PNB Udaan Scheme Complete Guide for International Studies

Planning to study abroad is exciting, but arranging finances for international education often feels overwhelming. For Indian students and families exploring education loans for overseas studies, understanding bank schemes clearly is the first step toward confident decision-making.

Punjab National Bank (PNB), one of India’s leading public sector banks, offers the Udaan Scheme to support students pursuing higher education abroad. This guide, prepared by StudentCover, breaks down the structure, features, and conditions of the PNB Udaan Scheme in simple, student-friendly language without jargon, exaggeration, or hidden surprises.

In this article, we explain the types of Punjab National Bank education loans for abroad studies, with a detailed focus on the PNB Udaan Scheme and how it works for international students.

Objective of PNB Udaan Scheme

To provide financial support to meritorious students for pursuing higher education abroad.

Students Who Secure Admission In COURSES As Under:

• Graduation: For job-oriented professional/technical courses offered by reputed universities.
• Post graduation: MCA, MBA, MS, etc.
• Courses conducted by CIMA-  London, CPA in USA etc.
• Courses as defined under various Government Subsidy Schemes
• Degree/Diploma courses like aeronautical, pilot training, shipping etc. provided these are recognised by competent regulatory bodies in abroad, for the purpose of employment in abroad.

Types of Education Loans in Punjab National Bank

The Punjab National Bank education loan is categorized into several schemes that cater to the varied needs of students. Punjab National Bank education loan schemes are as follows:

• PNB Saraswati Education Loan Scheme
• PNB Udaan Education Loan Scheme
• PNB Kaushal Education Loan Scheme
• PNB Pratibha Education Loan Scheme
• PNB Honhaar Education Loan Scheme

For students who are looking for an abroad education loan or for PNB education loan without collateral, the PNB Udaan Scheme offers financing options for their education abroad, with attractive terms and competitive rates. PNB education loan interest rate are low, and that is why PNB education loan is one of the most popular education loan for student.

Eligibility Criteria For PNB Education Loan

Before applying for a PNB Udaan, you need to meet certain requirements. The bank assesses your academic background, admission status, and financial standing to ensure you qualify.

Here’s what you need:

• Indian Citizenship: You must be a resident Indian with valid proof of identity and address.
• Age Limit: While there’s no fixed age limit, the bank may assess your age for repayment feasibility.
• Confirmed Admission: You should have secured admission to a recognised foreign university or institution through an entrance exam or merit-based selection.
• Academic Qualification: You must have completed Class 12 (HSC) or an equivalent qualification before applying.
• Approved Course: The loan is available for graduate, postgraduate, diploma, and professional courses in recognised international institutions.
• Co-Applicant Requirement: Your parent or legal guardian must be a co-borrower, ensuring financial backing for the loan.
• Collateral Requirement: For loans above ₹7.5 lakh, you need to provide tangible security of equal or higher value.
• Good Academic Record: A consistent academic performance increases your chances of loan approval.

Key Features of the PNB Udaan Education Loan Scheme

No Income Criteria

There is no fixed income requirement for applicants under the Udaan Scheme. This makes the loan accessible to students from varied financial backgrounds.

Loan Amount (Quantum of Finance)

• The loan amount is need-based, depending on the student’s course, university, and overall expenses.
• For loan amounts above ₹7.5 lakhs, collateral security is mandatory.
• Loans can be sanctioned up to ₹1.5 crore and may exceed this limit depending on student requirements & eligibility.

Margin & Funding Structure

• For overseas education loans exceeding ₹4 lakhs, a 15% margin applies.
• The student contributes their share with each disbursement.
• Interest during the moratorium period is calculated on a monthly simple interest basis.
• A 1% interest concession is available if the borrower services interest regularly during the moratorium period.
• Penal interest is charged for overdue amounts for loans above ₹4 lakhs.

Rate of Interest

• For loans exceeding ₹7.5 lakhs, the current interest rate is RLLR + 0.75, resulting in an effective ROI of 10.50%.
• A 2% penal interest applies to overdue amounts for loans above ₹4 lakhs.
• A 0.50% interest concession is available for girl students.
• An additional ROI concession applies to students admitted to 50 top-ranked universities.

Repayment of Education Loan

•  Moratorium period: Course duration + 1 year.
• Repayment tenure: Up to 15 years after the moratorium.
• EMI payments: Start after the moratorium; interest during the grace period may get added to your principal.

Last Date to apply for PNB Udaan Scheme 2026

The PNB Udaan education loan scheme does not have a fixed last date as per the official Punjab National Bank website. Applications are accepted throughout the year, provided the student meets eligibility criteria and has secured admission to a recognised overseas institution.

However, platforms like Buddy4Study may mention a deadline such as 31 March for their PNB-linked education loan campaigns. These dates apply only to Buddy4Study’s platform-specific application process and not to the official PNB Udaan scheme.

Documents Required For Education Loan In PNB

Getting a PNB education loan involves paperwork, but having everything ready can speed up the process.

