PNB Saraswati Education Loan

PNB Saraswati Education Loan (Higher Study in India)

This loan is meant for students pursuing graduate, postgraduate and professional studies from recognised institutes in the country. 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.

Important! A reality check

50%+ graduates remain unemployable after college.
Theoretical courses, teachers with no industry exp. and rote learning do not give you practical job skills for the dream job.
You need hands-on skills taught by industry experts to get what you want.
We bring you proven courses that have helped people get better offers and 50%-100% pay hikes.

More Courses >>

Features of PNB Saraswati Education Loan for Higher Studies in India

Why this Loan?

  • The loan is meant for you if you have gained admission into a Bachelors, Masters, Doctorate (PhD) or a professional studies programme in the country
  • The PNB Saraswati 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


  • Unsecured Loans upto Rs 7.5 lakh: The interest rate is a sum of PNB Repo Linked Lending Rate (RLLR) which is currently 6.80% and an additional 2.00%. The effective interest rate comes to 8.80% for the PNB Saraswati Loan
  • Unsecured Loans Above Rs 7.5 lakh: The interest rate is a sum of PNB RLLR which is currently 6.80% and an additional 2.75%. The effective interest rate comes to 9.55%
  • Loans Secured with a Tangible Collateral (Irrespective of Loan Amount): The interest rate is a sum of PNB RLLR which is currently 6.80% and an additional 2.00%. The effective interest rate comes to 8.80%
  • Loans Availed by PNB Employees: The interest rate is a sum of PNB RLLR which is currently 6.80% and an additional 0.25%. The effective interest rate comes to 7.05%
  • PNB offers a concession of 0.50% to women beneficiaries for outstanding amounts up to Rs. 10 lakh and 0.25% for outstanding over Rs. 10 lakh
  • Borrowers get 1% interest concession if they pay the simple interest accruing on the loan during the moratorium. However, the final effective rate after all concessions should not fall below PNB’s base rate or MCLR
  • PNB charges simple interest at monthly rests during the repayment holiday


  • The repayment moratorium is for the course duration and an additional grace period of 1 year but simple interest is charged for this moratorium period
  • Loans need to be repaid within 15 years as EMIs

Security Needed

  • Loans upto Rs. 7.5 lakh: These loans need co-obligation of parents but do not need any security or third-party guarantee
  • Loans above Rs. 7.5 lakh: These loans need tangible security for the entire loan amount in addition to co-obligation of parents


  • The borrowers should be Resident Indians (Indian citizens who have stayed in the country for over 180 days in the last financial year)
  • As a student, you 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
  • If a student qualifies for a seat under merit quota, he or she will be eligible for this loan even if he or she chooses to pursue a course under management quota

Eligible Courses

  • Degree and Diploma courses from colleges and universities approved by the government, UGC, AICTE, AIBMS, ICMR, etc.
  • Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Architecture, Computer, etc. courses
  • Hotel or Hospitality Management, Event Management, Mass Communication, etc. courses
  • Degree and Diploma courses in aviation and shipping approved by the Director General of Civil Aviation or Director General of Shipping
  • Courses from IIM, IIT, IISc, XLRI, NIFT, NID, etc.
  • Study programmes that lead to CWA, CA, CS, CFA, etc. accreditations
  • Computer certificate courses from accredited institutes
  • B.Ed. or Teachers and nursing courses offered by approved institutions and which lead to a degree or diploma and not a certificate

Borrower Contribution to Total Cost (Margin Money)

  • Loans of Rs. 4 lakh or Less: No margin money is needed for a loan of Rs. 4 lakh or below
  • Loans above Rs. 4 lakh: Loans above Rs. 4 lakh need a margin money contribution of 5%

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 5% of Rs. 40 lakh which is Rs. 2 lakh. PNB will cover the rest.

Processing and Other Charges

  • There are no processing and documentation charges for this loan

Uses of the Loan

  • College, school and hostel fees
  • Examination, library and laboratory fees
  • Insurance premium for the borrower student, if applicable
  • Caution deposit, building fund or refundable deposit supported by institution bills or receipts
  • Cost of books, equipment, instruments, uniforms
  • Purchase of computer, if required for the course
  • Other expenses needed for completing the course such as study tours, project work, thesis, etc.

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
  • 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: and (net banking)
  • Headquarters: Dwarka, New Delhi
  • Call Centre Toll-Free Number: 1800 180 2222, 1800 103 2222