https://www.wemakescholars.com/education-loan/punjab-national-bank
PNB Education Loan
✓ Broad range of Student Loan Schemes
✓ Check Eligibility Criteria and Documents Required
Table of content
- PNB Education Loan for Abroad Studies
- PNB Education Loan Schemes to study in India
- PNB Udaan Eligibility
- Government Subsidy Schemes
- PNB Bank Education Loan Processing fee
- Documents Required for Punjab National Bank Education Loan
- Punjab National Bank Education loan insurance
- Punjab National Bank loan margin calculation
- How to apply for an education loan from PNB?
- Why go through WeMakeScholars?
- Why and How to transfer your education loan to Punjab National bank?
- PNB Education loan EMI calculation as per interest rate
- Punjab National Bank Education Loan Repayment process
- FAQ's
- Need Help? Ask Here!
The Punjab National Bank(PNB) provides a broad range of education loan schemes under different types of education loans. Each loan scheme has a different aim. Some are for meritorious students, while the other are to study in premier institutes and there are also study loan schemes for Overseas citizens of India. Let us learn about them one by one.
- PNB Udaan
- PNB Saraswati
- PNB Pratibha
- PNB Kaushal
- PNB Pravasi Shiksha Loan
- PNB PM Cares Education Loan Scheme
- PNB Honhaar
PNB Education Loan for Abroad Studies
The PNB provides PNB Udaan education loan scheme to study abroad, in which it provides up to 15 years of repayment period.
PNB Udaan Education Loan to Study Abroad
Parameter |
Details |
Loan Limit |
No limit for the loan as need-based finance is offered |
Expenses covered |
Study costs College fee Living expenses Expenses for food Other Expenses for travel |
Accepted co-applicant |
Parents, parents-in-law, spouse, siblings |
PNB Education loan interest rate |
Between 9 and 14% depending on the collateral and profile of the applicant |
Moratorium Period |
Course period plus 1-year |
Repayment Duration |
Up to 15 years |
Repayment policies |
Interest payment is optional in the moratorium period |
PNB loan Eligibility Criteria |
Should be a resident of India |
Value of Collateral (only if it is a collateralized ) |
Up to 125% of the sanctioned loan amount |
Accepted Collateral |
House, land, Flat, and FD |
Eligible Courses:
- For UG: Job Oriented professional and Technical courses are preferred by the PNB bank for an education loan abroad.
- For PG: MBA, MS, MCA, etc.
- Courses that are conducted by precious institutions like CIMA in London and courses like CPA in the USA.
- Courses that come under Government Subsidy Schemes.
- Degree/Diploma courses like pilot training, shipping, aeronautical, etc. If going for courses other than these in degree and diploma, arrange liquid security of up to 125% of the loan amount
Have the best chances of the PNB Udaan education loan scheme by knowing the intricacies of it from the WeMakeScholars Financial Officer.
Countries Eligible for an Education Loan from PNB
Below is a list of countries that the Punjab National bank prefers for offering an education loan to students.
PNB Education Loan Schemes to study in India
- PNB offers 6 different education loan schemes to study in India which are categorized with the merit, need or course pursued by the student.
- PNB Saraswati
- PNB Pratibha
- PNB Kaushal
- PNB Pravasi Shiksha Loan
- PNB PM Cares Education Loan Scheme
- PNB Honhaar
PNB Saraswati
The scheme is exclusively for meritorious students in helping them pursue higher education based on merit based selection process. The scheme is need-based and so offers quantum based on the need of the student.
Here are the complete details of the PNB Saraswati education loan!
Parameter |
Details |
Loan Limit |
Quantum based finance to meet the need of the student |
Expenses covered |
Study costs University fees like admission and tuition fee Living expenses Expenses for food Other Health insurance |
Accepted co-applicant |
Parents, parents-in-law, spouse, siblings |
PNB Education Loan interest rate |
Ranges between 9 to 14% depending on whether the loan is collateralized and the value of the collateral |
Moratorium Period |
Course Duration + 1-year |
Repayment Duration |
Maximum 15 years |
Repayment policies |
Payment of interest is not mandatory |
Punjab National Bank Education Loan Requirements |
Should be an Indian resident |
Value of Collateral (only if it is a collateralized ) |
Collateral needs to be of 125x the value of the sanctioned loan amount |
Accepted Collateral |
Land, House, Flat, and FD |
Tip: Fee paid within six months of loan application can be reimbursed. However, the negotiation can be daunting for you to do with the bank. Talk to the Financial Officer from WeMakeScholars to do the negotiation for you.
