Education Loans in India
Tuesday, January 21, 2020
Education & Career
Find Us on FacebookFollow Us on TwitterFollow Us on Google Plus tellafriendYoutube
Search by Voice
       Pin It       tellafriend        

Punjab National Bank Education Loan Scheme

Vidyalakshyapurti Education Loan

Punjab National Bank has tied up with Kotak Mahindra Insurance to provide life insurance cover for education loan borrowers.

Eligibility : 


  • Should be an Indian National.
  • Secured admission to Professional / Technical courses through Entrance Test / Selection process.
  • Secured admission to foreign University / Institutions.
  • Student should have secured pass marks in the qualifying Examination for admission to Graduation Courses.


  • Students of +2 stag
  • Graduation courses – B.A., B.Com., B.Sc., etc.
  • Post-Graduation courses
  • Masters in Ph.D
  • 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.,
  • Evening Courses of reputed Institutes
  • Diploma/Degree courses conducted by Colleges/Universities approved by UGC/Govt./AICTE/AIBMS/ICMR, etc.,
  • Courses offered by National Institutes and other reputed Private Institutes.

Loan Details

Coverage of expenses 

  • Fee payable to College / School / Hostel
  • Examination / Library / Laboratory fee.
  • Purchase of books / equipments / instruments / uniforms.Secured admission to foreign University / Institutions.
  • Caution Deposit / Building Fund / Refundable Deposit supported by Institution Bills / Receipts.
  • Travel Expenses / Passage money for studies abroad.
  • Purchase of computers - essential for completion of the Course.
  • Boarding and lodging expenses in recognised Boarding Houses / private accommodations
  • Any other expense required to complete the course - like study tours, project work, thesis etc.


  • For studies in India - Maximum Rs.10.00 lacs.
  • For studies Abroad - Maximum Rs.20.00 lacs.


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


  • Upto Rs.4.00 lacs - No Security
  • Above Rs 4.00 lacs and Upto Rs 7.5 lacs - 3rd party guarantee acceptable to the Bank
  • Above Rs 7.5 lacs - Collateral Security of Suitable value or suitable 3rd party guarantee

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 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.

Rate of Interest
  • Upto Rs. 4 lacs-10.50%
  • Above Rs.4 lacs -11.25%

The interest shall be debited monthly on simple basis during the Repayment holiday/ Moratorium period.
Penal Interest @ 2% be charged for above Rs.4.00 lacs for the overdue amount and overdue period.
1% Interest concession for servicing of interest during the study period regularly is allowed at the time of start of repayment period of loan.


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

The Principal and interest is 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.

Additional Benefits provided to the students by PNB

  • Reimbursement of related expenses such as admission fee, monthly fee, Boarding and lodging expenses in recognized Boarding Houses etc. already incurred by way of loan taken from own sources (to meet the contingency) by the applicant, if claimed within 3 (three) months of such payment and before consideration of the loan by the Bank.
  • Second time Education Loan can be sanctioned to the same student borrower for completion of next higher course.


Contact Details

Head Office
Punjab National Bank Ltd.
7, Bhikhaiji Cama Place,
New Delhi- 110066
Fax : 011-26196176
E-mail : Contact Now
Website : visit
Punjab National 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.