PNB Saraswati: Educational loan scheme for students to pursue higher education in India

Punjab National Bank, a public sector bank, is offering educational loand to meritorious Indian students for pursuing higher studies within the country under PNB Saraswati scheme. Read the details about the scheme in the article.

Punjab National Bank (PNB) is a public sector bank of India. The corporate office of this bank is located at Bhikaji Cama Palace, New Delhi. Like all other banks, PNB also offers various schemes for meritorious students pursuing higher education in India and abroad. In this article we are going to discuss the details of PNB Saraswati scheme for Indian students planning to pursue higher education within the country.

Objective of the scheme

The objective of PNB Saraswati scheme is to provide financial support to meritorious Indian students for pursuing higher education in India.

Eligible students

  • The applicant student must be an Indian national
  • He/She must have secured admission to higher education course in recognized institutions Abroad through entrance test/ merit based selection process after completion of HSC (10 + 2 or equivalent)
  • Cases of management quota students will also be considered for the loan.

Quantum of loan

  • Need based financing subject to repaying capacity of the parents/ students with margin.
  • Reimbursement of fees paid within six months may be considered on individual merits of the case.

Applicable margin

  • Up to Rs. 4 lakh – NIL
  • Above Rs. 4 lakh – 5%
  • Scholarship/assistantship be included in margin. Margin may be brought-in on year to year basis as and when disbursements are made on a pro-rata basis.

Loan coverage

The following items will be covered under PNB Saraswati scheme:
  • Fee payable to college/ school/ hostel.
  • Examination/ Library/ Laboratory fee.
  • Travel expenses/ passage money for studies abroad.
  • Insurance premium for student borrower, if applicable.
  • Caution deposit, Building fund/ refundable deposit supported by Institution bills/ receipts.
  • Purchase of books/ equipments/ instruments/ uniforms.
  • Purchase of computer at reasonable cost, if required for completion of the course.
  • Any other expense required to complete the course like study tours, project work, thesis, etc.


The details of security are as under:
  • Up to Rs. 4 lakh: Parents/guardian as joint borrowers.
  • Above Rs. 4 lakh and upto Rs. 7.50 lakh: Besides the parents/ guardian executing the documents as joint borrowers, collateral security in the form of suitable third party guarantee
  • Above Rs. 7.50 lakh: Parents/ guardian as a joint borrowers. Tangible collateral security of suitable value acceptable to bank alongwith the assignment of future income of the student for payment of installments.

Repayment period, Holiday/moratorium period

  • Repayment period: Maximum upto 15 years
  • Moratorium period: Course period + 1 year
  • Prepayment charges: Nil

Rate of interest

  • Loan for pursuing education from premier universities and educational institutes under PNB Saraswati scheme upto 7.50 lakh covered under CGFSEL: MCLR + 0.60%
  • Loans irrespective of amount (where 100% tangible collateral security in the shape of IP, enforceable under SARFAESI Act, and/or liquid security is available): MCLR + 1.10%

Processing charges/ Documentation charges

The documentation charges is Rs. 250 + service tax. But this charge varies year to year.

Concluding comments

For further information about the scheme, interested students and the guardians are advised to contact the nearest Punjab National Bank branch or to check the bank website

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