Punjab National Bank (PNB) Education Loan: Interest Rates, Eligibility, & Repayment Details

 

Interest Rate	Moratorium Period	Margin Money
Floating – 8.10% – 10.10% Fixed – 9.10% – 11.60%	Course years + 1 year	Up to INR 4 Lakhs – nil Above INR 4 Lakhs – 15%

Punjab National Bank (PNB) is one of the top banks to support study abroad and 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. The Punjab National Bank education loan for study abroad is one of the most popular financing options for Indian students pursuing higher education overseas.

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.

Punjab National Bank offers study abroad education loans primarily through the PNB Udaan Scheme. Eligible Indian students with admission to recognized foreign universities can finance tuition fees, living expenses, travel, insurance, books, and other approved educational costs. PNB education loan interest rates currently start from 8.10%-10.10% (floating) and 9.10-11.60% (fixed), with a moratorium of the course period plus one year and repayment tenure up to 15 years.

Get Expert Loan Guidance!

Overview of PNB Education Loans

The Punjab National Bank overseas education loan 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. 

Particulars	Details
Maximum Loan Amount	No cap. Up to the cost of attendance demand or collateral value
Interest Rates	Floating – 8.10% – 10.10% Fixed – 9.10% – 11.60%
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 1,350 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
Official Website	https://pnb.bank.in/

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 is Punjab National Bank abroad education loan scheme, for students going abroad for higher studies. PNB Udaan helps meritorious students with professional, technical, and vocational courses at internationally renowned universities and institutions.

Under PNB Udaan, the loan will be sanctioned need-based without any upper limit. That is, the sanctioned loan amount will be determined by the actual cost of education incurred by you which includes tuition fees, living expenses, travel, insurance, and other educational expenses approved by you, as mentioned in your university admission and financial documents.

But “no cap” doesn’t mean that there will be unlimited sanctioning of funds. Practically speaking, the sanctioned amount depends upon:

• Actual cost of education
• Amount of security available
• Income and repayment capacity of the co-applicant
• Policies of the bank regarding credit appraisal

If the amount of the loan is huge (say ₹1 Crore or more), then students need to give proportional security and financial support.

Important: Contact your nearest PNB branch with your admission letter, fee structure, and financial documents to get a realistic estimate of the loan amount you may qualify for under the PNB Udaan scheme.

Courses Covered Under PNB Udaan

Graduation Programmes

PNB funds job-oriented professional and technical undergraduate programmes offered by recognized universities abroad.

Postgraduate Programmes

Students pursuing international postgraduate courses such as:

• MS
• MBA
• MCA
• Other equivalent professional programmes
• may be eligible under the scheme.

PNB Saraswati

PNB Saraswati is an educational loan offered by Punjab National Bank for meritorious students seeking higher studies in India as well as overseas. The criteria for the loan normally involve admission through merit-based selection procedures having certain cut-off scores.Academic Eligibility Criteria for PNB Saraswati

PNB Saraswati requires the following minimum academic scores for admission on a merit basis:

• General Category: Minimum 60% aggregate in the qualifying examination
• SC/ST Category: Minimum 50% aggregate in the qualifying examination

For undergraduate (UG) courses, the qualifying examination typically refers to Class 12/HSC.

For postgraduate (PG) courses, it generally refers to the student’s bachelor’s degree.

PNB Kaushal Education Loan Scheme

PNB Kaushal is a skill development loan scheme offered by Punjab National Bank to support students enrolling in vocational, technical, and skill-based training programs in India. The scheme helps cover course-related expenses and aims to improve employability by providing affordable financing for recognized skill development courses.

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 a specialized education loan scheme offered by Punjab National Bank for students pursuing higher education in recognized institutions in Delhi.

PNB Education Loan Interest Rate

The PNB education loan interest rate as of May 2026 can be either floating or fixed, making Punjab National Bank one of the few public-sector banks offering both options for study abroad loans. Floating interest rates start from 8.10%, while fixed rates start from 9.10%. Students comparing a PNB foreign education loan with other public and private bank loan options often find PNB competitive due to its flexible interest rate structure and long repayment tenure.

The applicable rate depends on factors such as:

• Whether the university is listed under PNB’s approved institutions
• The value and type of collateral provided
• Loan amount
• Loan tenure
• Whether the applicant qualifies for women borrower concessions

Parameters	Floating Rates	Fixed Rates (Up to 10 Years)	Fixed Rates (More Than 10 Years)
Admission to a university listed by PNB	RLLR + BSP (Presently 8.10%)	9.10%	9.60%
100% collateral security provided	RLLR+BSP+1.25% (Presently 9.35%)	10.35%	10.85%
Up to INR 7.5 Lakhs (covered under CGFSEL Scheme)	RLLR+BSP+2.00% (Presently 10.10%)	11.10%	11.60%

Disclaimer: Final applicable rates may vary depending on the applicant’s profile, university category, collateral provided, loan amount, repayment tenure, and prevailing RLLR/BSP rates. Students are advised to verify the latest interest rates and terms with Nomad Credit Loan expert.

