Pragathi Krishna Gramin Bank Education Loan Rate of Interest
The bank offers various concessions and benefits to attract the borrowers.
- The maximum loan repayment period is 7 years.
- The maximum loan limit is INR 10 Lacs for India and INR 20 Lacs for Abroad.
- Relaxed rates are offered to female students.
The interest rates charged are in accordance with the RBI guidelines.
- The bank's current MLR is 12.25%.
- For a loan up to INR 4 Lacs, the RoI is MLR+0.25%.
- For a loan above INR 4 Lacs, the RoI is MLR+1.25%.
- Girls get a concession of 0.5%.
CALCULATE YOUR EDUCATION LOAN EMI
1,000 per month
1,000
1,000
Looking for admission for India and Abroad?
Pragathi Krishna Gramin Bank Education Loan Eligibility
- Indian National. The applicant must be a citizen of India.
- Parent/Guardian. The parent/guardian of the candidate must be a permanent resident of the area of operation of the bank.
- Admission Basis. The student should have been admitted through the selection process or entrance test of the institute.
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| Bank / Financer |  Change bank |  Change bank |  Change bank |  Change bank |  Change bank |
| Applicable Rate of Interest | The bank?s current MLR is 12.25% For a loan up to INR 4 Lacs, the RoI is MLR+0.25% For a loan above INR 4 Lacs, the RoI is MLR+1.25% | Up to INR 7.50 Lacs: 10.55% Above INR 7.50 Lacs: 10.80% | up to INR 7.5 Lacs: MCLR + 2.00% above INR 7.5 Lacs: 2.60% | Upto 4 Lacs- 16.50% Upto 7.5 Lacs- 17.50% Above 7.5 Lacs- 15.50% | |
| Max Loan with Collateral | For India: INR 10 Lacs For Abroad: INR 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs and beyond based requirement | |
| Max loan without collateral | For India: INR 10 Lacs For Abroad: INR 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs and beyond based requirement | |
| Processing Fee | Nil | Up to INR 4 Lacs: Nil Above INR 4 Lacs: INR 5000 | Nil | Nil | |
| Repayment Period | 1 to 7 years | 15 years | 15 years | 7 years | |
| Loan for top institutions | No | Yes, SBI Scholar Loan Scheme | Yes, PNB Pratibha | No | |
| Margin | Up to 4 Lacs: No margin Above 4 Lacs: For India-5% For Abroad-15% | For loan above INR 4 Lacs In India: 5% In abroad: 15% | Up to INR 4 Lacs - NIL Above INR 4 Lacs - 5% | Upto loan 4 Lacs: No margin Above 4 Lacs: for India: 5% for Abroad: 15% | |
| Age Limit | No age criteria | no age limit | No age limit | No | |
| Loan Security | Security and collateral required | Upto 7.50 Lacs: Only Parent/ Guardian as co-borrower. No Collateral Security or third party guarantee Above INR 7.50 Lacs: Tangible security along with parents as co borrower | Upto INR 7.50 Lacs: Parent(s)/guardian be made joint borrower (s). No tangible Security and /or 3rd party guarantee is required. Above INR 7.50 Lacs: Parent(s)/guardian be joint borrower(s). Tangible collateral security of suitable value acceptable to bank. | Third party guarantee Collateral security Additionally, assignment of LIC policy in favor of bank amounting 100% of education loan amount Assignment of Future salaries in favor of Axis Bank | |
| Eligibility concession for SC/ST | No | No | 50% for SC/ST, and;60% for General category. | No | |
| Processing Time | N.A | 20 days | 15 days | 14 Days | |
| Prepayment charges | Nil | Nil | Nil | Nil | |
| Penal charges | Nil | Penal interest @ 2% to be charged for loans above Rs.4 lacs for the overdue amount and overdue period | Nil | @ 2% per month on the overdue installment/s | |
| Mandatory insurance cover | Yes | Yes | yes | yes | |
| Travel expeneses | Yes | yes | yes | yes | |
| Bank transfter allowance | No such clause mention | available | available | No such clause mentioned | |
| Top up loan availability | Unavailable | yes | available | unavailable | |
| Interest Subsidy Schemes | CSIS Skill Loan Scheme Padho Pradesh | Padho Pardesh CSIS Skill Loan Scheme | Padho Pardesh CSIS Skill Loan Scheme | CSIS | |
| Tax benifit | Yes | yes | yes | yes | |
| Concession/benefits | Girls get a concession of 0.5%. | Concession to girl students 1% concession if interest is serviced during moratorium period including course period | 0.5% concession to girl students 0.5% concession if interest is serviced during moratorium period including course period Online application | There is no processing fee charged No pre- payment charges are applied No pre- closure charges are applied Loan Disbursal period is 15 working days from the date of final submission of documents |
How to apply for Pragathi Krishna Gramin Bank Education Loan ?
