PNB Education Rate of Interest

PNB Saraswat education loan scheme is offered to the students who aspire to pursue their higher studies in India

  • Need based finance offered as per the paying capacity of parents/students
  • Maximum repayment period of 15 years
  • No prepayment charges
  • Scholarship/ assistantship may be considered in margin

The Interest Rate is charged on the base rate fixed by bank as per guidelines of RBI

  • Rate of Interest charged by bank is based on 1 year MCLR/ Base Rate
  • For loan amount up to INR 7.5 Lacs, interest is MCLR + 2.00%
  • For amount exceeding INR 7.5 Lacs, the interest charged is MCLR + 2.60%
  • 0.50% concession is given to girl students


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Fill the Interest Rate
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EMI Payable

1,000 per month

Total Interest


Payable Amount


Total Interest
Principal Loan Amount

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PNB Education Loan Eligibility

loan eligibility image
  • Indian national. Student must be an Indian citizen or must be an Indian passport holder
  • Higher Education course. The course should be relevant to the guidelines set by bank
  • 10+2 pass. He/ She must have qualified 10+2 with minimum of 50% marks.
  • Entrance Test/ Merit-based admission. The admission should be secured through entrance test or a merit based process

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Applicable Rate of Interestup to INR 7.5 Lacs: MCLR + 2.00%
above INR 7.5 Lacs: 2.60%
Up to INR 4 Lacs: 13.35%
Between INR 4 to 7.50 Lacs: 13.60%
Above INR 7.50 Lacs: 11.60%
Upto 4 Lacs- 16.50%
Upto 7.5 Lacs- 17.50%
Above 7.5 Lacs- 15.50%
12.10%+ floating rate(depends on the risks points of the applicant)
Max Loan with CollateralFor India: 10 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 30 Lacs
Max loan without collateralFor India: 10 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 30 Lacs
Processing FeeNilUp to INR 4 Lacs: Nil
Above INR 4 Lacs: INR 5000
Nil1% of Loan
Repayment Period15 yearsup to INR 7.5 lacs: 10 years
Above INR 7.50 Lacs: 12 years
7 YearsLoan amount upto INR 7.5 Lacs: 10 years
Loan amount above INR 7.5 Lacs: 15 years
Loan for top institutionsYes, PNB PratibhaYes, SBI Scholar Loan SchemeNoNo
MarginUp to INR 4 Lacs - NIL
Above INR 4 Lacs - 5%
For loan above INR 4 Lacs
In India: 5%
In abroad: 15%
Upto loan 4 Lacs _ No margin
Above 4 Lacs_ for India: 5%
Upto INR 4 Lacs: no margin
Above INR 4 lacs: 5%
Age LimitNo age limitno age limitNo age criteriaAbove 18 years of age
Loan SecurityUpto 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.
Upto INR 4 Lacs: Parents considered as co-borrower
Between INR 4 to 7.50 Lacs: Parent as well as third party guarantee is required
Above INR 7.50 Lacs: Tangible security along with parents as co borrower
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/ST50% for SC/ST, and;60% for General category.NoNoNo
Processing Time15 days20 days14 Days7 Days
Prepayment chargesNilNilNilPre-closed within moratorium period: 4% of principal amount + taxes
Foreclosed after moratorium period: No prepayment penalty
Penal chargesNilPenal interest @ 2% to be charged for loans above Rs.4 lacs for the overdue amount and overdue period@ 2% per month on the overdue installment/s@ 2% per month on the overdue installment/s
Mandatory insurance coveryesYesYesNot mandatory
Travel expenesesyesyesYesYes (one way travel)
Bank transfter allowanceavailableavailableNo such clause mentionedNo such clause mentioned
Top up loan availabilityavailableyesNo such clause mentionedUnavailable
Interest Subsidy SchemesPadho Pardesh
Skill Loan Scheme
Padho Pardesh
Skill Loan Scheme
Tax benifityesyesYesYes
Concession/benefits0.5% concession to girl students
0.5% concession if interest is serviced during moratorium period including course period
Online application
Concession to girl students
1% concession if interest is serviced during moratorium period including course period
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
Doorstep service
Flexible loan terms
Upto 100% finance
Tax benefits
Hassle-free documentation process

How to apply for PNB Education Loan ?

PNB Education loan application form can be available online or offline at Bank branches.

Visit the official website and Click on PNB Education Loan

You will be redirected to Vidyalaxmi Portal

Click Apply Online and Fill up the form with all the necessary details

Upload the signature, photograph other documents required

Submit the form and take print out

After that visit the nearby PNB Bank for the further proceedings

For offline procedure, student can visit the bank and ask for application form for education loan. The bank representative will then be able to guide you with all necessary details and information about margin money, interest rates, and eligibility criteria about the suitable loan for you

PNB Education Loan Details

Loan Limit
Need based finance as per the paying capacity of parents/ students
Up to INR 4 Lacs - NIL
Above INR 4 Lacs - 5%
Processing Fee
Loan Security
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.
Loan Repayment
Course period + 1 year; repayment period maximum upto 15 years

Expenses covered under PNB Student Loan Scheme

  • Fee payable to college/ school/ hostel
  • Examination/ Library/ Laboratory fee
  • Insurance premium for student borrower, if applicable
  • Caution deposit, building fund/refundable deposit supported by Institution bills/receipts
  • Purchase of books/ equipment/ instruments/ uniforms
  • Cost of computers (if required)
  • Other expenses

Education Loan Documents Required ?