Courses Eligible:
- Courses for graduate, postgraduate, and PG diplomas are conducted by recognized colleges or universities.
- CA, CFA, ICWA, etc are eligible
- Regular/Diploma courses in technical fields like shipping, aeronautical, etc.
- Approved courses offered by foreign universities in India
- The ones defined under Government subsidy schemes
PNB Pratibha Education Loan to Study in India
The PNB Pratibha education loan is provided by the PNB to help students who are pursuing studies in premier institutes like the following
- Business Schools
- Medical colleges
- Engineering colleges and
- Other reputed institutes
Parameter |
Details |
Loan Limit |
Need-based loans are offered depending on the repaying capacity of parents or the co-applicant. |
Expenses covered |
Study costs Admission and tuition fee Living expenses Food expenses Other Health insurance |
Accepted co-applicant |
Parents, parents-in-law, spouse, siblings |
PNB Pratibha Education Loan interest rate |
For collateral loans- 9 to11% |
Moratorium Period |
Course Duration + 1-year |
Repayment Duration |
Up to 15 years |
Repayment policies |
Interest payment optional |
Punjab National Bank Education Loan Requirements |
Should be an Indian resident |
Tip: Choose the best institutes in the country to have the best chance at a PNB Pratibha education loan. Contact WeMakeScholars to get started with your education loan today!
PNB Kaushal
The PNB Kaushal Education loan scheme provides up to 1,50,000 for students to pursue Skill development courses.
Parameter |
Details |
Loan Limit |
Between 5,000 to 1,50,000 |
Expenses covered |
Study costs Course fee Living expenses Caution deposit |
Accepted co-applicant |
Parents or guardians |
PNB Kaushal education loan interest rate |
12 to 14% per annum |
Moratorium Period |
For 1-year course duration- course period + 6 months |
Repayment Duration |
It varies with the loan amount For loans of up to 50,000- 3 years |
Repayment policies |
Repaying interest in the moratorium period is optional |
Punjab National Bank Education Loan Requirements |
Must be a national of India Should have secured admission in a course run by: |
Tips: The PNB Kaushal education loan is to learn different skills and does not require you to pledge collateral. Contact WeMakeScholars to get started with your PNB Kaushal education loan today!
PNB Pravasi Shiksha Loan
The Pravasi Shiksha education loan scheme funds the education of overseas citizens of India or person of Indian origin in India.
Parameter |
Details |
Loan Limit |
The loan amount is based on the need of the applicant |
Expenses covered |
Study costs Fee paid to the university Living expenses Hostel expenses will be provided for the hostel of the institute. If the student opts to stay outside of the university, then he/she will have to arrange their own accommodation expenses Other Travel expenses |
Accepted co-applicant |
Parents, parents-in-law, spouse, siblings |
PNB Education Loan rate of interest |
Collateral loans- 9 to11% |
Moratorium Period |
Course Duration + 1-year |
Repayment Duration |
10 years excluding the moratorium period |
Repayment policies |
Repayment from outside of India can be done through normal banking channels or through NRE/FCNR(B)/NRO accounts. |
Punjab National Bank Education Loan Requirements |
Should be an overseas citizen of India or a student of Indian origin |
Value of Collateral (only if it is a collateralized ) |
The value of immovable or liquid security should be at least 125% of the loan amount |
Accepted Collateral |
Immovable property- House, flat, NA land |
Tips: There are education loan schemes that offer reimbursement for the already paid fees. However, the PNB Pravasi Shiksha loan scheme does not offer reimbursement and hence consult your financial officer from WeMakeScholars before paying the fee to the university.
PNB PM Cares Education Loan Scheme
The PNB PM Cares education loan scheme is to help children who have lost their parent(s) due to COVID. It provides them with health insurance, funds for education, and for self-sufficient existence.
