In today’s era of cut throat completion, everybody is striving hard day and night to reach the pinnacle of success and the pathway for the same is education. But, the soaring fees of the top notch universities and institutes make it cumbersome for many to avail quality education. And, to be a helping hand and bridge the gap between aspirants and educational institutes, the government has launched some schemes for to support them with loans including HDFC bank education loan and others such. This scheme gives a relief to the middle and low income groups to afford studying in their country as well as in abroad.

The Ministry of Human Resource Department, Department of higher education provides the facility among students, in which they facilitate the procedure of fellowship in non-native places under cultural exchange programs. These scholarships mostly provided to those students who are looking for Masters, Research work or Doctoral studies. Also, there is a full-fledged process of taking education loan. Firstly, students need to fill an online form and apply for it. Then, check all the details of eligibility criteria on the Department’s website and see all the details about student’s requirements regarding importance of scholarship, age, required education, experience etc.

Government Schemes to Help Students

Instructions to take loan: Firstly, eligible candidates should apply for the Masters level courses. Like M.Phil/PHD etc. Secondly, this scheme is for minority community and the act was established in 1992. Under this act, minorities include Muslims, Sikhs, Christians, Buddhists and Parsis. Thirdly, only Indian Bank Association (IBA) is availed for this education loan. Last but not the least, less than 6 Lakh per annum incomes are valid for taking loan from the government.

Demands for this scheme: The procedure is started after securing admission in a recognized college/university. Approach a bank of your own choice which is under IBA and send request application under Padho Pradesh Scheme. There are plethora of banks providing loan in India to study overseas and details of some of them with loan amount and interest have been mentioned below.

  1. State Bank of India offers 20 Lakhs loan amount to the pupils with up to 7.5 Lakhs- 11.01% rate of interest per annum.
  2. Allahabad Bank offers 50 lakhs loan amount with up to 4 lakhs- 11.45%, up to 7.5 lakhs- 11.45% and above 10.95% rate of interest per annum.
  3. Axis Bank offers 20 lakhs and beyond depending on the requirement loan amount with 7.5 lakhs- 15.50% and above rate of interest per annum.
  4. HDFC Bank offers up to 10 lakhs loan amount with max 15.25% rate of interest per annum. And so on.

Government of India has framed a Comprehensive Educational Loan Scheme with RBI (Reserve Bank of India) and IBA (Indian Banker’s Association). This is a new scheme and under this, all types of courses like professional courses in India and abroad can take place. Under this scheme, one can avail loan of Rs.15 lacs and has to move from the native place to another country. Apart from this, If someone took loan of 4 lacs, no margin is needed and interest rate will not exceed the Prime Lending Rates (PLR). The loan must be repaid in between 5 to 7 years with provision of one more year after completing studies.

Essential traits of Education Loan:

  • Education Loan is can be availed by those between 18 to 35 years for the approved university in foreign country.
  • Education Loan is for management courses, engineering, medicine and graduation and post-graduation or for the specialization in any stream.
  • The expenses of tuition fees, exam fees, library fees, collage funds, travel, books and many other are covered with in this.
  • There is a margin of 5% to 15% for loan takers, keep that in your mind before taking it.
  • Education Loan can be repaid in monthly basis.

Women Education Loan Scheme: In India, large number of girls are illiterate and to improve the literacy rate, there are many banks that collaborate with different schemes for the education of girl child. Those are public and private banks that join their hands together to empower women and encourage them to study. Here are some banks that provide education loan in India for women.

Central Bank of India Cent Vidyarthi- This bank offers Rs. 10 lacs education loan to girls to pursue study in India and Rs 20 lacs loan to study abroad. Girls, who belong to ST, SC categories, and IIT students can easily take education loan with MCLR+ 1.5% rate of interest. This loan covers collage or school fees, exam fees. Hostel fees, any expenses related to the field etc.

Corp Vidya Scheme: Corporation Bank of India offers interest rate concession for the women which include 50 bps below the card rates from the new loans. This scheme covers most of the expenses related to studies of a girl.

Indian Overseas Bank Education Loan: This bank also gives concession of 0.5% to the female students. Under this, girls can take loan of Rs30 Lakhs to study in India and Rs 40 Lakhs for pursue study in foreign country. These are the best ways to continue education and fulfil their dreams.

Education Loan under Dr Ambedkar Central Sector Scheme: Under this act, person should be a citizen of India for applies this education loan. Students from OBC category who are interested to take loan, the eligibility for this, family income shall not more than Rs 3 lacs per annum and EBC candidates shall not across Rs 1 lakh mark per annum. And the most important things are you should have a proof of belonging to OBC/EBC category. On the other hand, CSIS (Central Scheme of Interest Subsidy) for Education Loan Has formulated for the economically week households students to continue study in their own city or country and also for non-native places. The Moratorium period of this scheme is 12 months or 6 months after the completion of study.

Plenty of directions are on the way to pursue studies in India, take advantage of it and secure your future!

About Author: Anoushka Mudgil from Collegedunia.com

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