Summary
- – Tuition and other fees payable to the college/school/hostel- Examination, library, and laboratory fees- Insurance premiums for the student borrower (if applicable)- Caution deposits and building funds- Purchase of books, equipment, instruments, and uniforms- Purchase of a computer if required for the course- Other expenses necessary for course completion (e.
- – Tuition fees payable to the college/school/hostel- Examination, library, and laboratory fees- Life insurance premium for the student borrower (if applicable)- Caution deposits and building funds (refundable)- Purchase of books, equipment, instruments, and uniforms- Purchase of a computer (if necessary for the course)- Other expenses like study tours, project work, and personal living expenses.
- – Tuition fees for colleges/schools/hostels- Examination, library, and laboratory fees- Life insurance premiums for the student borrower (if applicable)- Caution deposits and building funds (refundable)- Purchase of books, equipment, instruments, and uniforms- Computer purchase (if necessary for the course)- Personal living expenses .
Punjab National Bank (PNB) is one of India’s oldest public sector banks. A part of India’s banking landscape since 1894, PNB offers its services through 10,000 branches. Punjab national bank education loan products offer financial help for aspiring students. These loans cater to both domestic and international studies and cover tuition, living expenses, and more.
With flexible repayment terms, competitive interest rates, and interest concessions, PNB education loans allow students to chase their academic dreams without worrying about finances.
In this article, we provide a thorough overview of Punjab National Bank’s educational loan offerings. We examine the key features, eligibility criteria, benefits, and much more.
About Punjab National Bank education loans
PNB offers multiple types of student loans for students who want to study here and abroad.
Here’s a table summarizing the educational loans offered by Punjab National Bank:
| Loan Scheme | Purpose |
| PNB Saraswati | Provides financial support to deserving students for pursuing higher education in institutions within India and abroad. |
| PNB Pratibha | Offers loans to support students who have been admitted premier institutions such as IITs, IIMs, NITs. |
| PNB Udaan | Provides substantial loans to assist students pursuing their education in foreign universities. |
Note: Besides these, there are numerous schemes such as the PNB PM Cares Education Loan that offers support to children orphaned by COVID-19, and the Concessional Education Loan for students with disabilities. These are not included within the scope of this guide.
Below is a comparative overview of three principal education loan schemes offered by PNB:
| Feature | PNB Saraswati Education Loan Scheme | PNB Pratibha Education Loan Scheme | PNB Udaan Education Loan Scheme |
| Objective | To support students in financing their higher education expenses in India | To support students who secure admission to prestigious institutes in India | To assist students in securing funds for higher education in recognized institutions abroad |
| Coverage | – Tuition and other fees payable to the college/school/hostel- Examination, library, and laboratory fees- Insurance premiums for the student borrower (if applicable)- Caution deposits and building funds- Purchase of books, equipment, instruments, and uniforms- Purchase of a computer if required for the course- Other expenses necessary for course completion (e.g., study tours, project work) | – Tuition fees payable to the college/school/hostel- Examination, library, and laboratory fees- Life insurance premium for the student borrower (if applicable)- Caution deposits and building funds (refundable)- Purchase of books, equipment, instruments, and uniforms- Purchase of a computer (if necessary for the course)- Other expenses like study tours, project work, and personal living expenses | – Tuition fees for colleges/schools/hostels- Examination, library, and laboratory fees- Life insurance premiums for the student borrower (if applicable)- Caution deposits and building funds (refundable)- Purchase of books, equipment, instruments, and uniforms- Computer purchase (if necessary for the course)- Personal living expenses |
| Quantum of Finance | – Need-based finance subject to margin as per guidelines | – Need-based finance subject to the repaying capacity of the parents/students | – Need-based finance subject to margin as per guidelines |
| Margin | – Up to ₹4 lakh: NIL- Above ₹4 lakh: 5%- Scholarships/assistantships may be considered in the margin | – Nil margin for loans between ₹10 and ₹35 lakhs for premier education institutions in India.- Scholarships/assistantships can be included in the margin | – Up to ₹4 lakh: NIL- Above ₹4 lakh: 15%- Scholarships/assistantships can be included in the margin |
| Security | – Up to ₹7.50 lakh: Parent(s)/guardian as joint borrowers; no tangible security required- Above ₹7.50 lakh: Parent(s)/guardian as joint borrowers; tangible collateral security of suitable value is required | – Co-obligation of parents/guardians as joint co-borrowers | – Up to ₹7.50 lakh: Parents/guardians as joint borrowers; no tangible security required- Above ₹7.50 lakh: Parents/guardians as joint borrowers; tangible collateral security of suitable value is required |
| Repayment | – Maximum repayment period: 15 years- Moratorium: Course period + 1 year | – Maximum repayment period: 15 years- Moratorium: Course period + 1 year | – Maximum repayment period: 15 years- Moratorium: Course period + 1 year |
| Prepayment Charges | NIL | NIL | NIL |
| Rate of Interest | Given below | Given below | Given below |
| Processing Charges/Upfront Fee | NIL | NIL | 1% of loan amount, minimum ₹10000 |
| Documentation Charges | NIL | NIL | ₹450 |
Punjab National Bank education loan interest rates
Punjab National Bank offers a variety of education loans to suit different student needs. These loans are affordable and female students receive an additional concession, making the loan even cheaper.
Here’s a table summarizing the education loan interest rates offered by PNB under various schemes:
PNB Saraswati Education Loan
| Parameter | Floating Rate | Fixed Rate | Floating Rate (Female) | Fixed Rate (Female) |
| Loan Upto ₹7.50 lakhs | 11.25% | 12.25% | 10.75% | 11.75% |
| Loan Above ₹7.50 lakhs | 11.25% | 12.25% | 10.75% | 11.75% |
| Loan Irrespective of Amount (100% collateral security) | 10.50% | 11.50% | 10.00% | 11.00% |
PNB Pratibha Education Loan
| Parameter | Floating Rate | Fixed Rate |
| Loan Above ₹7.50 lakhs | ||
| IIMs, IITs, ISB Hyderabad/Mohali, MDI Gurgaon, XLRI Jamshedpur | 8.10% | 9.20% |
| IIFT Delhi/Kolkata, XIMB Bhubaneswar, BITS Pilani/Hyderabad/Goa | 8.10% | 10.00% |
| SPJIMR-Mumbai, NMIMS-Mumbai, SIBM Pune, IMT-Ghaziabad | 8.20% | 10.00% |
| NITs, Institute of Management-Nirma University-Ahmedabad, MICA-Ahmedabad, FMS-Delhi | 8.40% | 10.00% |
| Other Institutes | 9.00% | 10.00% |
| Loan Up to ₹7.50 lakhs | ||
| IIMs, IITs, NITs, ISB Hyderabad/Mohali, MDI Gurgaon, XLRI Jamshedpur | 9.75% | 10.75% |
| Other Institutes | 10.00% | 11.00% |
PNB Udaan Education Loan
| Parameter | Floating Rate | Fixed Rate | Floating Rate (Female) | Fixed Rate (Female) |
| Loan Irrespective of Amount for Premier Institutes Abroad (100% Collateral Security) | 9.25% | 10.25% | 9.25% | 10.25% |
| Loan Irrespective of Amount (100% Collateral Security) | 10.50% | 11.50% | 10.00% | 11.00% |
| Loan Up to ₹7.50 lakhs | 11.25% | 12.25% | 10.75% | 11.75% |
| Loan Above ₹7.50 lakhs | 11.25% | 12.25% | 10.75% | 11.75% |
Application process for Punjab National Bank education loan for Indian students
Here’s a step-by-step guide on how to apply for an education loan from PNB:
- Evaluate the different education loan schemes offered by PNB and choose the one that best fits your educational needs.
- Visit the nearest PNB branch to apply in person or you can apply online.
- Complete the education loan application form accurately, providing all necessary details.
- Submit the application form and required documents, including academic records, ID, collateral details if applicable, bank statements, etc. to the bank.
- After submission, the bank will process your application. This involves a personal interview or additional documentation requests.
- Upon approval, you will receive a sanction letter detailing the loan amount, interest rate, and repayment terms.
- The loan amount will be disbursed either directly to the educational institution or to the borrower’s account, depending on the terms of the loan.
Also Read: Education Loan for Abroad Studies (Comprehensive Guide)
Eligibility for Punjab National Bank education loan
To apply for an education loan from PNB, students must meet certain eligibility criteria:
- The applicant must be an Indian citizen.
- Students must secure admission through a merit-based selection process. For PNB Pratibha, admission should be in one of the identified premier institutions. For PNB Udaan the admission has to be for an institution abroad.
- There are no specific age restrictions for eligibility.
Why choose Punjab National Bank for a study abroad loan?
For Indian students aspiring to study abroad, it’s a great move to avail a Punjab National Bank education loan and we’ll tell you why.
Competitive Interest Rates
PNB offers some of the lowest interest rates among Indian banks for education loans. The interest rates start from 8.20% (for study at premier Indian institutions) make it an affordable option for students. Education loans for studying abroad from PNB are available for 9.25%.
Higher Loan Amounts
PNB provides higher loan amounts of up to ₹50 lakhs for studies abroad. The loan amount covers tuition fees, accommodation, and other expenses. The exact loan amount depends on factors like the course, destination, and financial situation of the borrower.
Flexible Repayment Options
PNB education loans offer flexible repayment options to students. You can choose between fixed and floating interest rates and take advantage of the market conditions. The repayment period extends up to 15 years after a moratorium of 1 year after course completion.
Quick Loan Disbursal
Punjab National Bank ensures prompt disbursal of the loan amount. You can choose to have it sent directly to the foreign university or institution.
Transparent Policies
PNB is known for its transparent policies and procedures. There are no hidden charges or fees associated with the loan. There is no fee for applying or documentation for a domestic loan. If you study abroad, then the processing fee is 1% and the documentation fee is ₹450.
