Planning to study abroad but worried about expenses? The PNB Education Loan for Abroad 2025 can help ease the burden. According to RBI data, Indian families have spent nearly ₹1.76 lakh crore in the last decade on higher education overseas, showing just how big the financial commitment can be.
Punjab National Bank’s Udaan scheme is one of the most trusted loan options for students who have secured admission to top universities abroad. This blog is your step-by-step guide to everything you need to know about the PNB education loan for abroad, including eligibility, application, interest rates, and repayment rules.
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Different PNB Education Loan Options 2025
Punjab National Bank (PNB) offers several loan schemes, each designed with different needs and eligibility criteria in mind. Some cover studies in India, some abroad, and some are focused on skill training.
Here are the various education loan types PNB offers:
1. PNB Udaan
The PNB Udaan loan scheme is designed for students going abroad, including professional/technical/degree or diploma courses.
2. PNB Saraswati
Supports students pursuing higher studies in India (degree, professional courses, diplomas) from recognised institutes.
3. PNB Pratibha
Meant for meritorious students who get admission into premier colleges (engineering, medical, business schools, etc.) in India.
4. PNB Kaushal
Specifically for skill and vocational training, certificate/diploma courses, often aligned with government skill development missions.
5. PNB Honhaar
Meant to help students studying in Delhi for higher education. If you’re doing a degree, diploma, or skill course in a recognised institution in Delhi, this loan supports your costs.
To know more about PNB education loan schemes, rates, and perks, check out our detailed guide on PNB Education Loan and select the one that fits your needs.
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What is the PNB Udaan Education Loan Scheme?
The PNB Udaan scheme is built for students aspiring to study at reputed institutions abroad. It aims to make overseas education more accessible by helping with everything from tuition to living expenses, with flexible terms depending on how much you need to borrow.
The loan is collateral-free up to ₹7.5 lakh, but for higher amounts, security like property or fixed deposits is required. This makes the PNB Udaan scheme a practical choice for funding education abroad without putting too much financial pressure upfront.
If you’re looking for financing options that don’t require security, you can also explore how to get an education loan without collateral for your higher studies abroad.
PNB Udaan Education Loan For Abroad Studies Key Features
The table below highlights the key features of the Punjab National Bank Education Loan Abroad scheme:
PNB Education Loan for Abroad Interest Rate 2025
Punjab National Bank offers competitive interest rates tailored to various loan amounts, collateral options, and borrower profiles. The PNB Education loan for abroad interest rate is 9.50% (base rate), which is MCLR-linked (Marginal Cost of Funds based Lending Rate).
Note: Always verify the latest rates directly with Punjab National Bank before applying.
PNB Education Loan Eligibility For Abroad Studies 2025
To avail of the PNB Udaan loan for study abroad, you’ll need to meet certain conditions. Below are the general eligibility requirements:
- The applicant must be a resident Indian. Only Indian citizens are covered under Udaan.
- You need to have secured admission to a higher education course abroad. This must be in a recognised institution, and entry must be via a merit-based selection process or an entrance test (depending on the course).
- Completion of Higher Secondary Certificate (HSC / 10+2 or its equivalent) is mandatory. Without that, you cannot apply. Additionally, you should have a strong academic record and meet the required scores in exams such as GRE, GMAT, TOEFL, or IELTS, where applicable.
- Usually, the student will need a co-applicant (parent, guardian, or sometimes another eligible person) who will share responsibility for repayment.
- Loans above the collateral-free limit (₹7.5 lakh) require accepted collateral, such as residential property, fixed deposits, or other tangible assets.
Course Eligibility:
- Undergraduate Level: Job-oriented professional or technical courses offered by reputed universities abroad.
- Postgraduate Level: Courses like MCA, MBA, MS, or professional certifications such as CIMA (London), CPA (USA).
- Government-Recognised Courses: Programs defined under various Government Subsidy Schemes.
- Specialised Degree/Diploma Courses: Courses like aeronautical, pilot training, shipping, or other programs recognised by competent foreign regulatory bodies for employment purposes.
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Documents Needed For PNB Education Loan For Abroad 2025
Before applying for the PNB Udaan loan, students must provide certain documents to confirm their identity, academics, admission abroad, and financial support. Having these papers ready can make the approval process faster and smoother.
Here’s the breakdown:
1. Personal Identification Documents
- A completed loan application form in the bank’s format.
- Recent passport-size photographs of the student and co-applicant
- Identity proof (PAN card, Aadhaar card, Passport, Voter ID, or Driving Licence)
- Proof of age (Birth certificate, Passport, or equivalent)
- Address proof (Aadhaar, Passport, Utility bill, Driving licence, etc.)
2. Academic Documents
- Class 10 and 12 mark sheets and certificates
- Certificates of higher qualifications (if any)
- Admission/offer letter from the foreign university or institution
- Course details, including the official fee structure from the institution
3. Financial & Co-applicant Documents
- Co-applicant’s (parent/guardian) identity and address proof
- Income proof of co-applicant (salary slips, ITR, Form 16, bank statements, etc.)
- Statement of assets and liabilities of the co-applicant
- Receipts of fees already paid (if applicable)
4. Travel & Visa Documents
- Valid passport copy of the student
- Student visa copy (if already issued)
- Travel ticket details (if purchased)
5. Collateral Documents (For Loans Above ₹7.5 Lakh)
- Property documents (title deed, ownership papers)
- Valuation certificate of property
- Non-encumbrance certificate or any other documents asked by the bank
6. Additional Supporting Documents
- Estimates/quotations for equipment like laptops (if required for the course)
- Any other papers requested by PNB at the time of processing
How to Apply for PNB Education Loan for Study Abroad 2025?
