Punjab And Sind Bank education loan: Interest Rates, Eligibility, Application Process & More

Punjab and Sind Bank education loans help students finance their studies, both in India and overseas. These loans, just like the ones from bigger, more established lenders like SBI, Axis Bank, or HDFC also cover tuition, living expenses, and incidental expenses.

Also, like most other lenders in India, the Punjab and Sind education loan scheme has options for both undergraduate and postgraduate programs. At the time of writing, Punjab and Sind Bank education loans are offering some of the lowest interest rates in India, starting at just 8.10%.

They also offer a generous 15-year (180-month) repayment window, a 1-year moratorium, and have no processing fees for domestic loans. You can even get a collateral-free loan if the principal amount is under 7.5 lakh rupees.

This article will teach you everything you need to know about Punjab & Sind bank education loans. 

PSB education loan interest rates

Firstly, you should understand that there are two types of interest rates when it comes to loans. These are fixed-rate, and floating-rate loans. Fixed-rate loans have the same interest percentage over the lifetime of the loan. The main benefit of this is that you get predictability in your EMI (equal monthly instalment) amounts.{ With floating rate loans, there is a base interest cost (this is called the “repo rate”), and then whatever extra the bank charges.}

{The repo rates fluctuate, so if the repo rate goes down, so does your overall interest. That could mean lower EMIs on your loan, but if the rate goes up, you’d be making higher payments. }

With that said, here are the current Punjab and Sind Bank interest rates:

(The repo rate at the time of writing is 6.50%.) 

Loan Scheme	Loan Amount	Markup	BSP	CRP	Total Rate
IBA Educational Loan Scheme	Up to Rs. 4 lakh	1.95	0.99	1.81	11.25
IBA Educational Loan Scheme	More than Rs. 4 Lakh but less than Rs. 7.5 Lakh	1.95	1.36	0.74	10.55
IBA Educational Loan Scheme	More than Rs. 7.5 Lakh	1.95	1.58	0.27	10.3
PSB Excellence Scheme – AA Rated Universities	Up to Full Course Coverage	1.95	-0.62	0.27	8.1
PSB Excellence Scheme – A Rated Universities	Up to Full Course Coverage	1.95	-0.52	0.27	8.2
IBA Skill Loan	Up to Rs. 1.5 Lakh	1.95	1.24	1.56	11.25

We’ll talk about the three schemes in the next section.

The terms like BSP, CRP, and Markup are confusing, so here’s a quick explanation:

1. Markup: The markup is a fixed % that the bank adds to the repo rate. It does not change over the course of your loan and makes sure that the bank remains in profit whilst giving you the loan. However, with Punjab and Sind Bank, the markup is changed every 3 years and can go either up or down.

2. BSP: BSP stands for “Base Spread Percentage”, and is also a form of profit assurance for the bank. Where markup makes sure that the bank’s costs are covered, the BSP is usually 100% profit. For Punjab and Sind Bank education loans, the BSP is changed every 3 years.

3. CRP: This is the “Credit Risk Premium”. Based on your CIBIL score, and the scores of your guarantors (if any), you will be assigned a CRP percentage. The higher your CIBIL score, the lower your CRP. Your CRP is reviewed every financial year.

{The lowest Punjab and Sind Bank education loan interest rate is for the Excellence loan. This is offered to students who have gotten the top }

And with the interest rates covered, let’s talk about the types of Punjab and Sind Bank education loans.

Also Read: Education loan for Study Abroad Guide for Students

Types of education loans offered by Punjab and Sind Bank

Now, there are two main types of Punjab and Sind Bank education loans. 

You have your regular, run-of-the-mill IBA Education loans, and you also have the PSB Excellence loans and PSB IBA Skill loans. Let’s understand both.

IBA Education Loans

The IBA (Indian Banks’ Association) education loan scheme is offered by all banks that the RBI funds. You can get an IBA loan for both domestic studies, as well as overseas studies. The IBA Education loan framework was made to help banks offer structured and supportive education loans. This scheme provides guidelines on student eligibility, course eligibility, and expenses covered, which banks can adopt with some flexibility.

