Looking for a Premier College Education Loan from Punjab & Sind Bank?

You have landed at the right place. This page summarises the information you will need on Punjab & Sind Bank’s PSB Excellence Education Loan for studying at a premier institute in India.

Punjab & Sind Bank PSB Excellence Education Loan Scheme

The PSB Excellence Education Loan helps meritorious and deserving students pursue higher education at a premier institute in India. The maximum loan amount is capped at Rs. 20 lakh.

Features of PSB Excellence Education Loan

Why this Loan?

  • The loan is meant for you if you have gained admission into a regular/full-time course into a premier institute in India. While the loan page mentions IIMs, IITs and ISB, there is no comprehensive list of institutes available on the bank’s website for eligible institutes. Please check with the bank for more details
  • The bank disburses the Punjab & Sind Bank PSB Excellence Education Loan as a series of payments over the required number of terms or years to pay the fees or other approved charges

Loan Amount

  • The maximum loan amount for this loan is capped at Rs. 20 lakh


  • As of November 2020, the effective interest rate for this loan is 8.3%. It is the sum of the Repo Rate which stands at 4% and a spread of 4.3%


  • The loan needs to be repaid in 10 years in equated monthly instalments (EMIs) after the moratorium ends
  • The duration of the moratorium period is not mentioned on the Punjab & Sind Bank website. In most cases where moratorium is applicable, banks give course duration + a time period of 6 to 12 months before repayment period starts. Please check with the bank for more details

Security Needed

  • No collateral security is required
  • Parents or guardian must be co-borrower(s) on this loan


  • The borrower should be an Indian national
  • The student must have secured admission into a regular/full-time course in one of the premier institutes in India

Eligible Courses

  • You can apply for this loan to pursue regular or full-time courses offered by premier institutes in India

Borrower Contribution to Total Cost (Margin Money)

  • Loans up to Rs. 4 lakh: No margin money is needed
  • Loans Above Rs. 4 lakh up to Rs. 10 lakh: Punjab & Sind Bank takes a 5% margin for loans above Rs. 4 lakh up to Rs. 10 lakh
  • Loans up to Rs. 10 lakh: Punjab & Sind Bank takes a 15% margin for loans above Rs. 10 lakh

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. The bank will cover the rest. In the case of Punjab & Sind Bank, scholarship is included in the margin.

Processing and Other Charges

  • There are no processing charges for this loan

Uses of the Loan

  • The loan amount can be used 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
  • The loan can also be met to cover any travel expenses, study tours and so on

Other Features to Know

  • The loan is disbursed directly to the college, book seller or publisher, computer seller, and so on and not to the applicant
  • The bank may ask for the submission of the student’s progress report at regular intervals during the course

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
  • Property or other security documents wherever applicable
  • Cheque for processing charges that is refunded on first disbursal of loan

Reference Facts

  • Punjab & Sind Bank Website: www.psbindia.com
  • Headquarters: New Delhi
  • Call Centre Toll-Free Number: 1800 419 8300

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