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Punjab Sind Bank Education Loan for Abroad

Last Modified : August 31, 2018

Punjab and Sind Bank provides financial assistance to students aspiring for studying overseas. The bank also offers loan schemes to students who wish to enhance their skills through vocational and skill development courses.

Punjab and Sind Bank Education Loan is extended invariants such as PSB Education Loan for India, PSB Education Loan for Abroad and PSB Excellence.

Why Punjab Sind Bank?

The bank offers INR 10 Lacs for education in India and INR 20 for studying overseas along with flexible

Customised Education Loans for India and Abroad in accordance of the borrowers needs and high amount of loan offered by the bank acts as key attracting factors for the applicants.

Are you eligible for Punjab Sind Bank Education Loan?

  • Indian National. Student must be an Indian citizen or an NRI in possession of Indian passport
  • 10+2. Must have qualified 10+2 examination from a recognized institution or board
  • Co-Signer. A co-signer or co-borrower is must for applying to education loan from Punjab Sind Bank

How can you apply for Punjab and Sind Bank Education Loan?

A borrower can apply for education loan from PSB bank through online and offline mode of application process. The online mode of application can be concluded through vidyalakshmi portal and for offline mode, an applicant need to visit the nearest branch.

For Online Mode of Application

  • Visit the Vidyalakshmi Portal and register yourself prior to applying for the loan.
  • Navigate to “Apply Now’ option
  • Fill in your details like Name, Address, Contact Number, City of residence, Preferred Branch, etc.
  • Submit one page application form & all the required documents

Easy and Quick Loan approval post completion of all the necessary formalities.

For Offline Mode of Application
Borrower must visit the nearest branch and ask for the application form, fill in the details and submit the form along with required documents.

Post the submission of form, a bank executive will guide you for further procedure.

Types of Education Loan schemes offered by Punjab and Sind Bank are described below

PSB Model Education Loan Scheme

Punjab and Sind Bank offers this Education Loan scheme to students pursuing higher studies in India or abroad. The Maximum loan amount offered in INR 20 Lacs with repayement tenure of maximum 15 years.

What makes you eligible for PSB Model Education Loan Scheme?

  • Indian National
  • 10+2 Pass
  • Graduate/ postgraduate course
  • Professional, technical or career-oriented courses
  • Entrance test/ merit-based selection process
  • Premier universities in India or Abroad.

Present Rate of Interest

Loan AmountGeneral PublicConcession in Interest
Loan upto INR 4 Lacs1 year MCLR+2.00%No concession
From INR 4 to 7.50 Lacs1 year MCLR+2.00%0.50%
Above INR 7.50 Lacs1 year MCLR+1.50%No concession

Quick Facts about PSB Model Education

MarginUpto 4 Lacs: Nil
Above INR 4 Lacs: 15%
Maximum Loan Limit20 Lacs

Upto INR 4 Lacs: No Security required
Parents have to be joint borrowers

From INR 4 to 7.50 Lacs: Collateral Security in form of third party guarantee
Parents have to be joint borrowers

Above INR 7.50 Lacs: Assignment of Future salaries in favor of PSB Bank
Tangible collateral security of loan amount acceptable to bank

Moratorium PeriodCourse Period plus one year, or six months after getting a job
Repayment (Maximum)Repayment of the loan can be done after the moratorium period by mode of EMI
Maximum repayment term is for 15
Prepayment ChargesNil, if paid during the repayment period

Additional Facts about PSB Model Education Loan Scheme

  • 0.50% for girl students
  • @1% to all borrowers if interest is serviced during moratorium period.
  • No processing fee 
  • No pre-payment charges
  • No pre-closure charges

Courses Covered under PSB Model Education Loan Scheme

  • Job Oriented Professional and technical courses
  • Post-graduation courses such as MBA/ MCA
  • Courses that are offered by CIMA, London and CPA, USA
  • Pilot Training, Shipping, aeronautical etc. courses that lead to a diploma or degree

Expenses Covered under PSB Model Education Loan Scheme

  • Tuition Fee
  • Examination Fee
  • Library/ Laboratory Fee
  • Hostel Fee 
  • Cost of books, equipment, instrument or uniforms
  • Miscellaneous expenses- study tours, project work, thesis, etc.
  • Reasonable cost of computer or laptop (if required)

Documents required for PSB Model Education Loan Scheme

  • Duly filled application form
  • KYC documents
  • Identity Proof- Passport, Driving Licence, Pan Card, Etc.
  • Latest salary proof/ Form 16 with recent salary certificate
  • Residence Proof- Adhaar Card, Latest electricity/ water/ telephone bill
  • Admission Proof- Letter of admission from the institute
  • Bank Statement of Last 6 months
  • Educational qualification proof- 10th /12th or graduation marksheet
  • Guarantor form
  • Institute brochure inclusive of detailed fee break-up


Q: What schemes does Punjab and Sind Bank considers for its education loans?

