Education loan interest rates are determined by the bank and are based on the Marginal Cost of Funds-based Lending Rate (MCLR) or the Repo rate. It is crucial for students to pay close attention to the interest rate charged by Punjab National Bank (PNB) for education loans, as this will affect the future EMI repayment amount.
You don’t have to be a math whiz to understand the terms and conditions of the PNB Education Loan regarding the interest rate. The loan sanction letter provides details such as the interest rate, loan amount, EMI, and other specifics. However, those who are planning to apply for a PNB study loan do not have access to a loan sanction letter. That is why we have brought to you the most detailed guide on PNB Education Loan interest rate, which provides accurate interest rates for different study loans offered by this bank.
Types of PNB Education Loan Interest Rates
For an education loan by PNB, you can choose between a fixed interest rate and a floater interest rate. Detailed information on both types of interest rates can be found below.
Floating Interest Rate
- The interest rate is subject to change based on market conditions. It typically changes as per the fluctuation in the Marginal Cost of funds-based Lending Rate (MCLR) or the Repo rate.
- The rate can increase or decrease during the loan tenure, depending on changes in the benchmark rate. Thus, you can get lower interest rates when market rates decrease, potentially reducing the overall interest paid over the loan’s term.
Fixed Interest Rate
- The interest rate remains constant throughout the loan tenure, regardless of market fluctuations.
- Borrowers know exactly how much they need to pay each month, making it easier to budget for education loan repayment.
Fun Fact: Marginal Cost Of Fund Based Lending Rates (MCLR) is decided by the banks internally on the basis of guidelines provided by the RBI. While the REPO rate is decided solely by the RBI.
Factors Affecting PNB Bank Loan Interest Rates
Several elements can influence the interest rates on education loans offered by PNB, such as your educational performance, collateral value, course selection, etc. Below, we have provided a detailed analysis of each of these factors.
- Academic Performance: An impressive academic history can help borrowers secure more advantageous interest rates.
- Co-applicant’s Financial Status: The salary and creditworthiness of the co-applicant play a significant role in determining the interest rate.
- Collateral Provided: Offering high-value assets as collateral for education loans can result in lower interest rates due to the reduced risk for the bank.
- Institution and Course: Loans for accredited institutions and courses with high employability rates may come with more favourable interest rates. Thus, loans for IITs, NITs, IIITs, etc, have lower interest rates than loans for tier 2 or 3 colleges.
Also Read: Factors to Consider Before Applying for an Education Loan
PNB Education Loan Interest Rate for Different Loan Schemes
Usually, the terms and conditions of the PNB Education Loan are filled with technical languag,e which is a bit difficult to understand for students. That is why we have provided a simplified version of the PNB education loan interest rate details below.
PNB Saraswati Loan Scheme
Students who want financial assistance in pursuing courses like ICWA, CA, CFA, etc. and courses offered by IIMs, IITs, IISc, XLRI. NIFT, NID, recognised Indian or foreign universities, etc, can get help from the PNB Saraswati Loan Scheme. The interest rate details for this scheme are mentioned below.
| Loan Category | Interest Rate (Male Students) | Interest Rate (Female Students) |
| Loan up to ₹7.50 Lakhs (Covered under CGFSEL Scheme) | Floating:
Fixed:
|
Floating:
Fixed:
|
| Loan above ₹7.50 Lakhs | Floating:
Fixed:
|
Floating:
Fixed:
|
| Loan with 100% Collateral Security (Any Amount) | Floating:
Fixed:
|
Floating:
Fixed:
|
Also Read: Education Loan Interest Rate – A Detailed Analysis for Popular Banks
PNB Pratibha Loan Scheme
Students studying in India’s premier institutions like AIMS, IITs, NITs, IIITs, IIMs, etc can avail of the PNB Pratibha Loan Scheme. The interest rates for this scheme are mentioned below.
