Chapter 1

introduction

1
INTRODUCTION to Education loan

Education loans can augment the boundaries of what you can

achieve

Education never ends – it is not said without reason. We are educated all our lives

and getting an education not only is a great achievement but something that gives

you the tools to find your own way in the world. Education is indispensable; little

do we realize how much more it can bring to us in terms of worldly amplifications.

Anyone can have propensity and the natural endowment for education. But one

might not have the resources to finance their education. You certainly can’t let lack

of resources impede you from advancing your prospects through education. Then

you accidentally stumble upon the word ‘education loans’. Loans for education –

you have never thought about it as a feasible arrangement. Education loans can

open newer panoramas in regard to your education aspirations.

Education loans are open to all people in all its myriad forms. Education loans can

realize your education plans or the education plans of your children. You can

strengthen you own future and the future of your son or daughter with education

2
loans. An extensive range of student and parent loans are presented under the

category of education loans. There are many types of education loans. Discerning

about the types of education loans will help you in making the accurate decision.

The single largest resource of education loans is federal loan. The two main federal

education loan programs are the Federal Family Education Loan Program and the

Federal Direct Loan Program. In the Federal Family Education Loan Program the

bank, credit union or the school is the lender. While the federal direct loans

program, the department of education is the lender.

Private education loans are offered to people so that they can provide financial

backup to their education plans. Private education loans are not endorsed by other

government agencies but are provided by other financial institutions. Private

education loans program are optimum for both undergraduate and graduate studies.

Formal education is requisite for future success. Though this is not a hard and fast

rule, but education certainly helps you in gaining an upper hand. With universities

getting expensive by each day an education loan will certainly give you an

incentive to go ahead with your education plans. Each year while contemplating on

your education plans the thought of finances almost invariably comes in. While

working towards you degree, you are constantly plagued about paying for the

education fees, books, and other living expenses. Education loans can provide

funding for tuition fees, board and room, books computer, and even student travel.
3
An education loan can help you with all these expenses. Education loans are

sufficient enough to take care of all these expenses. If you have been forced to

drop your education for any reason, you can still take up your education at any

point of time. Irrespective of your age and also where you have left your education.

There are no specific eligibility criteria for education loans. Any person who is in

need of sponsorship for education can find an education loan that befits his or her

financial necessity. Loan amount on education loans vary with the kind of

education you want to pursue. The repayment options with education loans will

similarly accommodate your personal financial preferences. You can either repay

interest amount while still in school or six months after graduation. Education

loans offer up to ten years for repayments. The refund alternatives on education

loans also include deferment, forbearance and consolidation. The various sites on

education loans can give you innumerable repayment options and monetary

remuneration.

Education loans will help you in planning your life after graduation. However, an

education loan like every loan is a huge financial obligation. An education loans is

generally the first substantial loan for most people and therefore the first major

expense. Do not be completely dependent on your education loans for the funding

of your complete education. Try to apply for any other financial sustenance like

university grants, scholarships, fellowships, work study programs and assistance

4
ship and any other form of aid. This will certainly encourage a fluid dispensation

of your education loans. You can start by going to the financial aid office in your

school or university. It will provide you further insight to the kind of education

loans, you must apply for.

Education is an experience of life. It is so rewarding in itself that it helps you to

manage almost everything in your life. Education loans discipline your impulse

towards education and training into a fruitful contrivance. The payoff is delicious

in terms of improved quality of life. Education is expensive! Is it? With education

loans it can’t be. Now, you don’t have to take the road in front of you. Make your

own road with education loans.

5
 INTRODUCTION OF HDFC AND PNB BANK

HDFC COMPANY PROFILE

INTRODUCTION

HDFC Bank (NYSE: HDB), one amongst the firsts of the new generation, tech-savvy
commercial banks of India, was incorporated in August 1994, after the Reserve Bank of India
allowed setting up of banks in the private sector. The Bank was promoted by the Housing
Development Finance corporation Limited, a premier housing finance company (set up in 1977)
of India.

HISTORY

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to
receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the
private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. The
bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered
office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank
in January 1995.

BRANCH NETWORK

Currently HDFC Bank has 1416 branches, 3382 ATMs, in 550 cities in India, and all branches of
the bank are linked on an online real-time basis. The bank offers many innovative products &
service s to individuals, corporate, trusts, governments partnerships, financial institutions, mutual
funds, insurance companies.

It is a path breaker in the Indian banking sector. In 2007 HDFC Bank acquired Centurion Bank
of Punjab taking its total branches to more than 1,000. Though, the official license was given to

6
Centurion Bank of Punjab branches, to continue working as HDFC Bank branches, on May 23,
2008.

BUSINESS FOCUS

HDFC Bank's mission is to be a World-Class Indian Bank. The Bank's aim is to build sound
customer franchises across distinct businesses so as to be the preferred provider of banking
service s in the segments that the bank operates in and to achieve healthy growth in profitability,
consistent with the bank's risk appetite. The bank is committed to maintain the highest level of
ethical standards, professional integrity and regulatory compliance. HDFC Bank's business
philosophy is based on four core values: Operational Excellence, Customer Focus, Product
Leadership and People.

BUSINESS PROFILE

HDFC Bank caters to a wide range of banking services covering commercial and investment
banking on the wholesale side and transactional/branch banking on the retail side. The bank has
three key business areas:

• Wholesale Banking Services : The Bank's target market is primarily large, blue chip
manufacturing companies in the Indian corporate sector and to a lesser extent, emerging
midsized corporate. For these corporate, the Bank provides a wide range of commercial and
transactional banking services, including working capital finance, trade services, transactional
services, cash management, etc. The bank is also a leading provider of structured solutions that
combine cash' management services with vendor and distributor finance for facilitating superior
supply chain management for its corporate customers.

• Retail Banking Services: The objective of the Retail Bank is to provide its target market
customers a full range of financial products and banking services, giving the customer a one stop
window for all his/her banking requirements. The products are backed by world-class service and
delivered to the customers through the growing branch network, as well as through alternative
delivery channels like ATMs, Phone Banking, Net Banking and Mobile Banking.

7
Treasury Operations: Within this business, the bank has three main product areas-Foreign
Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities With
the liberalization of the financial markets in India, corporate need more sophisticated risk
management information, advice and product structures, These and fine pricing on various
treasury products are provided through the bank's Treasury team. To comply with statutory
reserve requirements, the bank is required to hold 25% of its deposits in government securities.
The Treasury business is responsible for managing the returns and market risk on this investment
portfolio.

HDFC BANK SERVICES

NET BANKING: Net Banking is HDFC Bank's Internet Banking service. Providing up-to-the-
second account information, Net Banking lets you manage your account from the comfort of
your mouse - anytime, anywhere.

HDFC Bank Net Banking Secure Access. HDFC Bank has implemented a new security solution
for its customers - Secure Access .As your security is our top priority, we have initiated the
Secure Access solution to protect you from fraudsters and hackers - who are looking to find
away to access your account. Currently following transactions are covered under Secure Access

• Transfer from one HDFC Bank account to other HDFC Bank account holders (under distinct
customer ID)

• Transfer from HDFC Bank account to any other Bank's account (also known as RTGS &
NEFT)

• Visa Money Transfer

• Third Party Demand Draft through Net Banking.

Third Party Transfer-Third-Party Transfer is a Net Banking feature for which you will need your
unique Customer ID and IPIN (password). Login to Net Banking to confirm that your ID is
active in our records.

What is TPT?

8
With Third-Party Transfer (TPT) you can transfer funds online from your HDFC Bank account
to another HDFC Bank/Other Bank account (beneficiary), anywhere in India. This is a real-time
transaction and the debit and credit will reflect in the respective accounts immediately.

Third Party Transfer can be initiated:

• From your Account to other Bank Accounts using

• National electronic Funds Transfer (NEFT) - Funds will be credited to the beneficiary account
in two working days

• Real Time Gross Settlement (RTGS) - Funds will be credited to the beneficiary account on the
same working day.

• From your HDFC Bank account to other HDFC Bank accounts (different cut sides).

• From your account to any Visa Card (Debit or Credit) within India.

• For issuance of Third Party Demand Drafts from your account. You c an transfer up to a
maximum of Rs. 10, 00,000/- per cuts id per day using this facility. This amount can be
transferred in parts or on a single basis.

INSTA IPIN FACILITY

It has be en our constant endeavor to make banking a hassle-free experience for you. At HDFC
Bank, we understand that it is quite possible to forget even important things like your Net
Banking password (IPIN). But that should not be holding you back from accessing your bank
account. You can now re-generate your Net Banking password instantly with the help of your
Debit Card details and start using your ne w password (IPIN) immediately. No need to request
for a new password and await its arrival. And it is even better as you select your new HDFC
Bank password yourself so it become s much easier to remember the same .

9
 PNB BANK PROFILE

INTRODUCTION

PNB Bank is India's second-largest bank with total assets of Rs. 3,562.28 billion (US$ 7 billion)
at December 31, 2009 and profit after tax Rs. 30.19 billion (US$ 648.8 million) for the nine
months ended December 31, 2009. The Bank has a network of 1,723 branches and about 4,883
ATMs in India and presence in 18 countries. PNB Bank offers a wide range of banking products
and financial services to corporate and retail customers through a variety of delivery channels
and through its specialized subsidiaries and affiliates in the areas of investment banking, life and
non-life insurance, venture capital and asset management. The Bank currently has subsidiaries in
the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong
Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in
United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our
UK subsidiary ha s established branches in Belgium and Germany. PNB Bank's equity shares are
listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited
and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange
(NYSE).

