PNB Kaushal

About the Scheme

PNB Kaushal aims to help individuals in skill-based education by providing the necessary financial assistance for their recognised training programmes. This education loan covers both technical and non-technical courses, ensuring students can meet essential expenses ranging from tuition fees, examination charges, library & laboratory fees, caution deposits and purchases of books & equipment.

This scheme would apply to courses framed under the National Skill Qualification Framework (NSQF) and courses that training providers have provided registered on the Skill India Digital Hub (SIDH) platform.

Rate of Interest

The rate of interest under the PNB Kaushal education loan varies depending upon loan coverage and the category of borrower.

For loans up to ₹7.50 lakh (covered under CGFSSD):

• 10.50% (floating rate of interest)

• 11.50% (fixed for loans up to 10 years)

• 12% (fixed for loans above 10 years)

For female students taking loans up to ₹7.50 lakh (covered under CGFSSD):

• 10% (floating rate of interest)

• 11% (fixed for loans up to 10 years)

• 11.50% (fixed for loans above 10 years)

Investment

Secure

Secure your child’s future with or without you

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₹10,000/Month

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₹1 Crore^*

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Features of the PNB Kaushal Scheme

Here are the key features of the PNB Kaushal education loan scheme:

• You may take a loan of up to ₹7.50 lakh for skill-based courses.

• No collateral is required, but a parent or guardian must be a co-borrower.

• Repayment is based on the amount of the loan—maximum of 3 years for ₹50,000, 5 years for ₹50,000 to ₹1 lakh, and 7 years for anything over ₹1 lakh.

• A moratorium of 6 months is in place for a course up to 1 year or 12 months for a longer course.

• You can claim tax benefits under Section 80E on the interest paid.

• There are no charges for prepayment.

• The loan can support skill development as part of a broader child education plan, helping students gain vocational training.

Eligibility of the Scheme

To be eligible to apply for the scheme, you have to meet the following conditions:

• You must be an Indian citizen.

• You should have taken admission for an NSQF course or any approved Non-NSQF course.

• You must be enrolled with a training entity on MSDE's Skill India Digital Hub (SIDH).

• You will have to fill out the essential loan forms.

Documents Required

To apply, you need:

• Filled Loan Application Form.

• Recent passport-size photograph.

• Identity proof (PAN, Aadhaar, Passport, or Voter ID).

• Address proof (Utility bill, Passport, or Aadhaar).

• Age proof (any valid document).

• Academic records of the last qualifying examination.

• Admit Card for the course. 

• Prospectus of the course with fee information. 

• Asset & liability detail of co-borrower.

• Affidavit for loan declaration against other bank loans.

Most Important Terms and Conditions

Here are the very important terms and conditions of the scheme:

• Margin: There is no margin for loans up to ₹4 lakh; 5% for higher amounts, scholarships included.

• Security: No collateral or 3rd party guarantee is needed as security.

• Repayment: Up to 7 years, according to the amount of the loan taken.

• Moratorium: 6 months after course completion for up to 1 Year Courses; 12 months for longer courses.

• Tax Benefit: The interest paid on the loan is subject to deductions under Section 80E of the Income Tax Act.

• Prepayment Charges: None.

• Planning for Educational Expense: The loan can be part of a child investment plan to cover any expenses on skill-based training.