| Loan Category | Floating Interest Rate | Fixed Interest Rate |
| Loan Above ₹7.50 Lakhs
(For students admitted to IIMs, IITs, ISB Hyderabad, ISB Mohali, MDI Gurgaon & XLRI Jamshedpur) |
RLLR + BSP – 1.15% (Current Rate* 7.85%) |
|
| Loan Above ₹7.50 Lakhs
(For students admitted to IIFT Delhi & Kolkata, XIMB Bhubaneswar, BITS Pilani, Hyderabad & Goa) |
RLLR + BSP – 1.15% (Current Rate* 7.85%) |
|
| Loan Above ₹7.50 Lakhs
(For students admitted to SPJIMR Mumbai, NMIMS Mumbai, Symbiosis Pune, IMT Ghaziabad) |
RLLR + BSP – 1.05% (Current Rate* 7.95%) |
|
| Loan Above ₹7.50 Lakhs
(For students admitted to NITs, Nirma University, MICA Ahmedabad, FMS Delhi) |
RLLR + BSP – 0.85% (Current Rate* 8.15%) |
|
| Loan Above ₹7.50 Lakhs
(For students admitted to institutions other than those listed above) |
RLLR + BSP – 0.25% (Current Rate* 8.75%) |
|
| Loan Up to ₹7.50 Lakhs
(For students admitted to IIMs, IITs, NITs, ISB Hyderabad & Mohali, MDI Gurgaon, XLRI Jamshedpur) |
RLLR + BSP + 0.50% (Current Rate* 9.50%) |
|
| Loan Up to ₹7.50 Lakhs
(For students admitted to institutions other than those listed above) |
RLLR + BSP + 0.75% (Current Rate* 9.75%) |
|
| Loan Up to ₹7.50 Lakhs
(For IIT, IIM & XLRI Jamshedpur admissions sanctioned before 16.09.2015 without collateral security & not covered under CGFSEL Scheme) |
RLLR + BSP + 1.15% (Current Rate* 10.15%) |
|
| Loan Up to ₹7.50 Lakhs
(For students admitted to other institutions before 16.09.2015 without collateral security & not covered under CGFSEL Scheme) |
RLLR + BSP + 1.25% (Current Rate* 10.25%) |
|
PNB Udaan Loan Scheme
The PNB Udaan Loan Scheme offers financial support to meritorious students pursuing higher education abroad. It covers students admitted to job-oriented professional or technical courses for graduation and postgraduate programs like MCA, MBA, and MS. Additionally, it includes courses by institutions such as CIMA-London and CPA in the USA, as well as recognized degree and diploma programs like aeronautical, pilot training, and shipping, provided they are approved by regulatory bodies abroad for employment purposes.
| Loan Category | Interest Rate (Male Students) | Interest Rate (Female Students) |
| Loan irrespective of amount to students getting admission into specific institutes with minimum 100% collateral security | Floating:
Fixed:
|
Floating:
Fixed:
|
| Loan irrespective of amount where minimum 100% collateral security is available | Floating:
Fixed:
|
Floating:
Fixed:
|
| Loan up to ₹7.50 lakhs (covered under CGFSEL Scheme) | Floating:
Fixed:
|
Floating: RLLR + BSP + 1.50% (Currently 10.50%) Fixed: 11.75% (For loans up to 10 years) 12.25% (For loans above 10 years) |
| Loan above ₹7.50 lakhs | Floating: RLLR + BSP + 2.00% (Currently 11%) Fixed: 12.25% (For loans up to 10 years) 12.75% (For loans above 10 years) | Floating: RLLR + BSP + 1.50% (Currently 10.50%) Fixed: 11.75% (For loans up to 10 years) 12.25% (For loans above 10 years) |
PNB Kaushal Loan Scheme
There is a separate PNB education loan scheme for students in India who want to pursue Vocational Education & Training courses. The name of this scheme is PNB Kaushal, and its details are as follows:
| Loan Category | Floating Interest Rate | Fixed Interest Rate |
| Loan up to ₹1.50 lakh (Covered under CGFSSD) | RLLR + BSP + 1.50% (Current Rate – 10.50%) |
|
| Loan up to ₹1.50 lakh (Covered under CGFSSD) for female students | RLLR + BSP + 1.00% (Current Rate – 10%) |
|
PNB PM Cares Education Loan Scheme
Children who have lost their parents to the COVID-19 pandemic can avail of the PNB PM Cares Education Loan Scheme. It ensures their education and equips them for a self-sufficient future with financial support upon reaching the age of 23. There is an interest rate that the candidates need to pay, and it is discussed below.