Other Banks & NBFCs Offering Education Loan to Study Abroad:
- Union Bank of India Education Loan
- Yes Bank Education Loan
- IDFC Bank Education Loan
- Bank of India Education Loan
- State Bank of India Education Loan
Punjab National Bank education loan EMI calculator
Knowing your EMI is crucial so that you can agree on repayment terms that you deem manageable.
EMI stands for Equated Monthly Installment and is a fixed payment amount made to the bank at a specified date each month.
Use the following formula to calculate your EMI: :
EMI = P×r×(1+r)n / (1+r)n-1
Where:
- P is the principal loan amount
- r is the monthly interest rate (annual interest rate divided by 12)
- n is the number of monthly installments
But there is no need to perform lengthy calculations. Punjab National Bank offers an EMI calculator that will give you the answer in an instant. You compare different loan offers and repayment options to find one that suits your budget.
Documents required for a Punjab National Bank student loan
Students must prepare and submit several documents with their application form for an education loan from Punjab National Bank, as given in the table below:
| PNB Udaan Required Documents |
| Loan application in the bank’s format. |
| Passport-size photograph. |
| Proof of Address. |
| Proof of Age. |
| Proof of having secured passing marks in the last qualifying examination. |
| Letter of admission in professional, technical, or vocational courses. |
| Prospectus of the course detailing charges such as Admission Fee, Examination Fee, Hostel Charges, etc. |
| Details of Assets & Liabilities of parents/co-obligants/guarantors. |
| If the loan is secured by mortgage of property, provide the Title Deed, Valuation Certificate, and Non-encumbrance Certificate from an approved lawyer of the bank (at the cost of the borrower). |
| Copy of PAN/Aadhaar of the student borrower. |
| A declaration or affidavit confirming that no loans have been availed from other banks. |
| Any other document or information, depending on the case and purpose of the loan. |
Things to remember when applying for Punjab National Bank Education Loans
PNB education loans provide financial assistance for higher education. To make an informed decision, consider the following:
Loan Eligibility
PNB offers education loans to support your academic pursuits. The bank will assess factors such as credit score, income, existing loans, and the course/institution to determine your eligibility.
Secured vs. Unsecured Loans
PNB provides both secured and unsecured education loans. Secured loans require collateral, while unsecured loans do not. Your choice will influence interest rates, loan amounts, and repayment terms.
Interest Rates
Interest rates on PNB education loans vary based on your eligibility, the loan amount, and the loan tenure. Comparing interest rates offered by PNB with other lenders can help you secure the most favorable terms.
Loan Tenure
PNB typically offers education loan tenures ranging from 10 to 15 years. Additionally, a moratorium is available after course completion, during which you may only be required to pay interest.
Collateral requirements for Punjab National Bank education loans
PNB has very simple rules when it comes to collateral.
- For loans up to ₹7.50 lakh, parents or guardians must be joint borrowers, but no tangible security is required.
- For loans above ₹7.50 lakh, parents or guardians must be joint borrowers, and tangible collateral security of suitable value is necessary.
House property and Fixed Deposit are accepted as collateral but shares and securities, and jewelry are not allowed.
It’s evident that you need to consider many factors before you decide to go ahead with a lender for your education loan. Unfortunately, most students are only able to compare two to three lenders before they make a decision. This is because comparing lenders is time-consuming and tiring.
With FundRight, you can compare loan offers from not just two or three, but 15 of the most reputable banks and NBFCs in India and abroad. Here’s how it works:
- Register on FundRight and provide details about your academic background, test scores, and financial requirements.
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- Compare these offers with the help of FundRight’s unbiased financial experts.
- Submit all required documents securely through our platform.
- Get your loan approved within as little as 10 days.
FundRight has already assisted over 60,000 students in finding their ideal education loans. Some have saved up to ₹23 lakhs in interest. Register today and see how FundRight can help you secure the best loan for the Spring ’25 intake.
Also Read: Collateral vs Non Collateral Education Loan for Abroad Studies
FAQs
1. Why collateral is needed for Punjab National Bank education loans?
Collateral is required for PNB education loans because banks want to minimize their risk. If you default on the loan, collateral allows the bank to recover the money by selling the asset.
Common types of collateral include:
– Fixed deposit – FDs are easy to manage and liquidate, making them a preferred choice for banks.
– Property – Freehold property is the only choice that many customers have in case of large loans. But there can be no tenants.
The following are usually not accepted by banks as collateral:
– Jewelry is not accepted because there is no easy way to hedge the fluctuations in price.
– Shares, due to their volatile nature, are avoided for the same reason as jewelry.
2. Does attending a well-known institution help with getting a student loan?
Yes, the reputation of your chosen institute can affect loan approval. Banks prefer lending to students who have received admit to well-known institutions because they are seen as lower risk. Reputable schools often have strong job placement records, which increases the likelihood of you being able to repay the loan.
3. Why does prepayment carry a penalty?
When a bank gives you a loan, they expect to earn interest over the full loan term.
If you pay off the loan early, the bank loses out on the interest they would have earned in the remaining years. Therefore, lenders charge a prepayment penalty on education loans to compensate for lost interest if the loan is repaid earlier than expected.
