Punjab National Bank (PNB) Educational Loan

The PNB (Punjab National Bank) regarded as one of the leading bank in banking sector introduced scheme which aims at providing financial

assistance to deserving / meritorious students for pursuing higher education in India or abroad. viz., Graduation courses, Post-Graduation courses, Professional courses like ICWA, C.A., CFA, etc., Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer courses of reputed Institutes accredited to Department of Electronics or institutes affiliated to University. A student, who is pursuing a vocational course from a recognized body, university or nationally known institute or a reputed private institution can apply for PNB educational loan as well. 

PNB Education Loan Scheme

Students, who are willing to pursue higher education in India or abroad, can count on several kinds of education loans offered by the PNB, Punjab National Bank offers personalized educational loans for various kinds of academic programs in its two segments viz. ‘PNB VIDYALAKSHYAPURTI’ and ‘PNB SARVOTTAM SHIKSHA’.

PNB Education Loan Eligibility

PNB has laid down a set of eligibility criteria for sanctioning the education loans.

  • A student, who is an Indian national, can apply for the loan.
  • An applicant is considered eligible for PNB educational loan, if he gets admitted to a professional or vocational course through a selection process or into a foreign institute.
  • A student applying for a graduate program can also get the loan if he obtains at least pass marks in the qualifying exam.

Expenses Considered For PNB Education Loan

  • Fee payable to College / School / Hostel as tuition fees etc.
  • Examination / Library / Laboratory fee.
  • Purchase of books / equipments / instruments / uniforms.
  • Caution Deposit / Building Fund / Refundable Deposit supported by Institution Bills / Receipts, subject to the condition that the amount does not exceed 10% of the total tuition fee for entire course.
  • Travel Expenses / Passage money for studies abroad for completing the course.
  • Purchase of computers/ Laptops etc – essential for completion of the Course.
  • Boarding and lodging expenses in recognized Boarding Houses / private accommodations.
  • Any other expense required to complete the course – like study tours, project work, thesis etc.

PNB Education Loan Requirements

While applying for the education loan, the borrower is required to furnish the following information / papers:

  • PNB Bank Education Loan application on Bank’s format.
  • Recent Passport size photograph.
  • Proof of Address (Permanent) / ID Proof.
  • Proof of Age.
  • Proof of having secured pass marks in last qualifying examination.
  • Letter of admission in technical, professional, or vocational courses.
  • Prospectus of the course wherein charges like Admission Fee, Hostel Charges, Examination Fee, etc. are mentioned.
  • Details of Assets & Liabilities of parents.
  • In case education loan amount is above Rs.4.00 lacs, detail of Assets & Liabilities of parents / co-obligants / guarantors.

In case education loan is to be collaterally secured by mortgage of IP, Copy of Title Deed, Valuation Certificate and Non Encumbrance Certificate from approved Lawyer of the Bank to be obtained at the cost of the borrower.

Photocopy of Passport & Visa, in case of study abroad.

Any other document / information, depending upon the case and purpose of the loan.

The above checklist is only illustrative in nature. For details, please contact PNB nearest  Branch Office in your city

Amount, Ceiling, Margin & Security Of PNB Educational Loan

The amount of PNB Loan is sanctioned evaluating the need and the repaying capability of the parent or the student. Additionally, some ceilings and margins are also applied by PNB.

You can borrow a maximum of Rs 10 lacs and Rs 20 lacs for studying in India or abroad respectively.

Besides, there is a margin of 5% if you borrow above Rs 4 lacs for studying in India. The margin is 15% for studying abroad.

An applicant needs to present a 3rd party as guarantee for borrowing of loan above Rs 4 lacs but upto 7.5 lac.

If the amount is above Rs 7.5 lacs, the bank asks for a collateral security or guarantee of a 3rd party.

The security can be in the form of land / building / Govt. Securities / Public Sector Bonds / Units of UTI, NSC, KVP, LIC Policy, Gold, Shares/ Mutual Funds/ Debentures, Bank Deposit in the name of the student parent / guardian or any other third party with suitable Margin. The document should be executed by both the student and the parent/guardian.

PNB Education Loan Rate of Interest

Upto Rs. 4 lacs: BPLR – 2.00%

Above Rs.4 lacs: BPLR – 1.25%

Term premium of 0.50% p.a. shall be added for repayment period of 3 years & above.

The interest shall be debited monthly on simple basis during the Repayment holiday / Moratorium period.

Penal Interest up to Rs. 25000/ – Nil and above 25000/- @ 2% be charged on the outstanding amount for overdue period.

1% Interest concession for servicing of interest during the study period regularly is allowed at the time of start of repayment period of loan

Mode of Repayment of PNB education loan

You can repay the principal sum and the interest in a time period of 5 to 7 years after you begin repaying after completion of course or getting job which ever is earlier.

In case, a student fails to complete his study in the stipulated time period, he will be given an extended time of 2 years in maximum for completing the program.

It also includes insurance coverage for the borrowers of educational loans in collaboration with Kotak Mahindra Insurance

To apply for the PNB Educational Loan click on the link below.


To know more about the rate of interest and other details of Punjab National Bank (PNB) Educational Loan, you can go to www.pnbindia.com

2 comments to Punjab National Bank (PNB) Educational Loan


    i take education loan from PNB in 2008. there are six inatlments in which i receive 30000 per semester. so total sum of my loan is 150000.i have paid 35000 till now, still bank says that i have to pay 162800 more.how is it possible at a interset rate of 13.5, with aperoid of seven years.please help me out. otherwise this bank will inhale me.

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