Good education paves the way for success, but often the cost of pursuing higher education becomes unbearable. But there are always education loans that can help you in such situations.
Pursuing higher education opens up multiple avenues for people and often improves the chances of getting better job placements. The Indian government acknowledges this fact and has launched various education loans for the benefit of meritorious students.
These government education loans are aimed at students from low-income families so that they don’t have to give up on their dreams due to monetary issues. They often have subsidized interest rates and easy eligibility criteria to make the process easier for deserving candidates.
Applying for a government education loan requires the following documents -
Duly filled loan application form
Income proof of the family
Marksheets and certificates
Aadhaar Card
Birth Certificate
PAN Card
Acceptance letter or admission letter from the course
The process of application and the eligibility criteria vary depending on the field of study and the scholarship applied for. Some of the popular ones are mentioned below -
This was started by the Ministry of Education in 2009. Under this scheme, an interest subsidy is provided during the moratorium period. This is applicable for inland courses only.
You can apply for this scheme through any major bank when you apply for an education loan.
These fellowships are awarded to students who want to pursue MS in the US. To be eligible for this fellowship, a candidate must meet the following eligibility criteria -
Family income of less than Rs.6 Lakh
Having scored 55% in their Bachelor’s degree
Having 3 years of experience
To apply, you will have to create an account with the Institute of International Education and upload the required documents.
These fellowships are awarded to Indian scholars to complete a part of their research in a US institution. To be eligible for this fellowship, a candidate must be pursuing PhD at an Indian institute, and they need to submit their PhD thesis.
Applications need to be submitted online here.
These scholarships are meant for low-income students from Scheduled Castes, Denotified Nomadic and Semi-Nomadic Tribes, Landless Agricultural Laborers, and Traditional Artisans.
The eligibility criteria for this scholarship are -
Belonging to a minority community
Having scored 55% in the last degree
Age should be below 35 years
Having not more than 1 sibling
Having a family income of less than Rs.6 Lakh
You can apply online to the ministry via this link.
Started by the Ministry of Human Resource Development, this fellowship is a fully funded one. It is meant for Indian students and the status of the candidate under this fellowship would be equivalent to that of a Junior Research Fellow at the University of Oxford.
The eligibility criteria for this scholarship are -
Scoring 60% or above till Ph.D.
Age should be between 30-40 years
Having 3 years of teaching experience
You can apply for this fellowship online as well. You can read about this in detail here.
This scheme was started to provide interest subsidies on educational loans for overseas studies for students belonging to minority communities. As of now, this scheme has been discontinued from FY 2022-23.
Students can apply for a loan from any bank’s Educational Loan Scheme which is a member of the Indian Banks Association (IBA). They just need to inform the bank so that the bank can follow the procedure.
This scheme provides interest subsidies on educational loans for overseas studies for students belonging to OBCs and Economically Backward Classes (EBCs). The following are the eligibility criteria -
Must have secured admission to higher studies abroad
Family income should not exceed Rs.8 Lakh (for EBCs) and Rs.5 Lakh (for OBCs)
Students can apply for a loan from any bank’s Educational Loan Scheme which is a member of the Indian Banks Association (IBA).
This scheme guarantees educational loans of up to Rs.7.5 Lakh without any collateral or security.
You can apply for this scheme by submitting an application process at any bank branch from where you are applying for your education loan.
The government of India has launched the Pradhan Mantri Vidya Lakshmi Karyakram through which all scholarships and education loans can be monitored. The Pradhan Mantri Vidya Lakshmi Portal can be used to apply for all kinds of subsidized loans.
If you are searching for ‘how to get education loan from government’, the easiest way is to talk to your bank branch. In most cases, you can apply through any standardized bank for government schemes. You have to apply directly only in some cases, which you can do easily through online processes.
In case you want to do a course and cannot get an education loan, you can always opt for instant personal loans from moneyview. Here you can get loans from Rs.5,000 to Rs.10 Lakh without any collateral with minimal documentation. To know more, visit our website or download the moneyview app.
Anyone who meets the eligibility criteria for an education loan is eligible for one. In general, the eligibility criteria include being a resident of India and having secured admission to a recognized educational institution.
You may get a Rs.25 Lakh education loan without collateral depending on your other criteria. If you have a high credit score and income, and a low debt-to-income ratio, you might be able to get a big loan without collateral.
If the student applying for the education loan is below 18 or 21 years old, their sibling, relative, or guardian needs to be a guarantor. Even in that case, the student is supposed to repay the loan after the moratorium period is over, or they have secured a job, whichever happens first.
If the student is not earning, their parent’s or guardian’s income is required for applying for a loan.
No, education loans are not interest-free. The interest amount can be, however, subsidized if the student qualifies for a government subsidy.
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