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Punjab National Bank Education Loan for Abroad

Last Modified : June 30, 2018

Punjab National Bank (PNB) provides various education loan schemes for students who wish to study in India or abroad for graduate/ post graduate or diploma courses from a recognized institute.

PNB has launched initiatives to promote education like PNB Education Loan, Padho Pardesh, PNB Udaan, and PNB Saraswati.

Government of India offers various Interest Subsidy schemes along with Education Loans for India and Abroad provided by banks. Interested students can avail these schemes such as CSIS (Central Scheme for Interest Subsidy), Concessional Education Loans to Persons with Disabilities (PwDs), Credit Guarantee Fund Scheme for Education Loans (CGFSEL), and Credit Guarantee Fund Scheme for Skill Development (CGFSSD) to ease their loan liability.

Why PNB?

The variety of loan offered by PNB for both India and abroad studies gives an advantage to applicants to choose best and most suitable education loan for them. The bank offers variants of loan to meet all sort of needs of the applicant and that too with maximum benefits.

Are you eligible for PNB Education Loan?

  • Indian Citizen. A student must be a resident of India or be in possession of Indian passport
  • 10+2 Pass. Qualifying 12th examination with nearly 60% marks is mandatory
  • Eligible Institute and Course. You must have secured admission to institute and course approved by Punjab National Bank (PNB)

1. PNB Udaan – Education Loan for Students Pursuing Higher Education Abroad

Students pursuing Diploma and Certificate courses other than aeronautical, pilot training, shipping, etc. from abroad maybe considered for Education Loan under PNB Udaan scheme. Here, the loan is backed by liquid security valuing 125% of loan amount in form of FDRs/NSCs/ surrender value of Life Insurance Policies along with establishing the financial credentials of family members. The course opted by the student should be recognized or accredited.

Eligibility to avail this loan from PNB Bank

  • Indian National
  • 10+2 pass
  • Higher education course in recognized institutions overseas
  • Entrance Test/ Merit Based admission

Rate of Interest in PNB Udaan Education Loan

PNB Udaan

Loan up to 7.50 lac


Loan Above INR 7.50 lac


Loan irrespective of amount, where tangible collateral security is in the shape of IP, that are enforceable under SARFAESI Act or if the liquid security is available.


Loan for pursuing education from premier foreign universities and educational institutes (200) under PNB Udaan Loan up to 7.50 lac Covered under CGFSEL




Quick Facts about PNB Udaan Education Loan


Up to INR 4 lac - NIL

Above INR 4 lac - 5%

Scholarship/ assistantship may be considered in margin.

On year to year basis, margin can be brought in as and when disbursements are made on a pro-rata basis.


Amount upto INR 7.50 Lacs: Parents or guardian are made joint borrowers. No tangible Security and /or 3rd party guarantee is required.

Above INR 7.50 Lacs: Parents or guardian should be made joint borrowers.

Tangible collateral security is acceptable to bank

Repayment (Maximum)

Maximum up to 15 years



Course period + 1 year

Prepayment Charges


Courses covered under PNB Udaan Education Loan Scheme

  • For Graduation: Job oriented professional or technical courses offered by renowned universities.
  • For Post-Graduation: MCA, MBA, MS, etc.
  • The courses that are provided by CIMA, London and CPA, USA
  • Degree/Diploma courses like aeronautical, pilot training, shipping, etc. provided these are recognized by competent regulatory bodies in abroad for purpose of employment in abroad.

Expenses covered under PNB Udaan Education Loan Scheme

Expenses that are borne by the bank under PNB Udaan Education Loan are:

  • Tuition Fee
  • Examination Fee
  • Library/ Laboratory Fee
  • Travel expenses or passage money for studies overseas
  • Cost of Books. Equipment, Instruments or Uniforms
  • Cost of Computer (reasonable), if required
  • Miscellaneous expenses- study tours, project work, thesis, etc.

Documents required to be submitted for PNB Udaan Education Loan

Documents required by the bank to sanction loan to students are as follows:

  • Loan application as per the bank's format.
  • Passport size photograph.
  • Proof of address and age
  • PAN Card copy of student borrower
  • Proof of having cleared last qualifying examination.
  • Letter of Admission
  • Course Prospectus which states details of charges/fee for admission, examination, Hostel etc.
  • Documents stating assets and liabilities of parents, co- applicants or guarantors are required
  • In case of collateral mortgage of IP as security, then the bank considers copy of Title Deed and Valuation
  • Non- Encumbrance Certificate from an approved lawyer of the bank.
  • Any other document/information, depending upon the case and purpose of the loan

For the list of premier Foreign Universities and Institutes Click Here

2. Padho Pardesh - Education loan scheme for overseas studies to minority community students

The scheme ‘Padho Pardesh’ was founded under the Prime Ministers new 15 point programme for welfare of minorities. Padho Pardesh scheme of Interest Subsidy on education loans for overseas studies aims to promote the academic advancement of students belonging to minority communities. The scheme provides 100% interest subsidy to students belonging to the minority community

