PNB Education Loan Application to Sanction

Punjab National Bank (PNB) offers a range of education loan schemes designed to support students in financing their higher education, both in India and abroad. Understanding the financial challenges associated with quality education, PNB provides education loans with competitive interest rates, flexible repayment options, and comprehensive coverage of expenses, including tuition fees, accommodation, books, travel, and other essential academic costs.

Whether a student is planning to pursue undergraduate, postgraduate, doctoral, or professional courses, PNB has tailored loan schemes to meet diverse academic needs. The bank ensures that financial constraints do not stand in the way of a student’s dreams and aspirations. With simplified application processes, collateral-free options for eligible applicants, and government subsidy benefits for economically weaker sections, PNB education loans make higher education more accessible and affordable.

With PNB’s commitment to empowering education, students can confidently pursue their academic goals, whether at prestigious institutions in India or renowned universities abroad. By investing in the future of young minds, PNB plays a crucial role in shaping successful careers and contributing to the nation’s progress.

Key Features of PNB Education Loan

Given below are some of the key features of PNB’s education loan offerings:

Comprehensive Loan Schemes: PNB offers various education loan schemes, including PNB Saraswati for meritorious students in India, PNB Pratibha for those admitted to premier institutes, PNB Udaan for overseas education, PNB Kaushal for skill development courses, and PNB Honhaar for students in Delhi pursuing higher education and skill development.
Coverage of Expenses: PNB education loans cover a wide range of academic costs, including tuition fees for college, school, or hostel, examination, library, and laboratory fees, purchase of books, equipment, instruments, and uniforms, caution deposits, building funds, and refundable deposits backed by institutional receipts, reasonable cost of a computer if required for the course, and other essential expenses like study tours, project work, and thesis completion.
Competitive Interest Rates: PNB Interest rates are structured to be affordable, with concessions available for female students and those availing of government subsidy schemes. For example, the PNB Pratibha scheme offers interest rates starting from 8.20% per annum.
Collateral and Security: For loans up to INR 7.5 lakh, no tangible collateral or third-party guarantee is required; parents or guardians are made joint borrowers. Loans exceeding this amount may require suitable collateral security acceptable to the bank.
Repayment Terms: The repayment tenure is flexible, with a maximum period of up to 15 years, ensuring manageable Equated Monthly Installments (EMIs) post the completion of the course and the moratorium period.
Interest Subsidy Schemes: Eligible students from economically weaker sections can benefit from government interest subsidy schemes during the moratorium period, reducing the financial burden during the study phase.
Simplified Application Process: PNB facilitates a hassle-free application process, with options to apply online through the Vidya Lakshmi Portal for prompt disposal of education loan applications.

PNB Education Loan Schemes:

Punjab National Bank (PNB) offers a variety of education loan schemes to help students achieve their academic goals without financial worries. Whether pursuing higher education in India or abroad, PNB provides tailored loan options with competitive interest rates, flexible repayment plans and minimal processing hassle. Listed below are the types of loan schemes available in PNB and their details.

PNB Saraswati: Regular scheme for pursuing higher studies in India and 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.
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.
PNB Concessional Loan: Loan shall be available to any Student with 40% or more disability on the basis of Disability certificate.

More details on each loan scheme:

Feature	PNB Saraswati	PNB Pratibha	PNB Udaan	PNB Kaushal	PNB Concessional Loan
Loan Amount Limit	Need-based, subject to repayment capacity.	Need-based, subject to repayment capacity.	Need-based, subject to repayment capacity.	Minimum: ₹5,000; Maximum: ₹1,50,000.	For studies in India and abroad: Maximum ₹50,00,000.
Margin Payment	Up to ₹4,00,000: Nil; Above ₹4,00,000: 5%	For Annexure I institutions: Nil; For Annexure II institutions: As per PNB Saraswati.	Up to ₹4,00,000: Nil; Above ₹4,00,000: 15%.	Nil.	Nil.
Security/Collateral	Up to ₹7,50,000: no collateral required; Above ₹7,50,000: Tangible security as per bank’s discretion.	None; Parents must be co-borrowers.	Up to ₹7,50,000: no collateral required; Above ₹7,50,000: Tangible security as per bank’s discretion.	Parent(s) as co-borrowers, no collateral required.	Parent(s) as co-borrowers, no collateral required.
Repayment Timeline	Maximum up to 15 years.	Maximum up to 15 years.	Maximum up to 15 years.	Up to ₹50,000: 3 years; ₹50,000 to ₹1,00,000: 5 years; Above ₹1,00,000: 7 years.	Maximum up to 10 years.
Repayment Commencement	1 year after course completion.	1 year after course completion.	1 year after course completion.	For courses up to 1 year: Within 6 months of course completion; For courses above 1 year: Within 1 year of course completion.	1 year after course completion.
Pre-Payment Charges	Nil.	Nil.	Nil.	Nil.	Nil.

