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PNB Udaan: Educational loan for Indian students to pursue higher education abroad

Punjab National Bank, a public sector bank, is offering educational loan to meritorious Indian students for pursuing higher studies in foreign countries under its Udaan scheme. Read the details 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 Udaan scheme for Indian students planning to pursue higher education abroad.

List of eligible courses

The following courses are eligible under the scheme:
  • Graduation: For job oriented professional/ technical courses offered by reputed universities
  • Post Graduation: MCA, MBA, MS, etc.
  • Courses conducted by CIMA- London, CPA in USA, etc. Degree/ Diploma courses like aeronautical, pilot training, shipping etc. provided these are recognized by competent regulatory bodies in abroad for the purpose of employment in abroad.

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).

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
  • Maximum limit: Rs. 20 lakhs

Applicable margin

  • Up to Rs. 4 lakh – NIL
  • Above Rs. 4 lakh – 15%
  • 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 Udaan scheme:
  • Fee payable to college/ school/ hostel.
  • Examination/ Library/ Laboratory fee.
  • Travel expenses/ passage money for studies abroad.
  • Life 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 foreign universities and educational institutes under PNB Udaan 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 www.pnbindia.in

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Guest Author: Suraj kumar singh07 Feb 2018

I want to pursue my medical course in Georgia through New Vision University. So, I want to know whether PNB Udaan will be applicable to me. Please help me.

Guest Author: Gaurav07 Mar 2018

There is a list of 200 premier universities around the world that PNB udaan scheme covers. What if I want to study in a institution whose name does not show up in the list, is it still possible to get the loan?

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