Punjab National Bank Education Loan | Education Loan in India | Student Loan in India

Student Education Loans by Punjab National Bank



Student eligibility 

  • Should be an Indian National.
  • Secured admission to Professional / Technical courses through Entrance Test / Selection process.
  • Secured admission to foreign University / Institutions. 
  • Student should have secured pass marks in the qualifying Examination for admission to Graduation Courses.

Expenses considered for Loan

  • Fee payable to College / School / Hostel
  • Examination / Library / Laboratory fee.
  • Purchase of books / equipments / instruments / uniforms. Secured admission to foreign University / Institutions. 
  • Caution Deposit / Building Fund / Refundable Deposit supported by Institution Bills / Receipts.
  • Travel Expenses / Passage money for studies abroad.
  • Purchase of computers - 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.


 Quantum of Finance    

Need based finance, subject to repaying capacity of the parents / students with margin and the following ceilings:-

 For studies in India: Maximum Rs.7.50 lacs.
 For studies abroad: Maximum Rs.15.00 lacs.


  • Up to Rs.4.00 lacs:  - Nil.
  • Above Rs.4.00 lacs:  Studies in India 5%
  • Studies Abroad 15%


  • Up to Rs.4.00 lacs:  No Security.
  • Above Rs 4.00 lacs and Up to Rs 7.5 lacs:  3rd party guarantee acceptable to the Bank.
  • Above Rs 7.5 lacs:  Collateral Security of Suitable value or suitable 3rd party guarantee.



The security can be in the form of land / building / Govt. Securities / Public Sector Bonds / Units of UTI, NSC, KVP, LIC Policy, Gold, Shares / 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.

  Rate of Interest    

  • Up to Rs. 4 lacs  BPLR+Term Premia minus 1.25
  • Above Rs.4 lacs BPLR + Term Premia


  • Term premia 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 @ 2% be charged for above Rs.4.00 lacs for the overdue amount and 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.

Repayment Holiday / Moratorium Course period + 1 year OR 6 months after getting job, whichever is earlier.

The Principal and interest is to be repaid in 5-7 years after commencement of repayment. If the student is not able to complete the course within the scheduled time, extension of time for completion of course may be permitted for a maximum period of 2 years.

  Upfront Fee 

  Documentation Charges    
 Up to Rs. 4 lacs  Rs.270/- + Service Tax & Education Cess
 Above Rs.4 lacs Rs.450/- + Service Tax & Education Cess


  Additional Benefits provided to the students by PNB  
 Reimbursement of related expenses such as admission fee, monthly fee, Boarding and lodging expenses in recognized Boarding Houses etc. already incurred by way of loan taken from own sources (to meet the contingency) by the applicant, if claimed within 3 (three) months of such payment and before consideration of the loan by the Bank.
 Second time Education Loan can be sanctioned to the same student borrower for completion of next higher course.
  Check List   
While applying for the loan, the borrower is required to furnish the following information/papers:

  • Loan application on Bank's format.
  • 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 professional, technical or vocational courses. 
  • Prospectus of the course wherein charges like Admission Fee, Examination Fee, Hostel Charges etc. are mentioned. 
  • Details of Assets & Liabilities of parents. 
  • In case loan amount is above Rs.4.00 lacs : *. Particulars of Guarantors and details of their Assets & Liabilities.

*. If immovable property offered as Collateral Security - copy of Title Deed, Valuation Certificate and Non-encumbrance Certificate from approved Lawyer of the Bank.
 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, not exhaustive. For details, please contact  nearest Branch Office).