Punjab National Bank Education Loan

PNB's dedicated overseas education loan product is called PNB Udaan. It is built for meritorious Indian students who have secured admission to higher education courses abroad. Covered courses include:

• Job-oriented professional and technical graduate courses at reputed universities
• Postgraduate programmes such as MS, MBA and MCA
• Professional qualifications like CIMA (London) and CPA (USA)
• Recognised degree or diploma courses in aeronautics, pilot training and shipping

As one of India's largest public sector banks, PNB offers both floating and fixed interest rate options. Rates are linked to its Repo Linked Lending Rate (RLLR).

The loan amount is need-based, determined by the actual cost of the course rather than a fixed ceiling. Loans up to ₹7.5 lakh need no collateral or third-party guarantee, with the parent or guardian joining as co-borrower. Loans above ₹7.5 lakh require tangible collateral acceptable to the bank. Students admitted to the top 50 institutes on PNB's list get the lowest rate, provided 100% collateral is offered. Female students get a concession of 0.50% on most rate categories.

Margin money is nil for loans up to ₹4 lakh and 15% above ₹4 lakh. Scholarships or assistantships can be counted toward this margin.

Besides Udaan, PNB runs several other education loan products:

• PNB Saraswati, for studies in India
• PNB Pratibha, for premier Indian institutes such as IITs, IIMs and ISB
• PNB Kaushal, for vocational and skill courses
• PM Vidyalaxmi
• PNB Honhaar, for studies in Delhi
• A Digital Education Loan

Udaan is the one relevant for students planning to study outside India.

Eligible expenses covered under the loan:

• Fees payable to the college, school or hostel
• Examination, library and laboratory fees
• Life insurance premium for the student borrower, if applicable
• Caution deposit, building fund or refundable deposit supported by institution bills or receipts
• Purchase of books, equipment, instruments and uniforms
• Purchase of a computer at reasonable cost, if required to complete the course
• Personal living expenses and two-wheeler cost
• Other course-related costs such as study tours, project work or thesis expenses

To apply for a PNB Udaan loan, a student generally needs to meet the following:

• Must be a resident Indian
• Must have secured admission to a higher education course at a recognised institution abroad, through an entrance test or merit-based selection, after completing Class 12 or equivalent
• A parent or guardian must join as co-borrower
• Collateral depends on the loan amount. Up to ₹7.5 lakh, none is needed. Above ₹7.5 lakh, tangible collateral of suitable value is required.
• Diploma and certificate courses abroad (other than aeronautical, pilot training or shipping) are considered only if the loan is backed by liquid security worth 125% of the loan. This can be FDs, NSCs or the surrender value of life insurance policies. The course must also be recognised or accredited.

The exact checklist can vary by branch and loan amount. Students are typically asked to submit:

• Loan application on the bank's format with a passport-size photograph
• Proof of identity and address as per PNB's KYC guidelines
• Proof of age
• PAN card (can be submitted before disbursement if not available at sanction)
• Aadhaar card, wherever applicable
• Proof of having cleared the last qualifying examination
• Admission letter from the foreign institution
• Course prospectus or fee schedule showing admission, examination and hostel charges
• Copy of passport and visa (the visa is required before the first disbursement)

Co-applicant or guarantor documents:

• KYC documents, photograph and PAN
• Statements for the last 6 months and sanction letters for any existing loans
• Income documents (ITR, Form 16 or audited accounts). These are mandatory if claiming a Government interest subsidy.
• Title deed and property documents, if collateral is being mortgaged

• Repayment tenure is up to 15 years
• The moratorium (repayment holiday) is the course period plus 1 year, after which EMIs begin
• There is no prepayment penalty
• A processing fee of 1% of the loan amount applies, with a minimum of ₹10,000 plus GST. It is refunded after the first disbursement.
• Students from economically weaker sections or specific communities should check with a counselor which Government interest subsidy schemes currently apply. Availability for overseas studies has changed in recent years.

1. Check eligibility and shortlist the scheme. Confirm your course and university qualify under PNB Udaan, and check whether your institute is among PNB's top 50 for the lowest rate.
2. Apply online through PNB's digital education loan portal (digiel.pnb.bank.in) or the PM Vidyalaxmi portal, or visit the nearest PNB branch to apply offline.
3. Submit documents. Upload or submit the admission letter, KYC documents, academic records, fee schedule, and the co-applicant's income and collateral documents.
4. Verification and sanction. The branch verifies documents and evaluates collateral where applicable.
5. Loan agreement and disbursal. Once sanctioned, the agreement is signed. Funds are released directly to the university as per the fee schedule, after a copy of the visa is submitted.