Punjab & Sind Bank


"Founded in the year 1908, Punjab & Sind Bank (PSB) boasts of rich heritage. Currently, it is a very popular bank and has a widespread network across the nation. Acquiring education is essential for every individual. It shapes their personality and helps them attain success in all spheres of life. Punjab & Sind Bank helps the youth of our country to educate themselves by offering financial assistance in the form of Education Loan."

Loan Interest Rates:

"PSB offers Education Loans at affordable rates of interest for the convenience of students and parents. Female students are entitled to an additional concession of 0.50% on the existing interest rates. Borrowers are also entitled to an additional concession of 1% on account of service of interest during moratorium period. The aforementioned concessions are subject to the minimum base rate, as charged by the bank. The interest rate table below explains the rate of interests in detail."

General Public BR (10.25%) +3.00% = 13.25% BR (10.25%)+3.25% = 13.50% BR (10.25%)+2.50% = 12.75%
Staff as Co-borrower BR (10.25%)+2.00% = 12.25% BR (10.25%)+2.25% = 12.50% BR (10.25%)+1.50% = 11.75%
Concession in Interest (if collateral in addition to guarantee is given) No Concession 0.50% No Concession

Base Rates Are:

Loan Eligibility:

Courses Eligible For Loan:
    Vocational Education/Skill Development Courses:
  • Duration of the course should span from 2 months to 3 years.
  • The course needs to be supported or run by a ministry/government organization, an organisation supported by State Skill Mission/Corporation or National Skill Development Corporation.
  • The course should preferably bestow the student with a certificate or diploma degree.
  • State Level Bankers (SLBC) may add other skill development courses on the basis of good job prospects.
  • Courses leading to graduate/ post graduate degree and P.G diplomas.
  • The courses need to be conducted by colleges/universities recognised by UGC/ Govt. / AIBMS/ AICTE/ ICMR
  • Other courses like ICWA, CA, CFA, etc.
  • Courses conducted by management, design, and other institutes like IIM, IIT, IISc, XLRI, NIFT, NID, etc.
  • Courses like Aeronautical, pilot training, shipping, nursing or any other discipline. These courses should be approved by Director General of Civil Aviation/Shipping/Indian Nursing Council. It can also be approved by any other regulatory body.
  • Courses offered by reputed foreign universities, in India.
  • Other courses may also be considered on the basis of employability.
  • Undergrad professional/technical courses offered by reputed universities. These courses need to be job oriented.
  • Post-graduation degrees like MCA, MBA, MS, etc.
  • Courses conducted by CPA in United States of America and CIMA in London.
  • Degree/diploma courses like aeronautical, pilot training, shipping, etc. The prerequisite being that these courses are recognised by competent regulatory bodies in India/abroad for the purpose of employment in India/abroad.

Documents Required:

Candidate Education Loan Eligibility:

Processing Fees:
"No processing fee is charged on loans availed for vocational education or for students pursuing higher education in India and abroad. However, for students studying, a refundable security of Rs. 2000 (in lieu of processing fee) is to be kept as reserve in the savings account."

Expenses Covered under Education Loan:

Loan Repayment:

Course Type Loan Amount Repayment Period
Vocational Courses Up to Rs. 50,000 Up to 2 years
Vocational Courses Rs. 50,000 - Rs. 1 lakh 2 - 5 years
Vocational Courses Above Rs. 1 lakh 3-7 years
Studies in India and abroad Up to Rs. 7.5 lakhs Up to 10 years
Studies in India and abroad Above Rs. 7.5 Lakhs Up to 15 years

Security Required:

No security is required in case of vocational education and skill development courses. Parent(s) need to be joint borrower(s) while availing the loan.
In case of Higher Education in India & abroad -
    For Loan amount up to Rs. 4 lakhs-
  • No security required. Parents need to be joint borrower(s).
    For loan amount above Rs. 4 lakhs and up to Rs. 7.5 lakhs-
  • Parent(s) to be joint borrower(s).
  • Collateral security is required in the form of suitable third party guarantee.
    For Loan amount above Rs.7.5 lakhs -
  • Parent(s) to be joint borrower(s).
  • Tangible collateral security of suitable value is required, along with the assignment of future income of the student.


1.Are female students and staff members eligible for a concession on PSB's Education Loan?
Ans. Yes, female students are entitled to an additional concession of 0.50% and members of staff (when co-borrowers) on the existing interest rates. All borrowers are also entitled to an additional concession of 1% on account of service of interest during moratorium period.

2.Is a prepayment penalty levied on PSB's Education Loan?
Ans. No prepayment penalty is levied for prepayment of loan, any time after the commencement of repayment.

3.Does PSB provide any loan scheme for students studying abroad?
Ans. Yes, apart from a regular Education Loan, PSB provides 'Scheme for Additional Education Loan for Students Studying Abroad'. This loan scheme meets out the increased financial needs for students studying abroad.

4.Does the 'Scheme for Additional Education Loan for Students Studying Abroad' have any prepayment charges?
Ans. No, there are no prepayment charges levied on this one.

5.What is the processing fee if PSB's Education Loan is availed for vocational courses?
Ans. No processing fee is charged for vocational courses.

6.How can I apply for PSB Education Loan online?
Ans. You can apply for PSB Education Loan online by downloading the application form from the bank's website and submitting it online after filling it up duly.