Why PNB’s Processing Fee Stands Out

One of the biggest advantages of choosing a PNB education loan for study abroad is its exceptionally low processing fee structure.

Unlike many banks that charge a percentage of the loan amount, Punjab National Bank keeps its charges minimal and largely fixed:

• Documentation charge: INR 1,350
• Security verification charge: INR 250 + GST

That means the total processing-related cost is approximately INR 1,600 + GST flat, regardless of whether the student borrows ₹10 Lakhs or ₹75 Lakhs.

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

Under the Punjab National Bank study abroad loan, students can finance not only tuition fees but also accommodation, insurance, visa charges, books, laptops, and travel expenses. The following are typically included in the PNB education loan coverage:

• Tuition fees
• Living expenses
• Hostel charges
• Travel expenses
• Visa fees
• Health insurance
• Books and study materials
• Laptop purchase
• Examination fees
• Laboratory fees
• Library fees
• Study tours
• Project work

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.

Applicant Documents

• PAN Card
• Passport
• Address proof
• Photographs
• Academic transcripts
• Admission letter
• Visa copy

Co-Applicant Documents

• PAN Card
• Address proof
• Income proof
• Bank statements
• IT Returns

Academic Documents

• Mark sheets
• Degree certificates
• Entrance test scores

Collateral Documents

• Title deed
• Valuation report
• Non-encumbrance certificate

Tax Benefit Under Section 80E on PNB Education Loans

Students repaying a PNB education loan can also claim significant income tax benefits under Section 80E of the Income Tax Act, 1961.

What Is the Section 80E Tax Benefit?

Under Section 80E:

• The entire interest paid on an education loan is deductible from your taxable income
• There is no upper limit on the deduction amount
• The deduction is available for 8 consecutive assessment years starting from the year repayment begins, or until the interest is fully repaid — whichever is earlier

This tax benefit applies only to the interest component, not the principal repayment.

How Much Tax Can You Save?

For students or co-applicants in higher tax brackets, the savings can be substantial.

For example:

• If you pay ₹3 Lakhs in annual interest
• And fall under the 30% income tax bracket
• Your potential tax saving could exceed ₹90,000 in a single year
• For high-value abroad education loans, Section 80E can help families save approximately ₹50,000–₹2 Lakhs+ annually, depending on the interest paid and taxable income.

Book a Free Session Now!

How to Apply for PNB Education Loans?

You can apply for a Punjab National Bank overseas education loan online and offline. To apply online,

Step 1: Secure admission to a recognized foreign university

Step 2: Gather academic, financial, and collateral documents

Step 3: Apply through:

• Vidya Lakshmi Portal
• PNB branch
• PNB online channels (where available)

Step 4: Loan assessment and document verification

Step 5: Sanction letter issuance

Step 6: Disbursement as per university fee schedule

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.

PNB Education Loan Processing Time

The processing time for a PNB education loan typically ranges from 7 to 15 working days, depending on the applicant’s profile, loan amount, collateral verification requirements, and document completeness.

The timeline may vary based on:

• Verification of academic and admission documents.
• Collateral valuation and legal verification.
• Co-applicant income assessment.
• University and course evaluation.
• Branch-level processing workload.

Students planning to study abroad should ideally begin their loan application process at least 2-3 months before visa and tuition fee deadlines to avoid last-minute delays.

Tip: Submitting complete academic, financial, and collateral documents at the initial stage can significantly reduce approval time.

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. 

Education Loan from PNB for Top Countries 

PNB is a top bank for education loans to study in your dream destinations. PNB evaluates your country and course options before accepting your loan application to ensure your repayment potential and future earning opportunities. 

Punjab National Bank for Study in Australia

From GS (Genuine Student) requirements to OSHC (Overseas Student Health Cover), PNB education loan covers your major expenses in Australia. The top courses supported by PNB under the Udaan scheme include MCA, MBA, and MS.

Punjab National Bank for Study in Canada

PNB education loans for Canada cover your GIC (Guaranteed Investment Certificate) expenses, student health insurance, academic costs, living expenses, and transportation charges. Apart from MBA, MS, and MCA, PNB education loans support UG and PG diploma programs in Canada.

Punjab National Bank for Study in the UK

If you have a CAS letter, you can apply for a PNB education loan to study in the UK. Since the UK offer a 2-year post-study work visa for international students, repaying your loan is practically possible with employment. In the UK, PNB education loans cover courses conducted by CIMA London apart from PG courses like MCA, MBA, and MS. 

Punjab National Bank Loan for Study in the USA

The USA is a focused study abroad destination for PNB. Studying in the USA requires around INR 1 Cr or more for courses like MBA. From SEVIS fee to I-20 deposit, PNB education loan covers 80% – 100% of your expenses. Top courses covered by PNB education loans in the USA are MCA, MBA, MS, courses conducted by CPA, pilot training, aeroneutical, shipping, etc. 

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.