The state government of Delhi has launched a new education loan scheme, Higher Education and Skill Development Credit Guarantee Scheme to encourage students to pursue higher education after completing their formal schooling. The main purpose of this scheme is to financially assist students in getting a degree to be eligible for employment. However, this scheme benefits students of Delhi. Students who have completed their schooling from Delhi can apply for this scheme. In this blog, we have mentioned all that you need to know about this Education Loan by Delhi Government.
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Education Loan by Delhi Government – Highlights
|Name of Scheme||Higher Education and Skill Development Credit Guarantee Scheme|
|Budget Allocated||30 crores|
|Maximum Loan Amount||INR 10 Lacs|
|Rate of Interest||Base Rate + 2%|
|Repayment Period||15 years|
|Security||Parents CoBorrowerNo security required|
Education Loan by Delhi Government Eligibility
Students must meet the eligibility criteria for applying for this Education Loan by Delhi Government. We have specified the eligibility criteria below for applying –
- Applicants must have completed their 10th and 12th from Delhi for being eligible for this scheme.
- Students must continue pursuing higher studies in the NCT itself.
- As of August 31st, the government declared students who wish to pursue higher studies outside Delhi from any government college will also be considered eligible for this scheme.
- Students whose wardens are government employees posted in Delhi are also eligible under this scheme.
- Students who have passed out 10th and 12th from Delhi and are pursuing recognized degree or diploma level courses or skill development courses from Central /State Govt. Universities /Institutions located outside Delhi, within India are also considered eligible.
- In case a student wishes to study in a Private Institution, the institute must have secured NAAC/NBA grading. Since presently all institutions do not have NAAC/NBA grading, SFRC grading will also be considered for a limited period.
Courses Eligible for Pursuing Studies in Delhi
For availing the education loan by Delhi government, students should be pursuing any of the following courses –
- Approved courses offered by recognized colleges/ universities recognized by UGC/ Government/ AICTE/ AIBMS/ ICMR etc
- Courses like ICWA, CA, CFA etc
- Courses Offered by IIT, NIFT, NLU, IIFT etc
- Regular Degree/Diploma courses like aeronautical, pilot training, shipping, including those run by Polytechnics etc., degree/diploma in nursing, physiotherapy or any other discipline, if the course is pursued in Delhi.
- Skill Development Courses as specified by Govt. of NCT of Delhi.
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Expenses Covered by Education Loan
Following are the expenses covered by the Education Loan by Delhi Government :
- Tuition fees
- Examination Fees
- Library/Lab Fees
- Insurance Premium
- Caution Deposit/ Refundable Deposit
- Purchase of Books/ Equipment/Uniforms
- Any other expense required to complete the course
- Computer purchase at reasonable cost
While determining the loan amount, scholarships or loan waivers provided to students are taken into consideration.
Maximum Loan Amount Provided – INR 10 Lacs
- For loan amounts up to Rs. 7.5 lakhs are granted by the Banks under the Govt where conditions as prescribed under the Credit Guarantee Fund Scheme for Education Loans (CGSEL) of Govt. of India are satisfied.
- For loans above Rs. 7.5 lakhs & upto Rs. 10 lakhs and loans in respect of Private Institutions which presently do not have NAAC accreditation as required under Govt. of India scheme but have SFRC grading of A+ or A and otherwise satisfy the requirements under the scheme of Govt. of NCT of Delhi will be covered under this scheme
The moratorium period is of : Course period + 1 year. •
- If due to certain circumstances, a student is not able to complete the course within the scheduled time, extension of time for completion of course may be permitted for a maximum period of 2 years.
- In case the student discontinues the course midway, an appropriate repayment schedule will be worked out by the bank in consultation with the student/parent.
- The accrued interest during the repayment holiday period to be added to the principal and repayment in Equated Monthly Installments (EMI) fixed.
- 1% interest concession may be provided by the bank, if interest is serviced during the study period and subsequent moratorium period prior to commencement of repayment.
- Repayment of the loan will be in equated monthly installments for a period of 15 years for all categories.
- While EMI based repayment is the generally accepted practice, many times the salary levels at the start of the career may not facilitate comfortable payment of EMI in certain cases (e.g. professionals like Doctors). Telescoping of repayment with stepped up installments with passage of time may be considered in such cases.
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So, this was about education loans by the Delhi government. Hope you found this to be informative. For more such content, stay connected to Leverage Edu!