PNB lowers education loan rates to boost access to quality higher education

Punjab National Bank (PNB) has announced a 0.20% reduction in interest rates for education loans offered under the Vidyalaxmi Scheme.

The move is aimed at making higher education more affordable and accessible for students across India.

The Vidyalaxmi Scheme provides financial support to students who secure admission on merit to 860 recognized Quality Higher Education Institutions (QHEIs) in the country.

"This initiative further strengthens the bank’s commitment to enhance education accessibility," a PNB spokesperson said.

The scheme is available to Indian nationals, including Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs), who are pursuing undergraduate or postgraduate degrees or diploma courses in Qualified Higher Educational Institutions (QHEIs). It offers need-based financing tailored to the applicant’s requirements.

For top-tier institutions rated AAA and AA, no margin money is required. For other institutions, there is no margin required for loans up to ₹4 lakh, while a 5% margin applies to amounts exceeding ₹4 lakh.

The interest rate is institute-specific and begins at 7.50%. No collateral is needed under the scheme, though it mandates that parents or guardians must be joint borrowers.

In addition to reduced interest rates, the scheme offers interest subvention benefits based on family income.

For students from families with an annual income up to ₹4.5 lakh, there is 100% interest subvention for technical and professional courses and 3% for other courses.

For those with income between ₹4.5 lakh and ₹8 lakh, a 3% interest subvention is available under the PM-Vidyalaxmi scheme for both technical/professional and other courses.

To apply for an education loan, applicants must submit several documents. These include the student's Know Your Customer (KYC) details, such as Aadhaar, PAN, and address proof.

A self-attested copy of previous qualifying examination mark sheets, the entrance exam result, and the offer letter from the institution along with the fee structure are also required.

Additionally, applicants need to provide passport-size photographs, details of any existing or previous loans from banks or other lenders with suitable documentary evidence, and proof of family income issued by a designated public authority of the state.