Education Loans by the Government of India

The government of India offers loans for students pursuing higher education. Students get education loans for a wide range of undergraduate, graduate, postgraduate, and doctorate programmes in India and abroad. The central government provides loans through different schemes and portals. To avail of any education loan in India by govt. or subsidy on interest amount, the candidate must be a citizen of India and should have taken admission to any of the approved courses in any recognised university abroad or in India.

Education Loans	Applicable Program Levels
Credit Guarantee Fund Scheme for Education Loans (CGFSEL)	Undergraduate Postgraduate
Dr Ambedkar Central Sector Scheme	Postgraduate Doctorate
Loans under Vidya Lakshmi Portal	Undergraduate Postgraduate Doctorate
Padho Pardesh Scheme	Postgraduate Doctorate

Credit Guarantee Fund Scheme for Education Loans (CGFSEL)

Under the Credit Guarantee Fund Scheme for Education Loans (CGFSEL) students get education loan in India by govt. for pursuing higher education in recognised universities in India and abroad. The loans are sanctioned under the Model Education Loan Scheme of the Indian Banks Association. This education loan in India by govt. is specially designed for students without any co-applicant or collateral. 

Objectives

• To enable students without collaterals or co-applicants to pursue higher education after Class XII.
• To enable students to pursue a career in India or abroad. 

Eligibility

• The applicant should be a citizen of India.
• The candidate should have got admission to an approved professional or technical course in a recognised university after Class XII.
• To avail of this scholarship in India by govt., The student must belong to the Economically Weaker Section (EWS) and have the certificate for the same.
• The income of the family of the applicant should not be more than INR 4.5 lakhs per annum.

Benefits 

• Students get a loan of up to INR 7.5 lakhs without any collateral or co-applicant.
• Scheduled Banks can grant a loan of more than INR 7.5 lakhs against a mortgage or support of a co-applicant.
• Students are required to repay this education loan in India by govt. and the interest amount after the completion of their courses. 

Procedure

• The candidate has to fill out the loan application form at any Scheduled Bank under the Indian Banks Association after getting a seat in any approved Bachelor-level course in any recognised university in India and abroad.
• Banks start the loan process after receiving the required documents from the applicants. 

Dr Ambedkar Central Sector Scheme

Dr Ambedkar Central Sector Scheme is a central sector loan subsidy scheme. It is eligible for study abroad students or students who get admission to approved M.Phil/Ph.D./Masters programmes of any recognised university abroad. This education loan in India by govt. Empowers students from weaker sections of society to excel in universities abroad.

Objectives

• To award interest subsidy on education loans provided by scheduled banks under the Indian Banks Association for students going overseas for approved Master/M.Phil/Ph.D. courses from recognised universities.
• To provide learning opportunities to students from Other Backward Classes (OBC) and Economically Backward Classes (EBC) sections, which in turn will help students have better employment prospects. 

Eligibility

• Applicant must be a citizen of India and must belong to Other Backward Class (OBC) or Economically Backward Class (EBC).
• For EWS students, the family income should not exceed INR 1 lakh per annum.
• For OBC applicants, total family income must not exceed INR 3 lakhs per annum.
• Candidate must have taken the education loan from a scheduled bank under the Education Loan Scheme of the Indian Bank Association.
• Applicant must have secured admission in any Master/Ph.D./M.Phil courses of universities abroad. 

Benefits

• Under this education loan in India by govt, a 100% interest waiver is provided on a loan amount of up to INR 20 lakhs if the loan is paid during the moratorium period. 
• For loans above INR 20 lakhs, interest on loans up to INR 20 lakhs is reimbursed during the moratorium period. 
• Each year, 50% of the subsidy fund allocated to Dr Ambedkar Central Sector Scheme is earmarked for Female students. 

Procedure

• Students need to fill out the loan subsidy application form for this education loan in India by govt after securing admission to approved postgraduate courses. The applicant has to avail and submit the form to the lending scheduled bank under the Indian Banks Association. 
• After receiving the mandatory documents, the bank will forward the application to the Ministry of Social Justice and Empowerment. The ministry will proceed with the subsidy process from there. 

