Education Loans in India
Tuesday, January 21, 2020
Education & Career
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Punjab and Sind Bank Education Loan Scheme


Eligibility : 


  • Student should be an Indian National
  • Secured admission to professional / technical courses in India or abroad through entrance Test / Merit Based Selection process.


(a) Studies in India

  • Graduation courses : B.A. B.Com, B.Sc., etc.
  • Post Graduation courses : Masters & Phd.
  • Professional Courses: Engg. , Medical, Agriculture , Veterinary, Law ,Dental, Management , Computer etc.
  • Computer certificate courses of reputed institutes accredited to Deptt. of *electronics or institutes affiliated to university.
  • Courses like ICWA , CA , CFA etc.
  • Courses conducted by IIM, IIT, IISc , XLRI, NIFT, etc.
  • Courses offered in India by reputed foreign universities .
  • Evening courses of approved institutes.
  • Other courses leading to diploma / degree etc. conducted by colleges/ universities approved by UGC/ Govt/ AICTE /AIBMS/ ICMR etc.
  • Courses offered by National Institutes and other reputed private institutions. Banks may have the system of appraising other institution courses depending on the future prospects/recognition by user institutions.

(b) Studies Abroad :

  • Graduation For job oriented professional/technical courses offered by reputed universities.
  • Post Graduation MCA,MBA,MS etc.
  • Courses conducted CIMA-Londin, CPA in USA etc.

Loan Details

Coverage of expenses 

  • 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.
  • Travel expenses/passage money for studies abroad.
  • Purchase of computers-essential for the completion of the course.
  • Any other expense required to complete the course- like study tours, project work, Thesis etc.


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.


  • Upto 4 lacs - Nil
  • Above 4 lacs for
    - Education in India - 5%
    - Education Abroad - 15%

Scholarship/assistantship to be included in margin.
Margin may be brought in on year to year basis as and when disbursements are made on a pro-rata basis.


  • Upto Rs.4.00 lacs - No Security
  • Above Rs 4.00 lacs and Upto Rs 7.5 lacs - Collateral in the form of a suitable third party guarantee. The Bank may, at its discretion waive third party guarantee if satisfied with the net worth/means of parent who would be executing the documents as “joint borrower.”
  • Above Rs 7.5 lacs - Collateral security of suitable value or suitable third party guarantee alongwith the assignment of future income of the student for payment of installments.

Note :

  • The loan documents should be executed by both the student and the parent/guardian as joint borrower.
  • 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 student/parent/guardian or any other third party with suitable margin.
  • Wherever the land/building is already mortgaged, the unencumbered portion can be taken as security on II charge basis provided it covers the required loan amount.
  • In case the loan is given for purchase of computer the same is to be hypothecated to the Bank.

Banks who wish to support highly meritorious/deserving students without security may delegate such powers to fairly higher level authority.

Rate of Interest

  • Upto Rs. 4 lacs - BPLR(-)1.00% 
  • Above Rs.4 lacs - BPLR (-)0.50%

Simple interest to be charged during the Repayment holiday/moratorium period Penal interest @ 2% be charged for above Rs. 4.00 lacs for the overdue amount and overdue period.

Processing Charges

No processing/upfront charges may be collected on educational loans.


Repayment holiday/Moratorium : Course period + 1 year or 6 months after getting job, whichever is earlier 

The loan 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. If the student is not able to complete the course for reasons beyond his control, sanctioning authority may at his discretion consider such extension as may be deemed necessary to complete the course.

  • The accrued interest during the repayment holiday period to be added to the principal and repayment in Equated Monthly Instalments (EMI) fixed.
  • 1% interest concession may be provided for loanees if the interest is serviced during the study period when repayment holiday is specified for interest / repayment under the scheme.


Contact Details

Head Office
Public Relation Department
Punjab and Sind Bank Ltd.
1st Floor, 21, Rajendra Place, New Delhi-110008
Phone : 011-25719082
Fax : 011-25723793
E-mail : Contact Now
Website : visit
Punjab and Sind Bank Zonal Offices

Click here for the nearest bank branches

Note : Since the rules, regulations, eligibility conditions, repayments and interests rates etc. are revised by the banks from time to time in keeping pace with the changing capital market conditions, students and parents are advised to thoroughly check the terms and conditions of educational loan scheme on offer at the time of application.