Pragathi Krishna Gramin Bank Education loan application form can be available online or offline at Bank branches.
Visit the official website for Pragathi Krishna Gramin Bank Education Loan.
Click on Apply Now.
Fill out the form with essential details.
Upload the mandatory documents required.
Submit the form and take out a print out of the application.
Visit the bank branch for further formalities.
Applicants can directly visit the nearest branch and ask for an application form. The bank representative will then guide them with all the necessary information regarding eligibility, documents required and also which loan is best suitable.
Pragathi Krishna Gramin Bank Education Loan Details
For Abroad: INR 20 Lacs
Above 4 Lacs:
For India-5%
For Abroad-15%
Above INR 4 Lacs: A mortgage of immovable property or a pledge of approved securities worth 100% of the amount of the loan is to be given. A third party co-obligation is also required.
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Expenses covered under Pragathi Krishna Gramin Bank Student Loan Scheme
- Basic Tuition/Academic Fee
- Expenses on Books and necessary study material
- Hostel Fee
- Cost of the laptop, upto a reasonable amount
- Travel expenses for going abroad
- Miscellaneous expenses necessary for completion of course
Courses Covered Under Pragathi Krishna Gramin Bank Student Loan Scheme
In India
Courses offered by IITs, IIMs, AIIMS, BITS, NIFT and other such national level bodies.
Courses approved by UGC, AICTE, ICMR etc.
Professional courses like CA, CS and ICWA.
Undergraduate and postgraduate courses by Indian Universities and Colleges, including diploma courses.
Other streams like degree in education, nursing, shipping, aeronautical engineering, only if approved by relevant bodies
Courses Covered Under Pragathi Krishna Gramin Bank Student Loan Scheme
In Abroad
Job oriented courses being pursued abroad
Post Graduate Courses like MBA and MCA
Courses approved by International Bodies like CIMA London and CPA USA
Courses in other professional streams like shipping and aeronautics etc
Education Loan Documents Required ?
Copy of Admission letter with all essential details
Attested copies of identity proof like passport, voter's ID, driving licence or the PAN Card.
Two recent passport size photograph of applicant, co-applicant, and the guarantor.
Marksheet of recently qualified public exam for school/college in India
Latest salary slip, Form 16 and recent salary certificate (if salaried).
Details of Admission Proof like: Fee receipts, Transfer certificate, etc.
Schedule of expenses for the course.
Copy of passport and visa for abroad courses
Interest Subsidy Schemes
Skill Loan Scheme
The bank offers a 'Skill Loan Scheme' for students who aspire to gain knowledge and specialized training in one specific field.
Central Scheme of Interest Subsidy (CSIS)
Formulated by the Govt. of India, a scheme to assist the students belonging to the economically weaker section.
Padho Pradesh
Formulated under the Prime Minister's 15 point programme, this subsidy scheme benefits the students of the minority community who want to study abroad. Such students are provided 100% interest subsidy.
Frequently Asked Questions
What schemes does Pragathi Krishna Gramin Bank considers for its education loans?
+ -There is one scheme offered by Pragathi Krishna Gramin Bank apart from the basic education loan.
It is CSIS Scheme. The central government interest subsidy scheme is for economically weaker sections.
In whose name is the loan granted?
+ -The loan is granted in the name of the student
What is the age limit for availing loan in Pragathi Krishna Gramin Bank?
+ -There is no restriction on age. Student must clear the other eligibility criteria’s stated by the bank for general education loan schemes.
What does margin on any loan mean?
+ -Margin amount is the amount that a borrower has to pay through his/ her own sources in form of a down payment as his/ her contribution towards the education.
