| Interest Rate | Moratorium Period | Margin Money |
| Floating – 9.25% – 11.25% Fixed – 10.25% – 12.75% | Course years + 1 year | Up to INR 4 Lakhs – nil Above INR 4 Lakhs – 15% |
Table of Contents
- Overview of PNB Education Loans
- PNB Education Loan Schemes
- PNB Education Loan Interest Rate
- PNB Education Loan Eligibility
- Expenses Covered by PNB Education Loan
- Documents Required for an Education Loan from PNB
- How to Apply for PNB Education Loans?
- Education Loan Calculator PNB
- PNB Education Loan Repayment
- Frequently Asked Questions
Punjab National Bank (PNB) is a popular financial institution working in the public sector with a pre-independence legacy. Education loans from PNB empower underprivileged and marginalized students of great academic merit in India to explore academic opportunities at home and abroad.
PNB education loans come with attractive interest rates, affordable repayment conditions, and without a cap. In this blog, let’s uncover PNB education loans in detail.
Overview of PNB Education Loans
PNB Education loans are offered in different schemes to study in India or abroad. The interest rates can be fixed or floating. There’s a margin of up to 15% for loan amounts more than INR 4 Lakhs.
| Maximum Loan Amount | No cap. Up to the cost of attendance demand or collateral value |
| Interest Rates | Floating – 9.25% – 11.25% Fixed – 10.25% – 12.75% |
| Margin | Up to INR 4 Lakhs – nil Above INR 4 Lakhs – 15% Scholarship/ assistantship included. Charged on a year-to-year or a pro-rata basis on disbursement. |
| Processing Fees | Documentation charge – INR 450 + GST Security verification charge – INR 250 + GST |
| Repayment Holiday/ Moratorium | Course period + 1 year |
| Maximum Repayment Tenure | Up to 15 years |
| Repayment Charges | Nil |
| Collateral Requirement | Not required for up to INR 7.5 Lakhs Tangible or non-tangible collateral is required for the above INR 7.5 Lakhs |
PNB Education Loan Schemes
Punjab National Bank offers study loans under various schemes, supporting a diverse group’s aspirations to study in India and abroad. The range of PNB education loans supports education and skill development in premier institutes. Here are the top PNB education loan schemes.
| Scheme | Study in India or Abroad Sponsored |
| PNB Udaan | Study Abroad |
| PNB Saraswati | Study in India or Abroad |
| PNB Kaushal | Study in India |
| PNB Pratibha Education Loan Scheme | Study in India |
| PNB Honhaar Education Loan Scheme | Study in India (Delhi) |
PNB Udaan
PNB Udaan supports meritorious students to study abroad. The PNB Udaan loan scheme has no cap, meaning the amount shown in your cost of attendance could be availed as the loan.
- Graduation: PNB funds job-oriented professional or technical courses at graduate levels at prestigious universities abroad.
- Post-graduation: For post-graduate level funding from PNB, the student must be pursuing an MS, MBA, or MCA abroad. Courses of similar backgrounds are also considered.
- Special courses: Courses offered by CIMA- London and CPA in the USA are funded under the PNB Udaan scheme.
- Courses supported by various government subsidy schemes are also supported under the PNB Udaan scheme.
- Degree/Diploma courses like aeronautical, pilot training, shipping, etc., are funded on the condition that employment is secured abroad after completion of the course.
PNB Saraswati
Regular scheme for helping meritorious students to pursue higher studies in India and abroad. The admission must be based on academic merit and entrance tests with specified cut-offs.
- 50% is the cut-off for SC/ST
- 60% is the cut-off for the General category
- Students are eligible for a merit seat, but choosing a management seat can also apply.
PNB Kaushal
This loan category from the Punjab National Bank is for skills education offered by institutes like polytechnic colleges, Industrial Training Institutes (ITIs), training partners affiliated to National Skill Development Corporation (NSDC)/Sector Skill Councils, State Skill Mission, or State Skill Corporation, preferably leading to a certificate/diploma/degree issued by such organization as per National Skill Qualification Framework (NSQF).
PNB Pratibha Education Loan Scheme
PNB Pratibha education loan helps students study at premier educational institutes in India, such as IIMs, IITs, and top medical colleges. Your educational institution must be listed under Annexures A and B as the college eligible for PNB education loans.
PNB Honhaar Education Loan Scheme
PNB Honhaar education loan scheme is limited to higher education support in Delhi. It helps eligible students study in India’s capital without financial stress, covering academic expenses, including the cost of a laptop.
