PNB Udaan Education Loan

PNB Udaan Education Loan (for Study Abroad)

This loan helps students pursue notified courses such as an MBA, MCA, MS, etc. that improve their chances of landing a job. This is a need-based loan which means that the maximum loan amount depends on the repayment capacity of the borrower. The bank decides the loan amount after carefully assessing the application.

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Features of PNB Udaan Education Loan for Higher Studies Abroad

Why this Loan?

  • The loan is meant for you if you have gained admission into a notified course such as a professional or technical graduate or postgraduate course, an MBA, MCA, MS, etc. that improve your chances of landing a job
  • The bank disburses the PNB Udaan Education Loan for Studies Abroad as a series of payments over the required number of terms or years to pay the fees or other approved charges

Loan Amount

  • The bank offers need-based finance based on the repayment capacity of the borrower


  • All Loans for Highly Reputed Foreign Institutes: The interest rate is the sum of Repo Linked Lending Rate (RLLR) which is currently 6.80% and an additional factor of 2.00% irrespective of amount. This comes to 8.80% for the PNB Udaan Loan. PNB’s list of highly reputed institutes is available on the bank’s website on this link
  • Unsecured Loans upto Rs. 7.50 lakh (under CGFSEL): The interest rate is RLLR + 2.00%. This makes the effective interest rate 8.80%
  • Unsecured Loans over Rs. 7.50 lakh: The interest rate is RLLR + 2.75%. This makes the effective interest rate 9.55%
  • All Secured Loans: If the loan is backed by tangible collateral equal to 100% value of the loan, the interest rate is RLLR + 2.00% making the effective interest rate 8.80%
  • PNB Employees: The bank offers a generous concession in interest rate to its employees whether they are co-borrowers of the loan or guarantors of the loan. The interest rate for them is RLLR + 0.25%. This makes the effective interest rate 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 rebates should not fall below PNB’s base rate or MCLR
  • PNB charges simple interest at monthly rests during the repayment holiday

Apply for your international education loan without any worries


  • The loans need to be repaid within 15 years as EMIs
  • Repayment moratorium is for the course duration and an additional grace period of 1 year

Security Needed

  • Loans below Rs. 7.5 lakh: These loans need co-obligation of parents but do not need any security
  • Loans above Rs. 7.5 lakh: These loans need tangible security for the entire loan amount. Parents must be co-borrowers


  • The borrower should be an Indian national
  • As a student, you should have secured admission in a professional or technical course through Entrance Tests or a Merit-Based selection process after completing Class 12, HSC or equivalent exam

Eligible Courses

  • Graduate courses that are of a professional or technical nature and help the student land a job
  • MCA, MBA, MS. etc. postgraduation courses
  • Study programmes from recognised institutes or bodies such as CIMA-London, CPA USA, etc.
  • Degree and Diploma courses in aviation and shipping approved by the local foreign aviation or shipping authority and Director General of Civil Aviation or Director General of Shipping, or any other competent authority
  • Premier institutes that offer management, medicine, STEM courses (Science, Technology, Engineering and Mathematics), and other courses such as law, economics, design, fine arts and performing arts
  • You can also apply for this loan if you have gained admission abroad in any other course or institute

Borrower Contribution to Total Cost (Margin Money)

  • Loans Upto Rs. 4 lakh: No margin money is needed
  • Loans Above Rs. 4 lakh: Punjab National Bank takes a 15% margin
  • Any payments made from scholarship or assistantship is included in the margin
  • The margin amount may be put in pro-rata before disbursements are made

Note: Margin money refers to the amount the borrower contributes to the overall amount required. Suppose a course costs Rs. 40 lakh in a non-premier which case the borrower will have to pay 15% of Rs. 40 lakh which is Rs. 6 lakh. The bank will cover the rest.

Processing and Other Charges

  • Though Punjab National Bank charges 1% of the loan amount (with a maximum cap of Rs. 10,000) as upfront processing charges. This is refunded when the loan is first disbursed

Uses of the Loan

  • You can use the loan to pay any fees or other charges that are a part of the standard tuition, hostel or any other institution-approved cost that are necessary to complete the course
  • You may use it for examination, library or laboratory fees
  • It can cover any travel expenses such as passage money for studies abroad
  • Meet expenses related to purchasing of a computer at reasonable cost, if required for completion of the course
  • PNB allows you to use it for costs related to study tours, project work, thesis work and so on
  • The loan can be used to pay for any insurance premium if applicable

Other Features to Know

  • The bank asks for details of expenses for the course that the applicant(s) need to obtain from the institution
  • 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
  • Copy of Passport since loan is for overseas study
  • An Income Certificate and/or a Minority Certificate from a Competent Authority to avail the interest subsidy under Padho Pardesh Scheme for Interest Subsidy on Educational Loan for Overseas Studies for Minority Communities, if eligible
  • An Income Certificate and/or a Minority Certificate from a Competent Authority to avail the interest subsidy under Dr. Ambedkar Central Sector Scheme of Interest Subsidy on Educational Loan for Overseas Studies for OBCs & EBCs for overseas studies for Minority Communities, if eligible
  • Property or other security documents wherever applicable
  • Cheque for processing charges that is refunded on first disbursal of loan

Apply for your international education loan without any worries

Reference Facts

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