Education loans are offered to students to finance their higher education in India and Abroad. Multiple financial institutions like Public sector banks, Private banks, and NBFCs offer education loans to students.
The funds provided by the education loan will cover the tuition fees, living expenses, cost of books and supplies, etc.
A loan amount between 1 lac to 1.5 cr can be offered with interest rates starting from 8.15% (latest ROI).
The general education loan process includes searching for a lender, applying for an education loan, getting your loan sanctioned, disbursement of the amount, and the repayment of your education loan
The repayment of education loans starts after the moratorium period in all banks. A moratorium period of around 6 months to 1 year is offered by banks on taking an education loan.
Moratorium period = Course duration + 6 months/ 1 year (grace period)
1) Secured Education Loan
2) Unsecured Education loan
Education Loan Schemes-
1) Central Sector Interest Subsidy Scheme (CSIS) and Credit Guarantee Fund Scheme for Education Loan (CGFSEL)
Department of Higher Education, Ministry of Education has been implementing the Central Sector Interest Subsidy (CSIS) Scheme since 2009. Under this Scheme Interest Subsidy is given during the moratorium period i.e., Course period plus one year on Education Loan taken from the Scheduled Banks under the Model Education Loan Scheme of Indian Banks Association to students belonging to economically weaker sections whose annual parental income is up to Rs. 4.5 Lakh from all sources. The subsidy is allowed for pursuing higher education in professional/ technical courses only from NAAC accredited Institutions or professional/ technical programmes accredited by NBA or Institutions of National Importance or Centrally Funded Technical Institutions (CFTIs). Canara Bank has been appointed as Nodal Bank for the implementation of the scheme.
Central Sector Interest Subsidy Scheme on Model Education Loan Scheme of IBA-CSIS Dashboard and subsidy enquiry
Students may note that the bank which is sanctioning the education loan needs to upload the claim of interest subsidy in the portal maintained by the Canara bank for this purpose. The interest subsidy is credited directly to the loan account of the student by DBT mode using PFMS gateway.
One can visit
https://canarabank.com/User_page.aspx?othlink=375 for more information.
The ceiling with respect to educational loans has been increased to a loan amount of Rs. 10 lakhs from the year 2022-23. One can visit the following portals for more information.
3) National Portal for Credit Linked Government Schemes – “Jan Samarth”
4) Pradhan Mantri Uchchatar Shiksha Protsahan Yojana – Guidelines for the component scheme – “Central Sector Interest Subsidy” (PM-USP CSIS)
Revised guidelines on Central Sector Interest Subsidy Scheme
For more details, click here –
https://www.education.gov.in/scholarships-education-loan-4
For grievances related to the CSIS, one can write to the Canara Bank email
5)The “Credit Guarantee Fund Scheme for Education Loans (CGFSEL)” was notified on 16.09.2015. Under the CGFSEL, Central Government gives guarantee for the education loans availed by students without any collateral security and third-party guarantee for a maximum loan limit of Rs. 7.5 Lakh. The Fund provides guarantee cover to the extent of 75% of the amount in default through the National Credit Guarantee Trustee Company Ltd. (NCGTC), the Trustee of the Department for this purpose. For more information related to CGFSEL, please visit https://www.ncgtc.in/en/products-n-services/cgfsel. The necessary paperwork for availing of the credit guarantee by the student is to be done by the bank who is sanctioning the education loan to the student.
6) Vidya Lakshmi Portal
Vidya Lakshmi Portal is an education Loan Portal managed by NSDL e-Governance Infrastructure Limited, Mumbai. Under this, any student can have access to Education Loans. The Portal is linked with Scheduled Banks. The Portal is a gateway to the Banks through which the student can proceed further. The portal has the facility of tracking the Education Loan right from the inception of loan application to the sanction of loan or otherwise.
7) We make Scholars portal.
This portal provide every information on education loan and further help student to get the loan sanctioned.
For details visit their website-
https://www.wemakescholars.com/education-loan
Financial Aid to the poor and deserving meritorious students is an incredible source of timely assistance. Unlike loans, the free financial aid don’t have to pay back over the time- an assurance that can vastly reduce financial stress and help the student to focus more on their studies. The Financial Aid is an excellent source of support to the poor sections of society where the parents cannot afford the education of their wards including orphan or single parent children.
CSRE has launched the philanthropic scheme of educational financial aid to the needy and deserving students having annual income less than Rs two lakhs. The funds are sourced mainly through zakat and donations from members.
CSRE has been supporting more than hundred students every year to pay their school or college tuition fees.