Here’s what you’ll need when applying for a PNB Education Loan:

1. For the Applicant (Student)

• Identity Proof – PAN card, passport, driver’s licence, or voter ID
• Academic Records – 10th and 12th mark sheets, degree certificates, and transcripts
• Proof of Admission – Offer letter from the university or institution
• Statement of Expenses – A detailed breakdown of tuition fees and other costs
• Photographs – Two recent passport-sized photos

2. For the Co-Applicant (Parent/Guardian/Sponsor)

• Identity Proof – PAN card, passport, driver’s licence, or voter ID
• Income Proof – Salary slips, Form 16, or income tax returns (ITR)
• Bank Account Statements – Last six months’ bank statements

3. For Collateral (If Taking a Secured Loan)

• Property Ownership Documents – Title deed and proof of ownership
• Approved Property Plan – If applicable
• Chain of Ownership – Property records for the last 30 years

Eligible Courses and Study Levels

The scheme covers:

• Job-oriented professional and technical courses
• Postgraduate programs such as MBA, MS, MCA
• Degree and diploma courses recognised by relevant regulatory bodies abroad

Loan Tenure and Repayment

• Repayment tenure extends up to 15 years after the moratorium period.
• The moratorium includes course duration plus one year.
• Interest accrued during the moratorium is added to the principal.
• Repayment is made through Equated Monthly Instalments (EMIs).

Disbursement of Funds

Loan funds are disbursed through:

• Forex-authorised PNB branches
• SWIFT transfers
• Direct remittance to universities
• Foreign Travel Cards

All remittances are routed through the borrower’s savings account in compliance with the RBI’s Liberalised Remittance Scheme (LRS).

Acceptable Security

Collateral options include:

• Fixed Deposit Receipts (FDRs)
• Insurance policies
• Government securities
• Residential or commercial immovable property

Co-Borrower Provision

PNB allows both immediate family members and non-family members to mortgage property for the loan—an option not commonly offered by other banks.

Scholarship Consideration

If the student receives a university scholarship, the scholarship amount is treated as the student’s margin contribution (10–15%).

Upfront Fees and Processing Time

• An upfront fee of 1% of the loan application amount is charged.
• This fee is refundable if the first disbursement occurs within six months of the sanction.
• Average processing time is 7–10 days.

PNB Udaan Education Loan – Eligibility Criteria

• Minimum age: 18 years
• Indian citizen
• Confirmed admission to a recognised institution in India or abroad
• Good academic record
• Required test scores (GRE, IELTS, TOEFL, etc.), if applicable
• Co-applicant required for non-collateral loans
• Supported countries include:
• USA, UK, Canada, Australia, New Zealand, and Europe
• Accepted collateral:
• Residential property
• Fixed deposits
• Other tangible assets

PNB Education Loan Process

Option1: Apply online through the Vidya Lakshmi portal

1. Register on the portal – Create an account on the Vidya Lakshmi website.

2. Fill out the application – Complete the Common Education Loan Application Form (CELAF) with your details.

3. Upload the required documents – Submit admission proof, fee structure, KYC documents, and income details.

4. Wait for verification – The bank will review your application and get in touch if any additional details are needed.

Option 2: Apply In Person at a PNB branch

1. Visit a nearby branch – Walk into any of PNB’s 10,000+ branches across India.

2. Meet a loan officer – Get guidance on eligibility, required documents, and repayment options.

3. Submit your application – Fill out the loan form, attach the necessary documents, and hand them over to the bank.

4. Processing & sanctioning – The bank evaluates your application, and once approved, you’ll receive a sanction letter.

Option 3: Get an Education Loan for Study Abroad with Student Cover

With Student Cover, you can compare education loan options from 15+ trusted lenders in one place. Get access to loan amounts ranging from ₹1.5 crore to ₹2 crore, competitive interest rates starting from 7.99%, and low processing fees. Our expert team guides you through lender comparison, documentation, and coordination, helping you choose the most suitable loan option with a smooth and transparent process.

Top Universities Covered Under the PNB Udaan Scheme

The Udaan Scheme supports admissions to several globally ranked universities across countries. Some of the institutions covered include:

• University of Oxford, United Kingdom
• Harvard University, United States
• University of Cambridge, United Kingdom
• Stanford University, United States
• Massachusetts Institute of Technology, United States
• California Institute of Technology, United States
• Princeton University, United States
• University of California, Berkeley, United States
• Yale University, United States
• Imperial College London, United Kingdom
• Columbia University, United States
• ETH Zurich, Switzerland
• Peking University, China
• University of Pennsylvania, United States
• Johns Hopkins University, United States
• Tsinghua University, China
• Peking University, China
• University of Toronto, Canada
• National University of Singapore, Singapore
• Cornell University, United States
• University of California, Los Angeles, United States
• UCL, United Kingdom
• University of Michigan–Ann Arbor, United States
• New York University, United States
• Duke University, United States
• Northwestern University, United States
• University of Washington, United States
• Carnegie Mellon University, United States
• University of Edinburgh, United Kingdom
• Technical University of Munich, Germany
• University of Hong Kong, Hong Kong
• University of California, San Diego, United States
• LMU Munich, Germany
• University of Melbourne, Australia
• King’s College London, United Kingdom
• Nanyang Technological University, Singapore
• London School of Economics and Political Science, United Kingdom
• Georgia Institute of Technology, United States
• The University of Tokyo, Japan
• University of British Columbia, Canada
• École Polytechnique Fédérale de Lausanne, Switzerland
• KU Leuven, Belgium
• Universität Heidelberg, Germany
• Monash University, Australia
• Chinese University of Hong Kong, Hong Kong
• McGill University, Canada
• Paris Sciences et Lettres (PSL) Research University, France
• University of Illinois at Urbana-Champaign, United States
• Karolinska Institute, Sweden
• University of Texas at Austin, United States

Final Takeaway

The PNB Udaan Scheme provides a structured education loan option for Indian students pursuing international studies. With defined interest rates, long repayment tenure, collateral flexibility, and coverage for top global universities, it remains a key consideration for families exploring PNB education loans for abroad studies.

As always, informed planning and careful review of terms make all the difference when financing your study abroad journey.