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Punjab National Bank Education Loan

Last Modified : August 18, 2018

There are various distinct kinds of loans under PNB education loan to study within India and PNB Education Loan for Abroad, viz PNB Pratibha, PNB Saraswati, PNB Kaamgar and PNB Udaan

Various Interest subsidy schemes are provided by Indian Government along with Education Loans for India and Abroad provided by banks. Students interested to avail PNB student loan can even opt for these schemes, viz CSIS (Central Scheme for Interest Subsidy), Concessional Education Loans to Persons with Disabilities (PwDs) and Padho Pardesh (Education loan scheme for overseas studies to students belonging to minorities) 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 National. Student must be an Indian National or an Indian passport holder
  • 10+2.  You must have cleared 10+2 from a recognized board or institute with 50% marks.
  • Co-signer. A co-signer is mandate while applying for education loan
  • Eligible Institute and Course. You must have secured admission to institute and course approved by Punjab National Bank (PNB)

1. ‘PNB Saraswati’ Education loan Scheme for students pursuing higher education in India

PNB Saraswati Education Loan focuses on providing financial support to meritorious students for pursuing higher education in India. The Rate of Interest based on MCLR of 1 year for loan up to INR 7.5 Lacs is MCLR + 2.00% whereas for above INR 7.5 Lacs, it is 2.60%. In order to be eligible for PNB Saraswati Education loan, a student must:

  • Indian National
  • Higher Education course
  • 10+2 pass
  • Entrance Test/ Merit-based admission 

The loan is offered to the students who secure admission in institutes as under

  • Graduate/ Post Graduate degree/ diploma conducted by recognized colleges/ universities recognized by UGC/ Govt. / AICTE/ AIBMS/ ICMR etc.
  • Courses like ICWA, CA, CFA etc.
  • Courses conducted by IIMs, IITs, IISc, XLRI. NIFT, NID etc.
  • Regular Degree/Diploma courses approved by Director General of Civil Aviation/Shipping/Indian Nursing Council
  • Advance Diploma in Banking Technology offered by PNB IIT Lucknow.
  • Approved courses offered in India by reputed foreign universities.
  • Research Programs which are recognized by designated academic authority/ regulatory body.


Up to INR 4 Lacs - NIL

Above INR 4 Lacs - 5%

Scholarship/ assistantship may be considered in margin.

Margin can be paid in on year-to-year basis as and when disbursements are made on a pro-rata basis.



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.


Repayment (Maximum)

Maximum up to 15 years



Course period + 1 year

Prepayment Charges


Expenses covered under his loan:  

Expenses that this loan covers this PNB student loan are mentioned below:

  • 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 

2. ‘PNB Pratibha’– Education Loan for Premier Institutes in India

If you are planning to pursue higher education in any of India’s premier colleges/institutions namely IITs, IIMs, NITs, etc, then PNB Pratibha education loan is for you. The quantum of loan amount ranges from INR 7.50 Lacs up to INR 15 Lacs in this loan. A margin of 5% is applicable if the loan amount exceeds INR 4 Lacs. Otherwise, no margin is applicable. Applicants need not provide any collateral security with this loan and the parents/guardians must be named as joint borrowers.

PNB education loan Interest for this scheme for a repayment term of up to 3 years is BR+1.50% whereas for 3 years and more, it is 1.50% + Term Premium where BR is at the rate of 10.00%.  

In order to be eligible for PNB Pratibha Education loan, a student:

  • Indian national
  • Regular degree/diploma courses
  • Courses offered by premier institutes (business schools, engineering colleges, medical colleges) as per Annexure `I` & `II`.
  • Part-time Post Graduate Programs in Management for Executives’, offered by Indian Institute of Management (IIM) at all centres.
  • Post Graduate Program in Management for Senior Executives (PGPMAX), offered by Indian School of Business (ISB) Hyderabad & Mohali campus


i. In case of institutes covered at Annexure-I : - NIL

ii. In case of Institutes covered at Annexure-II :

  • Up to INR 4 Lacs - NIL
  • Above INR 4 Lacs - 5%

iii. Scholarship/Assistantship be included in margin

iv. Margin may be brought-in on year-to-year basis as and when disbursements are made on a pro-rata basis.