Among public sector banks, Punjab National Bank stood out by disbursing ₹5,004.71 crore in student loans over the three years from 2022‑23 to 2024‑25, reflecting its strong role in supporting students pursuing higher education in India and abroad.
To apply for the PNB student loan for study abroad, follow these steps:
1. Online via PNB Website
- Visit the official PNB website and go to the education loan section.
- Click “Apply” to access the PNB WeblenS online loan application page.
- Select “Retail Loan” and then “Education Loan”.
- Fill in all required details accurately and submit the form.
2. Applying Via the Vidya Lakshmi Portal:
- Go to the Vidya Lakshmi Portal.
- Register or log in as a student.
- Select Punjab National Bank as your preferred lender.
- Complete the single application form and upload the required documents, including admission proof, academic certificates, and co-applicant details.
- Submit the application for verification.
3. Verification and Approval
- PNB verifies your personal, academic, and financial documents.
- Co-applicant and collateral details (for loans above ₹7.5 lakh) are also checked.
4. Sanction and Disbursement
- On approval, PNB issues a sanction letter specifying the loan amount, interest rate, and repayment terms.
- The loan amount is disbursed directly to the educational institution as per the fee schedule.
Apply Offline at PNB Branch
- Visit your nearest PNB branch offering education loans.
- Request and fill out the PNB Udaan loan application form.
- Attach all necessary documents, including co-applicant and collateral documents (if required).
- Submit the form for verification by bank staff.
By following these steps carefully, you can ensure a smooth application process and secure your PNB Udaan Education Loan for studying abroad with minimal delays.
Costs Covered by PNB Education Loan for Abroad
The PNB Udaan Education Loan is designed to support students with most of the essential expenses associated with studying abroad. The loan covers a wide range of costs, including:
- Tuition and Institutional Fees: Fees payable to the college, school, or hostel.
- Examination and Academic Fees: Charges for exams, library access, and laboratory use.
- Insurance Premiums: Life insurance for the student borrower, if applicable.
- Deposits: Refundable deposits, like a caution deposit or building fund, supported by official institution bills or receipts.
- Study Materials and Equipment: Books, instruments, uniforms, and other academic essentials.
- Computer Purchase: Cost of a computer, if necessary for completing the course, at a reasonable price.
- Course-Related Expenses: Additional costs required to complete the program, such as study tours, project work, or thesis preparation.
- Personal and Miscellaneous Expenses: Living expenses, and in some cases, the cost of a two-wheeler for commuting purposes.
Recognised Foreign Universities for PNB Student Loan for Study Abroad
When applying for the PNB Udaan Education Loan to study abroad, it's essential to ensure that the bank recognises your chosen university. The general guideline is that the respective country's regulatory authorities should recognise the university.
Here is the PNB Education Loan College List Abroad:
Note: This list is indicative and not exhaustive. Students should always verify the recognition of their chosen university with PNB and ensure the respective country’s educational authorities accredit it before applying for a loan.
If you are targeting premier institutes in India, you should also check the updated PNB Education Loan College List 2025 to see whether your institution is covered.
PNB vs. Central Bank: Which Education Loan is Better? Reddit Insights!
When deciding on an education loan, students often compare multiple public sector banks offering similar terms. While factors like interest rate, collateral requirements, and processing fees are critical, real-world experiences can reveal differences in service quality that numbers alone don’t show.
A student on Reddit shared: “PNB and CBI both offer 8.2% ROI with no collateral or processing fee. Which one gives better service?”
Insight: This highlights a common challenge, when terms look almost identical, the deciding factor often comes down to service quality and efficiency of processing. Delays, responsiveness, and post-sanction support can make one bank a better choice than the other, even if the loan structure is the same.
What Do We Infer from the Case?
Students must look beyond interest rates and official terms. The experience of dealing with the bank branch, the loan officer’s cooperation, and disbursement timelines can significantly impact the study journey.
Tip: Before finalising your loan, visit the nearest branch of both banks, speak to existing borrowers if possible, and evaluate the responsiveness of staff. A bank with smoother service can save you time and reduce stress, even if the loan terms are nearly identical.
For a detailed comparison, you can also check the Central Bank of India Education Loans Interest Rates to see how they differ from PNB’s offerings.
Ways to Reach Out to PNB for Education Loan Assistance
When applying for an education loan, timely communication with the bank is essential to clarify queries, track application status, or resolve document-related issues. Here are the main ways to contact PNB regarding education loans:
1. Customer Care Helpline
Call PNB’s toll-free number 1800 1800 for queries related to education loans.
2. Email Support
You can write to care@pnb.co.in to ask questions or submit supporting documents digitally.
3. Visit Nearest Branch
For in-person assistance, visit the nearest PNB branch. Bank staff can provide guidance on the application process, verify documents, and address any concerns regarding collateral or co-applicant requirements.
The PNB Education Loan for Abroad 2025 makes studying at top international universities more achievable. By knowing the eligibility, required documents, application steps, and interest rates, you can plan your finances smartly. The loan covers tuition, living, and other essential costs, helping you focus fully on your studies. Careful planning and verifying all requirements will ensure you make the most of this opportunity.
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