Punjab National Bank — Education Loans (India)

1. Loan Types & Special Schemes

PM Vidyalaxmi Scheme (Quality HEIs)

• Tailored for students admitted on merit to 860 Quality Higher Education Institutions (QHEIs) in India.
• Loans are collateral-free and guarantor-free under this scheme; parents or guardians serve as co-borrowers.

• Participating institutions are divided into tiers:

  • AAA: 85 institutes
  • AA: 152 institutes
  • A: 623 institutes

2. Interest Rates & Recent Concessions

PNB recently reduced its interest rates by 20 basis points under the Vidyalaxmi program, with starting rates now from ~7.5% p.a., depending on your institute tier.

Interest Subvention (Subsidies):

– These subsidies further reduce the cost of borrowing for eligible students.

3. Eligibility, Margin & Documentation

Eligibility:

• Indian nationals (including NRI/OCI) admitted to QHEIs.
• Need-based finance; parents/guardians must co-borrow.

Margin Requirements:

• AAA & AA institutes: 0% margin
• Other institutes: 0% for loans up to ₹4 lakh; 5% margin on amounts above ₹4 lakh

Required Documents:

• KYC (Aadhaar, PAN, address proof)
• Academic records, entrance exam results
• Admission letter + fee structure
• Family income proof, photos, and any existing loan details

4. Tenure & Repayment Terms

• Repayment Tenure: Up to 15 years after the moratorium.
• Moratorium Period: Course duration + 1 year.
• Students may also be required to assign their future income to the bank as part of terms.

5. Summary Table