Education and Career Forum

Respected sir, I am willing to apply for an education loan of rupees 5 lakh at Punjab National Bank. What will be the interest rate and repayment period for it?

To be eligible to get an education loan from Punjab National Bank, you should have secured admission to a higher education course in a recognised institute. The interest rate for an education loan less than Rs. 7.50 lakhs is MCLR plus 2.00%. The repayment period of Punjab National Bank education loan is maximum 15 years and the repayment holiday is course period plus one year.

The rate of interest fluctuates from time to time. This is because it is regulated by the Reserve Bank of India and is dependent on the economic conditions along with the norms of the central government. Usually the rate of interest fluctuates in the range of 12.5 - 14℅ . However, the interest is computed as simple interest for the entire study period. The repayment period is 15 years , however, bank expects you to repay it by seven years.

Now rate of interest in housing loan, car loan etc is reduced but what about the interest rate of education loan particularly in PNB?