Where can I avail Pragathi Krishna Gramin Bank Education Loan?
+ -You can either contact your nearest branch for the application form or details regarding the loan or apply online.
Is there any provision to apply for loan online?
+ -Yes, you can apply online through Vidyalakshmi portal to avail for this loan.
Is there any minimum aggregate marks to meet the eligibility criteria to avail Pragathi Krishna Gramin Bank education loan?
+ -Yes, a student must have secured a minimum aggregate of 50% marks in their last qualifying examination (10+2 or Graduation)
What is the discount/ rebate offered by Pragathi Krishna Gramin bank?
+ -0.50% concession is given to girl students
What all is included in tangible collateral security?
+ -Mostly Pragathi Krishna Gramin bank asks tangible security in lieu of the loan amount sanctioned along with assignment of future salaries in favour of Pragathi Krishna Gramin Bank. Tangible security includes documents related to land/ building/ government security/ public sector bonds/ units of UTI, NSC, Life insurance policy/ bank deposits/ shares or debentures. The value of the security should be equal to the education loan amount.
Is scholarship or assistantship included in the margin?
+ -Yes any scholarship or assistantship will be a part of margin charged on education loan.
What is Moratorium Period?
+ -Course Period plus one year, or six months after getting a job
What is tenure of an education loan?
+ -Tenure of education loan provided by Pragathi Krishna Gramin Bank is 7 years
What does MCLR stands for?
+ -MCLR stands for Marginal Cost of funds based Lending Rate. It refers to the minimum interest rate of bank below which it cannot lend.
What all expenses are covered under this course?
+ -Expenses covered by Pragathi Krishna Gramin Bank education loan are:
- Tuition/ college/ hostel fee
- Examination/ lab/ library fee
- Books/ uniform/ instruments
- Caution deposit
- Passage money for studies abroad, etc.
Will my travel expense will be covered if I take loan from Pragathi Krishna Gramin Bank?
+ -Yes, travel expenses are covered under this loan
I have taken admission through management quota. Am I eligible?
+ -Yes, even if you have taken admission through management quota, you are eligible for education loan by Pragathi Krishna Gramin bank
What do you mean by reputed or recognized institutes?
+ -Institutes that are affiliated to state/ central universities and comes under UGC or AICTE are considered as recognized institutes. Reputed institutes are those which are well known and have standard course of repute. More often, banks provide the list of institutes they consider for loan. (You can contact nearest branch for the same)
Are there any special benefits if I have secured admission to one of the top premier institutes?
+ -Pragathi Krishna Gramin Bank provides no concession to students securing admission to top premier institutes
What is the processing fee or prepayment charges?
+ -The education loan offered by Pragathi Krishna Gramin Bank does not carry any processing fee or any other charges
What are the charges for late payment of EMI?
+ -Pragathi Krishna Gramin Bank charges a penal interest @24% per annum, that is, @2% per month.
Will cost of my computer be covered under the loan sanctioned?
+ -Reasonable cost for the computer or laptop well be covered under the loan if it is required to complete the course.
Why is Pan Card necessary?
+ -Pan Card is one of the mandatory document required by banks these days. It is mandatory because:
- Easy to assess Income
- Easy to trace borrowers
Are diploma or certificate courses considered under Pragathi Krishna Gramin Bank education Loan (both for India and Abroad)?
+ -Yes diploma or certificate courses are eligible under Pragathi Krishna Gramin Bank Education Loan. Regular degree or diploma courses like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping
Is a co-borrower necessary for loan?
+ -Yes, it is mandatory to have a co-borrower to avail loan from Pragathi Krishna Gramin bank.
Who can be my co-borrower?
+ -Your parent/ spouse/ guardian can be a co-borrower. A co-borrower should be your immediate family member, should have a steady source of income, and a good credit history.
What all documents are required from the co-borrower?
+ -Documents required from the co-borrower are:
- Attested copies of age proof, residence proof and birth date.
- Self-attested passport size photograph
- Income proof and/or copy of income tax return file
- Details of collateral security along with government approved valuation certificate (if any).
What is the KYC requirement in education loan?
+ -KYC requirements are the documents as a proof of personal identification and residence proof of the applicant as well as the co-borrower.