Loan Application as per the bank format

Self-Attested copies of age proof, address proof, admission proof

Attested Passport size photograph

Proof of having cleared last qualifying examination

Income proof and/or copy of income tax return file

Details of assets and liabilities of parents/co-applicants

Bank account statement of the applicant.

Course prospectus mentioning charges/fee pertaining to admission, examinations, hostel etc.

Any other document, depending on the case and purpose of the loan

Interest Subsidy Schemes

SBI Skill Loan Scheme

The bank offers Skill Loan Scheme for students who aspire to gain knowledge and specialized training in one specific field.

CSIS (Central Scheme for Interest Subsidy)

Central Government of India offered the scheme for economically weaker section for subsidy on education loan interest.


Frequently Asked Questions


What schemes does Punjab National Bank consider for its education loans?

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There are multiple other schemes offered by Punjab National Bank apart from the basic education loans. These are:

  • CSIS Scheme
  • Padho Pardesh
  • PNB Kaushal
  • Concessional Education Loans to PWDs
  • Credit Guarantee Fund Scheme for Skill Development
  • Credit Guarantee Fund Scheme for Education Loans

In whose name is the loan granted?

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The loan is granted in the name of the student


Is the loan contract executed only in student's name?

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No, the loan can be executed both in name of student and co-borrower as both are equally responsible for repayment of loan.


What is the age limit for availing loan in Punjab National Bank?

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There is no age restriction for the applicant applying for education loan from Punjab National Bank. He/ she should only meet the other stated eligibility criteria?s.


Are minors eligible to apply for Punjab National Bank Education Loan?

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Yes, Minors aspiring for further studies can apply for education loan with help of legal representation from parents/ guardians.


What does margin on any loan mean?

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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.


Should the student's margin be paid upfront in the starting?

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Margin can be paid on a year to year pro rata basis whenever bank disburses loan amount as per requirement.


Where can I avail Punjab National Bank Education Loan?

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You can either contact your nearest branch for the application form or details regarding the loan or apply online from the official website


Is there any provision to apply for loan online?

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


Can I view my loan statement online if I am an existing education loan borrower?

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Yes, by creating a login on Punjab National Bank web portal, you can view all details related to education loan online.


Is there any minimum aggregate marks to meet the eligibility criteria to avail PNB education loan?

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Yes, a student must have secured a minimum aggregate marks in their last qualifying examination (10+2 or Graduation). Relaxation in the marks is given to SC/ ST students


What is the discount/ rebate offered by Punjab National Bank?

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  • 0.50% concession is given to girl students
  • Eligibility criteria and margin on education loan is relaxed for SC/ST students

What all is included in tangible collateral security?

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Mostly Punjab National Bank asks tangible security in lieu of the loan amount sanctioned along with assignment of future salaries in favour of Punjab National 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?

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


What is Moratorium Period?

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


What is tenure of an education loan?

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Tenure of education loan provided by Punjab National Bank is maximum 15 years


What does MCLR stands for?

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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?

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Expenses covered by Punjab National 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 Punjab National Bank?

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Yes, travel expenses are covered under this loan


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

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This depends totally on bank?s discretion as whether a student meets other eligibility criteria or not.


What do you mean by reputed or recognized institutes?

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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?

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Punjab National Bank does not provide any additional concession to students who have secured admission in top rated institutes


What is the processing fee or prepayment charges?

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The education loan offered by Punjab National Bank have 1% of loan amount as processing fee for studying abroad.


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

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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?

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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 Punjab National Bank education Loan (both for India and Abroad)?

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Diploma courses are eligible under Punjab National 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?

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Yes, it is mandatory to have a co-borrower to avail loan from Punjab National Bank.


Who can be my co-borrower?

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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?

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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).

How many guarantors do I need to borrow loan from Punjab National Bank?

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You need at least 2 guarantors to avail loan from Punjab National Bank


What is the KYC requirement in education loan?

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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?

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Maximum Term for repayment for Loan is 15 years


How can I repay the loan?

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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?

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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.

What are the charges for late EMI payment?

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24% per annum on outstanding amount is charged for the late EMI payment and INR 500 for every bounced cheque.


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

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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?

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It is completely on the banks discretion to extend the moratorium period or not. It can be extended for maximum 2 years based on student?s reason. You can contact your nearest branch for more details.


What is method of application of interest on education loan?

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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?

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  • For repayment term up to 3 years is BR+1.50%
  • For repayment term more than 3 years, it is 1.50% + Term Premium where BR is at the rate of 10.00%.  

What is interest subsidy on education loan?

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  • Interest Subsidy scheme for economically weaker sections and to promote education amongst them
  • Padho Pardesh for students who wish to pursue studies abroad

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

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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?

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


What is employment verification in an education loan?

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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?

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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 Punjab National 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?

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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?

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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?

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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 Punjab National Bank?

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There are no additional benefits offered by Punjab National Bank mentioned on the official website. Borrowers can contact the nearest branch for the same.


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

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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?

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


Is Visa a necessary document for studying abroad?

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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?

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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.


If a student has any query, where or whom to contact?

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student can reach out to the nearest branch in case of any query.

Customer Care Number: 1800 180 2222/ 1800 103 2222

Customer Care Id:

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