Looking for a College Education Loan for NRIs and OCIs from Punjab National Bank?

Look no further. This page summarises the information you will need on Punjab National Bank’s Pravasi Shiksha Education Loans for college education in India.

PNB Pravasi Shiksha Education Loan (Higher Study in India)

This special education loan scheme is meant for students of Indian origin living overseas who want to pursue graduate, postgraduate and professional studies from recognised institutes in India. This is a need-based loan and the maximum loan amount is decided by the bank after assessing the repayment capacity of the borrower and co-borrower.

Features of PNB Pravasi Shiksha Education Loan for Higher Studies in India

Why this Loan?

  • The loan is meant for you if you are an Overseas Citizen of India (OCI), someone classified as a Person of Indian Origin (PIO) prior to 2015 or a Foreign Citizen by Birth born to Indian parents during their stay abroad and have gained admission into a Bachelors, Masters, Doctorate (PhD) or a professional studies programme in the country
  • The PNB Pravasi Shiksha Education Loan for Higher Studies in India is disbursed to the institution as required to pay the fees or other approved charges
  • The loan is disbursed as a series of payments over the required number of years and not as a lump sum

Loan Amount

  • This is a need based loan and the maximum loan amount is not directly defined by the bank


  • The interest rate for the PNB Pravasi Shiksha Education Loan is a sum of PNB Repo Linked Lending Rate (RLLR) which is currently 6.80% and an additional 2.15%. The effective interest rate comes to 8.95%


  • Loans need to be repaid within 10 years as EMIs
  • Repayment moratorium is for the course duration and an additional grace period of 6 months
  • Repayment must be done through normal banking channels from outside India or by debit to NRE, NRO, or FCNR(B) accounts

Security Needed

  • For immovable assets, PNB needs an equitable or registered mortgage of an immovable property in India as security. The value should be at least 125% of the entire loan amount in the name of the guarantor
  • In case immovable property is not available or the borrowers prefer not to offer it as collateral, then liquid security such as NSCs, KVPs, LIC insurance policies, Government Security, Bank’s FDR, PSU Bonds, etc. of a value of at least 125% of the entire loan amount.


  • The student should be at least 18 years of age and should be an Overseas Citizen of India (OCI), Person of Indian Origin (PIO) or Foreign Citizen by Birth born to Indian parents during their stay abroad
  • The student should have secured admission in a recognised institution for approved courses through Entrance Tests or Merit-Based selection process after completion of Class 12, HSC or any equivalent level

Note: Even though we have mentioned Person of Indian Origin (PIO) here, it should be noted that the Government of India has withdrawn the PIO card scheme and merged it with the OCI card scheme from January 15, 2015.

Eligible Courses

  • All full-time Graduate, Postgraduate, Diploma (equivalent to Degree) and Executive courses
  • Part-time, research or certificate courses are not eligible for this loan
  • The list includes over 140 eligible institutes and is available on the bank’s website here

Borrower Contribution to Total Cost (Margin Money)

  • 20% margin money contribution is required for this loan

Note: Margin money refers to the amount the borrower contributes to the overall amount required. Suppose a course costs Rs. 40 lakh in which case the borrower will have to pay 20% of Rs. 40 lakh which is Rs. 8 lakh. The bank will cover the remaining Rs. 32 lakh.

Processing and Other Charges

  • Processing Charges: Rs. 10,000 or 1% of the loan amount whichever is lower
  • Documentation Charges: Rs. 450

Uses of the Loan

  • Punjab National Bank pays amounts due for books, laptops, etc. are paid directly to the seller. However, the loan cannot be used to pay off external coaching or tuition fees
  • The loan cannot be used to pay off ex-college lodging expenses

Other Features to Know

  • The student’s progress report has to be submitted with the bank at regular intervals
  • The loan is disbursed directly to the college, 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
  • Passport copy and in case of OCI borrowers, their OCI card
  • 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
  • Fee Details with Demand of Fee by the Institution
  • All Proofs of Past Academic Record including Mark Sheets and Certificates
  • An Income Certificate from a Competent Authority to avail the interest subsidy under Central Interest Subsidy Scheme of Education Loans, if eligible
  • Property or other security documents wherever applicable

Reference Facts

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

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