Parameter |
Details |
Loan Limit |
To meet Need-based finance is offered |
Expenses covered |
Study costs The fee to be paid to the university/college Living expenses Deposit for caution Insurance premium for student/borrower, if applicable |
Accepted co-applicant |
Parents, siblings, or guardian |
PNB Education Loan rate of interest |
Collateral loans- 9 to11% |
Moratorium Period |
Period of the course + 1-year |
Repayment Duration |
15 years of repayment period |
Repayment policies |
Interest payment in the moratorium period is not mandatory |
Punjab National Bank Education Loan Requirements |
Indian citizens who, due to COVID, have lost their
The child should not be 18 years old at the time of the death of his/her parents Should have secured admission into a college or recognized university |
Value of Collateral (only if it is a collateralized ) |
125% of the sanctioned loan amount |
Accepted Collateral |
Land, FD, house and flat |
PNB Honhaar
The PNB Honhaar education loan scheme is exclusively for students to study in Delhi and provides up to 10 lacs for it.
Parameter |
Details |
Loan Limit |
Up to 10 lacs based on the need of the student to pursue course subjects |
Expenses covered |
Study costs Fee of the university Living expenses Building fund, refundable deposit Other Insurance premium for student/ borrower, if applicable |
Accepted co-applicant |
Parents, or guardian |
PNB Education Loan rate of interest |
Collateral loans- 9 to11% |
Moratorium Period |
1-year post course period |
Repayment Duration |
Maximum of 15 years |
Repayment policies |
You can opt-out of interest payment in the moratorium period |
PNB loan Eligibility Criteria |
Must be a resident of India |
Tip: If applying for a scholarship along with the loan, include it in the loan assessment. The scholarship will be credited to the loan account if you receive the scholarship. Request a callback from WeMakeScholars for more tips on the PNB Honhaar education loan and stand the best chance of getting the loan sanction.
PNB Udaan Eligibility
According to PNB Education Loan requirements, the applicant:
- Should be an Indian National
- Should have secured a merit-based admission to a recognized university abroad
- Should be less than 35 years of age if unemployed and 45 years of age if employed.
Government Subsidy Schemes
The government of India has introduced several schemes which waive off the student loan interest in the moratorium period, provided students meet the eligibility criteria.
Dr. Ambedkar Central sector scheme
The scheme is for meritorious/deserving students from OBC and EBC backgrounds. Through this scheme, the interest accrued in the moratorium period is paid by the government.
Eligibility:
- The family income of the student should be less than 8 lacs per annum.
- The student should have taken an education loan for overseas studies in Masters, M.Phil. and Ph.D. level
- The education loan scheme must follow the Indian Banks Association (IBA) Guidelines
Padho Pardesh scheme
The scheme was introduced to help minorities(Muslims, Sikhs, Jains, Buddhists, Christians, and Zoroastrians) pursue education abroad. It provides an interest subsidy in the moratorium period for students who have taken an abroad education loan. The family income of the applicant’s family should not be more than 6 lacs per annum.
Note: The Padho Pardesh scheme has been stopped by the government. However, the beneficiaries as of 31st march 2022 will continue to receive interest subsidy for the moratorium period.
Central Scheme for Interest Subsidy for Economically Weaker Sections
The scheme is provided to help the Economically weaker sections of society in pursuing technical and professional courses in India. The annual income of the applicant’s family should not be more than 4.5 lacs per annum. If the education loan is under IBA guidelines, the interest of the moratorium period will be paid by the government.
PNB Bank Education Loan Processing fee
The processing fee for the PNB bank education loan is listed in the below table.
Education Loan scheme |
Processing fee |
PNB Pravasi Shiksha Loan |
1% of the loan amount, minimum of Rs 10,000(non-refundable) |
All the study in India loan schemes except PNB Pravasi Shiksha Loan |
Nil |
Study Abroad Education Loan schemes |
1% of the total amount, minimum up to Rs 10,000(will be refunded after 1st disbursement) |
The processing fee of the PNB student loans is to be submitted directly into the banks. The banks charge a processing fee to process your study loan whereas we at WeMakeScholars do not charge any fee to process your education loan.
Documents Required for Punjab National Bank Education Loan
Here are the details of the documents required for an education loan in PNB. Check your education loan eligibility and arrange the following documents.
- Fill out the PNB education loan form which will be provided by WeMakeScholars Financial Officer. Sign the application form and along with it attach two photographs.
- Documents for the applicant:
- Identity proof: PAN card, Aadhar card, and passport if you are going abroad
- Proof of residence: Voter ID card, Aadhar card, utility bills(electricity or telephone bills), ration card, and bank account statement
- Documents for co-applicant
- Bank account statement of 6 months(if salaried)
- Business transactions of 1 year(if self-employed)
- Academic documents of the applicant
- Marksheets of 10th, 12th, and degree
- Proof of admission with the total duration of the course
- Structure of fees
- GMAT/GRE/IELTS scorecard
- University ranking
- Financial co-applicant’s income documents(if salaried)
- Payslips of last 3 months
- Last 2 years form 16
- ID card of the employer
- Last 2 years ITR
- Documents for financial co-applicant(if self-employed)
- Last 3 years ITR
- Profit and loss account of the last 3 years and the balance sheet
- Address proof of the business
- Other documents
- A letter in which you need to declare that the leftover expense required to be completed will be borne by your co-applicant(the format will be provided by WeMakeScholars Financial Officer)
- Notarised joint affidavit with the student and co-applicant(format will be provided by WeMakeScholars Financial Officer.
- Additional documents(if required)
- Advance payment receipt of the university
- Pending loan account statement
- If you have had any gap in your studies, explain it in a letter on Rs 100 stamp paper.
- Collateral documents
- The PNB bank does not have a definite list of collateral documents as they vary by state. Contact your WeMakeScholars Financial Officer to have an accurate list of documents required including the collateral documents to start off the process of your loan.
Punjab National Bank Education loan insurance
The Punjab National bank insists its applicants on taking loan insurance of 1 to 2% of the loan amount to be on the safer side. In case the applicant loses the ability to repay the loan due to unforeseen circumstances such as disability or death, the insurance company repays the loan on behalf of the applicant.
Request a callback from WeMakeScholars to get started with the process of your education loan.
Punjab National Bank loan margin calculation
Education loans to students are available in Punjab National Bank with certain loan margins for each of the schemes. PNB Udaan levies a 15% margin for loans of and above 4 Lakhs, while PNB Saraswati charges a 5% margin for the same. PNB Pratibha has no loan margin it depends on the institute and similarly, PNB Kaushal and PNB Honhaar have no margin. Its PNB Pravasi needs a 20% margin and PNB PM Cares Education Loan Scheme has a 5% margin for an amount more than 4 Lakhs. Take a look at the table to get a better idea:
Name of the scheme |
Loan margin |
PNB Udaan |
15%( only for loans above 4 lacs) |
PNB Saraswati |
5%(only for above 4 lacs loan) |
PNB Pratibha |
No loan margin( loan amount dependent on the institute) |
PNB Kaushal |
Nil |
PNB Pravasi |
20% |
PNB PM Cares Education loan scheme |
5%(above 4 lacs loan) |
PNB Honhaar |
Nil |
If you cannot manage the loan margin amount from your end for the expense required to complete, you can talk to your financial officer from WeMakeScholars who will either try to reduce the loan margin with the lender or will suggest a better alternative for a student loan.
How to apply for an education loan from PNB?
Apply for an education loan by Punjab National bank through WeMakeScholars for a faster loan sanction by following the below-given steps.
Step 1- Request a callback from WeMakeScholars or fill out a common application form.
Step 2- A financial officer from WeMakeScholars will call you back as soon as possible and will begin your study loan process by taking your details.
Step 3- He/she will then match your details with the best loan possible for you and will connect you to those lenders after sending you a document uploading link
Step 4- You will need to upload all the documents in the document uploading link, to take your education loan process forward
Step 5- The next steps in the process will be carried out the by assigned lenders
Step 6- Meanwhile your financial officer will also be in touch with you to clear any confusion that you might have in your Punjab National bank loan process.
Step 7- You will have the sanction letter in your hand in the time promised by your financial officer.
Why should not go directly through banks?
The issues you may face while going directly through banks
- Complicated education loan process
- Won’t provide the complete list of required documents
- Several types of charges will be hidden from you
- The loan process will take longer to complete
- You will have fewer chances of a loan sanction
Why go through WeMakeScholars?
WeMakeScholars is an organization that aims to provide unbiased study loans to students wishing to pursue higher education in India and abroad. We are partnered with 14+ banks(public/Pvt) and hence provide faster loan sanctions. Here are the benefits of taking an education loan through WeMakeScholars.
Better interest rates: We are partnered with 14+ banks and hence have an interest rate that is up to 2% lower than when you go directly through banks.
Faster Loan process: PNB education loan processing time is reduced by up to 50% time when you process it through us.
Tax benefits: We educate students about tax benefits that they can avail of by taking an education loan.
End-to-end support: Students come to us to get a loan sanction and we in turn provide them with assistance throughout their loan period until the repayment of the full loan, even in a timezone that is 12 hrs apart.
