Government Education Loan

Under the Credit Guarantee Fund Scheme For Education Loan (CGFSEL), students can apply for a loan of up to 7.5 lakhs at an interest rate of 8.8%. The loan amount can be used to cover tuition fees, hostel fees, books, equipment, and other related expenses. The scheme is available to students who have secured admission to a recognized institution in India or abroad.

Keep reading to know more about the Vidyalakshmi portal, the application process, and the education loan policies and subsidy schemes offered by various states.

The Credit Guarantee Fund Scheme for Education Loans (CGFSEL) for abroad education is a financial assistance scheme initiated by the Indian government to help students finance their higher education abroad. Under the scheme, students can get a loan of up to 7.5 lakhs without any collateral or third-party guarantee.

Eligibility For Government Education Loan For Abroad

• The student is eligible for the scheme if they belong to the Economically Weaker Section.
• The student is eligible for the scheme if they have secured admission to a recognized university for an approved technical or professional course after completing their secondary education, 
• Their family income should not exceed 4.5 Lakhs.

Under the CGFSEL scheme, eligible students can avail of education loans of up to 7.5 Lakhs for any course in any discipline. For courses in premier institutes such as the IITs and IIMs, the loan amount can be increased. These loans are granted by eligible banks and financial institutions across India.

Eligibility For Government Education Loan In India 

• If the student comes from an economically disadvantaged background
• Has been admitted to a recognized university for an approved technical or professional course after completing their secondary education
• Their family income does not exceed 4.5 Lakhs, they are eligible for the scheme.

Under the Bihar Student Credit Card Scheme (BSCCS), students who have 

• Must have completed their 12th standard examinations can apply for a loan of up to Rs.4 lakh at affordable interest rates. 
• The loan can be used to cover tuition fees, the purchase of textbooks and study materials, and other education-related expenses.
• The Bihar Government Education Loan offers a flexible repayment plan, which allows students to pay back the loan for 5 to 7 years after the completion of their studies.

Under the Higher Education and Skill Development Guarantee Scheme (HESDGS), the Delhi government guarantees to provide loans to students who wish to pursue higher education or skill development courses in Delhi.

• The loan amount can be up to Rs. 10 lakh and can be used for paying the tuition fees, accommodation fees, and other expenses related to the course.
• The Delhi Government Education Loan for Abroad is available for all students who have completed their Class X and Class XII from a recognized board and wish to pursue higher education or skill development courses in Delhi. 
• The scheme covers a wide range of courses, including undergraduate and postgraduate courses in engineering, management, law, medical, etc. as well as skill development courses in areas such as healthcare, hospitality, IT, etc.
• The loan provided under the scheme is interest-free, and the repayment of the loan starts after the completion of the course or six months after getting a job, whichever is earlier.
• The repayment can be done in equal monthly installments over a period of 15 years.

Under the Gujarat Educational Loan Scheme (GELS) students who are residents of Gujarat and have secured admission to a recognized foreign university for a higher education course can apply for the loan.

• The loan amount can be up to Rs. 15 lakh and can be used for paying the tuition fees, accommodation fees, travel expenses, and other expenses related to the course for the Gujarat government education loan for study abroad.
• The loan is provided at an interest rate of 4% per annum, which is significantly lower than the interest rate charged by commercial banks.
• The repayment of the loan starts after the completion of the course or six months after getting a job, whichever is earlier.
• The repayment can be done in equal monthly installments over a period of 10 years.

The Arivu Loan Scheme is a flagship educational loan scheme launched by the Government of Karnataka in 2003 to provide financial assistance to meritorious students from economically weaker sections of society to pursue higher education. Under the Arivu Loan Scheme, students can.

• Avail loans of up to Rs. 20 lakh to pursue undergraduate, postgraduate, and doctoral courses in India or abroad. 
• The loan covers all expenses related to education, including tuition fees, books, accommodation, and travel expenses. 
• The interest rate on the loan is subsidized by the government, making it affordable for students.

The Kerala Education Loan Repayment Scheme is a government initiative launched by the Government of Kerala in 2018 to help students who have availed of education loans to pursue higher education. The following are the features of the scheme.

• The government will repay 20% of the total loan amount, subject to a maximum limit of Rs. 1 lakh.
• The scheme is available to all students who have availed education loans for courses in India and abroad. 
• To be eligible for the Kerala Government Education Loan Repayment Scheme, the student must be a resident of Kerala and should have completed their education from a recognized institution.
• The repayment assistance is available for a period of 5 years from the date of commencement of repayment of the loan.
• The government will directly credit the assistance amount to the bank account of the loanee. 
• The scheme also provides a one-time grant of Rs. 2,000 to eligible students towards the payment of the first EMI of their education loan.

