Education Loan for Abroad Studies by Indian Government

“Education is the most powerful weapon which you can use to change the world”. If a person that educated is capable of changing not just his/her individual life but also the life of others. Quality education requires a hefty amount that some people are not able to afford. To help the candidates that have the talent & potential to study from abroad but lack sufficient funds, the Government of India has launched various schemes to provide financial assistance. Here are some of the education loans for Abroad Studies by the Indian Government that will help you to fulfil your dream!

Also Read: Loans to Study Abroad

Padho Pradesh Government

Padho Pradesh is a government education loan scheme launched to help students belonging to economically weaker sections of minority groups providing them with financial assistance in their higher education from foreign universities. Minority groups included are declared in section 2(c) of the National Commission for Minorities Act, 1992. Padho Pradesh was launched to push & enhance the minority communities towards the education sector & better employment opportunities. 

Eligibility

• Students interested in pursuing & have secured admission seats at Master or PhD. level.
• Applicants must belong to a minority community declared in section 2(c) of the National Commission for Minorities Act, 1992 ( Muslims, Christians, Sikhs, Buddhists, Zoroastrians (Parsis) and Jains )
• Applicants should have availed bank loan from a bank that is a member of the IBA.
• Family income should not be more than Rs.6,00,000 lakhs p.a.

Click here for Padho Pardesh

Here is a state/UT-wise & Community-wise distribution of the Padho Pardesh Scheme for overseas studies:

Dr Ambedkar Central Sector Scheme

Dr Ambedkar Central Sector Scheme is a government education loan scheme launched to help the students of other backward sections & economically weaker sections of society by providing them with financial assistance for higher studies from foreign universities. This is awarded to students with excellent academic records. The Government education loan scheme was an initiative to enhance education & employability among the OBC & EwS.

Eligibility

• Applicants applying for this scheme as other backward classes categories should have a government-issued certificate of OBC.
• Applicants must have secured admission to a foreign university, Indian institutions are not eligible.
• Courses at the master’s & PhD levels are only eligible for this scheme.
• Applicants should have availed bank loan from a bank that is a member of the IBA.
• Family income should not exceed Rs. 3 Lakhs p.a.

Click here for Dr Ambedkar Central Sector Scheme

Here is a form of Dr Ambedkar Central Sector Scheme

Education Loan Scheme of the NBCFDC

NBCFDC provides educational loans to the applicants of the OBC Category seeking admission into general/professional/technical courses at the bachelor’s or master’s level from Indian institutions or institutions from abroad. The maximum loan limit for applicants pursuing courses from India is Rs. 4 lakhs whereas for foreign courses maximum loan limit is Rs. 20 lakhs. The interest rate is 4% & concessional for girls is 0.5%

Eligibility

• Applicants applying for this scheme as other backward classes categories should have a government-issued certificate of OBC.
• Applicants must have secured admission to a foreign university or Indian institution.
• Applicants should have secured admission based on the entrance exam or merit
• Family income should not exceed Rs.3.5 lakhs.

Vidya Lakshmi Education Loan

Vidya Lakshmi Education provides loans to those who wish to pursue graduation, post-graduation, and doctoral programs. The government approves a loan of a maximum amount of ₹ 30 lakhs to students who are willing to study abroad.

Eligibility

• Applicants must be Indian Nationals
• Applicants must be able to secure admission to an international university or college.
• Applicants must have completed their class 12th from a recognized board of study.

Gujarat Government Education Loan for Studying Abroad 

The Gujarat Government Education Loan, a well-known Indian government education loan for overseas study, provides a 100% subsidy to economically disadvantaged Gujarat students who aspire to pursue higher education in a foreign setting. Students can borrow up to 15 lakhs with this government student loan to study abroad to begin their higher education overseas.

Eligibility

• The student must be a Gujarat resident.
• The annual household income should not exceed 6 lakhs.
• Any international university or college acceptance confirmation letter is required for the applicant.
• The subsidy would be provided only when the loan amount exceeds 10 lakhs.

How to Apply?

If you are eligible for any of the education loans for abroad studies by the Indian government & wondering how to apply for the same? Here is a step-wise process:

1. All candidates have to first apply to an institution abroad & secure a seat.
2. Reach out to the bank that is a member of IBA for education loans or apply through the portal.
3. The next step is to inform & request the application form under the education loan for abroad studies by the Indian government. (Scheme that is applicable based on course & eligibility)
4. Submit the required documents.
5. After the submission of the application & documents, it will be forwarded to the concerned authority.
6. You will be contacted by the bank/authority if you are selected for the education loan for abroad studies by the Indian government.

Documents Required

At the time when applying for an education loan for abroad studies by Indian government, some mandatory documents need to be submitted. Here is the list of documents:

• Application form for the loan 
• Income proof for the family (income tax returns, property proof, etc)
• Standardised test scores 
• Academic transcripts
• Aadhar card 
• Birth certificate
• Bank statements
• PAN Card 
• Residential proof 
• Acceptance letter from a university abroad 
• Self-declaration

Repayment

The repayment will start after the moratorium period has expired.  The moratorium period is the duration of the course plus one additional year or six months after an applicant has secured a job. The applicant has to pay the EMIs beyond the period of moratorium.

Key Takeaways

• Because of the numerous benefits, the number of Indian students studying abroad has expanded considerably.
• To pursue education abroad, you must have a strong awareness of the money required to fund your studies.
• The Indian government has established numerous unique government education loan schemes to assist students in studying overseas.
• As a candidate, you can select the loan that best meets your needs. Before finishing your registration, double-check the eligibility for each loan.

FAQs

We hope that all your queries regarding education loans regarding study abroad by the Indian Government are solved through this blog. If you require more extensive abroad admission support, like choosing the right university, identifying a suitable loan and creating the perfect application to target your dream universities, our counsellors at Leverage Edu can help you.