Punjab and Sind Bank Education Loan Rate of Interest
Customized loans in accordance with the borrower's needs are key attractions.
- No processing fee
- No pre-payment or pre-closure charges
- 0.50% concession to girls
The interest rates are in accordance with the RBI guidelines.
- The RoI for a loan up to INR 7.5 Lacs is 1-year MCLR+2.00%.
- The RoI for loan above INR 7.5 Lacs is 1-year MCLR+1.50%.
- A concession of 0.5% is given for loan between INR 4 Lacs and INR 7.5 Lacs if the collateral is provided.
- Girls get a further concession of 0.5%.
CALCULATE YOUR EDUCATION LOAN EMI
1,000 per month
1,000
1,000
Looking for admission for India and Abroad?
Punjab and Sind Bank Education Loan Eligibility
- Indian National. The student must be a citizen of India or a holder of the Indian passport.
- 10+2 qualified. One must have cleared 10+2 from a recognized board of institutions.
- Eligible Course. Graduate/ postgraduate course and professional, technical or career-oriented courses.
- Entrance Exam/Merit Based. Students must have secured admission through merit or entrance exam.
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| Bank / Financer |  Change bank |  Change bank |  Change bank |  Change bank |  Change bank |
| Applicable Rate of Interest | Up to INR 7.5 Lacs is 1-year MCLR+2.00% The RoI for loan above INR 7.5 Lacs is 1-year MCLR+1.50% | Up to INR 7.50 Lacs: 10.55% Above INR 7.50 Lacs: 10.80% | up to INR 7.5 Lacs: MCLR + 2.00% above INR 7.5 Lacs: 2.60% | Upto 4 Lacs- 16.50% Upto 7.5 Lacs- 17.50% Above 7.5 Lacs- 15.50% | |
| Max Loan with Collateral | INR 10 Lacs | For India: 10 Lacs For Abroad: 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs and beyond based requirement | |
| Max loan without collateral | INR 10 Lacs | For India: 10 Lacs For Abroad: 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs and beyond based requirement | |
| Processing Fee | Nil | Up to INR 4 Lacs: Nil Above INR 4 Lacs: INR 5000 | Nil | Nil | |
| Repayment Period | 15 Years | 15 years | 15 years | 7 years | |
| Loan for top institutions | Yes, PSB Excellence | Yes, SBI Scholar Loan Scheme | Yes, PNB Pratibha | No | |
| Margin | Up to INR 4 Lacs: Nil Above INR 4 lacs: 5% | For loan above INR 4 Lacs In India: 5% In abroad: 15% | Up to INR 4 Lacs - NIL Above INR 4 Lacs - 5% | Upto loan 4 Lacs: No margin Above 4 Lacs: for India: 5% for Abroad: 15% | |
| Age Limit | No age criteria | no age limit | No age limit | No | |
| Loan Security | Up to INR 4 Lacs: No Security required Parents have to be joint borrowers. From INR 4 to 7.50 Lacs: Third party guarantee Parents have to be joint borrowers Above INR 7.50 Lacs: Assignment of future salaries in favor of the Bank | Upto 7.50 Lacs: Only Parent/ Guardian as co-borrower. No Collateral Security or third party guarantee Above INR 7.50 Lacs: Tangible security along with parents as co borrower | Upto INR 7.50 Lacs: Parent(s)/guardian be made joint borrower (s). No tangible Security and /or 3rd party guarantee is required. Above INR 7.50 Lacs: Parent(s)/guardian be joint borrower(s). Tangible collateral security of suitable value acceptable to bank. | Third party guarantee Collateral security Additionally, assignment of LIC policy in favor of bank amounting 100% of education loan amount Assignment of Future salaries in favor of Axis Bank | |
| Eligibility concession for SC/ST | No | No | 50% for SC/ST, and;60% for General category. | No | |
| Processing Time | N.A | 20 days | 15 days | 14 Days | |
| Prepayment charges | Nil | Nil | Nil | Nil | |
| Penal charges | Nil | Penal interest @ 2% to be charged for loans above Rs.4 lacs for the overdue amount and overdue period | Nil | @ 2% per month on the overdue installment/s | |
| Mandatory insurance cover | Yes | Yes | yes | yes | |
| Travel expeneses | Yes | yes | yes | yes | |
| Bank transfter allowance | No such clause mention | available | available | No such clause mentioned | |
| Top up loan availability | Available | yes | available | unavailable | |
| Interest Subsidy Schemes | CSIs Skill Loan Scheme | Padho Pardesh CSIS Skill Loan Scheme | Padho Pardesh CSIS Skill Loan Scheme | CSIS | |
| Tax benifit | Yes | yes | yes | yes | |
| Concession/benefits | 0.50% for girl students @1% to all borrowers if interest is serviced during moratorium period. No processing fee No pre-payment charges No pre-closure charges | Concession to girl students 1% concession if interest is serviced during moratorium period including course period | 0.5% concession to girl students 0.5% concession if interest is serviced during moratorium period including course period Online application | There is no processing fee charged No pre- payment charges are applied No pre- closure charges are applied Loan Disbursal period is 15 working days from the date of final submission of documents |
How to apply for Punjab and Sind Bank Education Loan ?
