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Pragathi Krishna Gramin Bank Education Loan

Last Modified : September 12, 2018

Pragathi Krishna Gramin Bank provides easy loans to a candidate who desires of pursuing higher education, whether in India or abroad. The bank offers relaxed rates to female candidates and also does not ask for any margin/security for loans up to 4 lacs. With several other benefits, Pragathi Krishna Gramin Bank Education Loan is a perfect choice for students desiring higher education.

The bank is sponsored by Canara Bank to offer financial assistance to rural sector of the society. It aims at promoting academic significance in rural sector. 

Why Pragathi Krishna Gramin Bank?

The bank offers Education Loan for India and Abroad with various concessions and benefits to attract borrowers. The bank is sponsored by Canara bank, thus it holds stability and trust of all Canara bank's users. Attractive rate of interest charged is another key factor for borrowers.

What makes you eligible for Pragathi Krishna Gramin Bank Education Loan?

The bank has not mentioned a very stringent eligibility criterion for its education loan. To get such a loan from the bank,

  • The candidate must be an Indian National.
  • The parent/guardian of the candidate must be a permanent resident of the area of operation of the bank.
  • Also, the student must have secured the admission through the selection process or entrance test of the institute.

How can you apply for Pragathi Krishna Gramin Bank Education Loan?

The bank does not mention any online method for applying for education loan. Therefore, the only way to get an education loan from Pragathi Krishna Gramin Bank is by using the traditional offline method.

Candidates can visit their nearby branch of the bank and can enquire about education loan. By taking the relevant documents with them, they can apply for the loan at the earliest.

Pragathi Krishna Gramin Bank Education Loan: Details

Candidates can take a look at the complete details about Pragathi Krishna Gramin Bank Education Loan below. The eligibility criterion has already been mentioned above, and other important details of the loan are as follows: -

Interest Rate on Pragathi Krishna Gramin Bank Education Loan

Loan AmountRate of Interest Charged
For loans upto INR 4 lacsMLR + 0.25%
For loans above INR 4 lacsMLR + 1.25%
  • Female candidates get a concession of 0.5% on the rate of interest.
  • For understand MLR and MLR Rates of Pragathi Krishna Gramin Bank, candidates can visit the official website of the bank.

Quick Facts about Pragathi Krishna Gramin Bank Education Loan

MarginFor loans upto 4 INR lacs (both for studying in India and Abroad) – NIL
For loans above INR 4 lacs (studying in India) – 5% on the basis of expenses
For loans above INR 4 lacs (studying Abroad) – 15% on the basis of expenses
Maximum Loan LimitUpto INR 10 lacs for studying in India, and upto INR 20 lacs for Studying Abroad
SecurityThe loan is to be gives with parent/guardian jointly, in all the cases.
No security is required for loans up to INR 4 lacs.
For loans 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.
Moratorium PeriodOn completion of education and gestation period, OR, 6 months after getting the employment, whichever is earlier.
Repayment Period1 to 7 years.

Courses covered under Pragathi Krishna Gramin Bank Education Loan

There is no specific detail about which courses are covered under Pragathi Krishna Gramin Bank Education Loan scheme. However, the only thing that is mentioned is that the loan can be taken for pursuing professional, graduation and higher education courses in India as well as outside India. Also, capitation fees and donation are not financed.

As a general guidance, candidates can note down following courses being covered under this 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.

For studying 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

Documents Required for Pragathi Krishna Gramin Bank Education Loan

There is no specified list present on Bank’s website regarding this. However, on a general note, the candidate needs to have following documents to get the loan: -

  • A Valid ID Proof (Aadhar Card, Voter ID, Passport etc.)
  • Salary Proof, if any
  • Proof of Residence
  • Admission Offer Letter from respective institute
  • Bank statement of last 6 months (of parent/guardian/self)
  • Marks sheets or degree certificates of previous qualifications

Expenses covered under Pragathi Krishna Gramin Bank Education Loan

Candidates can expect the following expenses to be covered under the education loan: -

  • 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

FAQs

Q: What schemes does Pragathi Krishna Gramin Bank considers for its education loans?

Answer: 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.

Q: In whose name is the loan granted?

Answer: The loan is granted in the name of the student

Q: What is the age limit for availing loan in Pragathi Krishna Gramin Bank?

Answer: There is no restriction on age. Student must clear the other eligibility criteria’s stated by the bank for general education loan schemes.

Q: What does margin on any loan mean?

Answer: 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.

Q: Where can I avail Pragathi Krishna Gramin Bank Education Loan?

Answer: You can either contact your nearest branch for the application form or details regarding the loan or apply online.

Q: Is there any provision to apply for loan online?

Answer: Yes, you can apply online through Vidyalakshmi portal to avail for this loan.