PNB Education Loan Eligibility Criteria

Education loans have certain standard requirements, but each PNB Education Loan Scheme comes with its own specific eligibility criteria. A fundamental requirement for all PNB study loans is that the applicant must be an Indian national. Beyond this, the eligibility criteria are straightforward and easy to follow. For better clarity, the details are outlined below.

Loan Schemes	Respective education loan criteria
PNB Saraswati	Secured admissions to an institute of higher education on merit based acceptance or by clearing a dedicated entrance exam. Cases of Management Quota are considered on merit basis.
PNB Pratibha	Should have secured admission in Regular full time Degree / Diploma courses offered by Premier Institutes as listed in PNB Education Loan College Lists and Institution List as per Annexure I & II (find it at the end of this article) Applicants with secured seats of Part-time Post Graduate Programmes in Management for Executives offered by IIM Applicants with secured seats of Post Graduate Programme in Management for Senior Executives (PGPMAX) by ISB (Indian School of Business)
PNB Udaan	Only for study abroad courses where the academic qualification degree is provided by an overseas institution (in case if the applicant is pursuing an exchange program) Applicants with secured seats in an overseas institution of repute (no list) by Merit or by clearing an Entrance test.
PNB Kaushal	Applicant Applicant with secured seat in one of the following:- ITI (approved by Govt.) Polytechnics (approved by Govt.) NSDC/State Skill Corporation/NSQF/Sector Skill Councils affiliated colleges/training institutions/higher education schools
PNB Concessional Loan	Any Student with 40% or more disability, as approved by disability certificate issued by dedicated authorities of Statute/ notifications/Govt. orders of the Central/State/UT Government.

PNB Education Loan Documents Required

The list of PNB documents required for an education loan is pretty detailed and very easy to compile; especially when you know which loan students are going to go for.

Loan application in Bank’s format.
Passport size photograph.
Proof of address.
Proof of age.
Copy of PAN of student borrower.
Proof of having cleared the 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 and visa in case of study abroad.
Any other document/information, depending upon the case and purpose of the loan.

PNB Education Loan Application Process

The detailed steps for the application process are given below.

Check the eligibility and ensure one fits all the given criteria.
Gather Required Documents for PNB Education Loan.
Apply online or offline. For online application use Vidya Lakshmi Portal or PNB’s website. For offline visit the nearest PNB branch and submit the application form with documents
Loan processing and verification where the bank verifies documents, financial standing and collateral (if required).
Loan sanction & agreement signing if approved, receive a sanction letter and sign the loan agreement.
Loan Disbursement where funds are transferred directly to the educational institution
Repayment starts after the moratorium period (course duration + 1 year or 6 months after getting a job). The repayment tenure is up to 15 years.

FAQs

1. What expenses are covered under PNB education loans?
PNB education loans typically cover:

Tuition fees payable to the institution.
Examination, library, and laboratory fees.
Purchase of books, equipment, instruments, and uniforms.
Caution deposits, building funds, or refundable deposits supported by institution bills/receipts.
Travel expenses for studies abroad.
Purchase of computers essential for course completion.
Any other expenses required to complete the course, such as study tours and project work.

2. Is there a penalty for prepayment of the loan?
No, PNB does not levy any prepayment penalty on education loans.

3. Can a student avail a second loan for further studies?
Yes, students can apply for a second loan (top-up loan) for pursuing further studies. This is considered based on individual merits, overall eligibility, and repayment capacity.

4. Is reimbursement of fees paid before loan sanction possible?
Yes, reimbursement of fees paid by the student or guardian at the time of admission or subsequent stages is permissible within six months from the date of payment, based on individual case merits. For detailed information and the most current updates, it’s advisable to visit the official PNB website or contact the nearest PNB branch.

5. What is the interest rate on PNB education loans?
Interest rates vary based on the loan scheme and the institution. Generally, interest rates are linked to the RLLR (Repo Linked Lending Rate) and may vary. Concessions are available for female students and students of premier institutions.