Punjab and Sind Bank Education loan application form can be available online or offline at Bank branches.
Visit the official website for Punjab & Sind Bank Education Loan.
Click on Apply Now.
Fill out the form with your details.
Upload the mandatory documents required.
Submit the form and take out a print out of the application.
Visit the bank branch for further formalities.
Applicants can directly visit the nearest branch and ask for an application form. The bank representative will then guide them with all the necessary information regarding eligibility, documents required and also which loan is best suitable.
Punjab and Sind Bank Education Loan Details
Above INR 4 lacs: 5%
From INR 4 to 7.50 Lacs: Collateral Security in form of third party guarantee Parents have to be joint borrowers
Above INR 7.50 Lacs: Assignment of future salaries in favor of the Bank.
Tangible collateral security of loan amount acceptable to the bank.
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Expenses covered under Punjab and Sind Bank Student Loan Scheme
- Tuition Fee
- Examination Fee
- Library/ Laboratory Fee
- Hostel Fee
- Cost of books, equipment, instrument or uniforms
- Miscellaneous expenses- study tours, project work, thesis, etc.
- A reasonable cost of computer or laptop (if required)
Courses Covered Under Punjab and Sind Bank Student Loan Scheme
In India
Graduate/ postgraduate degree/ diploma courses conducted by renowned institutions/ universities recognized by UGC, Government, AICTE, AIBMS or ICMR.
Academic courses such as CA, CFA, and ICWAI.
Courses conducted by NIFT, IITs, IIMs, XLRI, IISc, and NID.
Full-time degree or diploma courses like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping (only if it is pursued in India).
Courses for noble causes such as teaching training (like B.Ed.), nursing courses, and from other training institutions approved by Central Government or by State Government
Reputed foreign universities offering approved courses offered in India
Education Loan Documents Required ?
Admission letter with all essential details
Attested copies of Id proof and Residence proof.
Two recent passport size photograph of applicant, co-applicant, and guarantor
Marksheet of recently qualified public exam for school/college in India.
Latest salary proof and Form 16 with the recent salary certificate
Proof of admission to a premier institute.
Properly filled Guarantor form
Interest Subsidy Schemes
Central Scheme of Interest Subsidy (CSIS)
Formulated by the Govt. of India, a scheme to assist the students belonging to the economically weaker section.
Skill Loan Scheme
IBA Model Skill Loan Scheme is offered by Punjab and Sind Bank to extend financial support to students who wish to pursue vocational or skill training courses in order to enhance skills for better career prospects.
Frequently Asked Questions
What schemes does Punjab and Sind Bank considers for its education loans?
+ -There are two schemes offered by Punjab and Sind Bank apart from the basic education loan. They are:
- Skill Loan Scheme
- Scheme for additional education loan for studying abroad
In whose name is the loan granted?
+ -The loan is granted in the name of the student
Is the loan contract executed only in student's name?
+ -No, the loan can be executed both in name of student and co-borrower as both are equally responsible for repayment of loan.
What is the age limit for availing loan in Punjab Sind Bank?
+ -There is no age restriction as stated by Punjab Sind Bank. Borrowers must fulfil other eligibility criteria mentioned.
Are minors eligible to apply for Punjab and Sind Bank Education Loan?