You can get IBA loans for the following courses:

For studies in India:

• Professional courses like CA, CFA, ACWA, etc
• Government-approved courses in universities and institutions such as IIMs, IITs, NIFT, IISc, and others
• Recognized diploma and regular degree programs in fields like aeronautical engineering, shipping, and more, approved by regulatory authorities

For Studies Abroad:

• Undergraduate: Professional or technical courses at recognized universities
• Postgraduate: Programs like MBA, MCA, MS, and specialized courses like CPA (USA) and CIMA (London)
• Technical training (e.g., aeronautical, pilot training) from recognized institutions for employment in India or abroad

For loans below Rs. 7.5 lakh, no collateral security is required. For loans above Rs. 7.5 lakh, your parents must sign as co-borrowers, and you must provide collateral worth no less than 100% of the loan value.

The Punjab and Sind Bank Excellence Loans

These loans are for students who have been admitted to IITs, IIMs, and A or AA-rated universities in India. The loan will meet 100% of your demonstrated financial need to complete your degree. It covers tuition, travel, incidental and living expenses, and has the lowest interest rate of all Punjab and Sind Bank education loans. 

In order to get a PSB Excellence loan, you will need both parents / one parent and one guardian / two guardians as co-borrowers. No collateral security is required for this Punjab and Sind bank loan scheme.

IBA Skill Loans

This is a loan scheme, again, that can be adopted by all banks under the RBI. It is intended for those who have secured admission to any ITI, Polytechnic, or NTI institute. You must have passed your 10th-standard examinations, and be an Indian national.

Concessions Offered For Punjab and Sind Bank Education Loans

For all PSB education loans, there is a 1% concession during the moratorium period. 

All borrowers receive a 1% interest reduction during the moratorium period if they pay the interest regularly. Generally, people don’t pay during the moratorium unless they have a job. But if you pay during this period, the reduction applies until the full repayment begins.

At the end of the moratorium, the interest is recalculated with the 1% concession factored into the overall loan cost. This means the total amount of interest accrued (due) during the moratorium is adjusted. Any extra interest paid due to recalculations will be refunded or adjusted in the borrower’s favor. If you can make these payments, do so, as it will knock out a chunk of the interest, before compound interest gets a chance to work against you.

With the different Punjab and Sind Bank loan schemes covered, let’s talk about loan eligibility.

Also Read: How to Get an Education Loan without Parental Support?

Punjab and Sind Bank education loan eligibility

To be eligible for a Punjab and Sind Bank education loan, here is the criteria you must meet:

• Be an Indian citizen
• Have passed your senior-secondary (12th) board examinations (10th-pass for IBA Skill Loans)
• Have at least one guarantor or co-borrower at the time of application
• Have secured admission to an educational program on the basis of an entrance test

Also, NRIs are generally eligible for an education loan from Punjab and Sind bank, as long as they are NRIs (PIOs and OCIs are ineligible).

So, with the eligibility and documents for an education loan from Punjab and Sind bank covered, the next section will talk about what expenses are covered.

Expenses covered under Punjab and Sind Bank student loan scheme

Punjab and Sind Bank education loan schemes cover the following expenses:

Expense Name	Expense Details
Tuition Fees	The loan will cover any amount up to your full tuition fees, both for domestic and international study. This includes graduate and postgraduate programs like MBAs, MS, and specialized technical courses.
Accommodation / Hostel Fees	The cost of on-campus accommodation, or reasonable rent off-campus will also be covered in the loan should you need it.
Examination Fees	Any other academic fees, such as examination or laboratory fees will also be included.
Books and Equipment Fees	The cost of supplies like books, necessary tech, and other equipment is usually covered under the loan.
Travel Fees	The cost of flights or travel to and from your country of destination is covered. In most cases, only international travel qualifies as a loan expense.
Living Expenses	If needed, you can include your cost of living (insurance, food, clothing, etc) in your education loan.
Caution Deposits	The caution or security deposits required by most institutions is covered under your Punjab and Sind Bank education loan.
Additional Expenses	Any other reasonable expenses can be discussed with your loan officer and included in your loan.

With the eligible expenses done, let’s talk about how to use the PSB education loan EMI calculator.

PSB education loan EMI calculator

Like most other banks, PSB offers an EMI calculator that can help estimate your monthly repayments. 

