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Punjab And Sind Bank Education Loan

Punjab And Sind Bank Education Loan


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Punjab & Sind Bank Education Loan

What Is an Education Loan?

An Education loan is the loan or funds acquired by an individual to pursue higher studies in India or abroad. The loan repayment commences for the student after completing the education and a period of 6 months is given as grace period to students to get or join a job.

The repayment amount will be determined by your choice of interest, you need to decide how you want to repay the loan. That is if you want to start paying during the time of moratorium period itself or after the moratorium period. The Moratorium period is the time of your education plus 6 months or 1 year given to get a job. It is only after this time that you are expected to pay the loan.

The loan interest starts to accrue at the time of dispersal of funds, so at the time of your graduation you have a huge amount to repay. The other option is your parents or guardian can start paying the loan during the moratorium period itself where it is calculated as a simple interest.

This way your loan amount at the time of graduation is drastically reduced.

There are 4 types of education loans in India

1. Under Graduate education loan - These are given to students who have completed their secondary education and looking to do higher studies in the form of under graduation. It can be done in India or abroad.

2. Post graduate education loan - These are education loans given to individuals who want to pursue post-graduation after completing under graduation course from a reputed university/college. Here also the loan can be for studying in India or abroad.

3. Parents availing education loan - This is the case where the parents take loan for the education purposes of their children. This is an unsecured loan and need not be for graduate or post-graduation courses but also for elementary and higher secondary courses.

4. Career growth education loans - These are loans provided to young people who want to pursue courses or trainings, certifications that will benefit their career growth.

About Punjab & Sind Bank

Punjab & Sind Bank is a government-owned bank (79.62%), with headquarters in New Delhi. It operates with 1466 branches spread throughout India, out of which 623 branches are in Punjab state. Being one of the largest banks in India with its net profit at Rs. 121.35 crores and net NPA is 3.55% for the year ending 2014-15.

An Introduction to Punjab & Sind Bank Education Loans

Education is one area where everybody is willing to spend a lot of money to live a prosperous life in the future. Being one of the major education loan providers, Punjab & Sind Bank understands the needs of the students and offers extremely competitive education loans at better interest rates. Every year, many students secure admissions in top universities and colleges in India and abroad with Punjab & Sind Bank education loans.

Advantages of Punjab & Sind Bank Education Loan

Following are some of the advantages of applying for an educational loan with Punjab & Sind Bank.

  • Low interest rate
  • No hidden costs and administrative charges
  • Less paperwork
  • No processing fees
  • No security required for up to 4 Lakhs
  • 0.50% concession for girl students

Features of Punjab & Sind Bank Student Loan Scheme

Objective: To provide term loan to Indian students for pursuing higher education in India and abroad where admission has been secured

Quantum of Loan: For studies in India, up to INR 10 Lakhs and for studies in abroad INR 20 Lakhs

Note: Higher quantum of loan may also be considered on course to course basis (eg: courses in IIMs, ISB etc.)


Up to Rs.4 lakhsNil
Above Rs.4 lakhsStudies in India 5%
Studies in Abroad 15%


Up to Rs.4 lakhs:  NO Security (Parents to be joint borrowers)

Above Rs.4 lakhs and up to Rs.7.5 lakhs

  • Parents to be joint borrower
  • Collateral security in the form of suitable third-party guarantee
Above Rs.7.5 lakhs
  • Parent(s) to be joint borrower(s)
  • Tangible collateral security of suitable value acceptable to bank, along with the assignment of future income of the student for payment of installments.

Moratorium Period

Course Period + 1 Year


  • The Bank may allow up to three spells of moratorium (not exceeding six months each) during the life cycle of the loan, considering the spells of unemployment/ underemployment, without treating the exercise as restructuring, subject to appropriate inclusion of the same in terms and conditions of the loan agreement.
  • Any other concession or moratoriums (exceeding those specified in the original sanction) for a borrower under financial difficulty would be treated as restructuring and attract the prudential norms thereof.
  • The facility of extended repayment period and increased number of moratoria for repayment may be extended to existing borrowers whose accounts are classified as ‘standard’, and is subject to conditions stipulated above.

Repayment Period

Repayment of the loan will be in equated monthly instalments for a maximum period of 15 years for all categories.


No pre-payment penalty is to be levied for prepayment of loan any time after the commencement of repayment.

Interest Rate

CategoryLoan up to Rs.4 LakhLoan Above Rs.4 Lakh & up to Rs.7.50 LakhAbove Rs.7.50 Lakh
General PublicOne Year MCLR +2.00%One Year MCLR +2.00%One Year MCLR +1.50%
Concession in Interest(if Collateral in addition to guarantee is given)No Concession0.50%No Concession
  • Additional concession of 0.50% for girl students
  • Additional concession @1% to all borrowers because service of interest during moratorium period.
  • All the concessions are subject to charging of minimum of One Year MCLR of the Bank.