+ -Yes, Minors aspiring for further studies can apply for education loan with help of legal representation from parents/ guardians.
What does margin on any loan mean?
+ -Margin amount is the amount that a borrower has to pay through his/ her own sources in form of a down payment as his/ her contribution towards the education.
Should the student's margin be paid upfront in the starting?
+ -Margin can be paid on a year to year pro rata basis whenever bank disburses loan amount as per requirement.
Where can I avail Punjab and Sind Bank Education Loan?
+ -You can either contact your nearest branch for the application form or details regarding the loan or apply online from the official website or Vidyalakshmi portal
Is there any provision to apply for loan online?
+ -Yes, you can apply online through Vidyalakshmi portal to avail for this loan.
Can I view my loan statement online if I am an existing education loan borrower?
+ -Yes, by creating a login on Punjab and Sind Bank web portal, you can view all details related to education loan online.
Is there any minimum aggregate marks to meet the eligibility criteria to avail Punjab and Sind Bank education loan?
+ -Yes, a student must have secured a minimum aggregate marks in their last qualifying examination (10+2 or Graduation). Relaxation in the marks is given to SC/ ST students
What is the discount/ rebate offered by Punjab Sind Bank?
+ -- 0.50% concession is given to girl students
- 1% concession if interest is serviced during moratorium period
What all is included in tangible collateral security?
+ -Mostly Punjab and Sind Bank asks tangible security in lieu of the loan amount sanctioned along with assignment of future salaries in favour of Punjab Sind Bank. Tangible security includes documents related to land/ building/ government security/ public sector bonds/ units of UTI, NSC, Life insurance policy/ bank deposits/ shares or debentures. The value of the security should be equal to the education loan amount.
Can I place my family property as collateral?
+ -Yes, but it will need consent of all family members involved.
Is scholarship or assistantship included in the margin?
+ -Yes any scholarship or assistantship will be a part of margin charged on education loan.
What is Moratorium Period?
+ -Course Period plus one year, or six months after getting a job
What is tenure of an education loan?
+ -Tenure of education loan provided by Punjab and Sind Bank is maximum 10 years
What all expenses are covered under this course?
+ -Expenses covered by Punjab and Sind Bank education loan are:
- Tuition/ college/ hostel fee
- Examination/ lab/ library fee
- Books/ uniform/ instruments
- Caution deposit
- Passage money for studies abroad, etc.
I have taken admission through management quota. Am I eligible?
+ -There is no such provision mentioned by the bank, you can contact the bank for the same.
What do you mean by reputed or recognized institutes?
+ -Institutes that are affiliated to state/ central universities and comes under UGC or AICTE are considered as recognized institutes. Reputed institutes are those which are well known and have standard course of repute. More often, banks provide the list of institutes they consider for loan. (You can contact nearest branch for the same)
Are there any special benefits if I have secured admission to one of the top premier institutes?
+ -There is another segment of loan offered by banks who take admission to top premier institutes such as IITs, IIMs, and ISB Hyderabad with various benefits and concession.
What is the processing fee or prepayment charges?
+ -The education loan offered by Punjab and Sind Bank does not carry any prepayment charges/ processing fee/ documentation charges.
Will cost of my computer be covered under the loan sanctioned?
+ -Reasonable cost for the computer or laptop well be covered under the loan if it is required to complete the course.
Why is Pan Card necessary?
+ -Pan Card is one of the mandatory document required by banks these days. It is mandatory because:
- Easy to assess Income
- Easy to trace borrowers
Are diploma or certificate courses considered under Punjab and Sind Bank education Loan (both for India and Abroad)?
+ -Are diploma or certificate courses considered under Punjab and Sind Bank education Loan (both for India and Abroad)?
Is a co-borrower necessary for loan?
+ -Yes, it is mandatory to have a co-borrower to avail loan from Punjab Sind Bank.
Who can be my co-borrower?
+ -Your parent/ spouse/ guardian can be a co-borrower. A co-borrower should be your immediate family member, should have a steady source of income, and a good credit history.
What all documents are required from the co-borrower?
+ -Documents required from the co-borrower are:
- Attested copies of age proof, residence proof and birth date.
- Self-attested passport size photograph
- Income proof and/or copy of income tax return file
- Details of collateral security along with government approved valuation certificate (if any).