You can access the calculator at https://punjabandsindbank.co.in/content/emi-calculator

Using it is a three-step process:

1. Simply enter the amount you’d like to borrow,
2. Then enter the rate of interest (see the table above for guidance), and
3. Enter the number of months you’d like to borrow for (min. 36 – max. 180)

When that’s done, hit submit and you’ll get an indicative monthly payment. Remember that PSB offers a moratorium period of 1 year after your graduation before the repayments kick in.

Now you know how to access and use the official PSB education loan calculator. In the next section, we’ll discuss the application process for a PSB education loan.

Also Read: How to Get an Education Loan without Parental Support?

How to apply for PSB education loans?

The application process for PSB education loans is fairly straightforward.

1. First, download and print out the application form, available at this link: https://punjabandsindbank.co.in/document/MSME/Edu_Appl_form.pdf

2. Fill out the form in block capital with a black or blue ballpoint pen.

3. Gather all required documents, including academic records, admission proof, and income proof of parents/ guardians.

4. Visit your nearest Punjab and Sind branch with the completed application form and all supporting documents. Bear in mind that all co-borrowers and guarantors need to also visit the branch in person with you (the main applicant).

5. Ensure that each co-borrower and guarantor carries a valid (not expired) form of address-cum-identity proof.

6. Submit the application form and documents to the bank official handling education loans.

7. The bank will review your application and may request additional information or clarification if needed.

8. If your application is approved, the bank will issue a sanction letter detailing the loan terms and conditions.

9. Currently, Punjab and Sind Bank does not accept online or email applications for education loans.

10. Accept the loan offer by signing the necessary agreements and providing any additional documents requested by the bank.

Once all formalities are completed, the bank will disburse the loan amount as per the agreed terms.

Note: Even though Punjab and Sind Bank is a prominent lender, students should always compare at least two or three lenders before choosing a loan. FundRight (by GradRight) makes this comparison simple and effective. With one profile, you can access competitive loan offers from 15+ top lenders, both in India and internationally. This saves you from the hassle of reaching out to each lender separately and ensures you get the best rates and terms.

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Next, if you choose to go ahead with your application for a PSB education, you’ll need to prepare your documents and then fill out the application form. 

PSB education loan –  Documents required and application form

You can get the application form for a Punjab and Sind Bank education loan from this link: https://punjabandsindbank.co.in/document/MSME/Edu_Appl_form.pdf

Now, there are two categories of documents that PSB asks for when issuing loans: common and loan-specific.

So, here is a list of the common documents that all applicants need to provide when applying for  (any category of) loan from PSB:

1. Signed and filled-in application form

2. Passport photographs (2x)

3. Proof of age: birth certificate, matric certificate, Aadhaar, passport, driving licence, voter-ID card, etc. (bring the original for verification)

4. Proof of identity-cum-address: aadhaar, passport, driving licence, voter-ID card, etc.(bring the original for verification)

5. Income proof (salaried): 3 months original or certified salary slips /ITR /Form 16

6. Income proof (self-employed): ITR and Audited + Certified Balance Sheet + Proof of Business and Business Address

7. Personal Asset + Liability statement (self-attested)

8. Account statement for the past 6 or 12 months (If no PSB account)

9. Loan account statement for the past 6 months (if applicable)

10. Bio-data

11. Proof of co-borrowers identity and income (same as points #3, #4 and #5)

12. Guarantor Forms (if applicable)

13. Guarantor Net Worth / Income Proofs (if applicable)

14. Employer undertaking for monthly remittance of EMIs (if applicable)

And here are the specific education loan documents for Punjab and Sind Bank:

1. Photocopies of all mark sheets up to the current day, including 10th and 12th and stamped undergraduate transcripts bring the originals for verification)

2. Proof of admission photocopy (letterhead offer letter suffices)

3. Probable expenditure (attach fee schedule to this document)

4. Passport photocopy (2x) (bring the original for verification)

5. People applying for a Punjab and Sind Bank education loan to study abroad have to furnish all the above documents, and additionally, two copies of their visa.

And with that, we come to the end of this article on Punjab & Sind Bank education loans. We hope you found it useful.

Also Read: Collateral Vs Non-Collateral Education Loans For Abroad Studies

Frequently Asked Questions