The Bank is expanding in overseas markets and has the largest international balance sheet among
Indian banks. PNB Bank now has wholly owned subsidiaries, branches and representatives
offices in 19 countries, including an offshore unit in Mumbai. This includes wholly owned
subsidiaries in Canada, Russia and the UK (the subsidiary through which the Hi save savings
brand is operated), offshore banking units in Bahrain and Singapore, an advisory branch in
Dubai, branches in Belgium, Hong Kong and Sri Lanka, and representative offices in
Bangladesh, China, Malaysia, Indonesia, South Africa, Thailand, the United Arab Emirates and
USA. Overseas, the Bank is targeting the NRI (Non-Resident Indian) population in particular.

10
PNB reported a 1.15% rise in net profit to 1,014.21 crore on a 1.29% increase in total income to
9,712.31 crore in Q2 September 2008 over Q2 September 2007. The bank's CASA ratio
increased to 30% in 2008 from 25% in 2007.

PNB Bank is one of the Big Four Banks of India, along with State Bank of India, Punjab
National Bank Bank of India and Canara Bank — its main competitors.

HISTORY

PNB Bank was originally promoted in 1994 by PNB Limited, an Indian financial institution, and
was its wholly-owned subsidiary. PNB's shareholding in PNB Bank was reduced to 46% through
a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed
on the NYSE in fiscal 2000, PNB Bank's acquisition of Bank of Madura Limited in an all-stock
amalgamation in fiscal 2001, and secondary market sales by PNB to institutional investors in
fiscal 2001 and fiscal 2002. PNB was formed in 1955 at the initiative of the World Bank, the
Government of India and representatives of Indian industry. The principal objective was to create
a development financial institution for providing medium-term and long-term project financing
to Indian businesses.

In 1954, The Industrial Credit and Investment Corporation of India Limited (PNB) was
incorporated at the initiative of World Bank, the Government of India and representatives of
Indian industry, with the objective of creating a development financial institution for providing
medium-term and long-term project financing to Indian businesses. In 1994, PNB established
Banking Corporation as a banking subsidiary. Formerly known as Industrial Credit and
Investment Corporation of India, PNB Banking Corporation was later renamed as 'PNB Bank
Limited'. PNB founded a separate legal entity, PNB Bank, to undertake normal banking
operations - taking deposits, credit cards, car loans etc. In 2001, PNB acquired Bank of Madura
(est. 1943). Bank of Madura was a Chettiar bank, and had acquired Chettinad Mercantile Bank
(est. 1933) and Illanji Bank (established 1904) in the 1960s. In 2002, The Boards of Directors of
PNB and PNB Bank approved the reverse merger of PNB, PNB Personal Financial Services
Limited and PNB Capital Services Limited, into PNB Bank. After receiving all necessary
regulatory approvals, PNB integrated the group's financing and banking operations, both
wholesale and retail, into a single entity. At the same time, PNB started its international
expansion by opening representative offices in New York and London. In India, PNB Bank

11
bought the Shimla and Darjeeling branches that Standard Chartered Bank had inherited when it
acquired Grindlays Bank.

In 2003, PNB opened subsidiaries in Canada and the United Kingdom (UK), and in the UK it
established an alliance with Lloyds TSB. It also opened an Offshore Banking Unit (OBU) in
Singapore and representative offices in Dubai and Shanghai. In 2004, PNB opened a
representative office in Bangladesh to tap the extensive trade between that country, India and
South Africa. In 2005, PNB acquired Investitsion no-Kreditny Bank (IKB), a Russia bank with
about US$4mn in assets, head office in Balabanovo in the Kaluga region, and with a branch in
Moscow. PNB renamed the bank PNB Bank Eurasia. Also, PNB established a branch in Dubai
International Financial Centre and in Hong Kong. In 2006, PNB Bank UK opened a branch in
Antwerp, in Belgium. PNB opened representative offices in Bangkok, Jakarta, and Kuala
Lumpur. In 2007, PNB amalgamated Sangli Bank, which was headquartered in Sangli, in
Maharashtra State, and which had 158 branches in Maharashtra and another 31 in Karnataka
State. Sangli Bank had been founded in 1916 and was particularly strong in rural areas. With
respect to the international sphere, PNB also received permission from the government of Qatar
to open a branch in Doha. Also, PNB Bank Eurasia opened a second branch, this time in St.
Petersburg. In 2008, The US Federal Reserve permitted PNB to convert its representative office
in New York into a branch. PNB also established a branch in Frankfurt. In 2009, PNB made
huge changes in its organization like elimination of loss making department and retrenching
outsourced staff or renegotiate their charges in consequent to the recession. In addition to this,
PNB adopted a massive approach aims for cost control and cost cutting. In consequent of it,
compensation to staff was not increased and no bonus declared for 2008-09.

On 23 May PNB Bank announced that it would merge with Bank of Rajasthan through a share-
swap in a non-cash deal that values the Bank of Rajasthan at about 3,000 crore. PNB announced
that the merger expand PNB Bank's branch network by 25%.

On 18h October 2010, PNB will inaugurate I-Express, an instant cross-border money transfer
option for Non-Resident Indians (NRIs). This service will be available through the PNB Bank's
select partners in the Gulf Cooperation Council.

In the 1990s, PNB transformed its business from a development financial institution offering
only project finance to a diversified financial services group offering a wide variety of products

12
and services, both directly and through a number of subsidiaries and affiliates like PNB Bank. In
1999, PNB become the first Indian company and the first bank or financial institution from non-
Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of the emerging
competitive scenario in the Indian banking industry, and the move towards universal banking,
the managements of PNB and PNB Bank formed the view that the merger of PNB with PNB
Bank would be the optimal strategic alternative for both entities, and would create the optimal
legal structure for the PNB group's universal banking strategy. The merger would enhance value
for PNB shareholders through the merged entity's access to low-cost deposits, greater
opportunities for earning fee-based income and the ability to participate in the payments system
and provide transaction-banking services. The merger would enhance value for PNB Bank
shareholders through a large capital base and scale of operations, seamless access to PNB's
strong corporate relationships built up over five decades, entry into new business segments,
higher market share in various business segments, particularly fee-based services, and access to
the vast talent pool of PNB and its subsidiaries.

In October 2001, the Boards of Directors of PNB and PNB Bank approved the merger of PNB
and two of its wholly-owned retail finance subsidiaries, PNB Personal Financial Services
Limited and PNB Capital Services Limited, with PNB Bank. The merger was approved by
shareholders of PNB and PNB Bank in January 2002, by the High Court of Gujarat at
Ahmadabad in March 2002, and by the High Court of PNB Bank has formulated a Code of
Business Conduct and Ethics for its directors and employees.

13
14
 INTRODUCTION
PNB EDUCATION LOAN
How Many Education Loan Schemes Are There ?
There are 3 Education Loan Schemes namely:
PNB Saraswati: Regular Scheme for pursuing Higher studies in India & Abroad.
PNB Pratibha: Collateral free Education loans at lower ROI to those students getting admission
in of 103 premier institutions in India, as identified by Bank.
What Is The Objective Of Bank`S Education Loan Schemes ?
PNB Saraswati -The Education Loan Scheme PNB Saraswati aims at providing financial
support to meritorious students for pursuing higher education in India and abroad.
PNB Kaamgar- The Education Loan Scheme PNB Kaamgar aims at providing financial support
from the banking system to those who have the minimum educational qualification, as required
by the institution / organization running the course eligible under the scheme.
What Are The Eligibility Criteria For Education Loan ?
Student should be Indian national.
PNB Saraswati Student should haves obtained admission in eligible course through merit based
selection process. Where the admission is purely based on marks scored in qualifying
examinations, cut off percentage of marks is fixed:
 50% for SC/ST, and;
 60% for General category.
Loan also available to students getting admission under Management Quota to meritorious
student who has qualified for a seat under merit quota and chooses to pursue a course under
Management Quota.
PNB Kaamgar Student should have secured admission in a course run or supported by a Ministry
/ Deptt./ Organization of the Govt. or a company / society / organization supported by National
Skill Development Corporation or State Skill Missions / State Skill Corporations, preferably
leading to a certificate / diploma / degree, etc. issued by a Govt. organization or an organization
recognized / authorized by the Govt. to do so.

