Punjab National Bank Educational Loan

Established in 1894, Punjab National Bank (also known as PNB) is one of India’s oldest and third largest public sector banks which cater to over 80 million customers. In an effort to help brighten the future of our nation, PNB offers multiple education loans and schemes to deserving students and individuals, who wish to pursue higher education in India and abroad. Under education loans, PNB offers four distinct kinds of loans which are

  1. PNB Udaan
  2. PNB Kaamgar,
  3. PNB Pratibha
  4. PNB Saraswati

The Scheme aims at providing financial assistance to deserving / meritorious students pursuing higher education in India or abroad. viz., Graduation courses – B.A., B.Com., B.Sc., etc., Post-Graduation courses, Masters & PhD; Professional courses, Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer etc., Computer Certificate courses of reputed Institutes accredited to Department of Electronics or institutes affiliated to University; Courses like ICWA, C.A., CFA, etc., courses conducted by IIM, IIT, IISc, XLRI, NIFT, etc., Regular Diploma/Degree courses conducted by Colleges/Universities approved by UGC/Govt./AICTE/AIBMS/ICMR, Regular Degree / Diploma courses like Aeronautical, Pilot training, Shipping etc. approved by DGCA/ etc., Courses offered by National Institutes and other reputed Private Institutes.


  • Should be an Indian National
  • Secured admission to Professional / Technical courses in India or abroad through Entrance Test / Merit based Selection process.

PNB Saraswati

  • The student must be an Indian national.
  • The student must have gained admission to any recognized institute in India for a higher education course through an entrance test / merit based selection process, after passing Higher Secondary School i.e. 10+2 or equivalent.
  • The student must have secured admission solely based on marks scored in the qualifying examinations. (Marks cut-off percentage of 60% for General category & 50% for SC/ST is considered).

PNB Kaamgar

  • The student must be an Indian national.
  • He/she must have secured admission to a course run or supported by a government run Ministry / Dept. / Organization or a company / society / organization supported by the National Skill Development Corporation (NSDC) or State Skill Missions / State Skill Corporations.
  • Said course should preferably award a certificate / diploma / degree, etc. which is issued by a Govt. run/ Govt. authorized organization.

PNB Pratibha

  • The student must have secured admission to a regular full-time Degree/Diploma course at any of the premier institutes in India.

Expenses considered for Loan

  • Fee payable to College / School / Hostel
  • Examination / Library / Laboratory fee.
  • Purchase of books / equipments / instruments / uniforms.
  • Caution Deposit / Building Fund / Refundable Deposit supported by Institution Bills / Receipts, subject to the condition that the amount does not exceed 10% of the total tuition fee for the entire course.
  • 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.

Repayment Period

Loans up to Rs 7.50 lakh must be repaid in a maximum period of up to 10 years and loans exceeding Rs 7.50 lakh must be repaid within a maximum period of up to 15 years, in equal monthly installments (EMIs). Applicants will be entitled to repayment holiday period of either ‘course duration + 1 year’ OR ‘6 months after getting a job’, whichever occurs earlier.

Interest Rate

Amount of Loan Repayable in Less Than 3 Years (BR@10%) Repayable in 3 Years & Above
Up to Rs 4 lakh BR + 3.00% BR + 2.50% + Term Premium (TP@0.50%)
Over Rs 4 lakh & up to Rs 7.50 lakh BR + 4.00% BR + 3.50% + TP
Over Rs 7.50 lakh BR + 2.00% BR + 2.00%

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.10.00 lacs
  • For studies abroad: Maximum Rs.20.00 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: Co-Obligation of Parents. No Security
  • Above Rs 4.00 lacs and Up to Rs 7.5 lacs: Co-Obligation of Parents. 3rd party guarantees acceptable to the Bank.
  • Above Rs 7.5 lacs: Co-Obligation of Parents. Collateral Security of suitable value along with Assignment of future income of the student for payment of installments.

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

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