Cashback: Students going through us earn a cashback of Rs 3,000 in their first disbursement.
Interested students can request a callback from us to get started with their education loan process.
Why and How to transfer your education loan to Punjab National bank?
Here's why you can transfer your study loan to Punjab National bank
- The bank has a low margin or even 0% loan margin for its education loan schemes
- The bank offers a competitive rate of interest to its applicants
- In most of the loan schemes, it does not charge processing fees
- The bank does not have the loan limit for most of its schemes and provides loans according to the financial need of the students.
How to transfer your education loan to Punjab National bank?
- Visit your present student loan bank and collect information about the outstanding loan amount.
- Request a callback from WeMakeScholars and wait for your financial officer to call you back.
- Tell your financial officer that you want to transfer your higher education loan
- He/she will then provide you with a list of documents that you will need to submit to Punjab National bank.
- Once the documents are submitted, the Punjab National bank will clear your dues to the previous education loan and will start the process with them.
PNB Education loan EMI calculation as per interest rate
If you borrow Rs. 20 Lakhs for education with the help of the PNB Loan EMI calculator and are charged 13% per annum for the loan with a tenure of 10 years and a moratorium period of 2 years, your EMI would be Rs. 39,228. The first year interest to be paid is Rs. 27,107 and the principal is Rs. 12,121 leaving the outstanding amount to be Rs. 24,90,078. By the tenth year, the interest drops to Rs. 420 while the principal amount is Rs. 38,807 as the loan is fully amortized. This helps in determining the annual payment and balance outstanding in the tenure of the loan amount.
Timeline |
EMI |
Interest portion |
Principal portion |
Loan Outstanding |
Year 1 |
39228 |
27107 |
12121 |
2490078 |
Year 2 |
39228 |
25434 |
13794 |
2333972 |
Year 3 |
39228 |
23530 |
15697 |
2156318 |
Year 4 |
39228 |
21363 |
17864 |
1954143 |
Year 5 |
39228 |
18898 |
20330 |
1724060 |
Year 6 |
39228 |
16091 |
23136 |
1462219 |
Year 7 |
39228 |
12898 |
26330 |
1164235 |
Year 8 |
39228 |
9263 |
29964 |
825119 |
Year 9 |
39228 |
5127 |
34100 |
439195 |
Year 10 |
39228 |
420 |
38807 |
0 |
If unable to figure out the calculation of EMI, talk to your financial officer at WeMakeScholars!
Punjab National Bank Education Loan Repayment process
The interest payment for the Punjab National Bank education loan is not mandatory in the moratorium period and hence you can opt-out of it. If deciding to opt out of interest payment in the moratorium period, it will add up in the following EMIs.
The bank also gives you the choice of closing off the loan early in the following ways.
- Opting for a shorter duration of repayment
- Prepayment
- Balance transfer to another bank
Insure yourself of the education loan repayment issues by choosing WeMakeScholars. Request a callback today!
FAQs:
-
What is the interest rate for an education loan in PNB?
-
What are the documents required for an education loan in PNB bank?
-
How can I check my loan eligibility in PNB?
-
Can I get an education loan without my parent's income?
NEWS
Punjab National Bank have recently hiked their Marginal Cost of Lending Rate (MCLR) by 5 basis points due to the escalating inflation. Effective since September 1, 2023, these revised rates will impact anyone going for car loans, education loans, personal loans, or home loans, either at present or in the future. The MCLR, being the benchmark that influences loan interest rates directly, plays a crucial role in this scenario.
Punjab National Bank, ranking as the second-largest public sector bank, also followed suit by elevating its MCLR by 5 basis points. Consequently, their overnight MCLR surged from 8.10 percent to 8.15 percent. Furthermore, the one-month MCLR escalated from 8.20 percent to 8.25 percent, while the three-month MCLR increased from 8.30 percent to 8.35 percent.
Understanding MCLR is important. It acts as a fixed lending rate utilized by banks to determine interest rates for various loans. It sets a minimum lending rate below which banks cannot offer loans. Any alterations in the MCLR directly impact the interest rates and Equated Monthly Installments (EMIs) for customers. Higher MCLR rates translate to increased EMI burdens for customers.
Last Updated - 30/11/2023
WeMakeScholars- supported by IT Ministry, Govt. of India.
Our Education Loan team will help you with any questions
Kindly login to comment and ask your questions about PNB Education Loan