15
What Is The Minimum Age For Getting Education Loan ?
There is no specific restriction with regard to the age of the student to be eligible for education
loan.
What Are The Courses Covered For Education Loan ?
Education loan under PNB Saraswati is available for all Approved courses leading to Graduate/
Post Graduate degree and PG Diplomas conducted by recognized colleges/ universities
recognized by UGC/ Govt. / AICTE/ AIBMS/ICMR etc.
Loan is also available for part time courses and job oriented courses subject to employability and
earning potential.
Education Loans For Study Abroad Is Also Available For Job Oriented
Professional/Technical Courses Offered By Reputed Universities. ?
For Loans repayable up to 3 years:
PNB Kaamgar - Vocational / Skill development courses
What Are The Expenses Considered For Education Loan ?
Finance is provided to meet all type of expenses which are necessary for completion of course
and also include purchase of books, equipments, computer, travelling, study tours, boarding,
lodging besides all types of fees.
How Much Loan Amount One Is Eligible Under Education Loan ?
PNB Saraswati Need Based Finance to meet the expenses), subject to the following ceilings:
Studies in India - Max. Rs.10 lac
Studies abroad - Max. Rs.20 lac
However, Circle Heads and above have full discretion for sanctioning higher quantum of loan
keeping in view the merits of the case.
PNB Kaamgar
For Courses Of Duration:

upto 3 months Rs.20,000/-

above 3 to 6 months Rs 50,000/-

above 6 months to 1 year Rs 75,000/-

above 1 year Rs 1,50,000/-

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 What Are The Margin And Security Norms For Education Loan Schemes ?
Margin : Up to Rs. 4 Lacs –Nil
Above Rs. 4 Lacs– 5% (India), 15% (abroad)
Security : Up to Rs. 4 Lacs – Nil
Above Rs. 4 Lacs-7.50 Lacs-Personal guarantee
Above Rs. 7.50 Lacs – collateral security
(NIL under PNB Pratibha)
How Interest Is Charged On Education Loans And Are There Any Concessions To
Students ?
 Interest charged on simple basis during the moratorium
 Concession of 1% ROI if interest serviced during moratorium period and thereafter
installments are paid regularly.
 Interest concession of 0.50% for women beneficiaries
 Concession of 50 bps in ROI to students getting score of 80 & above under PNB Score.
What Is The Repayment Period Under PNB Saraswati ?
For loans up to Rs 7.50 lacs: up to 10 years
For loans above Rs 7.50 lacs: up to 15 years.
What Is The Repayment Period Under PNB Kamgaar ?
For courses up to 1 year - In 2 to 5 years
For courses above 1 year - In 3 to 7 years
Are There Any Processing Charges One Has To Pay For Availing Education Loan ?
For studies in India, there is NIL processing fee, however, documentation charges of Rs.270/- for
loans up to Rs. 4 lac and Rs.450/- above Rs.4.00 lac - exclusive of GST are charged.
For Studies abroad: Upfront fee @ 1% with a minimum of Rs.10,000/- which is refundable on
availment of the loan.
Is There Penalty For Pre Payment Of Loan ?
No prepayment penalty is levied.

17
 Whether, Student Can Get Second Loan After Completion Of First Course For Other
Course ?
Second loan (Top up loans) to students for pursuing further studies can be considered on merits,
within the overall eligibility limit taking into account genuineness, accessibility, future repaying
capacity of the student borrower, recovery of loan and subject to security.
In Case Of Top Up Loan From Date My Repayment Will Commence ?
The repayment of loan will commence after completion of the second course and further
moratorium period as provided under the scheme.
Whether Re-Imbursement Of Fees Is Permitted In Education Loan Scheme ?
Yes, reimbursement of fees paid by the student/ guardian at the time of admission or subsequent
stages is permissible within six months from the date of payment of fees on individual merits of
the case.
Whether Loan Account Can Be Transferred From One Branch/ Place To Other Branch/
Place ?
Yes, to facilitate hassle free deposit of repayment dues, and to have proper monitoring.
Is Insurance Cover For Education Loans Students Mandatory? Also Is There Any
Compulsion Of Getting Cover From A Particular Company ?
No, it is optional and is on voluntary basis. Student can get himself/ herself insured from the
company of choice and assign the policy in the Bank`s name.
However, Bank has made arrangement with MetLife to provide the insurance at competitive rate
and easy terms and conditions.
What Are The Documents Required For Education Loan ?
 A. Loan application on Bank`s format.
 Passport size photograph.
 Proof of Address.
 Proof of Age.
 Copy of PAN of student Borrower.
 Proof of having cleared last qualifying examination.
 Letter of admission.
 Prospectus of the course wherein charges like Admission Fee, Examination Fee, Hostel
Charges etc. are mentioned.

18
 Details of Assets & Liabilities of parents/co-obligants/guarantors.
 In case loan is to be collaterally secured by mortgage of IP, copy of Title Deed, Valuation
Certificate and Non-encumbrance Certificate from approved Lawyer of the Bank be obtained at
the cost of the borrower.
 Photocopy of Passport & Visa in case of study abroad.
 Any other document/information, depending upon the case and purpose of the loan.
What If Student Do Not Have PAN ?
If PAN is not available at the time of sanction, the same can be submitted within one year of
disbursement of loan.
Is Loan Available To Student From Any Branch Of PNB ?
In normal course loan is sanctioned by the branch/Retail asset Branch nearest to the place of
residence of the parents of the student. However, for sanctioning and disbursement at a branch
other than the said branch/Retail Asset Branch, suitable powers have been vested by the Bank to
its Circle Head who can consider the same on the merits of individual case, keeping in view the
genuineness, accessibility and aspect of recovery of loan.

`PNB PRATIBHA`– Education Loan For Premier Institutes In India

The Scheme `PNB PRATIBHA` aims at providing financial support to

Objective meritorious students who get admission in Premier Institutes in India. (List
of Institutions Click Here)

Purpose  Fee payable to college/ school/ hostel.

 Examination/ Library/ Laboratory fee.
 Life Insurance premium for student borrower, if applicable.
 Caution deposit, Building fund/refundable deposit supported by
Institution bills/receipts.
 Purchase of books/ equipments/ instruments/ uniforms.
 Purchase of computer, at reasonable cost, if required for
completion of the course.
 Any other expense required to complete the course - like study

19
 tours, project work, thesis, etc.

 Should be an Indian national.

 Should have secured admission in Regular full time Degree /
Diploma courses offered by Premier Institutes, which include (i) Business
Schools, (ii) Engineering Colleges, (iii) Medical Colleges and other
reputed Institutes as per Annexure `I` & `II`
Eligibility
 Part-time Post Graduate Programmes in Management for
Executives’, offered by Indian Institute of Management (IIM) at all
centers.
 Post Graduate Programme in Management for Senior Executives
(PGPMAX), offered by Indian School of Business (ISB) Hyderabad &
Mohali campus

 Need based Finance subject to repaying capacity of the parents/

Quantum Of students (after getting employment);
Finance  Reimbursement of fees paid within six months may be considered
on individual merits of the case.

i. In case of institutes covered at Annexure-I : - NIL

ii. In case of Institutes covered at Annexure-II :
 Up to Rs. 4 lac - NIL
 Above Rs. 4 lac - 5%
Margin iii. Scholarship/Assistantship be included in margin
iv. Margin may be brought-in on year-to-year basis as and when
disbursements are made on a pro-rata basis.
 Annexure-I - NIL
 Annexure-II - 5%

Security Co-obligation of parents/guardian as joint co-borrowers.

Repayment
maximum upto 15 years
(Maximum)

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 Repayment
Holiday/ Course period + 1 year
Moratorium

Prepayment
Nil
Charges

Rate Of Interest Click Here

Processing
Charges/ Upfront Click Here
Fee

Documentation
Click Here
Charges

Above are only salient features of the scheme. For details please contact nearest branch

PNB Udaan

Education Loan Scheme For Students Pursuing Higher Education AbroadObjectiveTo provide
financial support to meritorious students for pursuing higher education abroad.

Students Who Secure Admission In COURSES As Under

 Graduation: For job oriented professional/technical courses offered by reputed
universities.
 Post graduation: MCA, MBA, MS, etc.
 Courses conducted by CIMA- London, CPA in USA etc.
 Degree/Diploma courses like aeronautical, pilot training, shipping etc. provided these are
recognized by competent regulatory bodies in abroad for the purpose of employment in abroad.
 List of Premier Foreign Universities and Educational Institutes Click Here

Education loan to students for pursuing Diploma & Certificate courses other than aeronautical,

21
 pilot training, shipping etc from abroad, may be considered, where the loan is backed by liquid
security valuing 125% of loan amount in the shape of FDRs/ NSCs/ surrender value of Life
Insurance Policies along with establishing the financial credentials of family members (either
joint borrower or guarantor) subject to the condition that the said course(s) is recognized/
accredited one.Purpose

 Fee payable to college/ school/ hostel.

 Examination/ Library/ Laboratory fee.
 Travel expenses/ passage money for studies abroad.
 Life Insurance premium for student borrower, if applicable.
 Caution deposit, Building fund/refundable deposit supported by Institution bills/ receipts.
 Purchase of books/ equipments/ instruments/ uniforms.
 Purchase of computer at reasonable cost, if required for completion of the course.
 Any other expense required to complete the course - like study tours, project work, thesis,
etc.
Eligibility

 Should be an Indian national.

 Should have secured admission to a higher education course in recognized institutions
Abroad through Entrance Test/ Merit Based Selection process after completion of HSC(10 plus 2
or Equivalent).
Quantum Of Finance

 Need based Finance subject to repaying capacity of the parents/students with margin.
 Reimbursement of fees paid within six months may be considered on individual merits of
the case.
Margin

 Up to Rs. 4 lac - NIL

 Above Rs. 4 lac - 15%
 Scholarship/ assistantship be included in margin.

22
 Margin may be brought-in on year-to-year basis as and when disbursements are made on
a pro-rata basis.
Security

 UptoRs. 7.50 lacs: Parent(s)/guardian be made joint borrower (s). No tangible

Security and /or 3rd party guarantee is required.
 Above Rs.7.50 lacs: Parent(s)/guardian be joint borrower(s).Tangible collateral
security of suitable value acceptable to bank.
Repayment

 maximum upto 15 years

Repayment Holiday/Moratorium
Course period + 1 yearPrepaymentChargesNil
Rate OfInterestClickHereProcessing Charges/ Upfront
FeeClickHereDocumentationChargesClick Here

Education Loan Scheme - `PNB Kaushal`

Education Loan Scheme For Pursuing Vocational Education & Training

The Scheme PNB Kaushal aims at providing financial support forpursuing

Objective skill development courses.

Students who secure admission in: Skill development courses of no
minimum course duration;

Tuition/ course fee.