Kerala Government Education Loan Subsidy Application Form

To apply for the scheme, the student has to submit an application to the designated authority along with the necessary documents. The application should be submitted within six months from the date of commencement of loan repayment. The designated authority will verify the application and approve the assistance amount.

The Telangana Chief Minister's Overseas Scholarship Scheme is an initiative launched by the Government of Telangana to provide financial assistance to meritorious students from economically weaker sections of society to pursue higher education abroad. Here are the features of the scheme.

• Eligible students will be provided with financial assistance for the entire duration of their course, including tuition fees, living expenses, and travel expenses. 
• The scheme is open to students who have secured admission to Masters or Ph.D. programs in foreign universities in the United States, United Kingdom, Australia, Canada, Singapore, and other countries.
• To be eligible for the scheme, the student must be a resident of Telangana, and should have completed their graduation in a recognized institution in Telangana with a minimum of 60% marks. The annual family income of the student should not exceed Rs. 6 lakhs per annum.
• The selected students will be provided with financial assistance of up to Rs. 20 lakhs for Masters courses and up to Rs. 36 lakhs for Ph.D. courses. The assistance will be provided in the form of a grant, which means the student will not be required to repay the amount.

The Jharkhand government launched the "Guruji Credit Card Scheme" in 2019 to provide education loans to students who wish to pursue higher education. 

• Under the scheme, students from economically weaker sections of the society can apply for education loans up to INR 1 lakh to pursue higher education. 
• The loan can be used to cover various expenses related to education, including tuition fees, accommodation, and books.
• The loan is interest-free, and the government provides a subsidy of 4% to the banks to cover the interest. 
• The loan repayment period is up to 10 years, and the students can start repaying the loan after completing their education.

Marang Gomke Jaipal Singh Munda Transnational Scholarship

The Marang Gomke Jaipal Singh Munda Scholarship offers a unique opportunity for residents of Jharkhand belonging to SC, ST, Minority, and Other Backward communities to pursue postgraduate programs at participating universities in the United Kingdom. 

• The scholarship is designed to support up to 5 students annually who have demonstrated academic excellence and leadership potential in their respective fields. 
• The scholarship covers all tuition fees, living expenses, and airfare for the selected students to complete a one-year master's degree program in the UK.

Maulana Azad Education Loan 

Under the Maulana Azad Education Loan scheme, students from minority communities can 

• Avail of loans up to INR 5 lakhs to pursue higher education of any professional degree or diploma course. 
• The repayment period for the loans ranges from 5 to 7 years, and the interest rates are subsidized by the government. 
• The interest subsidy is provided at the rate of 3% per annum, and in some cases, up to 100% of the interest is borne by the government.
• The loans cover various expenses related to higher education, including tuition fees, examination fees, hostel fees, purchase of books and equipment, and other related expenses.
• The moratorium period lasts 6 months after the completion of the course.

Education Loan Scheme offered by the NSFDC

The Education Loan Scheme is offered by the National Scheduled Castes Finance and Development Corporation, New Delhi (NSFDC) for students belonging to the SC - Charmakar community.

• This scheme provides education loans for up to Rs.10,00,000/- for postgraduate courses in recognized institutions within India, and up to Rs. 20,00,000/- for postgraduate courses abroad.
• The loans cover several expenses related to higher education, such as tuition fees, examination fees, hostel fees, books, equipment, and other costs.
• The government subsidizes the interest rate for the loans, with male beneficiaries being charged 4% per annum, while female beneficiaries are charged 3.5% per annum. 

Dr.A.P.J.Abdul Kalam Education Loan

Dr. A.P.J. Abdul Kalam Education Loan is a government-backed scheme in India that aims to provide financial assistance to students who are unable to afford higher education. Under this scheme, eligible students can avail of education loans at subsidized interest rates for pursuing higher studies in India or abroad. 

• The scheme provides loans up to Rs. 10 lakh for studies in India
• Rs. 20 lakh for studies abroad. 
• The loan covers all expenses related to education, including tuition fees, hostel fees, and other related expenses.
• At an interest of 3% P.a and repayment period of 5 years
• The moratorium period lasts 6 months after completion of the course.

