PSB Model Education Loan Scheme

About the PSB Model Education Loan Scheme

The PSB education loan scheme is designed for Indian students who have secured admission in recognised professional or technical courses in India or overseas. The education loan covers tuition fees, examination fees, travel expenses (for abroad studies), library and lab charges, cost of study materials, and even a reasonable amount for living expenses.

The scheme aligns well with long-term financial goals like a child education plan, helping families plan structured funding for their child’s academic future and easing the burden on those managing a child education allowance.

PSB Model Education Loan Scheme Interest Rates

Interest rates under this scheme are linked to Punjab & Sind Bank’s internal benchmark rate. Rates may vary depending on the loan amount, type of institution, and whether the course is pursued in India or abroad. For courses within India, the interest rate starts at 9.55%, while rates for international studies are slightly higher.

Note: The rates are updated per Punjab & Sind Bank’s latest terms as of 25 June 2025. These may change based on RBI Repo Rate movements or bank lending policy updates.

Features of the PSB Model Education Loan Scheme

Here’s what makes the PSB education loan scheme attractive to students and families:

• Covers Indian and International Courses: Loans are available for studies in recognised institutions in India and abroad, including degree, diploma, and certificate programs.

• Easy Access with Security Clarity: No collateral for loans up to ₹7.5 lakh with a parent as co-borrower. Above ₹7.5 lakh requires full collateral and future income assignment. No guarantee if covered under CSIS or CGFSEL.

• Flexible Margin Structure: No margin for loans up to ₹4 lakh. For amounts above ₹4 lakh, the margin is 5% for studies in India and 15% for studies abroad.

• Supports Financial Planning: Fits seamlessly into a structured child investment plan for securing your child’s educational future.

• No Prepayment Penalty: Borrowers can prepay the loan anytime after repayment begins without incurring penalty charges.

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Eligibility for PSB Model Education Loan Scheme

To apply for this Punjab & Sind Bank education loan, students must meet the following criteria:

• Citizenship Requirement: Applicant must be an Indian citizen

• Eligible Courses in India: Graduate/Postgraduate degrees, PG diplomas, and regulated vocational courses from UGC, AICTE, DGCA, DGS, ICMR, Indian Nursing Council, or recognised foreign universities in India.

• Eligible Courses Abroad: Job-oriented UG/PG programs (e.g., MCA, MBA, MS) from reputed international universities. Certificate/diploma courses are excluded unless tied to PG programs with strong job prospects.

Documents Required for PSB Model Education Loan Scheme

Here are the typical documents you’ll need to submit for the PSB Education Loan Scheme:

• Academic Qualifications: Previous marksheets, including Class 10 and 12.

• Proof of Admission: Official admission or seat allocation letter.

• Fee Structure: Detailed breakdown of estimated expenses, including the full course fee schedule.

• Identity & Travel Documents: Valid passport and visa (mandatory for studying abroad).

Most Important Terms and Conditions

These are some of the key terms you should be aware of under the PSB Education Loan Scheme:

• Single Use Only: The loan is granted per course. A new loan application is required to pursue higher education at the next level.

• Loan Tenure: Repayment begins after the moratorium. The total tenure can extend to 15 years, depending on the loan amount.

• Moratorium Benefit: No repayment is required during the study period and up to one year afterwards, easing the initial financial pressure.

• Course Discontinuation Clause: Loan benefits are withdrawn if the course is discontinued without a valid reason. Medical exceptions are considered with documents.

• Disbursement Timeline: Loans must be disbursed under the PSB Model Education Loan Scheme framework to qualify for these benefits.

• Processing Fee: No fee for domestic loans. For abroad studies, ₹2,000 is kept in reserve and refunded after full loan disbursement.