Examination/ Library/ Laboratory fee.

Purpose Caution deposit.

Purchase of books, equipments and instruments.
Any other reasonable expenditure found necessary for completion of
thecourse.

Eligibility Should be an Indian national.

23
 Student should have secured admission in a course run by
IndustrialTraining Institutes (ITIs), Polytechnics or in a school
recognizedby central or State education Boards or in a college affiliated
torecognized university, training partners affiliated to National
SkillDevelopment Corporation (NSDC)/Sector Skill Councils, State
SkillMission, State Skill Corporation, preferably leading to a certificate
/diploma / degree issued by such organization as per National
SkillQualification Framework (NSQF).

Need Based finance to meet expenses on course subject to the

Quantum Of followingceilings:
Finance Minimum Rs.5000/-
Maximum Rs 1,50,000/-

Margin NIL

Parent(s)/guardian as joint borrower.No collateral or third party guarantee

Security
is required.

Repayment For Loans upto ? 50,000 - Upto 3 years.

(Maximum) For Loans between ? 50,000 to ? 1 lakh - Upto 5 years

For Loans above ? 1 lakh - Upto 7 years

Repayment For courses of duration upto 1 year - 6 months from the completion ofthe

Holiday/ course.

Moratorium For courses of duration above 1 year - 12 months from the completion
ofthe courses.

Prepayment
NIL
Charges

Rate Of Interest Click Here

Processing Click Here

Charges/ Upfront

24
 Fee

Documentation
Click Here
Charges

Above are only salient features of the scheme. For details please contact nearest branch

`PNB HONHAAR` Education Loan Scheme

`PNB HONHAAR` Education Loan Scheme For Pursuing Higher Education And Skill
Development Courses In Delhi

The Scheme aims at providing financial support for pursuing higher

Objective
education in Delhi

 Fee payable to college/ school/ hostel

 Examination/ Library/ Laboratory fee
 Insurance premium for student borrower
 Caution deposit, Building fund / refundable deposit supported by
Institution bills/receipts
 Purchase of books/ equipment / instruments / uniforms
 Purchase of computer at reasonable cost, if required for
Purpose
completion of the course
 Any other expense required to complete the course - like study
tours, project work, thesis, etc
 While computing the loan required, scholarships, fee waiver etc.,
if any available to the student borrower may be taken into account.
 If the scholarship component is included in the loan assessment,
it may be ensured that the scholarship amount gets credited to the loan
account when received from the Government.

Eligibility  Should be an Indian national.

25
  Students who wish to pursue diploma or degree or Specified skill
development courses in Delhi and have done their Class-X and Class –
XII from Delhi are eligible under this Scheme
 The student should have secured admission to a higher education
course or specified Skill development courses (diploma or degree
including bachelors, Masters and Doctoral Degree) in recognized
institutions in Delhi through Entrance Test/ Merit Based Selection
process after completion of Secondary Examination/ Senior Secondary
Examination/ required qualifying examination.

Quantum Of Need Based finance to meet expenses on course subject to Max Rs 10.00
Finance lacs

Margin NIL

Parent(s)/guardian as joint borrower.No tangible Security and /or 3rd

Security
party guarantee is required.

Repayment
Max 15 years
(Maximum)

Repayment
Holiday/ Course period + 1 year
Moratorium

Prepayment
NIL
Charges

Rate Of Interest Click Here

Processing
Charges/ Upfront Click Here
Fee

26
 Documentation
Click Here
Charges

Above are only salient features of the scheme. For details please contact nearest branch

27
 HDFC BANK

1. HDFC Bank Educational Loan

Education has emerged as the cornerstone of human society and as the demand for education in
order to gain a competitive advantage has increased, so has the cost of education both within
India and overseas. With the view of providing today’s and future generations with the means of
pursuing higher studies so that they can achieve their dreams, HDFC Bank has introduced its
range of educational loans. HDFC Education Loan aims to satisfy the requirements of every type
of young individual who desires to pursue further studies.

2. Types of Educational Loans offered by HDFC Bank

HDFC bank offers 3 types of Educational Loans to suit the varying requirements of students who
avail the education loan. The following are 3 major types of HDFC bank student education
loans currently on offer:

a. Education Loan for Indian EducationFeatures:

o The loan process is very fast with respect to sanction/disbursal. The documentation
process is simple and the bank also provides for doorstep services for a hassle-free
experience.
o You need not worry about hidden education loan charges and the procedure is completely
transparent. The charges are all mentioned in detail at the time of loan sanction.
o Loans up to Rs. 7.5 lakhs may be obtained without any collateral or security
requirements.
o For higher amounts not exceeding Rs. 10 lakhs, collateral is required to be secured
against the loan. The bank approved list of collaterals include property (residential),
HDFC Bank Fixed Deposits, Life Insurance Policy, National savings Certificates,
KisanVikasPatra to name a few.

28
 o Repayment period of HDFC education loan does not exceed 15 years after moratorium
period completion. During the moratorium period or repayment holiday, no EMIs need to
be paid by the borrower. The scheduled EMI payments are started subsequently.
o Education Loan’s interest component is tax exempt under Section 80E of India’s Income
Tax Act.
o Once sanctioned, the bank disburses the loan directly to the Educational Institution
according the fee structure that was submitted. The scheme thus focuses on the
borrower’s further studies.
o Along with the loan, the bank also provides additional services like a Savings Account.
o The student can also opt for insuring themselves under the product Credit Protect which
is offered by HDFC Life Insurance because you are a customer of HDFC Bank.
o If the university or institute in which the student secures admission is among the top-rated
universities or institutes, the bank allows preferential rates for such students availing the
loan.
o Loan repayment is supported through ECS as per standing instructions provided to the
borrower’s bank/by direct account debit/by post-dated cheques.
o A bank acceptable co-applicant is required while availing a loan for full-time courses.
o An HDFC Bank loan for vocational education and training provides financial support to
those who have minimum educational qualification.
o The HDFC Bank vocational education and training loan decides on financing the students
based on their employability and ability to repay the loan after they have completed the
course, among others.

 Eligibility

Education loan eligibility is almost same across all the banks. The following people are eligible
to apply for an HDFC bank Education Loan for Indian Education:

o The borrower needs to be an Indian resident in the age group of 16 years to 35 years
o Collateral requirement would depend on the loan amount requested.
o In case of full-time courses, a bank acceptable co-applicant is required.

29
 o Documentation

When applying for education loan, you should submit all the educational documents. These
following documents are required to be submitted for availing the Education Loan:

Category Applicant (Student)

Admission Letter from institute with Fee
Academic break-down along with SSC, HSC,
Graduation Mark sheets.

KYC Documents Age, Signature, Identity and Residence Proof

Salaried

Last 2 months’ salary slips showing joining

date

Last 6 months’ bank statements of Salary

Account
Income Documents
Last 2 years’ ITR with income computation

Last 2 years’ P/L Account and Balance Sheet

Last 6 months’ bank statements

Proof of Qualification
Completely filled Application Form
Others
Self-attested photograph
Post Sanction Documents
Completed loan agreement signed by
Loan agreement
applicant as well as co-applicant

ECS/PDCs or SI mandate
Repayment Instructions

30
 For ECS & SI modes of repayment, 3 Post
Dated Cheques are required
Stamp Duty as applicable
Additional Documents for further disbursements:

 Subsequent Disbursement Request Letter from applicant and co-applicant

 Fee Demand Letter
 Progress Report of applicant from the previous Semester
 In case of Repayment Instruction revision – 3 security post datedcheques
required plus ECS instruction for revision

 List of charges

Fee Education Loan

Loan Processing Charge
Pre-payment Charges
NOC/ No Dues Certificate
Duplicate  “No Dues” Certificate or NOC
Solvency Certificate
Late EMI payment charges
Charges for Cheque Swapping
Duplicate Repayment Schedule Charges
Loan Rebooking or Rescheduling Charges Up to Rs.1000
EMI Return Charges
Maximum up to 1% of the loan amount as
applicable
Up to 4% of outstanding balance prepaid in
case of loan foreclosure or part-prepayment
during the moratorium period. No charges
will be applied if loan is part prepaid or
foreclosed post moratorium period
NIL
NIL
NA
24% per annum on outstanding amount from
the default date onwards
Rs. 500 each time
Rs.200
Rs.550 each instance

31
Legal / Incidental Charges As per Actuals
Loan Cancellation Charges NIL/Stamp Duty is retained

a. Education Loan for Foreign Education

Education loans are issued in association with Credila which is India’s first dedicated Education
Loans Company. Loans are offered for students pursuing studies abroad.

o Loans are delivered to the student’s doorstep and they can find their eligibility before
applying to universities.
o Interest paid on education loan is exempt from tax under Section 80E of the Income Tax
Act.
o Loans with amounts of 20 lakhs and higher value are also available with the bank.
o The loan processing and sanctioning process is one of the quickest and the bb
o documentation involved is simple and convenient
o The collateral terms are flexible so that the borrowers can avail up to 100% of the tuition
fee as loan without any margin money requirements
o The bank allows loan sanctions even before admission is granted so that the financial
aspect of the studies can be planned in advance preventing last minute hassles.
o  A professional course study in India from a reputed institution is more expensive as
compared to others.  HDFC Bank education loan granted form Credila covers tuition
fees, living expense, cost of books, laptop, travel, etc.
o Co-borrowers who are from different cities are also accepted thereby breaking down
geographical barriers in loan application
o The bank also gives vocational education loans and vocational training loans to the
students based on eligibility of the candidate and courses. The loan application form for
this type of loan is also similar to other loan facilitated by the bank.
o If the university or institute in which the student secures admission is among the top-rated
universities or institutes, the bank allows preferential rates for such students availing the
loan.

32
 o A co-applicant is required for full-time courses where the primary co-applicants can be
parents, spouse or siblings and secondary co-applicants can be father-in-law, mother-in-
law, brother-in-law, paternal/maternal uncle/aunt.
o HDFC Bank student education loan is a pioneer in enabling students to have financial
assistance so that they can make better choices with the educational institutions they want
to study in.
o Eligibility Criteria

The applicant must meet the following eligibility criteria to successfully avail an Education
Loan:

o He or she must be an Indian Resident residing in India.

o The age of the applicant should be between 16-35 years
o Collateral security may be required and co-applicant is also required for full-time
courses.
 Documentation

Category Applicant (Student)

Institute Admission Letter with Fee break-up.
Academic USA Applicant I-20 Form and UK applicant
CAS Letter
SSC, HSC, Graduation Mark sheets and also
mark sheets of entrance exams like
GRE/GMAT/TOEFL/IELTS
KYC (Know Your Customer) Age Proof

Signature Proof

Identity Proof

Residence Proof

Signature verification – student /co-applicant

33
 like PAN Card, Aadhar Card, Passport,
Credila’s completed Signature Authentication
Form authenticated by bank or 10th / 12th or
equivalent mark sheet with signature for
student below 21 years
Income Documents Salaried
Latest 3 Salary Slips showing date of joining
details
Last 6 months’ bank statements of the Salary
Account
Latest 1 year’s Form 16 from the employer
with 1 year ITR
Last 2 years’ ITR with computation of
Income
Last 2 years’ audited Balance Sheet and P/L
Account

Last 8 months’ bank statements

Proof of Turnover (latest sales/Service Tax

Returns)
Proof of Qualification for self-employed
Professionals
Others Completed Application Form
Latest photograph (signed across any
document establishing relationship between
student and co-applicant viz. ration card,
marriage certificate, birth certificate, etc.
Post Sanction Documents
Completed Loan Agreement signed by
Loan agreement
applicant and co-applicant

34
Repayment Instructions ECS

7 security PDCs in case of ECS

Stamp Duty as per applicable laws

Documents for subsequent disbursements
Subsequent Disbursement Request Letter from applicant and co-applicant
University Fee Demand Letter
Applicant’s Academic Progress Report
Revised Repayment Instructions for ECS mode with 8 security cheques

 List of charges

Fee Education Loan

Not over 1.5% of education loan amount
Charges for Loan Processing
sanctioned
Pre-payment Charges Zero
NOC/ No Dues Certificate Zero
Duplicate of No Dues Certificate / NOC Zero
Certificate of Solvency NA
2% additional every month on the unpaid
EMI late payment penalty
EMI amount.
Credit Assessment Charges NA
Non -standard repayment charges NA
Cheque or ECS mandate or Direct Debit
Rs.500 each time
Swapping Charges
Cheque/ECS/direct debit bouncing
Rs. 400 each time
charges
Legal/Incidental Charges As per actual
1% of unveiled sanctioned loan amount plus
Loan Cancellation Charges
applicable taxes thereon

35
Manual cheque/payment collection charge Rs.200 per visit
Loan a/c handling and updating charges Rs.1500 per customer request
In case of non-collateral documents Rs.2000,
Document storage/Retrieval Charges
otherwise Rs.4000

a. Central Government Interest Subsidy Scheme

 Features:

o The loan is specifically designed for education needs of the weaker sections of the
society. The Department of Education, Ministry of Human Resource Development, and
Government of India launched an interest subsidy scheme with Canara Bank as the nodal
bank. The scheme offers education loans to the weaker sections of the society at lower
rates.
o The loan processing and sanctioning process is one of the quickest and the documentation
involved is simple and convenient
o The charge structure is completely transparent in the sense that all the relevant charges
are mentioned in writing upfront with no hidden charges anywhere in the loan
sanctioning and disbursal process.
o It also offers loan for vocational education, the purpose for which is to provide financial
support to students for pursuing employment oriented skilled development programmes
at an affordable price and with suitable terms and conditions.
 Eligibility

The following individuals are eligible to avail a loan under the Central Government Interest
Subsidy Scheme:

o The scheme applies only to Educational Loans availed form Scheduled Banks for
pursuing approved courses after Class 12th in technical and professional areas from
recognized institutes in India under the Education Loan scheme of the IBA.
o The recognized institutes in India consist of Educational Institutes established by Acts of
Parliament, other institutions recognized by concerned Statutory Bodies, Indian Institute
of Management (IIMs) and other institutes set up by the Central or State Government.

36
 o The annual gross income from all sources including those of the family and parents
should be at an upper limit of Rs.4.5 lakhs. A certificate to this effect must be submitted
issued by authorized officers of the State Government.
o Full interest subsidy is allowed during the moratorium period.
 Documentation

The following list of loan documents is required to be submitted under the scheme:

o An original income certificate from a competent authority under the scheme.

o An interest subsidy agreement
o An original bonafide student letter issued by the institute
o Stamp Duty / Franking Charges
o Additional Interest Subsidy Details required

3. Education loan interest rates:

The effectiveness and acceptability of a standard loan amount cannot be defined alone by just a
single factor. There are many factors which affect the HDFC Bank student loan scheme and a
competitive interest on educational loans is one of the more important factors with regards to
such a loan. Generally in India, an education loan commands an interest rate from anywhere
between 12% and 16% depending upon the bank’s base lending rates and various other
factors.As directed by RBI, the base lending rates for banks in India is around 9-10%. Some
private financial institutions offer interests on education loan based on their own base lending
rates and the calculation for interest rate in such cases is done on case to case basis.

4. HDFC Bank Education Loan repayment options:

Like all other loan amounts, you have to pay an interest on your education loan as well. But
unlike other loans, HDFC Bank education loans provide the option of a moratorium period. In

37
simple words, it means a ‘repayment holiday’ where the borrower can suspend repayment of a
loan until his or her education programme for which the loan was taken is completed. Not only
this, but with an HDFC Bank student loan scheme you can also take loan for courses which
means that you can take a loan for specific non-regular courses which you want to pursue.

Standard education loans usually provide three types of repayment alternatives:

 Moratorium on Repayment: In this case, the bank provides a holiday for repaying the
loan. This means that students can pay off the education loan after they have completed
their studies. The banks ask for repayment of the amount of education loan within a
period of 12 months after the student has finished his or her studies or within six months
after he or she has got a job.
 Moratorium on Principal Repayment: In this case, the bank asks the student to pay
only the interest during the tenure of loan disbursement. He or she starts repaying off the
principal with the interest only after they have completed their education.
 Discounted Interest Rates: In this case, the student receives a discount on the interest
rate if they begin repaying the loan amount immediately after the education loan
disbursement. The discount varies from bank to bank and the student can do well to ask
for the best rate from the bank.

Apart from these flexible repayment options, an HDFC bank student scheme also provides the
option to avail insurance cover on the amount of the education loan if the student so wishes. The
student loan scheme of HDFC Bank is excellent in customising the solutions, thereby facilitating
quick and unique banking services for the bank’s customers.

Education Loan for Indian Education

Fuel your child’s aspirations with HDFC Bank’s education loans for Indian education. 

Apply for our education loans for Indian education and get loans of up to Rs 10 lakhs. Our
education loans for Indian education offer competitive pricing and give you the option of an
insurance cover. 

38
 Also enjoy doorstep service and quick disbursal of funds when you apply for education loans for
Indian education.

Education Loan for Indian Education Features

We offer up to Rs 10 lakhs as education loans for Indian education. Enjoy the benefits of our
education loans for Indian education with a wide range of collateral options, and easy loan
repayment terms. 

Make the most of our customer-friendly features on education loans for Indian education, such as
quick disbursals, easy documentation process and insurance protection. 

In addition, you enjoy the special benefits of education loans for Indian education, thanks to our
100% transparency policy and tax benefits under section 80(E) of IT Act, 1961.

 High Loan Amounts

Max loan up to Rs. 10 lakh for studies in India
 Wide Range of Collateral Options
Up to Rs. 4 lakh: No Security. Parents to be joint borrower(s)
Above Rs. 7.5 lakh: Tangible collateral security of suitable value acceptable to bank along with
parents to be joint borrower(s).
Approved collateral securities include residential property, HDFC Bank Fixed Deposit, LIC,
NSC or KVP Policy
 Easy Loan Repayment
Maximum tenure up to 10 years for loans up to Rs. 7.50 lakhs
Maximum tenure up to 15 years for loans above Rs. 7.50 lakhs
 Stay Protected
When you choose to take an education loan from HDFC Bank, we also provide you with the
option to secure your education loan by opting for Insurance Protection in the form of Credit
Protect from HDFC Life.

39
 Quick and Easy Disbursals
Our doorstep service, and quick and easy documentation process ensures that our loans are
disbursed as quickly as possible, directly to the education institution, as per their fee structure.
 Subsequent Disbursement
You can also ask for trache disbursement by walking into the nearest Retail Assets Customer
Service Centre (CSC).
 100% Transparency
When you choose a loan from HDFC Bank, you can rest assured that there are no hidden costs.
All charges are communicated up front in writing along with the loan quotation.
 Tax Rebates
You get tax benefits under section 80(E) of the Income Tax Act 1961*. Write to us by
visiting www.hdfcbank.com/services to receive interest certificate for the last financial year.

Education Loan for Indian Education Eligibility Criteria

The eligibility criteria for education loans for Indian education are applicable for resident
Indians. The eligibility criteria may require joint borrowers, third party guarantee or collateral
security. Refer below to know more about the eligibility criteria for education loans for Indian
education.

The following people are eligible to apply for an Education Loan for Indian Education:
 Resident Indians
 Individuals between the ages of 16 and 35
 For Loan amount 4lac <=7.5lac: third party guarantee and parent(s) as joint borrower(s)
 For loan amount > 7.5lac: Tangible collateral security along with Parents to be joint
borrower(s)

Education Loan for Indian Education Documentation

The documents required for education loans for Indian education are minimal, and include
academic records and references. Read on to know more about the documents required for
education loans for Indian education.

40
The following documents are required along with your Education Loan for Indian Education
application:

Category Applicant (Student)

Academic Institute admission letter with fee break-up

  SSC, HSC, Graduation mark sheets

KYC (Know Your

Age proof
Customer)

  Signature proof

  Identity proof

  Residence proof

Income Documents Salaried

  Latest 2 salary slips carrying date of joining details

  Previous 6 months bank statement of the salary account

  Self Employed

  ITR of previous 2 years along with computation of income

  Audited balance sheet of previous 2 years

  Bank statement of previous 6 months

41
   Proof of turnover (latest sales/service tax return)

  Self Employed – Professional

  ITR of previous 2 years along with computation of income

Audited balance sheet/proft and loss statement of previous 2

 
years

  Bank statement of previous 6 months

  Proof of Qualification

Others Completed application form

  Latest photograph (signed across)

Documents – Post Sanction

Completed Loan Agreement to be signed by applicant and

Loan Agreement
co-applicant*

PDCs/ECS or SI Mandate
Repayment Instructions
3 Security PDCs in case of ECS and SI mode of repayment

*Stamp duty to be paid by the customer as per the relevant state laws

Here are the documents you need to submit for subsequent disbursements at your nearest Retail
Assets Customer Service Center (CSC)
 Disbursement Request Letter for tranche disbursement duly signed by Customer
 University Fee Demand Letter
 Applicant's Academic Progress Report (Previous Semester)

42
 Fresh repayment instructions in case of full Post Dated Cheque (PDC) or swap of existing
repayment instructions.
 Copy of the payment receipt of the previous disbursement / semester, issued by the
Institute.
Please e-mail us at eduloan@hdfcbank.com for any further assistance

Education Loan for Indian Education Rates & Fees

HDFC Bank offers attractive interest rates on education loans for Indian education. Refer below
to know more about interest rates for education loan for Indian education, and education loan for
Indian education fees and charges.

Enclosed below are HDFC Bank Education Loan for Indian Education Interest Rates & Charges
Here is an exhaustive list of all the fees and charges to be paid for the education loan:

Description of
Education Loan
Charges

Loan Processing Maximum up to 1% of the loan amount as applicable.

Charges* or Minimum Rs. 1000/- whichever is higher

Upto 4% of the Outstanding Balance prepaid, if loan is foreclosed/

part perpaid during Moratorium (along with and in addition to
Pre-payment due/accrued interest, if any, and other amounts due and/or payable
charges* by the Borrower to the Bank). No prepayment charges will be
charged if loan is foreclosed / part prepaid any time after expiry of
the Moratorium.

No Due Certificate /
No Objection Nil
Certificate (NOC)

43
Duplicate of No Dues
Nil
Certificate/NOC

Solvency Certificate Not applicable

@ 24 % p.a. on overdue/unpaid EMI amount outstanding from EMI

Overdue EMI Interest
due date

Credit assessment
Not applicable
charges

Non standard
Not applicable
repayment charges

Cheque / ACH
Rs. 500/- per instance
swapping charges

Duplicate Repayment
Rs. 200/-
Schedule Charges

Loan Re-Booking /
Re-Scheduling UptoRs. 1000/-
Charges

EMI Return Charges* Rs.550/- per instance

Legal / incidental
At actual
charges

Stamp Duty & other

As per applicable laws of the state
statutory charges

44
 Nil cancellation charges. However, interest for the interim period
Loan Cancellation
(date of disbursement to date of cancellation), CBC/LPP charges as
Charges
applicable would be charged and Stamp duty will be retained

*Terms & conditions apply

*Charges which are in nature of fees are EXCLUSIVE of GST. GST and other government
levies, as applicable, would be charged additionally.
Rates offered to customer during the period of Jan'19 to Mar'19

Min IRR Max IRR Avg IRR

9.30% 13.44% 11.90%

Annual Percentage Rate offered to customer during the period of Jan'19 to Mar'19

Min APR Max APR Avg APR

9.30% 13.89% 11.93%

45
 Chapter 2
Objectives of the
study

46
 OBJECTIVES OF THE STUDY

 To study the about the education loan

 To study the student satisfaction towards education loan service providers
 To study the interest rate and tenure of the education loan
 To study the best one service provides by the comparing the PNB bank as
compare to HDFC banks through questionnaire

47
Changes coming in education loan in recent years

new rules for education loans - Cases of students defaulting on loan

payments prompted Indian Bankers Association to review the education loan

scheme. We explore what this means for students. The Indian banking sector

began giving education loan from 2001 onwards. But recently, in the wake of

increasing Non Performing Assets (NPA) on educational loans, the Indian

Bankers Association (IBA) has revised the educational loan scheme, framed in

2001. Though the situation is far from worrying, banks have been advised to be

prudent and cautious while granting educational loans. For instance, State Level

Bankers’ Committee (SLBC) Chairperson Usha Ananthasubramanian sent a

strong message to banks in Punjab and Haryana when she told a committee

meeting that, “The non-performing assets level is certainly on the higher side in

case of education loan advanced collateral free. Only the meritorious rather

than the deserving candidates should be considered for granting education

loan.”

An IBA document on the scheme throws light on the thinking in government

circles on funding for higher education when it observes that “Public funding of

higher education is not considered feasible. This model education loan scheme

is an attempt to bring out a viable and sustainable bank loan scheme to meet

the aspirations of our society.”

The rationale for this way of funding higher education has not gone

uncontested; critics point out that it is not in the students’ interest to be

48
burdened with debt early in their careers. Also, that public expenditure of less

than 1 percent of GDP on higher education is lower than even many developing

countries. And with low tax-GDP ratio there is ample scope to fund higher

education by raising resources from tax.

Top priority for education loans

The RBI has included education loans as part of the priority sector lending of

banks. It aims to provide need-based finance to meritorious students. But

students should bear in mind that educational loan is like any other commercial

credit, and it is at the bank’s discretion to sanction a loan after assessing ‘credit

worthiness’ of the borrower. This entails that students should be well prepared

for commercial negotiations by doing their homework well on how to repay the

credit through earnings from job.

Your “credit worthiness” 

Students generally don’t have any credit history and their credit worthiness is

presumed for granting education loans. But banks insist that parents who are

joint borrowers should also have a clear credit history. In case parents have an

adverse credit history, the bank may insist on having joint borrowers, other than

parents, on which they can rely.

49
Income vs EMI (first year)

Particulars Amount

Loan Amount (released in  Rupee 10 lakh

4 instalments of Rs 2.5 lakh

each)

Assumed rate of Interest 14%

Tenure 10 years

Estimated accumulated Rupee

interest of moratorium 3,15,000

0period (3 years)

Total amount to be repaid Rupee

13,15,000

EMI Rupee 20,418

Assumed first salary per Rupee 50,000

month

Interest Component Rupee

1,80,036

Average income per month Rupee 40,670

in cash after PF and Income

tax

50
Average monthly income Rupee 20,252

after deducting EMI

What does ‘meritorious’ mean?

This is a relative term, assumed if the student has qualified the entrance exam

for admission to professional and technical courses. But in case selection is

purely based on marks scored in the qualifying exams, the banks sometimes

fix cut-off marks (percentage) for loan eligibility. Those being selected under the

‘management quota’ have been kept outside the purview of educational loan

schemes as they are not considered as fulfilling the criteria of merit.

Employability after your course 

It’s essential that students land up with good jobs on completing the course to

repay a loan. So banks do consider available ratings in public domain, reflecting

employability of students through campus placements of the institutes, for loan

approval. 

The verdict

Education loan applications are received either directly at bank branches or

through online. Sanction or rejection of education loan is supposed to be

communicated within 15 days of receipt of duly completed application. Students

can demand reasons for rejection of loan applicationin writing from banks. No

processing charges are to be paid as per the scheme.

51
 

Irony of interest rates

Interest rate of education loan depends on whether you are studying in India or

abroad, the course that you are applying for, your loan amount and the tenure.

Students getting admission to highly rated institutions are offered loans with a

lower rate of interest. There have been talks that IBA will soon come up with

comprehensive ratings of the institutes to guide banks in making right decisions

while granting educational loans. From students' perspective, the irony of it is

that they will have to shell out more for Equated Monthly instalments (EMI) due

to high interest rates in case institutes have been rated on the downside. On the

other hand, it’s likely they would be placed at lower packages from such

institutes! Special concessions on interest rates of 0.5 percent are available for

women students.

Two types of interest rates

These comprise fixed interest and floating interest rate. Usually, nationalised

banks offer variable interest rates for student loans, while private

and foreign banks offer fixed interest rates. Interest rates vary between 12 to 16

percent. Considering the present macro-economic environment, it is advisable

to go for floating interest rate loans. SBI is the leading player with 25 percent

share in education loan segment. 

52
Simple vs compound interest

Simple interest is to be charged during the study period and up to

commencement of repayment. There have been complaints that banks charge

compound interest. Servicing of interest during the moratorium period is

optional and students can avail one percent rebate on interest rate if they

decide to pay.

Paying it back

Repayment of education loan is generally in the form of EMI. Student should

compare their EMI with likely salary. They can determine their EMI amount for

different combinations of interest rates and tenure by using the EMI calculator

available online. According to experts, it’s desirable that the EMI should not

exceed 50 percent of one’s likely salary. It may happen that students are not

able to repay loans if salary is less than expected. In such cases, students may

request banks to reschedule their loans. In some careers, it is observed that

salary levels initially are low. Telescoping of repayment with stepped up

instalments with the passage of time is considered in such cases by banks on

request. No prepayment charges are generally levied by public sector banks in

case of early settlement of loan. The new scheme has extended the loan tenure

(see box) which is likely to facilitate lower EMI repayment.

53
 

Academic progress

Monitoring academic progress of student is necessary for banks to ensure asset

quality of loans though subsequent instalments can’t be stopped for the mere

reason that the student has failed in one or two subjects provided he has been

allowed to keep terms. Some foreign universities require students to submit a

certificate from their bankers about the sponsors’ solvency/ financial capability.

Students can approach banks to issue such a ‘capability certificate’. But one

needs to be careful so as to maintain a certain level of academic progress

throughout the course of study.

A word of caution

Bokaro-based Ranjit Kumar Sinha who has taken educational loans for his two

siblings is a satisfied parent. Yet he cautions students that they should be sure

of employability of courses before taking up the burden of repaying credit. He

also suggests that students should pay EMI on time to avoid high penal interest.

They should also be vigilant while servicing loans as sometimes banks keep on

levying penal charges even after default has been made good. So paying on

time is the best mantra.

Interest subsidy 

54
For the benefit of Economically Weaker Sections or EWS (family income less than

Rs 4.5 lakhs), the above said central government scheme provides full interest

subsidy during the period of moratorium on loans taken by students from

scheduled banks. They can pursue any of the approved courses in technical and

professional streams from recognized institutions. Students with family income

less than Rs 4.5 lakhs can apply to their respective banks for availing

concessions given by the scheme. Details of the scheme and list of approved

authorities state-wise to issue income certificate can be found at Canara Bank -

Educational Loans.

Loans and the regulatory regime 

Banks play an enabling role in increasing access to higher education by

extending education loans. However, the regulatory regime needs to be

strengthened simultaneously to ensure quality among new higher education

institutions through compulsory accreditation and strict implementation of

guidelines by University Grants Commission, All India Council for Technical

Education and other regulatory bodies. These steps are necessary to ensure

employability of students. Fees in such institutes need to be regulated strictly as

per apex court judgements so that students don’t suffer due to profiteering.

“There was a mismatch between the higher cost of education and the potential

income levels of students after completion of education in some professional

courses, which had to be addressed,” highlights S Raman, Chairman and

Managing Director of Canara Bank.

55
  

Government’s role 

The banks that lend loans are likely to be shy in exposing themselves to such

loans, if the risk of defaults persist, as seen in the last two financial years. As far

as the student community is concerned, it should insist to the government that

too much reliance on educational loans is not in their interest and that the

government should be willing to play its role in making higher education

opportunity affordable for all. 

IBA’s new guidelines

 Education loan Eligibility: Loans to Indian nationals for pursuing approved courses

 leading to graduate/postgraduate degree and PG diplomas conducted by colleges

universities recognized

 by UGC/Govt./AICTE/AIBMS/ICMR etc. Reputed professional and technical courses are also

 considered. Approval can be checked on www.ugc.ac.in, www.education.nic.in, www.aicte.org.in

Loans

 for courses in reputed foreign universities are also granted. Indicative list is

 available at www.webometrics.info

 Eligible Expenses for education loan: Fees payable, accommodation charges, exam and library

56
 fees, reasonable expenses for books and equipment including computer, travelling expenses abroad and

 other reasonable expenses required to complete course.

 Quantum of finance: Rs. 10 lakh for study in India and Rs. 20 lakh for study abroad. Banks may

 consider lending higher amount in special cases at their discretion.

 Security:

(a) up to Rs. 4 lakh- No security, parents to be joint borrower

(b) between 4-7.5 lakhs- along with parents collateral security in form of third party guarantee

(C) Above 7.5 lakhs- Parents to be joint borrowers+tangible collateral security of suitable value required.

 Moratorium period for repayment: Course period + 1 year or 6 months after getting job, whichever is

 earlier

 Margin money: Nil for loan up to Rs. 4 lakh. 5 percent and 15 percent respectively for study in India and

 abroad on loan above Rs. 4 lakhs.

 Tenure of loan: 10 and 15 years for loan up to Rs 7.5 lakhs and above respectively

 Interest paid by the students on educational loan in financial year is eligible for income-tax exemption

u/s

 80 E of IT Act for 8 years.

57
 Chapter 3
Research
metehodology

RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It

may be understood as a science of studying. How research is done

58
scientifically. In it we study the various steps that are generally adopted by
researcher in studying his research problem along with the logic behind them.
One should also remember that various steps involved in research process are
not mutually exclusive, nor they are separate & distinct. The methodology
adopted for the present study consists of following phases:-

Research design phase:-

This phase mainly involve stating the conceptual structure within which
research would be conducted. The main steps involved in this phase are as:

Sampling Plan:

The sample was selected for the study by Convenient method. This type
of sampling where each & every item in the population has an equal chance of
inclusion in the sample.

Sample unit:

Under the study the students are considered the sample unit in
Bathinda cities.

Sample size

The sample for research consisted of 100 students in BathindaCities. The

sample was spread all over the cities of Bathinda. The sample size was
restricted to 100 because of financial & time constraint.

Data Collection and Analysis:

a) Data collection:

59
Primary data:

Primary data are those, which are collected a fresh and for the first time and
thus happen to be original in character. It is the backbone of any study.
Primary data was obtained from personal interview of respondents with the
help of widely used and well-known method of survey, through a well-
structured questionnaire.

Secondary data:
Secondary data are those which have already been collected by someone else
and which have already been passed through the statistical process. In this
case one is not confronted with the problems that are usually associated with
the collection of original data. Secondary data either be published data or
unpublished data. Secondary data was collect from the internet only.

Research instrument:
Research instrument is that with the help of which we collect the data from
respondents. The questionnaire of this research consists of multiple choices,
close ended and questions.

b) Tools of Presentation and analysis:

Tools of Presentation: The tool of presentation is tables and figures for

present the data.

Tools of Analysis: The tools of analysis which is used for analysis the data is
percentage

Preparation of Questionnaire:-

60
 The questionnaire was prepared by the researcher himself. The
preparation of questionnaire was done by keeping the objective of study in
mind. The researcher took some help from experts during the framing of
questionnaires. The preparation of questionnaire took about 4-5 days. The
questionnaire used for study was of closed type since it is free from bias nature
of respondents.

Analysis phase:-

After the data has been collected the researcher tabulated the data from
the tables the researcher analyzed the data. During the analysis of data help of
various types of charts & graphs was taken. The analysis phase took about
seven days. For further results weighted average method was used whenever
required. Finally on the basis of analysis various results and conclusions were
drawn.

61
 LIMITATIONS OF THE STUDY

 The paucity of time and resources was the major constraints.

 The sample size was limited.
 The sample was taken from the population residing in Bathindaonly, so the
results are not applicable to whole of India.
 Non co-operation of some respondents has also affected the research
results.
 Being an opinion survey a lot of subjectivity is involved in the study.
 The possibility of respondents being biased cannot be ruled out.
 The limited knowledge of the respondents regarding the topic may hamper
the true conclusion of the study.

62
 Chapter 4

Data analysis and

interpretation

63
 DATA ANALYSIS & INTERPRETATION

1. Do you have any education

 Yes 100

 No 0

YES
NO

Above data shows that 100% student having education of different types.

64
2. If yes, are you financed it from somewhere

 Yes 60

 No 40

YES
NO

According to above analysis it is very much clear that all 60% person

have financed their educations from somewhere whereas 40% students have

not financed while getting their education by cash payment.

65
3. Are you aware about the various education loan service provider in your
city
 Yes 100
 No 0

YES
NO

It is clear from above data that everybody have aware about the
education loan and different sources from where availing education loan
services.

66
4. Are you avail the education loan service from any bank

 Yes 60

 No 40

YES
NO

According to above analysis it is very much clear that all 60% person

have financed their educations from somewhere whereas 40% students have

not financed while getting their education by cash payment.

67
5. If yes, from which bank

 PNB Bank 36

 HDFC Bank 24

PRIVATE
PUBLIC

According to above analysis it is very much clear that all 60% person

have financed their educations from PNB Bank whereas 40% students have

financed their education from HDFC Bank remaining studentgetting their

education by cash payment.

68
6. What are the current interest rates for education loan

PNB Bank HDFC Bank

0% 0 10

1-4% 0 0

4-8% 10 5

8% and above 25 15

30

25

20

15

10

0
0% 1-4% 4-8% 8% and above

It is clear from the above data that PNB Bank mostly provide education

loan at the rate of 8% - 10%, as compare to HDFC bank that gives education

loan at 0% at any eve or festivals seasons etc. the rate of interest of HDFC

bank are changed time to time according to festivals or other eves.

69
7. How much down payment will be paid by you during getting of your
education loan

PNB Bank HDFC Bank

20% 12 12

30% 9 9

40% 10 7

50% 4 7

12

10

0
20% 30% 40% 50%

According to the above analysis it is stated that PNB bank provides loans
to the students mostly on 20% of down payments, sometimes they take 40%
down payment whose salary is less or not having proper proofs for loan
whereas HDFC bank mostly takes 20% down payment for providing education
loan very rare chance when ask for 30 – 40% down payment.

70
8. What are the file charges taken by the bank during finance

PNB Bank HDFC Bank

1% 18 14

2% 10 9

3% 5 5

4% and above 2 2

18

16

14

12

10

0
1% 2% 3% 4% and above

It is clear from the above data that maximum times each and every take

1% files charges for providing the loan. Some times that take 2% or 3% file

charges in case of heavy paper works.

71
9. Time period given for returning back the loan

PNB Bank HDFC Bank

Less Than 1 year 2 4

1-2 year 7 5

2-4 year 11 8

4 years and above 15 13

16

14

12

10

0
Less Than 1 year 1-2 year 2-4 year 4 years and above

It is clear from the above table that, most of the bank provides education loans
for maximum 4 years while PNB bank provides education loan upto 5 years.

72
10. Is that your interest rate is stable or not

PNB Bank HDFC Bank

Yes 22 21

No 5 5

Depends on Inflation 8 4

25

20

15

10

0
Yes No Depends on Inflation

Recently, Most of the bank i.e. PNB as well as HDFCprovides stable rate
of interest for education loans. In very rare, if stock market position varies too
much then the positions of rate of interest vary little bit.

73
11. Is that your bank provides the facility of stable of interest rate

PNB Bank HDFC Bank

Yes 35 30

No 0 0

35
34
33
32
31
30
29
28
27
Cooperative Bank ICICI Bank

Yes No

Any student agreed with that their bank provides them stable rate of interest.
No doubt about this.

74
12. Are you satisfy with the service of your bank

PNB Bank HDFC Bank

Yes 30 22

No 5 8

35
30
25
20
15
10
5
0
Cooperative Bank ICICI Bank

Yes No

It is very clear from the above data that, 85% students of PNB bank and

72% students of HDFC bank are satisfied with their current services regarding

education loan whereas 15% students of PNB bank and 28% students of HDFC

bank are not satisfied with that.

75
13. If yes, why

PNB Bank HDFC Bank

Low Interest Rate 11 10

Fast Processing 3 2

Better Dealing 4 3

Less EMI 12 7

25

20

15

10

0
Low Interest Rate Fast Processing Better Dealing Less EMI

It is very clear from the above data that, 85% students of PNB bank and
72% students of HDFC bank are satisfied with their current services regarding
education loanbecause 31% says low interest rate, 32% says less EMI,
remaining says fast processing and better dealing in case of PNB bank. In
HDFC Bank, 33% says Low Interest Rate, 30% says Less EMI remaining says
better dealing and fast processing.

76
14. If no, why

PNB Bank HDFC Bank

High interest rate 1 1

Poor service 1 3

Lots of Extra Charges 1 2

Taking too much time 2 2

in processing

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Cooperative Bank ICICI Bank

Yes No

15% students of PNB bank and 28% students of HDFC bank are not satisfied
with that due to that they feels high interest rate, poor services, taking lots of
Extra Charges, Taking too much time in processing.

77
15. In future if you want to getting another education do you want to change
your previous bank?

PNB Bank HDFC Bank

Yes 30 22

No 5 8

30

25

20

15

10

0
Public Sector Bank Private Sector Bank

Yes No

It is very clear from the above data that, 85% students of PNB bank and

72% students of HDFC bank are satisfied with their current services regarding

education loan whereas 15% students of PNB bank and 28% students of HDFC

bank are not satisfied with that.

78
16. If yes, which one bank you recommend
 PNB Bank 48
 HDFC Bank 17

PRIVATE
PUBLIC

In response to that question, 48% recommendsPNB banks for loan

services, 17% prefers HDFC bank

79
 Chapter 5
Conclusion and
bibliography

80
 CONCLUSION

It is concluded from theabove survey that most of the people prefers PNB
Bank for education loan as compare to HDFC bank due to following reasons:

According to above analysis it is very much clear that all 65% person
have financed their educations from somewhere whereas 35% students have
not financed while getting their education by cash payment.

According to above analysis it is very much clear that all 35% person
have financed their educations from PNB Bank whereas 30% students have
financed their education from HDFC Bank remaining studentgetting their
education by cash payment.

It is clear from the above data that PNB Bank mostly provide education
loan at the rate of 8% - 10%, as compare to HDFC bank that gives education
loan at 0% at any eve or festivals seasons etc. the rate of interest of HDFC
bank are changed time to time according to festivals or other eves.
According to the above analysis it is stated that PNB bank provides loans
to the students mostly on 20% of down payments, sometimes they take 40%
down payment whose salary is less or not having proper proofs for loan
whereas HDFC bank mostly takes 20% down payment for providing education
loan very rare chance when ask for 30 – 40% down payment.
It is clear from the above data that maximum times each and every take
1% files charges for providing the loan. Some times that take 2% or 3% file
charges in case of heavy paper works.
It is clear from the above table that, most of the bank provides education
loans for maximum 4 years while PNB bank provides education loan upto 5
years.

Recently, Most of the bank i.e. PNB as well as HDFC provides stable rate
of interest for education loans. In very rare, if stock market position varies too
much then the positions of rate of interest vary little bit.

81
 Any student agreed with that their bank provides them stable rate of
interest. No doubt about this.

It is very clear from the above data that, 85% students of PNB bank and
72% students of HDFC bank are satisfied with their current services regarding
education loan whereas 15% students of PNB bank and 28% students of HDFC
bank are not satisfied with that.
It is very clear from the above data that, 85% students of PNB bank and
72% students of HDFC bank are satisfied with their current services regarding
education loanbecause 31% says low interest rate, 32% says less EMI,
remaining says fast processing and better dealing in case of PNB bank. In
HDFC Bank, 33% says Low Interest Rate, 30% says Less EMI remaining says
better dealing and fast processing.
15% students of PNB bank and 28% students of HDFC bank are not
satisfied with that due to that they feels high interest rate, poor services, taking
lots of Extra Charges, Taking too much time in processing.
It is very clear from the above data that, 85% students of PNB bank and
72% students of HDFC bank are satisfied with their current services regarding
education loan whereas 15% students of PNB bank and 28% students of HDFC
bank are not satisfied with that.
In response to that question, 48% recommendsPNB banks for loan
services, 17% prefers HDFC bank.

82
 BIBLIOGRAPHY
ARTICLES
1. Dr. Shankaraih K. "Student awareness and preferences in banking
services" The Management Accountant. March 1999
2. Dr. Govin; Augustine L. Dr (Ms) AthmaPrasanta, “Student service in
commercial Banks - Expectation and Reality", Indian Journal of
Marketing.
3. DrKaptan Sanjay Shankar, “Marketing of Bank Services", Indian
Journal of Marketing.
BOOKS
1. Tannan, M. L, "Banking Law and Practice in India" , India law house,
1996
2. Maheshwari, S.N. "Banking Law and Practice" , Kalyani publishers, 1998
3. Ravisankar T.S. "Towards Structural changes in Banking 1993, p.439

WEBSITES

1. http://www.nios.ac.in/Secbuscour/15.pdf
2. http://finance.indiamart.com/investment_in_india/banking_in_india.html
3. http://en.wikipedia.org/wiki/Banking_in_India
4. http://www.banknetindia.com/banking/bfunc.html
5. http://www.capitalmarket.com/CMEdit/SFArtDis.asp?SFSNO=356&SFESNO=19
6. http://www.banknetindia.com/banking/ucb.htm
7. http://www.moneyguideindia.com/what-are-co-operative-banks/
8. http://pbPNBs.gov.in/PSCB.htm
9. http://www.ecommercejournal.com/news/punjab_state_co_operative_bank_enhance_its_efficienc
y_by_means_of_flexcube
10. http://www.punjabcooperation.gov.in/html/pscb_history1.html

83
 ANNEXURE

(QUESTIONNAIRE)

1. Do you have any education

 Yes

 No

2. If yes, are you financed it from somewhere

 Yes

 No

3. Are you aware about the various education loan service provider in your
city
 Yes
 No
4. Are you avail the education loan service from any bank

 Yes

 No

5. If yes, from which bank

 PNB Bank

 HDFC Bank

6. What are the current interest rates for education loan

PNB Bank HDFC Bank

0%

1-4%

4-8%

8% and above

84
7. How much down payment will be paid by you during getting of your
education loan

PNB Bank HDFC Bank

20%

30%

40%

50%

8. What are the file charges taken by the bank during finance

PNB Bank HDFC Bank

1%

2%

3%

4% and above

9. Time period given for returning back the loan

PNB Bank HDFC Bank

Less Than 1 year

1-2 year

2-4 year

4 years and above

10. Is that your interest rate is stable or not

85
 PNB Bank HDFC Bank

Yes

No

Depends on Inflation

11. Is that your bank provides the facility of stable of interest rate

PNB Bank HDFC Bank

Yes

No

12. Are you satisfy with the service of your bank

PNB Bank HDFC Bank

Yes

No

13. If yes, why

PNB Bank HDFC Bank

Low Interest Rate

Fast Processing

Better Dealing

Less EMI

14. If no, why

PNB Bank HDFC Bank

86
 High interest rate

Poor service

Lots of Extra Charges

Taking too much time

in processing

15. In future if you want to getting another education do you want to change
your previous bank?

PNB Bank HDFC Bank

Yes

No

16. If yes, which one bank you recommend

 PNB Bank
 HDFC Bank

87