| Loan Category | Floating Interest Rate | Fixed Interest Rate |
| Loan up to ₹7.50 lakh (covered under CGFSEL Scheme) | RLLR + BSP + 0.25% (Presently 9.25%) |
|
| Loans irrespective of amount (where 100% tangible collateral security in the shape of IP, enforceable under SARFAESI Act, and/or liquid security is available) | RLLR + BSP + 0.25% (Presently 9.25%) |
|
| Loan above ₹7.50 lakh (Where ZM has waived the 100% security criteria as per vested loaning power) | RLLR + BSP + 0.75% (Presently 9.75%) |
|
PNB Honhaar Loan Scheme
Students residing in Delhi can take advantage of the PNB Honhaar Loan Scheme to pursue higher education and skill development courses. The interest rate for this scheme is provided below.
| Floating ROI | Fixed Rate of Interest |
| RLLR + BSP + 2.00% (Presently 11.25%) |
|
Concessional Education Loans to Persons with Disabilities (PwDs) in Association With NHFDC
Students with 40% or more disability on the basis of Disability certificate issued by a competent authority can avail of this PNB education loan scheme. This scheme is offered in association with the National Handicapped Finance and Development Corporation (NHFDC). The PNB education loan interest rate for PWDs under this scheme is fixed at 4%.
| Loan Amount (₹ in Lakhs) | Applicable Rate of Interest to PwDs (%) |
| Up to ₹50.00 Lakhs | 4% |
Note: The current rates mentioned in the tables are subject to change, and these are correct at the time of writing.
Also Read: Documents Required for PNB Education Loan – Checklist & Documentation Charges
Subsidy on PNB Education Loan Interest Rate by Government
The Indian government has been taking care of students’ education and their financial concerns with its various loan interest rate subsidies policies. The CSIS Scheme for Education Loan Interest subsidy provides interest reimbursement paid against education loans for the moratorium period of the loan, which is a course duration of 6 to 12 months.
Key features of CSIS Subsidy for Punjab National Bank Education Loan
- Collateral-free education loans to students with a family income below ₹4.5 lakh
- The loan limit is up to ₹10 lakh
- Full interest rebate/subsidy on education loan for the moratorium duration
- NMDFC (National Minorities Development and Finance Corporation) and National Handicapped Finance and Development Corporation (NHFDC) schemes are also applicable to this scheme
Also Read: Education Loan Tax Benefits
FAQs
Can I get an education loan from PNB Bank?
Yes, you can get a PNB education loan by visiting the nearest branch or by visiting their official website for a loan application fill up.
What is the interest rate of PNB on education loans?
The PNB education loan interest rate changes as per the MCLR and repo rate set by the RBI. However, the fixed interest rate for the PNB Saraswati Loan Scheme ranges between 11% to 12%.
What is the interest rate of a ₹1 lakh education loan in PNB?
PNB has multiple education loan schemes, thus the interest rate for ₹1 lakh education loan will vary depending on the scheme. For example, if you choose PNB PM Cares Education Loan Scheme, then the interest rate will be somewhere between 10.50% to 11.50%, while for PNB Honhaar Loan Scheme, the interest rate is between 12.25% to 12.75%.
Does PNB give 100% education loans?
Yes, you can sanction 100% of your education expenses in the PNB education loan. However, you need to pay interest on the loan amount which will be charged to you per month after the moratorium period ends.
Which PNB loan is better for education?
Every PNB education loan scheme has its own positive and negative aspects. Thus, depending on your needs, you can choose the best loan scheme.