How to Get Education Loan From Government
Education loans are made available to students who have been accepted into engineering, medicine, and management courses, among others, for postgraduate or graduate studies at a recognised university/college/institution. The provision of appropriate financial assistance ensures an individual’s success at the proper time. Which is provided by the government of India.
Different government Education loan schemes to choose from:
- Vidhyalakshami Scheme:- You can access this scheme through the Vidhyalakshami education loan scheme portal. With this scheme, the government aims to help all the students from lower-income or middle-class families to proceed with their higher education without any budgetary constraints. You can register on this official portal to apply.
- Padho Pradesh Scheme:- This is specially designed for minorities to grab the opportunity to study abroad.
- Dr Ambedkar Central Sector Scheme of Interest Subsidy:- This scheme helps the economically backward classes study abroad. This scheme falls under the header of the interest subsidy scheme of education loans.
- Central Scheme of Interest Subsidy for Education Loan: This scheme helps you finance your technical and professional courses to pursue your dream. This scheme also is designed for the economically weaker section of society.
- Central Sector Interest Subsidy Scheme, 2009 on Modern Education Loan Scheme of IBA:- Under this scheme, a moratorium period is taken from the scheduled banks under the modern education loan scheme of the Indian Banks Association. Registrants who relate to the economically backward classes and whose annual parental income is up to Rs. 4.5 lakhs from all sources. The subsidy in this scheme is allowed for undergoing recognised professional/technical courses in recognised Institutions in India. This subsidy is only allowed once.
Features of Education Loan
Here are some of the features of education loans:-
- Any individual aged 18 – 35 years of age can avail of an education loan to pursue studies at any approved university abroad.
- Students can get an education loan for management, medical, engineering courses and postgraduate degrees, arts, architecture, hotel management, pure science etc.
- During the moratorium period, the borrower must repay the interest with the leading payment beginning when the loan tenure starts.
- Applicants can repay education loans in monthly instalments via post-dated cheques or through ECS.
- The central government has also provided an interest rate subsidy scheme for repayment done during the moratorium period to benefit the Weaker Sections of the Society.
- No security is required for a loan of up to 4 lakhs.
FAQ’s
✅ Does the government provide education loans?
Yes, the government provides education loans to individuals, and some of them are:-
- Vidhyalakshami Scheme
- Padho Pradesh Scheme
- Dr Ambedkar Central Sector Scheme of Interest Subsidy
- Central Scheme of Interest Subsidy for Education Loan
- Central Sector Interest Subsidy Scheme, 2009 on Modern Education Loan Scheme of IBA
✅ Who is eligible for an education loan subsidy in the Central Sector Interest Subsidy Scheme, 2009 under the Modern Education Loan Scheme of IBA?
The students whose annual gross parental/family income is up to Rs. 4.5 lakhs are eligible for an education loan subsidy in the Central Sector Interest Subsidy Scheme, 2009 under the Modern Education Loan Scheme of IBA, this scheme allows you to undergo recognised professional/technical courses in reputed Institutions in India.
✅ How can I get approved for an education loan?
You can get approved for an education loan by fulfilling all the eligibility criteria’s of the education loan. Some of them are as under:-
- The student must be aged between 16-35 years.
- He/She should be a resident of India.
- The student must have secured admission to some recognized college/ university.
- Collateral security is also required if the loan amount is more than 4 lakhs.
- The applicant must apply for a loan with a co-applicant. The co-applicant can be a parent/guardian or spouse in case the applicant is married.