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Loans under Vidya Lakshmi Portal

Vidya Lakshmi Portal allows students to compare and apply for education loans- State Bank of India (SBI) Education Loan, Bank of Baroda (BOB) Education Loan, Axis Bank Education Loan, Industrial Credit and Investment Corporation of India (ICICI) Bank Education Loan, Housing Development Finance Corporation Limited (HDFC) Credila Abroad Education Loan, Avanse Education Loan, Auxilo Education Loan, and Incred Education Loan. Applicants can get a decent loan amount under this scheme of education loan in India by govt. The interest rates for these loans are very minimal.

Eligibility

• Applicant must be a citizen of India.
• The student must have secured admission to approved undergraduate/graduate/postgraduate programmes in recognised universities in abroad and India.

Benefits

• Students can apply to all the Scheduled Baks from a centralized platform with one application.
• Banks offer remote services without visiting the banks.
• All loans on this portal are in compliance with Central Sector Interest Subsidy (CSIS).
• Availability of multiple types of education loans in India by govt under this portal

Procedure

• Students need to create their login account on  Vidya Lakshmi Portal.
• Students will receive a confirmation link on their registered e-mail ID.
• Click on the confirmation link and the registration process will be completed.
• After successful registration, candidates will have to apply for an education loan by filling in the details and uploading the required documents.

Education Loans under Vidya Lakshmi Portal

Education Loan	Interest Rate	Processing Fee	Loan Margin
SBI Education Loan	Women- 9.4%Men- 9.9%	INR !0,000+GST	10%
BOB Education Loan	Women- 7.75%Men- 8.25%	INR !0,000+GST	0%
Axis Bank Education Loan	Starts at 11.25%	Exempted for Loans up to INR 20 lakhsFor Loans>INR 20 lakhs- INR 750/lakh	15%
ICICI Bank Education Loan	Starts at 11.5%	1%of Loan Amount +GST	15%
InCred Education Loan	Starts at 12%	1% to 1.5% of Loan Amount	0%
Auxilo Education Loan	Starts at 12.7%	1% to 2% of Loan Amount	0%
Prodigy Finance Education Loan	6.7% to 11%	2.5% to 4% of Loan Amount
HDFC Credila Abroad Education Loan	Starts at 11.0%	1% to 1.25% of Loan Amount	0%
Avanse Education Loan	Starts at 12%	1% to 1.5% of Loan Amount	0%

Padho Pardesh Scheme

Padho Pardesh Scheme was introduced for the Economically Weaker Sections (EWS) of the notified minority communities as mentioned under the National Commission for Minorities Act, 1992. Eligible candidates can apply for the loan on the official website of Padho Pradesh. This education loan in India by govt. Enables students to create a mark in the global academic ring.

Objectives

• To provide interest subsidies on educational loans for students studying abroad. 
• The subsidies are aimed at providing better opportunities for higher education. This will further help students in their employment.

Eligibility

• The applicant must be a citizen of India to avail of this education loan in India by govt.
• Student must have got admission to an approved Master/M.Phil/Ph.D. courses in a recognised university abroad.
• Candidate must belong to a minority community. Section 2(c) of the National Commission for Minorities Act, 1992, states that Zoroastrians (Parsis), Muslims, Sikhs, Buddhists, and Christians are considered minorities in India. 
• Student must have availed of the education loan from a scheduled bank under the Educational Loan Scheme of the Indian Banks Association.
• The total income of the family must not be more than INR 6 lakh per annum.

Benefits

• Applicants are eligible for a 100% interest subsidy on their education loan till the moratorium period. The moratorium period refers to the course duration and an additional six months or twelve months, as stated by the Education Loan Scheme of the Indian Banks Association.
• The interest subsidy is applicable for loans up to INR 20 lakhs. For loans above this amount, the interest subsidy under Padho Pardesh Scheme is applicable on the amount of INR 20 lakhs only.

Procedure

• The process is initiated immediately after the student has secured admission to M.Phil/Ph.D./Masters programmes in a recognised university.
• Student must approach the bank of his/her/their choice with admission papers and request for subsidy under the Padho Pardesh Scheme. The bank must be a member of the Indian Banks Association. 
• After filing the application form for this education loan in India by govt, the respective bank sends the form to the respective department of the Ministry of Minority Affairs to initiate the subsidy process.

FAQs

So, if you are planning to go for higher studies in universities in India or abroad, check out the different types of education loans in India by govt. Apply for requisite loans on the official website of the administering ministry or authority to avail of the loan and subsidies on the respective loan.

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