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PNB’s Education Loan Interest Cut by 20 BPS Under Vidyalakshmi Scheme
Government/Public Banks | Updated

The Punjab National Bank has reduced its education loan interest by 20 basis points for student loans under the Vidyalaxmi scheme. Vidyalaxmi is a government education loan scheme which aims to make higher education more accessible to indian students. This reduction significantly affects the Punjab National Bank education loan interest rate under the scheme.
In this article, we will explore how basis point reduction affects the education loan interest rates and abroad student loans of PNB. We have also covered the eligibility criteria of the PNB education loan scheme, along with the application process via WeMakeScholars to help you in the student loan process.
Punjab National Bank Education Loan Scheme
The Punjab National Bank, one of the leading public banks in the country, offers student loans under various education loan schemes. The bank provides a wide range of Punjab National Bank education loan schemes to make higher education more accessible to students.
The Punjab National Bank education loan schemes provide financial assistance for both domestic and international studies. The bank is known for offering competitive interest rates and flexible repayment terms, with the tenure stretching up to 15 years.
The bank has recently reduced the education loan interest by 20 BPS for student loans offered under the PM Vidyalaxmi scheme. Keep reading to find out how it impacts the Punjab National Bank education loan interest rates.
What is the Vidyalaxmi Education Loan Scheme?
The Pradhan Mantri Vidyalaxmi scheme is an education loan scheme initiated by the government of India. The scheme aims to provide financial assistance to meritorious students pursuing higher education. Under the scheme, PNB offers collateral-free and guarantor-free education loans to eligible students. Through this Punjab National Bank education loan scheme, the bank offers need-based financing to help students pursuing higher education at reputable institutes.
Punjab National Bank Education Loan Interest Rate Cut
- The PNB has reduced the education loan interest by 20 basis points for its student loans offered under the Vidyalaxmi scheme, effective from 3rd June 2025.
- This reduction in basis points has lowered the PNB education loan interest rate for the Vidyalaxmi scheme. The bank aims to make higher education more accessible for students through this initiative.
- The Punjab National Bank education loan interest rate under the Vidyalaxmi scheme now starts at 7.5% per annum.
This lowered interest rate helps students manage their finances during their student loan repayment period.
Impact on Punjab National Bank Education Loan for Abroad Studies
Punjab National Bank offers education loans for abroad studies through the PNB Udaan scheme. The PM Vidyalaxmi scheme is also applicable to the Punjab National Bank education loan for abroad studies scheme. Here’s how the PNB’s BPS reduction affects students with a Punjab National Bank education loan for abroad studies.
- As we have discussed earlier, the BPS reduction lowers the interest rate of PNB abroad education loans offered under the Vidyalaxmi scheme.
- Lower interest rate on their education loans reduces the financial stress of the students while studying abroad.
- It reduces the interest part of the EMIs, helping students manage their student loan repayments.
- This ultimately reduces the overall repayment cost of the abroad education loan.
Apart from the lowered interest, PNB also offers interest subvention benefits for eligible students with education loans, including the Punjab National Bank education loan for abroad studies, under the Vidyalaxmi scheme.
The bank offers an interest subsidy or subvention for both domestic and abroad education loans under the Vidyalaxmi scheme and the Central Sector Interest Subsidy Scheme (CSIS). An interest subvention of 3% to 100% is offered to students with an annual family income of less than ₹8 lakhs.
Eligibility Criteria for Punjab National Bank Education Loan Scheme
The eligibility criteria for the Punjab National Bank education loans vary according to the scheme. The following are the basic eligibility criteria for a student loan in PNB.
- Co-applicant: To be eligible for the PM Vidyalaxmi education loan in PNB, you need a co-applicant accepted by PNB. The co-applicant's income and CIBIL score should meet the requirements of the lender.
- Citizenship: Both the student and co-applicant should be Indian citizens. Non-Residential Indians (NRIs) are also eligible.
- University: The university that you are going to should come under the recognized university list of PNB for the Vidyalaxmi scheme.
- Admission Status: To be eligible for an education loan in PNB, you should have secured admission from a recognized university.
- Academi History: You should have a good academic history with a minimum of 50% of marks in your previous academic records.
- Collateral Requirement: To get a secured education loan from PNB, you should pledge collateral that is accepted by the lender.
Obtaining an education loan on your own can be quite difficult, with various factors affecting student loan eligibility. WeMakeScholars can guide you in such a situation. Our team of experienced financial officers assesses your eligibility and helps you get the most suitable education loan according to your profile. Request a call back from our team today to get a smooth and stress-free education loan journey.
How to Apply for the PNB Education Loan Scheme Via WeMakeScholars
WeMakeScholars is an organisation dedicated to providing complete education loan guidance to students. Our financial officers carefully analyse the profile of each student and provide personalised guidance to students.
And since WeMakeScholars is an organization funded and supported by the Ministry of IT, Government of India, we offer our services completely free of cost to students. The following is the step-by-step process of applying for a Punjab National Bank education loan through WeMakeScholars.
Step 1: Visit the WeMakeScholars website and fill out the education loan eligibility form or simply request a callback. A dedicated financial officer will then reach out to you and take care of your entire loan process.
Step 2: Provide all the details required by the financial officer.
Step 3: The financial officer will analyze your profile to check your eligibility and connect you with the most suitable lender according to your profile, and send you a document uploading link.
Step 4: Submit all the required documents using the document uploading link. Your financial officer will take care of the rest of the loan process and will update you on your loan status.
Conclusion
The PNB has reduced the education loan interest by 20 basis points under the Vidyalaxmi scheme. This reduces the financial stress of students by lowering the education loan interest rate offered under this scheme. Eligible students can get a collateral-free and guarantor-free education loan from the bank. The lowered interest rate significantly eases the repayment burden for students with Punjab National Bank education loans, making higher education more accessible.
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