Educational Loan In India

The Indian government offers various educational loan schemes to support students' pursuit of higher education in India and abroad. These schemes aim to provide financial assistance to deserving students who may not have the means to afford the cost of education. Here are some key educational loan schemes offered by the Indian government:

1. Central Sector Interest Subsidy Scheme (CSIS):

   • Under CSIS, interest subsidy is provided to students from economically weaker sections (EWS) during the moratorium period (course period plus one year) of their education loan.
   • The subsidy is available for students pursuing professional/technical courses in India after class 12 and whose family income does not exceed a certain threshold.

2. Pradhan Mantri Vidya Lakshmi Portal:

   • The Pradhan Mantri Vidya Lakshmi Portal is a single-window platform for students to apply for and avail of education loans and scholarships offered by various banks and government schemes.
   • Students can register on the portal, fill out a common loan application form, and apply to multiple banks for educational loans.

3. Vidyalaxmi Scheme:

   • The Vidyalaxmi Scheme is another initiative aimed at providing educational loans to students through a centralized platform.
   • Under this scheme, students can apply for education loans online and track the status of their applications in real-time.

4. Scheme for Interest Subsidy on Education Loan for Overseas Studies for EWS:

   • This scheme provides interest subsidy to students from economically weaker sections (EWS) who pursue higher education abroad.
   • The subsidy is available for the moratorium period of the education loan, provided the student meets certain eligibility criteria.

5. Education Loan Schemes by Banks:

   • Several public sector banks, private banks, and financial institutions offer education loan schemes to students for pursuing higher education in India and abroad.
   • These loans typically cover tuition fees, hostel expenses, books, and other educational-related expenses, with repayment options extending over a flexible period after the completion of the course.

These educational loan schemes help students fulfill their aspirations of pursuing higher education without financial constraints. They play a vital role in promoting access to education, enabling students from diverse backgrounds to pursue their academic and career goals.