What are maximum term for repayment?
+ -Maximum term for repayment is 7 years
How can I repay the loan?
+ -You can repay the loan after the moratorium period by mode of EMI or through post- dated cheques.
What is EMI? How are they calculated?
+ -EMI stands for Equated Monthly Installments. It can be calculated by using the formula given below
EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]
Here, P is Amount of Education Loan, R is Rate of Interest, n is Tenure of the Loan.
Or simply you can use the EMI calculator provision available on Pragathi Krishna Gramin Bank’s official website.
Is the loan disbursed in name of individual applicant or to the institute/ university directly?
+ -The loan is disbursed directly to the institute/ university that you have taken admission to. Hence, an applicant is supposed to submit institute brochure with proper division of the fee
If I am unable to complete my course in given tenure, will my repayment term be extended?
+ -It is completely on the banks discretion to extend the moratorium period or not. You can contact your nearest branch for the same.
What is method of application of interest on education loan?
+ -The interest will be charged at simple rate from the date of disbursement till commencement of repayment of loan. After that, compound interest is charged on reducing balance.
What is interest rate of education loan?
+ -The interest rate charged by bank is:
| Loan Amount | Rate of Interest Charged |
|---|---|
| For loans upto INR 4 lacs | MLR + 0.25% |
| For loans above INR 4 lacs | MLR + 1.25% |
What is interest subsidy on education loan?
+ -Pragathi Krishna Gramin Bank offers CSIS Interest Subsidy Scheme initiated by government of India. The scheme is for Economically Weaker Sections (EWS) of the society, to promote education amongst them.
What documents do I need to submit to avail interest subsidy scheme?
+ -The documents that need to be submitted are:
- Income certificate issued by authorised authorities
- Bonafide student certificate
- Letter of undertaking or declaration signed by borrower/ co-borrower
If I am availing loan for overseas studies, can I also avail interest subsidy scheme?
+ -No, the interest subsidy scheme is available only for studies applying for studies in India.
What is employment verification in an education loan?
+ -The bank takes the responsibility to cross verify all the employment details of the applicant and co-borrower. If the banks fails to cross verify every detail provided, it might reject the loan application.
Are there any tax benefits in education loans?
+ -Under Section 80E of Income Tax Act, loan borrowers can avail the tax benefits. This benefit is only available over and above INR 1,50,000. Tax benefits can be availed once the borrower starts paying interest on loan. The deduction is available until borrower pays off full interest amount on loan or for maximum of 8 years (whichever is earlier). You can visit the official website of Pragathi Krishna Gramin Bank to calculate your tax benefit through their tax benefit calculator.
Is it necessary to have bank account with the bank while availing loan from that particular bank?
+ -It is not necessary to have a bank account while availing the loan but it makes it easier for the borrower to get loan application approved.
Can I repay my loan in foreign currency even if my bank is in India?
+ -Yes, you can pay the amount in foreign currency (Euro, Pound, Dollar, etc.) The bank might charge an additional currency conversion fee as per RBI regulations.
Why do banks require insurance policy as security?
+ -The banks require insurance policy as security in lieu of education loan provided. The insurance policy should be equal or more to the amount of loan sanctioned. In case of untimely demise of the borrower, the bank recovers the amount from the insurance policy
Are there any additional benefits on availing loan from Pragathi Krishna Gramin Bank?
+ -There are no such additional benefits on availing loan from Pragathi Krishna Gramin Bank. Though, there are no processing or pre-payment charges applied by bank on education loan.
What is credit score? Is it important for education loan?
+ -Credit Score is inclusive of various factors such as credit history (Loan history or credit card). If a student does not have a credit score, banks calculate it by considering factors such as University, College and the Course of admission. Banks consider the academic background of student and credit history of co-borrower.
Are NRIs eligible for the education loan?
+ -NRIs are eligible for the loan if they have Indian citizenship and are Indian passport holder.
Is Visa a necessary document for studying abroad?
+ -Visa is needed as a document proof but it is not a sole requirement.
What all procedures do one have to go through while applying for abroad?
+ -A student who is applying for studying abroad have to give necessary documents required by the bank. One needs to have a thorough knowledge of the course they are applying for and in which institute as it can be asked on the airport by the foreign officials.
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