Eligibility to avail this loan from PNB Bank

  • Masters, M.Phil or Ph.D. level in institutes/ universities overseas. (The list of courses covered is given below)
  • Loan sanctioned by a bank which falls under the Education Loan Scheme of Indian Banks Association (IBA).
  • Students should belong to minority community viz. Muslims Christians, Sikhs, Buddhists, Jains, and Parsis
  • Total income of the employed candidate or his/ her parents/ guardians (in case of unemployed candidates) from all sources, should not exceed INR 6 Lacs per annum
  • Income certificate has to be submitted by the notified authority in the State/ Union Territory

Details regarding PNB ‘Padho Pardesh’ Scheme

  • Interest Payable for moratorium period will be borne by Government of India
  • Post moratorium period, interest on the outstanding amount is borne by the applicant 
  • The Scheme is only applicable for higher studies abroad, i.e. only if the degree is awarded by the foreign university
  • Availed only once, either at Masters or Ph.D. level 
  • Maximum loan for studying overseas is INR 20 Lacs.

Conditions for Interest Subsidy

  • Violation of any condition of the scheme will result in discontinuation of subsidy there forth
  • obtained subsidy by false statement/ certificates will result in same
  • Not be available to the students who either discontinued the course midstream or are expelled from the institutions on disciplinary or academic grounds
  • The benefits under the scheme will be ceased if the student gives up Indian citizenship during the tenure of the loan.
  • The terms and conditions of the scheme are at the discretion of Ministry of Minority Affairs.
  • They can be changed to enhance procedure and attain effective and efficient implementation

Quick Facts about Padho Pardesh Scheme


Maximum Loan for pursuing higher studies overseas is INR 20 Lacs


Repayment (Maximum)

The interest payable by the students will be borne by GOI till moratorium period.

Post moratorium period, student will have to borne the interest on outstanding loan amount.



Course period + 1 year or 6 months after getting job

Prepayment Charges


Q. How to Avail PNB ‘Padho Pardesh’ Scheme?

Answer: Students can yield benefits of the scheme by following the below mentioned procedure:

  • Students are supposed to inform their lending banks about the recent launched scheme of Padho Pardesh by Ministry of Minority Affairs.
  • Then the students have to submit the proof of their eligibility for the particular scheme
  • If a student is eligible, the lending bank will feed the students information into portal of Padho Pardesh.
  • The portal will remain open for the period of two month in every quarter.

Courses covered under Padho Pardesh Scheme

Courses that are covered by Government of India under this scheme are as follows:

Arts/ Humanities/ Social Sciences


Pure Science


Bio- technology/ Genetic Engineering

Industrial Environmental Engineering

Nano- technology

Marine Engineering

Petro-chemical Engineering

Plastic Technology

Cryogenic Engineering


Automation Robotics including artificial intelligence

Laser Technology

Low Temperature Thermal Dynamics

Art Restoration Technology


Dock and Harbour Engineering

Imaging System Technology

Composite Materials Engineering including Decentralized power

Packaging Engineering/ Technology

Nuclear Engineering

Information Technology including Computer Engineering, Software, Software Quality assurance, etc

Industrial Safety Engineering


Agriculture & Agro Technology


Floriculture & Landscaping

Forestry & Natural Resources

Food Sciences & Technology

Plant Pathology


Energy Studies

Farm Power & Machinery

Veterinary Sciences

Soils & Water Management

Plant Breeding & Genetics

Small- scale Rural Technology

Ocean & Atmospheric Sciences


*The courses might change as per discretion of Ministry


Q. What schemes does Punjab National Bank considers for its education loans?

Answer: 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

Q. In whose name is the loan granted?

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

Q. Is the loan contract executed only in student’s name?

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

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

Answer: 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.

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

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

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. Should the student’s margin be paid upfront in the starting?

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

Q. Where can I avail Punjab National Bank Education Loan?

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

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

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

Q. Is there any minimum aggregate marks to meet the eligibility criteria to avail Punjab National Bank education loan?

Answer: 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

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


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

Q. What all is included in tangible collateral security?

Answer: 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.

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 Punjab National Bank is maximum 15 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 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.

Q. Will my travel expense will be covered if I take loan from Punjab National Bank?

Answer: Yes, travel expenses are covered under this loan

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

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

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

Q. What is the processing fee or prepayment charges?

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

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

Answer: 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.

Q. Is a co-borrower necessary for loan?

Answer: Yes, it is mandatory to have a co-borrower to avail loan from Punjab National 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. How many guarantors do I need to borrow loan from Punjab National Bank?

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

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 for Loan is 15 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 Punjab National Bank’s official website.

Q. What are the charges for late EMI payment?

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

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. It can be extended for maximum 2 years based on student’s reason. You can contact your nearest branch for more details.  

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 is different for different loan offered. Refer the tables below:

For PNB Udaan

PNB Udaan

Loan up to 7.50 lac


Loan Above INR 7.50 lac


Loan irrespective of amount, where tangible collateral security is in the shape of IP, that are enforceable under SARFAESI Act or if the liquid security is available.


Loan for pursuing education from premier foreign universities and educational institutes (200) under PNB Udaan Loan up to 7.50 lac Covered under CGFSEL




Q. What is interest subsidy on education loan?

Answer: Punjab National Bank offers

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

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 Punjab National 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 Punjab National Bank?

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

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.

Q. If a student have any query, where or whom to contact?

Answer: 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: