Education Loan by Delhi Government Scheme for Students

Education is the foundation of a nation's progress and development. However, the exorbitant cost of higher education has long been a deterrent for students from economically weaker sections of society. In an effort to make quality education accessible to all, the Delhi Government launched the Higher Education & Skill Development Guarantee Scheme

The flagship scheme launched in September 2015 enables students to avail education loans of up to Rs. 10 lakhs without any collateral or guarantor, making it easier for students to pursue their studies without any financial burden. The loan is available for both full-time and part-time courses and can be availed for a maximum period of 15 years.

The objective of the Delhi Government Education Loan scheme is to provide degree or diploma-level education to students, enhancing their employability. Additionally, the scheme also includes skill development courses, such as engineering, medicine, law, and management, as well as vocational courses such as ITI, polytechnic, and skill development courses, which will enable students to gain practical knowledge and secure jobs more efficiently.

NOTE- There is no security/collateral required to take this Education Loan, only the parents or the guardians must be the co-borrower of the applicant and if the applicant is married, then the joint account holder can either be the spouse or in-laws of the applicant.

To find out if you're eligible for this scheme, read on as we take a closer look at the eligibility criteria for Delhi Government Education Loan. With the Higher Education & Skill Development Guarantee scheme, the doors to higher education are now open to all deserving students.

• Students must have completed their Class-X and Class-XII education from Delhi.
• Those who have completed their Class-X education in Delhi can also apply for courses where the qualifying examination is Class-X.
• Children of employees of Govt. of NCT of Delhi or Officials/government servants who are posted with the Govt. of NCT of Delhi are also eligible under this scheme.
• After passing the Secondary Examination, Senior Secondary Examination, or other required qualifying examination, applicants must have been admitted to a higher education course or a
• specific skill development course (diploma or degree including bachelor's, master's, and doctoral degrees) in a recognized institution in Delhi through an entrance test or merit-based selection process.
• Private/self-financed institutions located in Delhi having NAAC/NBA/SFRC grading would also be eligible.
• Institutions of technical/training skill development such as courses by World Class Skill Centre or any other technical training/skill development institutions specified by the Delhi government are also covered.
• Students who have passed 10th and 12th from Delhi and are pursuing a recognized degree or diploma level courses or skill development courses from Central/State Government universities/institutions located outside Delhi within India are also eligible.
• Other reputed and recognized institutions may be considered on the basis of employability.
• The private institution in which admission has been secured should have NAAC/NBA grading. SFRC grading will also be considered for a limited period until institutions receive NAAC/NBA grading.

NOTE- There is no such age bracket fixed by the government for this Higher Education & Skill Development Guarantee Scheme Education Loan. 

Collecting all the documents is always a hectic task for the applicants, it becomes more problematic when they don’t have a right checklist of documents. In this given article, we will provide you all the proper and right checklist of documents. So that, you don’t have to worry further-

• Identity Proof
  
  • Aadhar Card
  • PAN Card
  • Passbook Copy
•  Residency Proof issued by the Tehsildar (Executive Magistrate), Revenue Department, Govt. of NCT of Delhi (if required)
  • Voter’s ID Card
  • Ration Card
  • Passport
  • Electricity/ Telephone Bill, etc
• 10th passing certificate (from Delhi) for all the courses having qualifying examination is class 10th
• 12th passing certificate (from Delhi) for all the courses having qualifying examination is class 12th
• Employer’s Certificate (applicants who are the children of employees of Govt. of NCT of Delhi or Officials/government servants who are posted with the Govt. of NCT of Delhi)
• Recent and passport-size photographs
• Admission letter from the recognized institution listed by the Delhi govt
• Non-Objection Certificate (NOC) from the bank
• Loan account in one of the lists of approved member banks of Delhi 

Note- PAN Card is not mandatory at the time of education loan application/sanction. But before the release of the second installment of the loan amount, students have to provide PAN details.

Here's a list of all the eligible courses under the Delhi Government Education Loan that can help you achieve your goals without worrying about the financial burden. The list consists of an ample number of courses from which eligible students can easily choose without compromising.

• All diploma, degree, and postgraduate courses from colleges and educational institutions recognized by the University Grants Commission (UGC) for academic courses and All India Council for Technical Education (AICTE) for technical courses.
• Courses from other premier institutes like Indian Institutes of Technology (IITs), Indian Institutes of Management (IIMs), National Law Universities (NLUs), Indian Institute of Foreign Trade (IIFT), National Institute of Fashion Technology (NIFT), and more.
• Commerce courses like Chartered Accountancy (CA), Institute of Cost Accountants of India (ICAI), and other professional courses.
• For those aspiring to fly high and dream of becoming a pilot, aeronautical and pilot training courses approved by the Directorate General of Civil Aviation (DGCA) are eligible.
• For those looking to sail the seas and explore the world, shipping courses approved by the Directorate General of Shipping are eligible.
• If you're interested in pursuing a career in nursing, then you can take up courses with accreditation from the Indian Nursing Council (INC).
• Lastly, for those who wish to develop their skills and take up skill development courses, the state government of Delhi approves the institutes based on their employability criteria.
• However, before sanctioning education loans, banks or educational institutes must verify the certification and necessary approvals of the educational institutions. Also, all institute fees must be regulated by the government to qualify for loans under the Credit Guarantee Project.

When applying for a Delhi Government Education Loan, there are several expenses that need to be taken into account. These expenses can be broadly categorized into the following:

1. Payment of college, school, or hostel fees
2. Fees for examinations, library use, and laboratory use
3. Premiums paid for insuring education loans taken by the student
4. Refundable deposits such as caution deposits or building funds supported by receipts issued by the educational institution
5. Expenses related to purchasing course materials such as books, equipment, instruments, or uniforms
6. Cost of purchasing a computer or laptop if it is required for completing the course
7. Other expenses such as study tours, project work, thesis expenses, and other costs that are necessary to complete the course
8. If the student is eligible for scholarships or fee waivers, those amounts would be subtracted from the total loan amount required.
9. If the scholarship amount is included in the calculation of the loan amount required, the scholarship funds would be added to the loan account as soon as they are received from the government. This will help reduce the loan amount and the interest charged on it.

Notes:

• Fees set by the state government or another regulatory authority recognized by the government would be accepted for payment of seats in courses covered by management quota
• Considered under the scheme, pending the viability of payback.
• Reasonable lodging and boarding charges will be considered in case the student chooses/is required to opt for outside accommodation.
• Expenditure under points 5, 6, and 7 could be considered subject to the condition that the amount does not exceed 10% of the total tuition fees for the entire course.
• Make a realistic assessment of the requirement under these heads, as expenditure under points no. 6, and 7, and scholarships may not be available in the schedule of fees and charges prescribed by the college authorities.

To help aspiring students apply for this loan, the Delhi Government has laid out a straightforward application process that can be completed both online and offline. Let's take a closer look at the steps involved in the Delhi Government Education Loan application process.

1. The Delhi Government Education Loan scheme allows you to apply for an educational loan both online and offline.
2. You can apply online via a dedicated web portal set up by the state government, or you can visit a bank branch in person for an offline application.
3. After submitting your application, you will receive an acknowledgment from the bank with a unique acknowledgment number.
4. Within 15 days of application submission, the bank will inform you of the acceptance or rejection of your loan application.
5. Loan amounts will be disbursed directly to your educational institution in installments as required.
6. There are no processing charges for educational loans under this scheme.
7. If your loan application is rejected, the bank must report the rejection to the state government's educational governing body before informing you of the reasons for the rejection.
8. All sanctioned loans will be stored in a government database for future reference

• There are no penalties for making loan prepayments, and the repayment moratorium or holiday period is one year in addition to the course length.
• There will be a maximum 2-year grace period offered in the event that the student cannot finish the course within the allotted time frame due to unavoidable circumstances.
• The bank authorities will communicate with the parent or student to determine the best course of action in the event that the student discontinues the course.
• A 1% interest reduction is available to students who repay the interest accrued on their loan balance while enrolled in the program.
• Students can choose a longer tenure of the loan repayment period of up to 15 years after the loan is started to be repaid via EMIs created by the bank.
• For occupations like those of lawyers, doctors, and other professionals, whose wage or income structures at the beginning of the career are on the lower side, the scheme provides for scaling up the EMIs in accordance with the increase in salary. The bank will cancel the loan account once the complete loan amount and accrued interest have been repaid.
• A NOC will be provided to the student as proof of no dues from the financial institution.

As of the recent data we have collected from the authorised sources, here is the complete list of banks that are empanelled under the Higher Education & Skill Development Guarantee Scheme launched under the Delhi Government Education Loan Scheme.

Obtaining an Education Loan can be time-consuming and tiring. But with WeMakeScholars, you can bid farewell to the hassle and apply for your loan entirely online, making the process smooth and effortless.

WeMakeScholars is an organization that is supported and financed by the Indian Ministry of IT Govt. of India. We are partnered with 14+ public and private banks. We are dedicated to providing exceptional educational loan assistance to students who aspire to pursue their higher education. Here are some of the benefits of using WeMakeScholars for your Education Loan needs:

• Expert support: Our team of financial officers will carefully analyze your profile to identify the most suitable loan options and provide guidance throughout the repayment period, including addressing any unexpected interest rate fluctuations.
• Negotiation assistance: Our skilled financial officers are trained to negotiate with lenders on your behalf to secure the most favourable terms and conditions.
• Interest rate discounts: As partners with 14+ private and public banks, we can offer you interest rate discounts ranging from 0.5% to 2% on your education loan.
• Free services: Our association with the Ministry of IT under the Digital India campaign enables us to offer free services to students.
• Streamlined processing times: We can process your loan application in as little as 2-7 working days with a private bank or in 21 working days with a public bank, saving you time and effort compared to visiting a bank in person.
• Tax benefits: By using our services, you can take advantage of tax exemptions under sec 80C and 80E and save money while filing your ITR (Income Tax Return).
• Cashback offers: Once your loan is sanctioned and disbursed through us, you can unlock cashback offers of up to Rs. 3000, providing additional savings.