PNB Education loan

PNB Education loan

Aim of the PNB Education loan Saraswati scheme is to provide financial support to deserving / needy candidate for pursuing higher education and technical education in anywhere in world.

Loan available for following courses:

For student who studies in India:

  • Graduate/ Post Graduate degree and PG Diplomas conducted by recognized colleges/ universities recognized by UGC/ Govt./ AICTE/ AIBMS/ ICMR etc.
  • ICWA, CA, CFA courses etc.
  • Courses offered by IIMs, IITs, IISc, XLRI. NIFT, NID etc.
  • Regular Degree/Diploma courses in Aeronautical, pilot training, shipping, nursing etc., approved by Director General of Civil Aviation/Shipping, if the course is pursued in India.
  • Approved courses offered in India by reputed foreign universities
  • Admission under Management Quota may also be considered.
  • For pursuing part-time job oriented courses (evening classes or otherwise), which are approved/recognized by the regulatory body/ authority.
  • Job oriented specialized programmes like maritime courses which are offered in collaboration with foreign institutions and may not be having recognition in India.

For student who studies in abroad:

  • Graduation: For job oriented professional/technical courses offered by reputed universities.
  • Post-graduation: MCA, MBA, MS, etc.
  • Courses offered by CIMA- London, CPA in USA etc.
  • Degree/Diploma courses in aeronautical, pilot training, shipping etc. provided these are recognized by competent regulatory bodies in India/abroad for the purpose of employment in India/abroad.

Note: Diploma Course and certificate courses shall not be covered under the eligible courses for study abroad except as mentioned above.

Expenses covered in loan :

  • College / School Fees
  • Hostel Fees
  • Examination Fees
  • Library / Laboratory Charges.
  • Money required purchasing of books / equipments / instruments / uniforms.
  • Caution Deposit / Building Fund / Refundable Deposit supported by Institution Bills / Receipts,
  • Travel Expenses / Passage money for studies abroad.
  • Loan also include computers cost at reasonable price, if required for completion of the course.
  • Insurance premium for student borrower, if applicable
  • Any other expense required to complete the course - like study tours, project work, thesis etc.

Student eligibility for loan:

a)    Student should be an Indian National.

b)    Student should have secured admission to a higher education course in recognized institutions  in India or Abroad through Entrance Test/ Merit Based Selection process after completion of HSC(10 plus 2 or equivalent). OR Where the admission is purely based on marks scored in qualifying examinations, there is a cut off percentage of marks of 50% for SC/ST and 60% for General category.

Loan given:

Education loan is given by the bank subject to employability and earning potential of the students:

  • Maximum loan for studies in India: 10 lakhs
  • Maximum Loan for studies in abroad : 30 Lakhs

Loan margin

Upto 4 lakhs


Above 4 lakhs

Studies in India

5 %

Above 4 lakhs

Studies in abroad

15 %

Rate of interest of Education Laon:


Amount of Loan

Repayable in less than 3 yrs

Repayable in 3 yrs & above

Loans upto Rs 4 lac



Loans over Rs 4 lac & upto Rs 7.50 lac



Loans over Rs 7.50 lac



Procedure for repayment:

Repayment of loan will be in equated monthly instalments (EMIs) for period as     under:

Loan amount

Instalment after years

For loans upto 7.5 lakhs

Upto 10 years

For loans above 7.5 lakhs

Upto  15 years

Repayment holiday/Moratorium:

Course period + 1 year or 6 months after getting   job, whichever is earlier.

Note: No prepayment penalty is levied for prepayment of loan.

Sanctioning Authority may consider telescoping of the repayment with stepped up installment with passage of time over the repayment period in cases where salary levels at the start of the career do not facilitate comfortable payment of EMI (e.g. professionals like Doctors)

Nominees for security reasons:

Loan Amount


Upto Rs.4.00 lakhs:

Parent(s)/guardian be made joint borrower (s). No Security

Above Rs 4.00 lakhs and Upto Rs 7.5 lakhs:

Besides the parent(s)/guardian executing the documents as joint borrower(s), collateral security in the form of suitable third party guarantee will be taken

Above Rs 7.5 lakhs:

Parent(s)/guardian be joint borrower(s).Tangible collateral security of suitable value acceptable to bank along with the assignment of future income of the student for payment of instalments

Additional Benefits provided to the students by PNB

  • Simple interest is charged during the Study period + Moratorium period.
  • A rebate of 0.50% in rate of interest permitted to women beneficiaries for loans up to Rs. 10 lac for studies in India and Rs 20 lac for studies abroad for existing as well as new girl student borrower’s wef. 08.03.2016.
  • 1% interest concession may be provided for students having loan  if the interest is serviced during the study period/moratorium period and regular repayment of monthly instalments during repayment period.
  • The loan is disbursed in stages as per the requirement/ demand directly to the Institutions/ Vendors of equipments/ instruments to the extent possible.

Second time Education Loan can be sanctioned to the same student borrower for completion of next higher course.

Documents Required while applying for loan:

Loan application on Bank's format.

Passport size photograph

Proof of Address.

Proof of Age.

Proof of having cleared 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/co-obligates/guarantors.

In case 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.

Copy of PAN of student Borrower (If PAN is not available at the time of sanction, the same be obtained within one year of disbursement of loan).

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

Suspension Period for Loan Payment:

Course Period plus one year or six months after getting job, whichever is earlier.

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