There is great news for lakhs of students dreaming of pursuing higher education. Leading public sector bank, Punjab National Bank (PNB) has announced a cut in the interest rates of education loans given under the Vidyalakshmi Scheme.
This is a loan that provides financial assistance to students for higher education, and the most important thing is that it does not require any kind of collateral or guarantee. Let us know what are the new interest rates (PNB Interest Rate 2025) after this cut and for which students this scheme will prove to be most beneficial.
For whom is this scheme and what is the new interest rate
The Vidyalakshmi Scheme is designed for promising students who get admission to 860 selected Quality Higher Education Institutions (QHEIs) in the country. PNB has informed that depending on the educational institution, the interest rates on this education loan (Punjab National Bank Loan Offer) will start from 7.5%. This is a competitive rate that will help reduce the financial burden on students. It is a student-centric initiative aimed at making education more accessible.
Eligibility Criteria for Vidyalakshmi Loan
According to the information available on the bank’s website, the following can apply for a Vidyalakshmi Loan:
All citizens of the country are eligible.
Non-resident Indians can also avail the benefits of this scheme.
Overseas Citizens of India are also eligible to apply.
The loan amount is determined as per the study needs of the students, which includes tuition fees, living expenses, books, and other related expenses.
How much is the margin money
In Vidyalakshmi Yojana, there is no margin money required for loans up to ₹4 lakh. This is a big relief for students and their families for small loans. If the loan amount is more than ₹4 lakh, 5% margin money will be required. This ensures that students also contribute something towards their studies, which gives them a sense of responsibility.
Documents required for application
For the loan application, you will need the following documents:
Self-attested copy of Aadhaar Card, PAN Card, and Address Proof.
Self-attested copy of mark sheet, entrance exam result, and offer letter and fee structure of the institute to be admitted.
Passport-size photo.
Proof of family income will help in determining eligibility for the loan.
In how many years will the loan have to be repaid
In this loan, the parents of the student are joint applicants. This loan is repaid from the future earnings of the student, thereby reducing the immediate burden on the parents. The loan has to be repaid within 15 years after the moratorium period. The moratorium period is of course duration plus one year, i.e. EMI starts one year after the completion of the course. This gives students enough time to complete their studies and find a job.
There is also a provision for an interest discount
Punjab National Bank also provides interest discounts to students, which makes this scheme even more attractive:
Annual income up to ₹4.5 lahks: If the annual income of the family is up to ₹4.5 lahks, then the full discount is given on interest for technical or professional courses. There is a provision of a 3% interest discount for other courses. This is a big incentive for students from economically weaker sections.
Annual income between ₹4.5 lacks and ₹8 lacks: If the annual income is between ₹4.5 lacks and ₹8 lacks, there is a provision of a 3% interest rebate on loans for all courses. This also benefits students from the middle-income group.