ID and address proof.
- Self attested copy of the marksheet of previous qualifications.
- Entrance exam results.
- Proposal letter from the institute with fee structure.
- Passport Size Photo.
- Banks/lenders can obtain suitable documentary evidence for pre -existing/existing loan, if any, if any.
- Evidence of family income from the nominated public authority of the state.
How much subsidy is available on the loan?
Parents/guardians will be joint borrowers for education loans under PNB’s Vidyalakshmi Yojana. According to the official website of the bank, if the annual income of parents or parents ranges from Rs 4.5 lakh to 8 lakhs, then 100 percent subsidy is available in interest for technical or commercial syllabus. 3 percent subsidy is available in interest for second syllabus. If the annual income ranges from Rs 4.5 lakh to Rs 8 lakh, then 3 percent subsidy is available in interest.
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