  • Annexure-I - NIL
  • Annexure-II - 5%



Co-obligation of parents/guardian as joint co-borrowers

Repayment (Maximum)

Maximum up to 15 years



Course period + 1 year

Prepayment Charges


3. PNB Kaamgar Education Loan

PNB Kaamgar Education Loan is offered to those, who, after completing their 10th standard, look forward to pursue any employment-oriented skill development courses. These courses can be offered by any recognized institute. It provides financial support from the banking system to those who have the minimum educational qualification, as required by the institution / organization running the course eligible under the scheme.

Under this loan scheme, for courses of duration up to 3 months, one is eligible for loan amount of INR 20, 000/-; for above 3-6 months it is INR 50,000/-; for above 6 months to 1 year, it is INR 75,000/- and for above 1 year, it is INR 1,50,000/-.

Eligibility Criteria:

In order to be eligible for PNB Kaamgar loan, a student:

  • Indian national
  • Degree/ Diploma/ certificate courses
  • Course offered by government-run Ministry / Dept. / Organization or a company/ society/organization supported by the National Skill Development Corporation (NSDC) or State Skill Missions / State Skill Corporations


Parents/guardians must file the loan documents with the student as the joint borrower. Other than that, no collateral security / third party guarantee is needed.

Margin of loan

No margin applicable

Processing fee


Repayment period

Up to 1 year of course: 2 to 5 years

Above 1 year: 3 to 7 years

Loan Repayment

Holiday / Moratorium

Up to 1 year of courses:6 months from completion of course

Above 1 year: 12 months from completion of course

No pre-payment penalty will be charged.


Note: A rebate of 0.50% will be given to women beneficiaries for existing & new girl student borrowers.

Interest Rate:

Amount of Loan

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

Repayable in 3 Years & Above

Up to INR 4 Lacs

BR + 3.00%

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

Over INR 4 Lacs & up to INR 7.50 Lacs

BR + 4.00%

BR + 3.50% + Term Premium (TP@0.50%)

Over INR 7.50 Lacs

BR + 2.00%

BR + 2.00%

Documents Required for PNB Education Loans:

PNB Saraswati:

  • 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.
  • Details of assets & liabilities of parents/co-applicants/guarantors
  • If the loan requires a collateral mortgage of IP as security, then a copy of Title Deed and Valuation is required
  • Borrower must obtain, at their expense, a Non-Encumbrance Certificate from an approved lawyer of the bank
  • Any other document/information, depending upon the case and purpose of the loan

PNB Kaamgar:

  1. Loan application as per the bank’s format
  2. Passport size photograph
  3. Address proof
  4. Proof of age
  5. Proof of having cleared last qualifying examination.
  6. Letter of admission to say vocational/ skill development courses.
  7. Course prospectus mentioning charges/fee pertaining to admission, examinations, hostel etc.
  8. Details of assets and liabilities of parents/co-applicants
  9. Any other document/information, depending on the case and purpose of the loan

PNB Top-Up Loan

The top-up loan is a facility or an extra financial help provided by banks, and financial institutions that allows you to borrow a certain amount of money over and above your existing loan. Punjab National Bank (PNB) offers second loan or top-up loan to students who wish to purse further studies. This facility is considered on basis of merits along with overall eligibility criteria.

Credit account genuineness, future repayment capacity of borrower and recovery of loan are some other factors considered while offering top-up loan facility.

The second loan repayment will commence after the completion of second course plus moratorium period as mentioned in education loan scheme.


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)

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.

Answer: 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 the interest rate for education loan?

Answer: The interest rate is different for different loan offered. Refer the tables below:

For PNB Saraswati

PNB Saraswati

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 Saraswati 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. 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).

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. 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. 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: