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Education loan for abroad studies by the Indian government - GyanDhan brings a comprehensive guide on government education loan for study abroad
The Government of India has implemented various schemes to provide financial assistance and interest subsidies to students pursuing further studies abroad. These initiatives are designed to support students from economically weaker sections and marginalized communities in their educational pursuits. It is important to note that though it is commonly referred to as government of India education loans for study abroad, these initiatives are not direct loans but rather schemes that offer financial aid and interest subsidies. By availing these schemes and govt education loan students can benefit from reduced interest rates, flexible repayment options, and other forms of support. Let's explore some of the key government of India study loans and government schemes that facilitate affordable education and empower students to achieve their academic goals.
Important points about foreign education loan by government of India:
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To qualify for government study loan, applicants generally need to meet the following basic eligibility criteria:
In addition to these requirements, specific schemes may have additional eligibility criteria. It's recommended to check the official website of the respective scholarship or government student loans India for detailed information.
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The Dr. Ambedkar Central Sector Scheme provides interest subsidies on education loans for overseas studies to students who belong to Other Backward Classes (OBCs) or Economically Backward Classes (EBCs). This govt education loan scheme is available for meritorious students who have secured admission in the approved courses at Masters, M.Phil, or Ph.D. courses abroad.
Eligibility criteria:
Procedure:
The Ministry of Human Resources Development and Department of Higher Education has formulated this government loan for study abroad interest subsidy for economically weaker sections (EWS) for pursuing technical/professional courses in India.
Eligibility criteria:
Procedure:
Education loan for study abroad by the Gujarat government offers a 100% interest subsidy to economically weaker students from Gujarat who wish to pursue higher studies abroad. Through this govt education loan for abroad studies by the Indian government without collateral scheme, students can get up to INR 15 Lakh for overseas study. This govt education loan scheme is available for professional courses at graduate, post-graduate, and diploma levels.
Eligibility criteria:
Please note that this scheme has been discontinued by the Government of India.
The objective of the government study loan scheme was to award 100% interest subsidies on education abroad loans to meritorious students belonging to economically weaker sections of society and hence enhance their employability.
The students should belong to the notified minority communities (Muslims, Christians, Buddhists, Sikhs, and Parsis) as declared in section 2(c) of the National Commission for Minorities Act, 1992.
Eligibility criteria:
Procedure:
In 2015, the Credit Guarantee Fund Scheme for Education Loans (CGFSEL) was introduced by the Government of India. This govt education loan for study abroad is primarily for students who wish to study abroad but do not have any collateral or co-applicant to pledge. Under this scheme, you can get up to INR 7.5 Lakh loan without any collateral or co-applicant.
Requirements:
The National Minorities Development & Finance Corporation (NMDFC) is a government body that works toward financing the minority sections of society, through State Channelising Agencies (SCAs). NMDFC provides loans to study in India & abroad for professional and job-oriented courses.
NMDFC has divided the minorities into two subsections:
Eligibility Criteria:
The corporation's objective is to provide subsidized financing for self-employment to underserved minorities, including Muslims, Christians, Sikhs, Buddhists, Parsis, and Jains.
For Credit Line 1:
Feature | Description |
---|---|
Education loan for study in India |
Up to INR 20 Lakh |
Education loan for study abroad |
Up to INR 30 Lakh |
Rate of Interest (ROI) |
3% per annum |
Moratorium period |
6 months after completing the course or getting a job. |
Repayment time |
5 years |
For Credit Line 2:
Feature | Description |
---|---|
Education loan for study in India |
Up to INR 20 Lakh |
Education loan for study abroad |
Up to INR 30 Lakh |
Rate of Interest (ROI) |
8% per annum for men 5% per annum for women |
Moratorium period |
6 months after completing the course or getting a job. |
Repayment time |
5 years |
The NSKFDC actively works toward the economic development of the safai karamcharis/ Manual Scavengers community. Through this government education loan for study abroad, you can avail education loans to study abroad for the following courses:
Eligibility criteria:
Feature | Description |
---|---|
Education loan for study in India |
Up to INR 10 Lakh |
Education loan for study abroad |
Up to INR 20 Lakh |
Rate of Interest (ROI) |
4% per annum (0.5% rebate for women who wish to pursue education in India) |
Moratorium period |
1 year |
Repayment tenure |
5 years |
The NBCFDC is a government undertaking that provides education loans for both studies in India and abroad. For study in India loans, 90% of total expenses are covered, whereas, loans for abroad education cover 85% of the total expenses.
Eligibility criteria:
Feature | Description |
---|---|
Education loan for study in India |
INR 15 Lakh |
Education loan for study abroad |
INR 20 Lakh |
Rate of Interest (ROI) |
4% p.a. ( Men) 3.5% p.a. (Women) |
Moratorium period |
5 Years |
Repayment tenure |
15 Years |
The NSCFDC is a government body that works for the welfare of the scheduled castes. A maximum loan amount of INR 30 Lakh or up to 90% of the course fee, whichever is less, will be sanctioned for your abroad education.
Eligibility criteria:
Feature | Description |
---|---|
Education loan for study in India |
90% of the course fee or INR 20 Lakh (whichever is less) |
Education loan for study abroad |
90% of the course fee or INR 30 Lakh (whichever is less) |
Rate of Interest (ROI) |
4% (0.5% rebate for women beneficiaries) |
Moratorium period |
6 months after the course is completed or getting employment. |
Repayment tenure |
10 years for loans below INR 7.5 Lakh 15 years for loans above INR 7.5 Lakh |
The NHFDC was formulated by the Ministry of Social Justice and Empowerment. Students with disabilities are eligible for availing education loans to study in India or abroad for professional undergraduate & postgraduate courses under this scheme.
Key points regarding the loan scheme:
Note: In exceptional cases, the collateral requirement can be waived off if the officer granting the loan is satisfied with the net worth of parents who would be executing the documents as ‘joint borrowers’.&nz
Feature | Description |
---|---|
Education loan for study in India |
INR 10 Lakh |
Education loan for study abroad |
INR 20 Lakh |
Rate of Interest (ROI) |
4% (0.5% rebate for women beneficiaries) |
Moratorium period |
1 year after the course is completed or getting employment. |
Repayment tenure |
7 years |
The NSTFDC was set up by the Ministry of Tribal Affairs in 2001. It provides financial aid for technical and professional courses to study in India or abroad.
Feature | Description |
---|---|
Education loan for study in India |
90% of the course fee or INR 20 Lakh (whichever is less) |
Education loan for study abroad |
90% of the course fee or INR 30 Lakh (whichever is less) |
Rate of Interest (ROI) |
4% (0.5% rebate for women beneficiaries) |
Moratorium period |
6 months after the course is completed or getting employment. |
Repayment Tenure |
10 years for loans below INR 7.5 Lakh 15 years for loans above INR 7.5 Lakh |
Government education loans, available through various state or central government schemes, offer numerous advantages to students. Here are some key benefits:
Applying for a student loan in India by government can be a straightforward process if you follow the right steps. Government student loans are an excellent option for financing your higher education, whether you're planning to study within the country or abroad. Here’s a comprehensive guide on how to get an education loan from the government.
Before applying, it's crucial to research the various government education loan schemes available. Popular schemes include the Central Sector Interest Subsidy Scheme (CSIS) and the Vidya Lakshmi Portal, which offers multiple loan options from different banks. Ensure the chosen scheme covers your educational needs, whether it's for domestic or international studies.
Each loan scheme has specific eligibility criteria. Generally, applicants must:
Collect all necessary documents before starting the application process for a government education loan for abroad study. Commonly required documents include:
You can apply for a government education loan for abroad study through online portals like the Vidya Lakshmi Portal, which streamlines the process and provides access to multiple banks. Alternatively, you can apply directly at the bank's branch.
Online Application Process:
1. Register on the Vidya Lakshmi Portal.
2. Fill out the Common Education Loan Application Form (CELAF).
3. Upload the required documents.
4. Choose the preferred bank(s) and submit the application.
Offline Application Process:
1. Visit the nearest bank branch that offers government education loans.
2. Request the application form and fill it out.
3. Submit the form along with the required documents.
Once your application is reviewed and approved, you will receive a loan sanction letter outlining the loan amount, interest rate, repayment schedule, and other terms and conditions. The loan amount is usually disbursed directly to the educational institution in installments.
The above schemes offer benefits such as lower interest rates and flexible repayment options, enabling students to pursue higher education while minimizing their overall costs. By availing themselves of these schemes, students can access the necessary financial assistance, aspire for higher education, and achieve their academic goals without being burdened by excessive financial obligations. These government initiatives play a crucial role in empowering students from economically weaker sections and marginalized communities to overcome financial barriers and unlock opportunities for a brighter future. If you are looking for the right education loan to fund your study abroad journey check your education loan eligibility at GyanDhan.
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Some top government education loan for study abroad are:
The minimum percentage required to apply for an abroad education loan by the Indian government is 60% mostly. To avail the government loans/schemes, students should hold a strong academic background.
Documents required for government loan for abroad study are-
Yes, there are several government schemes to avail interest subsidies on education loans, such as the Central Scheme of Interest Subsidy, and Credit Guarantee Fund Scheme to name a few.
The repayment tenure usually starts 6 months or 1 year after the program completion or after getting employed, whichever is first.
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