Education Loan

How Many Education Loan Schemes Are There ?

There are 3 Education Loan Schemes namely:

PNB Saraswati: Regular Scheme for pursuing Higher studies in India & Abroad.

PNB Pratibha: Collateral free Education loans at lower ROI to those students getting admission in of 103 premier institutions in India, as identified by Bank.

PNB Udaan: Education Loan Scheme for providing financial support to meritorious students for pursuing higher education abroad.

What Is The Objective Of Bank`S Education Loan Schemes ?

PNB Saraswati -The Education Loan Scheme PNB Saraswati aims at providing financial support to meritorious students for pursuing higher education in India and abroad.

PNB (Kaushal)- The Education Loan Scheme PNB Kaushal aims at providing financial support from the banking system to those who have the minimum educational qualification, as required by the institution / organization running the course eligible under the scheme.

What Are The Eligibility Criteria For Education Loan ?

Student should be Indian national.

PNB Saraswati Student should haves obtained admission in eligible course through merit based selection process. Where the admission is purely based on marks scored in qualifying examinations, cut off percentage of marks is fixed:

  • 50% for SC/ST, and;
  • 60% for General category.

Loan also available to students getting admission under Management Quota to meritorious student who has qualified for a seat under merit quota and chooses to pursue a course under Management Quota.

PNB Kaushal Student who has secured admission in a course run by Industrial Training Institutes (ITIs), Polytechnics or in a school recognized by central or State education Boards or in a college affiliated to recognized university, training partners affiliated to National Skill Development Corporation (NSDC)/Sector Skill Councils, State Skill Mission, State Skill Corporation, preferably leading to a certificate / diploma / degree issued by such organization as per National Skill Qualification Framework (NSQF).

What Is The Minimum Age For Getting Education Loan ?

There is no specific restriction with regard to the age of the student to be eligible for education loan.

What Are The Courses Covered For Education Loan ?

Education loan under PNB ( Studies in India)

  • Approved courses leading to Graduate/ Post Graduate degree and PG Diplomas conducted by recognized colleges/ universities recognized by UGC/ Govt. / AICTE/ AIBMS/ ICMR etc.
  • Courses like ICWA, CA, CFA etc.
  • Courses conducted by IIMs, IITs, IISc, XLRI. NIFT, NID etc.
  • Regular Degree/Diploma courses like Aeronautical, pilot training, shipping, Nursing or any other discipline approved by Director General of Civil Aviation/Shipping/ State Nursing Council or any other regulatory body as the case may be, if the course is pursued in India

Loan is also available for part time courses and job oriented courses subject to employability and earning potential.

Education Loans For Study Abroad Is Also Available For Job Oriented Professional/Technical Courses Offered By Reputed Universities. ?

For Loans repayable up to 3 to 7 years:

PNB Kaushal - Vocational / Skill development courses

What Are The Expenses Considered For Education Loan ?

Finance is provided to meet all type of expenses which are necessary for completion of course and also include purchase of books, equipments, computer, travelling, study tours, boarding, lodging besides all types of fees.

How Much Loan Amount One Is Eligible Under Education Loan ?

PNB Saraswati Need Based Finance to meet the expenses, subject to repaying capacity)


For Courses Of Duration:

For courses of duration upto 1 year - 6 months from the completion of the course.

For courses of duration above 1 year - 12 months from the completion of the courses.

What Are The Margin And Security Norms For Education Loan Schemes ?

Margin : Up to Rs. 4 Lacs –Nil

Above Rs. 4 Lacs– 5% (India), 15% (abroad)

Security : Up to Rs. 4 Lacs – Nil

Above Rs. 4 Lacs-7.50 Lacs- Besides the parent(s)/guardian executing the documents as joint borrower(s), suitable third party guarantee be taken

Above Rs. 7.50 Lacs – Tangible collateral security of suitable value acceptable to bank. Parent/guardian be made joint borrower(s)

(NIL under PNB Pratibha)

How Interest Is Charged On Education Loans And Are There Any Concessions To Students ?

  • Interest charged on simple basis during the moratorium
  • Concession of 1% ROI if interest serviced during moratorium period and thereafter installments are paid regularly.

What Is The Repayment Period Under PNB Saraswati ?

Repayment of the loan will be in equated monthly installments (EMIs) for a period of 15 years for all categories. (Excluding Repayment Holiday)

What Is The Repayment Period Under PNB Kaushal ?

Loans upto Rs. 50,000 - Upto 3 years

Loans between Rs. 50,000 to Rs 1 lakh - Upto 5 years

Loans above Rs. 1 lakh - Upto 7 years

Are There Any Processing Charges One Has To Pay For Availing Education Loan ?

No processing/ upfront charges may be collected on education loans for studies in India

Documentation Charges As prescribed from time to time be recovered.

For Studies abroad: Upfront fee @ 1% with a minimum of Rs.10,000/- which is refundable on availment of the loan.

Is There Penalty For Pre Payment Of Loan ?

No prepayment penalty is levied.

Whether, Student Can Get Second Loan After Completion Of First Course For Other Course ?

Second loan (Top up loans) to students for pursuing further studies can be considered on merits, within the overall eligibility limit taking into account genuineness, accessibility, future repaying capacity of the student borrower, recovery of loan and subject to security.

In Case Of Top Up Loan From Date My Repayment Will Commence ?

The repayment of loan will commence after completion of the second course and further moratorium period as provided under the scheme.

Whether Re-Imbursement Of Fees Is Permitted In Education Loan Scheme ?

Yes, reimbursement of fees paid by the student/ guardian at the time of admission or subsequent stages is permissible within six months from the date of payment of fees on individual merits of the case.

Whether Loan Account Can Be Transferred From One Branch/ Place To Other Branch/ Place ?

Yes, to facilitate hassle free deposit of repayment dues, and to have proper monitoring.

Is Insurance Cover For Education Loans Students Mandatory? Also Is There Any Compulsion Of Getting Cover From A Particular Company ?

Yes, credit life insurance is mandatory. However, student can get himself/ herself insured from the company of choice and assign the policy in the Bank`s name.

Moreover, Bank has made arrangement with MetLife to provide the insurance at competitive rate and easy terms and conditions.

What Are The Documents Required For Education Loan ?

  • Loan application on Bank`s format.
  • Passport size photograph.
  • Proof of Address.
  • Proof of Age.
  • Copy of PAN of student Borrower.
  • Proof of having cleared last qualifying examination.
  • Letter of admission.
  • Prospectus of the course wherein charges like Admission Fee, Examination Fee, Hostel Charges etc. are mentioned.
  • Details of Assets & Liabilities of parents/co-obligants/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 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.

What If Student Do Not Have PAN ?

If PAN is not available at the time of sanction, the same can be submitted within one year of disbursement of loan.

Is Loan Available To Student From Any Branch Of PNB ?

In normal course loan is sanctioned by the branch/PLP nearest to the place of residence of the parents of the student. However, for sanctioning and disbursement at a branch other than the said branch/PLP, suitable powers have been vested with authorities who can consider the same on the merits of individual case, keeping in view the genuineness, accessibility and aspect of recovery of loan.