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Punjab National Bank (PNB) Education Loan- Student Loan in India

Punjab National Bank (PNB) Education Loan Scheme


The Scheme aims at providing financial assistance to deserving / meritorious students (Indian Nationals) for pursuing higher professional and technical education in India or abroad.

Studies in India

1.  Approved courses leading to Graduate/ Post Graduate degree and PG Diplomas conducted by recognized colleges/ universities recognized by UGC/ Govt./ AICTE/ AIBMS/ ICMR etc.

2.   Courses like ICWA, CA, CFA etc.

3.   Courses conducted by IIMs, IITs, IISc, XLRI. NIFT, NID etc.

4.    Regular Degree/Diploma courses like Aeronautical, pilot training, shipping etc., approved by Director General of Civil Aviation/Shipping, if the course is pursued in India.

5.    Approved courses offered in India by reputed foreign universities.

6.    For Nursing courses, students getting admission through Management Quota may also be considered.

Studies abroad

i)     Graduation: For job oriented professional/technical courses offered by reputed universities.

ii)    Post graduation: MCA, MBA, MS, etc.

iii)   Courses conducted by CIMA- London, CPA in USA etc.

iv)   Degree/Diploma courses* like aeronautical, pilot training, shipping etc. provided these are recognized by competent regulatory bodies in India/abroad for the purpose of employment in India/abroad.

*Diploma Course and certificate courses shall not be covered under the eligible courses for study abroad except as mentioned above.

PNB Education Loan Eligibility:

Student eligibility 
a)    Should be an Indian National.

b)    Should have secured admission to a higher education course in recognized institutions  in India or Abroad through Entrance Test/ Merit Based Selection process after completion of HSC(10 plus 2 or equivalent). OR Where the admission is purely based on marks scored in qualifying examinations, there is a cut off percentage of marks of 50% for SC/ST and 60% for General category.

Expenses considered for Loan

1.    Fee payable to College / School / Hostel

2.    Examination / Library / Laboratory fee.

3.    Purchase of books / equipments / instruments / uniforms.

4.    Caution Deposit / Building Fund / Refundable Deposit supported by Institution Bills / Receipts, 

5.    Travel Expenses / Passage money for studies abroad.

6.    Purchase of computers at reasonable cost, if required for completion of the course.

7.    Insurance premium for student borrower, if applicable

8.    Any other expense required to complete the course - like study tours, project work, thesis etc.

PNB Education Loan Quantum of Finance      

Need based finance, subject to employability and earning potential of the student with prescribed margin as per the following ceilings:- 

For studies in India: Maximum Rs.10.00 lacs.

For studies abroad: Maximum Rs.20.00 lacs.

PNB Education Loan Security

Up to Rs. 4 lac: Parent(s)/guardian as a joint borrower(s).

Above Rs. 4 lac and upto Rs. 7.50 lac: Besides the parent(s)/ guardian executing the documents as joint borrower(s), collateral security in the form of suitable third party guarantee.

Above Rs.7.50 lac: Parent(s)/ guardian as a joint borrower(s). Tangible collateral security of suitable value acceptable to bank alongwith the assignment of future income of the student for payment of installments.
The security can be in the form of land / building / Govt. Securities / Public Sector Bonds / Units of UTI, NSC, KVP, LIC Policy, Gold, Shares/ Mutual Funds/ Debentures, Bank Deposit in the name of the student parent / guardian or any other third party or any other tangible security acceptable to the bank with suitable Margin.

PNB Education Loan Interest Rate:

Amount of Loan

Repayable in Less Than 3 Years (BR@10%)

Repayable in 3 Years & Above

Up to Rs 4 lakh

BR + 3.00%

BR + 2.50% + Term Premium (TP@0.50%)

Over Rs 4 lakh & up to Rs 7.50 lakh

BR + 4.00%

BR + 3.50% + TP

Over Rs 7.50 lakh

BR + 2.00%

BR + 2.00%

PNB Education Loan Repayment

Repayment of loan will be in equated monthly installments (EMIs) for period as under:

For loans upto Rs.7.50 lac                 - upto 10 years 

For loans above Rs.7.50 lac               - upto 15 years

Repayment holiday/Moratorium:

Course period + 1 year or 6 months after getting job, whichever is earlier.

Note: No prepayment penalty is levied for prepayment of loan.

Upfront Fee      

For Study in India - Nil

For Study abroad - 1% with a minimum of Rs. 10,000/-(refundable on availment of the loan amount)

Additional Benefits provided to the students by PNB

Simple interest is charged during the Study period + Moratorium period.

A rebate of 0.50% in rate of interest permitted to women beneficiaries for loans up to Rs. 10 lac for studies in India and Rs 20 lac for studies abroad for existing as well as new girl student borrowers’ wef. 08.03.2009.

1% interest concession may be provided for loanees if the interest is serviced during the study period/moratorium period.

The loan is disbursed in stages as per the requirement/ demand directly to the Institutions/ Vendors of equipments/ instruments to the extent possible.

Second time Education Loan can be sanctioned to the same student borrower for completion of next higher course.

Check List

While applying for the loan, the borrower is required to furnish the following information/papers: 

  • Loan application on Bank's format.       
  • Passport size photograph
  • Proof of Address.        
  • Proof of Age.  
  • Proof of having cleared last qualifying examination.      
  • Letter of admission in professional, technical or vocational courses.      
  • Prospectus of the course wherein charges like Admission Fee, Examination Fee, Hostel Charges etc. are mentioned.           
  • 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 to 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.

(The above CHECKLIST is only illustrative, not exhaustive. For details, please contact our nearest Branch Office).
Circle-wise list of Tie-up with Educational Institutes for sanction of educational loan by respective circles is available under Retail Tie-up