Looking for an Education Loan for Students with Disabilities to Study in India or abroad?

Look no further. This page contains all the information you will need on Punjab National Bank’s Concessional Education Loans to study in India or abroad for students belonging to the Person With Disability (PWD) category.

Punjab National Bank Concessional Education Loan Scheme

This loan helps students in the Persons With Disabilities (PWD) category with a disability of 40% or more and who have secured admission in a recognised institute in India or abroad through Merit-based Selection to pay for their education. The maximum loan amount under this scheme is Rs. 10 lakh for studying in India and Rs. 20 lakh for studying abroad. This loan scheme is modelled on the NHFDC Loan for Professional, Educational and Training Courses to Disabled Persons.

Features of Education Loan Scheme for Physically-challenged Persons under NHFDC

Why this Loan?

  • The loan is meant for you if you are a PWD category student and have gained admission into a recognised educational Institution in India or a foreign country
  • The bank disburses the PNB Concessional Education Loan Scheme for Physically-challenged Persons as a series of payments over the required number of terms or years to pay the course fees or other approved charges

Loan Amount

  • The maximum loan amount one can get is Rs. 10 lakh for studying in India and Rs. 20 lakh for studying overseas


  • This loan scheme is designed to help students in the PWD category afford higher studies. The interest rate as for this loan is 4.00%. Women get an additional 0.50% concession, which means the effective interest rate for them is 3.50%


  • The repayment period for this loan is 7 years
  • The loan amount for each year is repayable in 12 equated monthly instalments. The first instalment becomes due after the end of the moratorium period
  • The moratorium period for this loan is course duration + 12 months or course duration + 6 months after securing a job, whichever is earlier

Security Needed

  • Loan up to Rs. 4 lakh: No security needed
  • For loan from Rs. 4 lakh up to Rs. 7.5 lakh: No collateral security is required. Parents can be co-borrowers of the loan or a suitable third-party guarantee would be sufficient
  • For loan above Rs. 7.5 lakh: Tangible collateral security that covers at least the quantum of the loan. Assignment of future income of the student


  • The applicant must be an Indian national
  • The student must have a disability to the extent of 40% or more and should have gained admission into a recognised institution in India or abroad through Entrance Test or Merit Quota

Borrower Contribution to Total Cost (Margin Money)

  • Loans up to Rs. 4 lakh: No margin is charged by the bank
  • Loans above Rs. 4 lakh for Studying in India: PNB charges 5% of total amount as margin
  • Loans above Rs. 4 lakh for Studying Abroad: PNB charges 15% of total amount as margin

Note: Margin money refers to the amount the borrower contributes to the overall amount required. The lender bank offers the rest.

Processing and Other Charges

  • Processing charges for this loan have not been mentioned on the bank’s website. It is likely that there are no processing or other charges for this loan. But it makes sense to check with the bank for specific details

Uses of the Loan

  • Pay standard tuition fees or other charges, and institution-approved costs
  • Cover any travel expenses, study tours, thesis, etc.
  • Pay for any insurance premium if it is opted for by the borrower
  • For caution or refundable deposit money provided that total such amount is less than 10% of the loan
  • Hostel, library and laboratory fees
  • Costs incurred for a 2-wheeler upto Rs. 50,000 shall be considered within the overall ceiling of the loan

Other Features to Know

  • The bank may ask for the student’s progress report to be submitted with the bank at regular intervals
  • The loan is disbursed directly to the school, book seller or publisher, computer seller, and so on and not to the applicant(s)

Documents Needed

  • Application Form duly filled and signed by applicant and/or guarantor along with details of applicant and/or guarantor and family
  • Two Passport Size Photographs of student, applicant and/or guarantor
  • Photocopy of PAN Card of the student that needs to be submitted at the time of application or during the course period
  • Personal Identification Proofs (Any One): Electoral I-Card, Passport, Driving License, PAN Card or Aadhaar Card
  • Residential Address Proof (Any One): Electricity Bill, Landline Telephone Bill, Electoral or Voter ID Card or Passport
  • Admission Letter, Course Details and Prospectus as proof of admission
  • Fee Details with Demand of Fee by the Institution
  • All Proofs of Past Academic Record including Mark Sheets and Certificates
  • Documents proving the disability claims
  • For the co-borrower, documents as age, ID, signature, address, employment/business/income proofs are required
  • For studying abroad, a self-attested copy of the passport is also required along with a self-attested form issued by the institute for visa purposes

Reference Facts

  • Punjab National Bank Website: www.pnbindia.in and www.netpnb.com (net banking)
  • Headquarters: Dwarka, New Delhi
  • Call Centre Toll-Free Number: 1800 180 2222, 1800 103 2222

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