How many guarantors do I need to borrow loan from Punjab Sind Bank?
+ -You need at least 2 guarantors to avail loan from Punjab Sind Bank.
What is the KYC requirement in education loan?
+ -KYC requirements are the documents as a proof of personal identification and residence proof of the applicant as well as the co-borrower.
What are maximum term for repayment?
+ -The maximum term for repayment of Punjab and Sind Bank Education Loan is 10 years.
How can I repay the loan?
+ -You can repay the loan after the moratorium period by mode of EMI or through post- dated cheques.
What is EMI? How are they calculated?
+ -EMI stands for Equated Monthly Installments. It can be calculated by using the formula given below
EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]
Here, P is Amount of Education Loan, R is Rate of Interest, n is Tenure of the Loan.
Is the loan disbursed in name of individual applicant or to the institute/ university directly?
+ -The loan is disbursed directly to the institute/ university that you have taken admission to. Hence, an applicant is supposed to submit institute brochure with proper division of the fee
If I am unable to complete my course in given tenure, will my repayment term be extended?
+ -It is completely on the banks discretion to extend the moratorium period or not. It can be extended for maximum 2 years based on student's reason. You can contact your nearest branch for more details.
What is method of application of interest on education loan?
+ -The interest will be charged at simple rate from the date of disbursement till commencement of repayment of loan. After that, compound interest is charged on reducing balance.
If I am joining the course soon after current course, can I get an extension?
+ -Mostly, in such cases, you do not get an extension and even if you do there is a possibility that interest rates are higher
What is interest rate of education loan?
+ -Interest rate on education loan scheme provided by Punjab and Sind Bank are:
PSB Model Education Loan Scheme
| Loan Amount | General Public | Concession in Interest |
|---|---|---|
| Loan upto INR 4 Lacs | 1 year MCLR+2.00% | No concession |
| From INR 4 to 7.50 Lacs | 1 year MCLR+2.00% | 0.50% |
| Above INR 7.50 Lacs | 1 year MCLR+1.50% | No concession |
PSB Excellence: One Year MCLR + 1% at present. (No other concession is applicable).
IBA Model Loan Scheme: 1 year MCLR+ 3.00% (on all amounts)
What is interest subsidy on education loan?
+ -Punjab and Sind Bank offers:
CSIS- Interest Subsidy scheme for economically weaker sections and to promote education amongst them
Skill Loan Scheme for students who wish to pursue courses to enhance their skills and attain better career opportunities.
What documents do I need to submit to avail interest subsidy scheme?
+ -The documents that need to be submitted are:
- Income certificate issued by authorised authorities
- Bonafide student certificate
- Letter of undertaking or declaration signed by borrower/ co-borrower
What is employment verification in an education loan?
+ -The bank takes the responsibility to cross verify all the employment details of the applicant and co-borrower. If the banks fails to cross verify every detail provided, it might reject the loan application.
Are there any tax benefits in education loans?
+ -Under Section 80E of Income Tax Act, loan borrowers can avail the tax benefits. This benefit is only available over and above INR 1,50,000. Tax benefits can be availed once the borrower starts paying interest on loan. The deduction is available until borrower pays off full interest amount on loan or for maximum of 8 years (whichever is earlier).
Is it necessary to have bank account with the bank while availing loan from that particular bank?
+ -It is not necessary to have a bank account while availing the loan but it makes it easier for the borrower to get loan application approved.
Why do banks require insurance policy as security?
+ -The banks require insurance policy as security in lieu of education loan provided. The insurance policy should be equal or more to the amount of loan sanctioned. In case of untimely demise of the borrower, the bank recovers the amount from the insurance policy
Are there any additional benefits on availing loan from Punjab Sind Bank?
+ -Punjab and Sind Bank does not provide any additional benefit mentioned on the website. You can contact the nearest branch for more intricate details.
What is credit score? Is it important for education loan?
+ -Credit Score is inclusive of various factors such as credit history (Loan history or credit card). If a student does not have a credit score, banks calculate it by considering factors such as University, College and the Course of admission. Banks consider the academic background of student and credit history of co-borrower.
If a student have any query, where or whom to contact?
+ -student can reach out to the nearest branch in case of any query.
Customer Care Number:1800 419 8300
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