Answer: There are multiple other schemes offered by Punjab and Sind Bank apart from the basic education loans viz. PSB Model Education Loan Scheme and PSB Excellence. These are:

  • CSIS Scheme
  • Skill Loan Scheme
  • Vocational Education Loan Scheme

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 and Sind Bank ?

Answer: There is no age restriction as stated by Punjab and Sind Bank. Borrowers must fulfil other eligibility criteria mentioned.

Q: Are minors eligible to apply for Punjab and Sind 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 and Sind Bank Education Loan?

Answer: You can either contact your nearest branch for the application form or details regarding the loan.

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 and Sind 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 and Sind Bank education loan?

Answer: No, there are no minimum aggregate marks mentioned by the bank that might fulfil the eligibility criteria.

Q: What is the discount/ rebate offered by Punjab and Sind Bank?


  • 0.50% concession is given to girl students
  • @1% to all borrowers if interest is serviced during moratorium period.

Q: What all is included in tangible collateral security?

Answer: Mostly Punjab and Sind Bank asks tangible security in lieu of the loan amount sanctioned along with assignment of future salaries in favour of Punjab and Sind 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: Can I place my family property as collateral?

Answer: Yes, but it will need consent of all family members involved.

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 and Sind 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 and Sind 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 and Sind Bank?

Answer: Yes, travel expenses are covered under this loan.

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

Answer: This depends 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 and Sind Bank offers a specific loan scheme (PSB Excellence) to students admitted in top premier institutes abroad.  

Q: What is the processing fee or prepayment charges?

Answer: The education loan offered by Punjab and Sind Bank  does not carry any prepayment charges/ processing fee/ documentation charges for loan amount upto INR 4 Lacs. For amount exceeding INR 4 Lacs, student have to deposit INR 5000 in the starting.

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 and Sind Bank education Loan (both for India and Abroad)?

Answer: Diploma/ Certificate courses are eligible under Punjab and Sind Bank Education Loan for abroad. Regular degree like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping can be considered.

Q: Is a co-borrower necessary for loan?

Answer: Yes, it is mandatory to have a co-borrower to avail loan from Punjab and Sind 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 are all documents 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 and Sind Bank?

Answer: You need at least 2 guarantors to avail loan from Punjab and Sind 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: The maximum term for repayment is 15 years for PSB Education Loan

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.

Q: What are the charges for late EMI payment?

Answer: There are no charges for late EMI payment mentioned by PSB.  

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: If I am joining the course soon after current course, can I get an extension?

Answer: Mostly, in such cases, you do not get an extension and even if you do there is a possibility that interest rates are higher

Q: What is interest rate of education loan?

Answer: Interest rates for education loan provided by Punjab and Sind Bank  are:

  • PSB Student Loan Scheme
Loan AmountGeneral PublicConcession in Interest
Loan upto INR 4 Lacs1 year MCLR+2.00%No concession
From INR 4 to 7.50 Lacs1 year MCLR+2.00%0.50%
Above INR 7.50 Lacs1 year MCLR+1.50%No concession
  • PSB Skill Loan Scheme: The rate of interest charged on all amounts is 1-year + 3.00%

Q: What is interest subsidy on education loan?

Answer: Punjab and Sind Bank offers:

  • CSIS- Interest Subsidy scheme for economically weaker sections and to promote education amongst them
  • Skill Loan Scheme for students who wish to pursue courses to enhance their skills and attain better career opportunities.

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: CSIS Scheme is not available for students who wish to pursue overseas studies whereas Padho Pardesh and ACSISOBCEBC is formulated for foreign education.

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: 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 and Sind Bank?

Answer: Some of the benefits are:

  • Punjab and Sind Bank provides Life Insurance Cover Scheme for education loan borrowers. The premium of which will be borne by the bank.
  • 1% concession on interest rate is provided if the interest is serviced during the moratorium period.

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 do all procedures 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 has 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 419 8300