PNB has laid down a set of eligibility criteria for sanctioning the education loans.• A student, who is an Indian national, can apply for the loan.
• An applicant is considered eligible for PNB educational loan, if he gets admitted to a professional or vocational course through a selection process or into a foreign institute.
• A student applying for a graduate program can also get the loan if he obtains at least pass marks in the qualifying exam.
The required documents that would be submitted while applying for education loan may vary from bank to bank. Some of them include proof of admission, fee structure of the institute, mark list of the qualifying examination and photographs.
If the applicant is earning the documents such as Income tax assessment order of last two years, bank account statement, income proof etc are needed.
There is a tax advantage to take loans. Interest repayments on education loans are tax deductible. A deduction under section 80E of the Income-Tax act for the interest paid on an educational loan can be claimed. This deduction is allowed for 7 years and the loan must be taken for higher education purposes only and loan has to be from a financial institution or a government approved charitable institution.