Courses Covered

Studies in India: 

  • Graduation, Post-graduation including regular technical and professional Degree/Diploma courses conducted by colleges/universities approved by UGC/ AICTE/IMC/Govt. etc
  • Regular Degree/ Diploma Courses conducted by autonomous institutions like IIT, IIM etc.
  • Teacher training/ Nursing courses approved by Central government or the State Government
  • Regular Degree/Diploma Courses like Aeronautical, pilot training, shipping etc. approved by Director General of Civil Aviation/Shipping/ concerned regulatory authority

Studies Abroad:

  • Job oriented professional/ technical Graduation Degree courses/ Post Graduation Degree and Diploma courses like MCA, MBA, MS, etc. offered by reputed universities
  • Courses conducted by CIMA (Chartered Institute of Management Accountants) - London, CPA (Certified Public Accountant) in USA etc.

Expenses Covered

  • Fees payable to college/school/hostel
  • Examination/Library/Laboratory fees
  • Purchase of Books/Equipment/Instruments/Uniforms, Purchase of computers- essential for completion of the course (maximum 20% of the total tuition fees payable for completion of the course)
  • Caution Deposit/Building Fund/Refundable Deposit (maximum 10% of tuition fees for the entire course)
  • Travel Expenses/Passage money for studies abroad

Documents Required

  • Letter of admission
  • Filled in Loan Application Form
  • 2 passport size photographs
  • Statement of cost of study
  • PAN Card of the student and Parent/ Guardian
  • AADHAR Card of the student and Parent/ Guardian
  • Proof of identity (Driving Licence/Passport/Aadhar/ any photo identity)
  • Proof of residence (Driving Licence/Passport/Electricity bill/Telephone bill)
  • Student/Co-borrower/ guarantor's bank account statement for last 6 months
  • IT return/ IT assessment order, of previous 2 years of Parent/ Guardian/ other co-borrower (if IT Payee)
  • Brief statement of assets & liabilities of Parent/ Guardian/ other co-borrower
  • Proof of income (i.e. salary slips/ Form 16) Parent/ Guardian/ other co-borrower

EMI Payment Methods

Punjab & Sind Bank education loan can be repaid in following three ways.

Standing Instruction (SI): If you are an existing account holder with Punjab & Sind Bank, Standing Instruction is the best mode of repayment. Your EMI amount will be debited automatically at the end of the monthly cycle from the Punjab & Sind Bank account you specify.

Electronic Clearing Service (ECS): This mode can be used if you have a non-Punjab & Sind Bank account and would like your EMIs to be debited automatically at the end of the monthly cycle from this account.

Post-Dated Cheques (PDCs): You can submit post-dated EMI checks from a non-Punjab & Sind Bank account at your nearest Punjab & Sind Bank Loan Centre. A fresh set of PDCs will have to be submitted in a timely manner. Please note Post Dated Checks will be collected non-ECS locations only.

It is recommended that you opt for either the SI or ECS mode of payment for faster and less prone to error than the use of PDCs.

How to Apply for Punjab & Sind Bank Education Loan?

You can either apply online or visit a nearby Punjab & Sind Bank branch for the application. You can also download the education loan application form from the Punjab & Sind Bank official website, complete the form and submit it the bank representative.

You can also check your eligibility for an education loan through CreditMantri and apply for it.

Punjab & Sind Bank Education loan FAQ

1. What is the interest charged during moratorium period?

Only simple interest will be charged during the moratorium period. After the moratorium period the actual interest mentioned will be charged.

2. Can I take an education loan without a co-borrower?

No, a co-borrower is needed to take an education loan. The loan will be taken as a joint loan in collaboration with your parent/ guardian or spouse.

3. Is there a range on the rate of interest charged on Education Loan offered by Punjab & Sind Bank?

Yes, the interest rate ranges from 10.25 % - 13.25%. However, the it is subject to change at the sole discretion of the bank.

4. I am planning to study abroad. Am I eligible to apply for an Education Loan?

Yes, Punjab & Sind Bank offers up to INR 20 Lakhs for courses pursued abroad which also includes travel expenses and study tours.

5. Is there a processing fee for an education loan with Punjab & Sind Bank?

There are no processing fees for an education loan with Punjab & Sind Bank

6. Is there a way I can reduce the interest paid?

There is special subsidy provided according to Central Government subsidy for education loans. Punjab & Sind Bank also provides special interest rates for some premier institutions. The other option is your parent/ guardian or spouse can pay the loan amount during the moratorium period due to which the loan amount you need to repay is less.

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