Q: Is there any minimum aggregate marks to meet the eligibility criteria to avail Pragathi Krishna Gramin Bank education loan?

Answer: Yes, a student must have secured a minimum aggregate of 50% marks in their last qualifying examination (10+2 or Graduation)

Q: What is the discount/ rebate offered by Pragathi Krishna Gramin bank?

Answer: 0.50% concession is given to girl students

Q: What all is included in tangible collateral security?

Answer: 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.

Q: Is scholarship or assistantship included in the margin?

Answer: Yes any scholarship or assistantship will be a part of margin charged on education loan.

Q: What is Moratorium Period?

Answer: Course Period plus one year, or six months after getting a job

Q: What is tenure of an education loan?

Answer: Tenure of education loan provided by Pragathi Krishna Gramin Bank is 7 years

Q: What does MCLR stands for?

Answer: MCLR stands for Marginal Cost of funds based Lending Rate. It refers to the minimum interest rate of bank below which it cannot lend.

Q: What all expenses are covered under this course?

Answer: 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.

Q: Will my travel expense will be covered if I take loan from Pragathi Krishna Gramin Bank?

Answer: Yes, travel expenses are covered under this loan

Q: I have taken admission through management quota. Am I eligible?

Answer: Yes, even if you have taken admission through management quota, you are eligible for education loan by Pragathi Krishna Gramin bank

Q: What do you mean by reputed or recognized institutes?

Answer: 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)

Q: Are there any special benefits if I have secured admission to one of the top premier institutes?

Answer: Pragathi Krishna Gramin Bank provides no concession to students securing admission to top premier institutes  

Q: What is the processing fee or prepayment charges?

Answer: The education loan offered by Pragathi Krishna Gramin Bank does not carry any processing fee or any other charges

Q: What are the charges for late payment of EMI?

Answer: Pragathi Krishna Gramin Bank charges a penal interest @24% per annum, that is, @2% per month.

Q: Will cost of my computer be covered under the loan sanctioned?

Answer: Reasonable cost for the computer or laptop well be covered under the loan if it is required to complete the course. 

Q: Why is Pan Card necessary?

Answer: 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

Q: Are diploma or certificate courses considered under Pragathi Krishna Gramin Bank education Loan (both for India and Abroad)?

Answer: 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

Q: Is a co-borrower necessary for loan?

Answer: Yes, it is mandatory to have a co-borrower to avail loan from Pragathi Krishna Gramin bank.

Q: Who can be my co-borrower?

Answer: 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.

Q: What all documents are required from the co-borrower?

Answer: 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).

Q: What is the KYC requirement in education loan?

Answer: KYC requirements are the documents as a proof of personal identification and residence proof of the applicant as well as the co-borrower.

Q: What are maximum term for repayment?

Answer: Maximum term for repayment is 7 years

Q: How can I repay the loan?

Answer: You can repay the loan after the moratorium period by mode of EMI or through post- dated cheques.

Q: What is EMI? How are they calculated?

Answer: 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.

Q: Is the loan disbursed in name of individual applicant or to the institute/ university directly?

Answer: 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

Q: If I am unable to complete my course in given tenure, will my repayment term be extended?

Answer: It is completely on the banks discretion to extend the moratorium period or not. You can contact your nearest branch for the same.

Q: What is method of application of interest on education loan?

Answer: 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. 

Q: What is interest rate of education loan?

Answer: The interest rate charged by bank is:

Loan AmountRate of Interest Charged
For loans upto INR 4 lacsMLR + 0.25%
For loans above INR 4 lacsMLR + 1.25%

Q: What is interest subsidy on education loan?

Answer: 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.

Q: What documents do I need to submit to avail interest subsidy scheme?

Answer: 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

Q: If I am availing loan for overseas studies, can I also avail interest subsidy scheme?

Answer: No, the interest subsidy scheme is available only for studies applying for studies in India.

Q: What is employment verification in an education loan?

Answer: 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.

Q: Are there any tax benefits in education loans?

Answer: 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.

Q: Is it necessary to have bank account with the bank while availing loan from that particular bank?

Answer: 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.

Q: Can I repay my loan in foreign currency even if my bank is in India?

Answer: 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.

Q: Why do banks require insurance policy as security?

Answer: 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

Q: Are there any additional benefits on availing loan from Pragathi Krishna Gramin Bank?

Answer: 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.

Q: What is credit score? Is it important for education loan?

Answer: 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.

Q: Are NRIs eligible for the education loan?

Answer: NRIs are eligible for the loan if they have Indian citizenship and are Indian passport holder.

Q: Is Visa a necessary document for studying abroad?

Answer: Visa is needed as a document proof but it is not a sole requirement.

Q: What all procedures do one have to go through while applying for abroad?

Answer: 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.