Punjab National Bank (PNB) Educational Loan

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Like all other banks who cater to the customized needs of their customers, Punjab National Bank also offers several kind of loans and services to its customers. Students aspiring to pursue higher education in India or abroad can rely on this bank also like any other bank in India. The educational loan of Punjab National Bank is known as Vidyalakshyapurti. The major difference between the loans offered by this bank and other banks is that the loan scheme of this bank also includes insurance coverage for the borrowers of educational loans. This insurance cover is given because of its collaboration with Kotak Mahindra Insurance.


A student can apply for educational loan if he is pursuing a professional course or a vocational course from a recognized body, university or nationally known institute, whether it is at graduation level or post-graduation.

Education Loans are also given for studying certificate or diploma programs.


However before the bank sanctions the loans, applicant has to fulfill certain criteria which are as follows:

  • Only an Indian national is eligible to apply for the loan.
  • An applicant securing admission to a professional or vocational course through a selection process or into a foreign institute is considered eligible for loan.
  • A student applying for a graduate program can also get the loan if he obtains at least pass marks in the qualifying exam.


The education loan amount of bank considers almost all expenses which a student needs to pursue and complete his study, whether it is college, school or hostel fees and expenses for buying books, instruments or uniform or it is exam, laboratory or library fees. Also travelling expenses are included in the laon amount. Apart from this, if a computer is required to pursue the course, the loan amount considers even that expense. Also Caution Deposit, refundable deposit or building fund and any other cost essential for studying the program will be considered for loan.

Amount, Ceiling, Margin & Security of Loan

The amount of PNB Loan to be given to applicant is decided upon the need of the applicant as well as the repaying capability of the parent or the student apart from the margins that are applied by PNB.

  • A maximum ammount of ₹ 7.5 lacs is provided for studying in India and ₹ 15 lacs for studying in abroad.
  • A margin of 5 % is applied on loan of above ₹ 4 lacs for studying in India while this rate is 15 % for studying in abroad.
  • An applicant needs to present a 3rd party as guarantee for borrowing above ₹ 4 lacs.
  • If the amount is above ₹ 7.5 lacs, the bank asks for a collateral security or guarantee of a 3rd party.

Mode of Repayment

The repayment period ranges from 5 to 7 years after the repayment period begins. An extension of maximum 2 years is given in case the student fails to complete his study in the stipulated time period.

Further Information

To know more about the rate of interest and other details of Punjab National Bank (PNB) Educational Loan, you can go to PNB