How to Get Education Loan from Government?: Education loans are given to students who want to have quality education in the best universities but have financial problems. Quality education is getting expensive. So, many economically backwards students are looking for education loan from government schemes.
Here we are giving a detailed description of how to get an education loan from government schemes, different government education loan schemes available to us, and the benefits of taking education loans on this page.
How to Get Education Loan from Government Schemes?
The Government of India has implemented different education loan schemes to offer financial assistance and interest subsidies to students for further studies in India and abroad. These loans are provided to students who have got admission to a technical course from a recognised college. All eligible students can apply for the govt schemes to get the student loan.
The Indian government has introduced several interest subsidies for study abroad loan and other loan schemes under NFDC. By availing of these govt schemes, students can benefit from less interest rates, flexible repayment options and other support.
To get an education loan from govt of India, students have to select the loan option from the available and proceed further.
Different Government Education Loans for Study Abroad Interest Subsidy Schemes
For students who want to take an education loan from the government under the subsidy schemes, a full interest waiver during the moratorium period is given. These schemes are linked with the IBA (Indian Banks Association) and so applicable only to those banks that are members of the IBA.
Here are 4 different education loans for govt subsidy schemes to study abroad.
- Dr. Ambedkar Central Sector Scheme
- Central Sector Interest Subsidy (CSIS)
- Padho Pardesh Scheme
- Interest Subsidy Scheme on Education Loan by the Government of Gujarat
Dr. Ambedkar Central Sector Scheme
This scheme provides interest subsidies on education loans for students to study in foreign countries who belong to OBC or EBC classes. This scheme is available only for masters, M.Phil, and PhD courses abroad.
Eligibility Conditions:
- Students should belong to EBC or OBC.
- For OBC candidates, the total family income should not exceed INR 8 lakhs per annum.
- For EBC candidates, the total family income should not exceed INR 5 lakhs per annum.
Application Process:
After getting the admission letter from a recognised university or college, students have to file an application at the bank to avail loan under this scheme.
- Submit the required documents, the bank will process your application and forward it to the Ministry of Social Justice and Empowerment.
- They will either accept or decline your application.
Central Sector Interest Subsidy (CSIS)
The Ministry of Human Resources Development and the Department of Higher Education has launched this interest subsidy scheme for EWS students for studying professional courses in India.
Eligibility:
- You must have obtained an admission letter from a recognised university.
- Your whole family income should not exceed INR 4.50 Lakhs p.a.
How to Apply:
- The process starts from the bank where the loan is to be approved.
- Attach the needed documents to the application form and submit it to the bank.
Padho Pardesh Scheme
The main purpose of this scheme is to provide 100% interest subsidies on education loans to meritorious students of EWS classes and thus improve their employee rate.
Eligibility:
- You should have obtained admission into the approved courses at Master, M.Phil or PhD.
- You should belong to the minority community such as Muslims, Christians, Sikhs, Buddhists, and Parsis.
- The total income of the family should not exceed INR 6 lakhs p.a.
- You should have obtained an education loan from the scheduled bank under the Educational Loan Scheme of the Indian Bank Association (IBA) for the purpose.
Process:
- The process begins after getting an admission letter from the college.
- With the admission paper, contact the IBA member bank and fill out the application.
- Attach the required documents to the filled loan application and submit it. The form is sent to the Department of Minority Affairs for processing.
Interest Subsidy Scheme on Education Loan by the Government of Gujarat
Even this scheme offers a 100% interest subsidy to EWS students from Gujarat state to study higher studies abroad. The scheme is available for graduate, PG, and diploma level courses and the loan amount offered is up to INR 15 lakhs for overseas study.
Eligibility:
- Students must have secured at least 60% in 12th grade.
- Total family income should be less than INR 6 lakhs.
Education Loan Schemes from the Government of India To Study Abroad
Other various education loan schemes provided by the Government of India to study abroad are listed here. To avail of these schemes, students have to belong to an economically weaker section category, and their family’s annual income should be low. The students must have secured an admission letter from a recognized university/ college to pursue technical or professional courses.
- National Safai Karamcharis Finance & Development Corporation
- National Minorities Development & Finance Corporation
- National Backward Classes Finance & Development Corporation
- Credit Guarantee Fund Scheme for Education Loans
- National Scheduled Tribes Finance and Development Corporation
- National Handicapped Finance & Development Corporation
- National Scheduled Castes Finance & Development Corporation
How To Apply For Education Loan From Govt?
Eligible students can refer to the particular government scheme loan website and know the conditions. The website offers the following details.
- Education loan schemes by different banks
- Common loan application forms for students
- Application for education loan from multiple banks
- Linking to National Scholarship Portal for loan information and application
Students can apply for education loans from different banks for different programs through a single form. All banks accept the form specified by IBA.
FAQs on How to Get Education Loan from Government
- How can I get an education loan easily?
You can get an education loan quickly by selecting the loan interest rate, amount and loan scheme at the bank. Submit all the needed documents. Once the document verification is done, a student loan is approved and the amount is credited to the college account.
- Is there any govt scheme for education loans?
Yes, we have different govt schemes for education loan. They are the Vidhyalakshmi scheme, padho pradesh scheme, Dr Ambedkar’s central sector scheme of interest subsidy, the central sector interest subsidy scheme, and the central scheme of interest subsidy for education loan.
- Who is eligible for an education loan?
Any resident Indian older than 18 years and less than 35 can apply for an education loan to pursue higher studies in India or abroad.
- How much salary is required for an education loan?
Persons with a salary of at least INR 30,000 per month are eligible to be named as education loan co-applicants.
In a Nutshell
We are hoping that you have got enough information on how to get an education loan from the government and what are the different government schemes that offer education loan to study abroad. Students can apply for their favorable scheme and get loan approved. Visit our site regularly to know more related posts such as How to Get Education Loan After 12th, Which Bank has Lowest Interest Rate on Education Loan, How to Apply for Education Loan for Abroad Studies, and so on.