PNB Education Loan Interest Rate
The PNB education loan interest rate can be fixed or floating. It ranges between 9.25% and 11.25% in floating rates and 10.25% – 12.75% in fixed rates. The interest rate is highly influenced by the value of the collateral you provide for a loan guarantee.
| Parameters | Floating Rates | Fixed Rates | |
| For 10 years | More than 10 years | ||
| Admission to a university listed by PNB | RLLR+BSP(Presently 9.25%) | 10.25% | 10.75% |
| 100% collateral security provided | RLLR+BSP+1.25%(Presently 10.50%) | 11.50% | 12.00% |
| Up to INR 7.5 Lakhs (covered under CGFSEL Scheme) | RLLR+BSP+2.00%(Presently 11.25%) | 12.25% | 12.75% |
| Loans above INR 7.5 Lakhs | RLLR+BSP+2.00%(Presently 11.25%) | 12.25% | 12.75% |
PNB Education Loan Interest Rate for Women Students: Note that there will be a 0.5% subsidy in the interest rates for women.
PNB Education Loan Eligibility
PNB education loan eligibility criteria are simple. The education loan eligibility PNB involves terms regarding citizenship and admission abroad.
- The student should be an Indian citizen.
- The student should get admission abroad based on academic merit and/ or entrance test results.
Expenses Covered by PNB Education Loan
PNB education loan covers your academic and living costs according to fund availability and your needs.
The following are typically included in the PNB education loan coverage:
- Tuition fees
- Health Insurance
- Accommodation
- Food
- Expenses related to the purchase of laptops, books, etc.
- Traveling
- Study tours and fieldwork
Documents Required for an Education Loan from PNB
Documents required for education loans in PNB include your academic and financial documents. Your cosigner’s documents are also checked before sanctioning your loan application.
| Loan application duly filled | Passport size photograph |
| Address proof | Age proof |
| Copy of PAN of the student | Proof of clearing the last qualifying exam |
| Admission letter | Cost of attendance from the University of Admission |
| Details of Assets & Liabilities of parents/cosigner/guarantors | Collateral documents – a copy of the Title Deed, Valuation Certificate, and Non-encumbrance Certificate from an approved Lawyer of the Bank be obtained at the borrower’s cost. |
| Passport & Visa copy | Additional documents, if asked |
How to Apply for PNB Education Loans?
You can apply for a PNB education loan online and offline. To apply online,
- Visit the official website.
- Choose your PNB education loan scheme and click Apply
- Fillout the application form
- Submit the documents required
- PNB will review your application and get back to you.
To apply offline, visit the bank and fill out the online application. Submit the document copies and wait for the bank to review them. PNB will contact you to inform you of their decision.
Education Loan Calculator PNB
Estimating your monthly installment helps you plan the repayment of your PNB education loan. The PNB education loan interest calculator also works as a PNB education loan repayment calculator. This simple online tool allows you to estimate the total interest rate and repay your PNB education loan.
Check Here for a Free Interest Rate Calculator by Nomad Credit
PNB Education Loan Repayment
Punjab National Bank education loan repayment is decided after negotiating with you, the student. You get a year’s grace period after completing your course before starting the loan repayment. The maximum duration allowed for a PNB education loan repayment is 15 years.
Get started today! Explore your loan options based on your eligibility and needs. At Nomad Credit, our counselors guide you to get the right option for free, assisting you from the beginning to the end of the process. Book your consultation call today and step into seamless study abroad financing.
Frequently Asked Questions
What if the student doesn’t have a PAN while applying for a PNB education loan?
If the student doesn’t have a PAN at the time of the PNB education loan application, it can be submitted within a year. Talk to the manager and resolve it before starting with the documentation.
Is it mandatory for the student to have insurance coverage to apply for PNB education loans?
Yes. The student must have insurance coverage to apply for a PNB education loan. The insurance expense is also covered by the loan in general cases.
Should the company suggested by the PNB provide the student insurance?
No. Students can choose any company to apply for an education loan from the PNB.
What is the eligibility for a PNB abroad education loan?
To apply for a study abroad loan from PNB, students must secure admission to a university abroad. It is mandatory that the student must be an Indian citizen.
What is the interest rate for a PNB education loan?
The interest rate for PNB education loans can be 10.25% to 12.75%. It depends on your university, course, cosigner, CIBIL score, and property to decide your interest rate.