Educational Loan Scheme offered by TAMCO

• Students belonging to a minority community pursuing short-term high skill development courses, professional courses (Under Graduate / Post Graduate level), and job-oriented degree courses at government or government-recognized private institutions can avail this loan. 
• The loan amount is up to Rs. 3 lakh per academic year, to a maximum of Rs. 15 lakh at a 3% annual interest rate.
• To be eligible, the annual parental income of the student should not exceed Rs. 98,000 in rural areas and Rs. 1,20,000 in urban areas.
• For those pursuing studies abroad, the loan amount is up to Rs. 4 lakh per year, to a maximum of Rs. 20 lakh over five years, at a 3% annual interest rate, subject to the same income criteria.
• Minority students pursuing professional studies in India and whose parental annual income exceeds Rs. 1.03 lakh but does not exceed Rs. 6 lakh can also apply for an education loan.
• Male students will be charged an 8% annual interest rate on the loan, and the female students will be charged 5%.

Interest-Free Education Loan Scheme

The Interest-Free Education Loan Scheme offered by the government of Goa is a unique initiative aimed at providing financial assistance to students who aspire to pursue higher education but may not have the means to do so.

• Under the scheme, eligible students can avail of loans of up to Rs. 10 lakhs disbursed over 5 years to pursue higher education in any recognized institution in India 
• And 16 Lakhs disbursed over 2 years for courses pursued abroad. 
• The loan amount can be used to cover tuition fees, accommodation charges, travel expenses, and other necessary expenses related to the course under the Goa Government Education Loan scheme. 

Eligibility:

The applicant must have cleared the qualifying examination, which could be:

a) Class X or XII for diploma/degree level professional or non-professional courses from recognized institutions located in Goa.

b) Graduation from recognized institutions in Goa for postgraduate courses.

c) Graduation from institutions outside Goa for courses not available in Goa.

d) Post Graduation for PhD courses.

e) For studies in India, the applicant must have secured 55% or more marks in the qualifying examination. (For candidates from SC/ST/OBC categories, there will be a relaxation of 10% in the qualifying marks).

f) For studies abroad (outside India), the applicant must have secured 60% or more marks in the qualifying examination. (For candidates from SC/ST/OBC categories, there will be a relaxation of 10% in the qualifying marks).

g)The applicant should meet the eligibility criteria concerning economic/financial constraints.

h)The applicant should enroll in any of the courses approved under this scheme.

The Central Government Education Loan Scheme or The Credit Guarantee Fund Scheme for Education Loan (CGFSEL) is a scheme that has been established by the government of India to provide financial assistance to students who wish to pursue their higher education within the country or abroad. This scheme is designed to enable students to avail of loans up to a maximum amount of 7.5 lakhs at an interest rate of 8.8%, which is comparatively lower than the interest rates charged by most other lenders in the market.

The duration of time over which a borrower is expected to repay their education loan depends on the particular state government offering the loan. However, it is worth noting that many government education loan products adhere to the guidelines established by the Indian Banks' Association (IBA). The general repayment tenure would range from 10 - 15 years. The calculation of the repayment schedule will depend on the Government education Loan Interest Rate. 

The government of India offers three Interest subsidy schemes:

• Padho Pardesh Scheme 
• The Central Government Interest Subsidy Scheme
• Dr. Ambedkar Interest Subsidy Scheme

Padho Pardesh Scheme:

• The Padho Pardesh Scheme is designed to benefit students who come from religious minority communities such as Muslim, Christian, Sikh, Buddhist, Jain, and Zoroastrian
• Have a family income of less than 6 Lacs.

Note: the scheme will no longer be applicable from April 1, 2022. However, the existing beneficiaries who have applied for the scheme until March 31, 2022, will continue to receive the interest subsidy during the term of their loan and the moratorium period.

The Central Scheme for Interest Subsidy Scheme:

To be eligible for the Central Government Education Loan Subsidy Scheme, the student's family income should not exceed 4.5 Lacs. 

Dr. Ambedkar Interest Subsidy Scheme:

• The Dr. Ambedkar Central Sector Scheme is designed to provide financial assistance to EBC and OBC students pursuing higher education. 
• The student's family income should not exceed 8 lakhs. 

At WeMakeScholars, we understand that applying for an education loan can be a tedious process. That's why we have made it our mission to simplify this process for you. With our easy online application process, getting a loan has never been easier. 

Step 1: Fill out our common application form, which you can access through our website or through a provided link, and a financial officer from WeMakeScholars will contact you to verify your eligibility. 

Step 2: Once your eligibility is checked, we provide you with a comprehensive comparison of all the lenders you can avail loans from. 

Step 3: Our financial officer will also share a document checklist with you, which can be submitted at the nearest branch or uploaded onto our WMS-secured portal. 

Step 4: As We are connected to most of the prominent public banks in the country. We can make sure that your education loan is processed in 10-15 days. Whereas, it takes around a month when the banks to be approached directly.