Punjab and Sind Bank Education Loan

Punjab and Sind Bank Education Loan Scheme

Model Education Loan Scheme for pursuing higher education in India & Abroad


Studies in India: (Indicative list)

  • Approved courses leading to graduate/ post graduate degree and P G diplomas conducted by recognized colleges/ universities recognized by UGC/ Govt./ AICTE/ AIBMS/ ICMR etc.
  • Courses like ICWA, CA, CFA etc.
  • Courses conducted by IIMs, IITs, IISc, XLRI. NIFT,NID etc.
  • Regular Degree/Diploma courses like Aeronautical, pilot training, shipping, nursing or any other discipline, approved by Director General of Civil Aviation/Shipping/Indian Nursing Council or any other regulatory body as the case may be, if the course is pursued in India.
  • Approved courses offered in India by reputed foreign universities.

Note :The above list is indicative in nature. Courses other than the above offered by reputed institutions may also be considered on the basis of employability.

Studies abroad

  • 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 India/abroad for the purpose of employment in India/abroad.

Note : Diploma Courses and Certificate Courses have not been included as eligible courses for the scheme. Post graduate studies leading to PG degrees and PG diplomas offered by reputed institutes/universities only will be covered by the scheme. Assessment of employment potential or future prospects is very important criterion considering the higher cost of studies involved.

Quantum of Finance

Studies in India : Maximum upto Rs. 10 lakhs.

Studies Abroad : Maximum upto Rs. 20 lakhs.

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

Upto Rs. 4 lakhs Nil
Above Rs. 4 lakhs Studies in India 5%
Studies in Abroad 15%
Rate of Interest Please click here For rate of interest
Processing fee Please click here For Processing fee

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

Above Rs. 4 lakhs and upto Rs. 7.5 lakhs

  • Parents to be joint borrower
  • Collateral security in the form of suitable third party guarantee

Note : However, third party guarantee will be waived if the loan is eligible for Credit Guarantee Fund Scheme for Education Loan (CGFSEL).

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 upto three spells of moratorium (not exceeding six months each) during the life cycle of the loan, taking into account 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.
Prepayment No pre-payment penalty is to be levied for prepayment of loan any time after the commencement of repayment.

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