Unlock your dream career with these government education loan schemes

In the Pursuit of knowledge, higher education is another primary step towards achieving one’s career/academic goals. However, to avail better education opportunities, one big hurdle that most young students face is economic conditions. Thereby, to ease the accessibility of brighter academic opportunities, various government loan schemes are available, offering substantial financial aid for the higher education of Indian students.

Need and Benefits of Opting for a Government Loan Scheme:

India, currently, is booming with the youth population filled with aspirations of a brighter future. Over the years, the Indian democracy has seen a significant shift towards a skilled workforce, with the nation witnessing a steady rise in the young population pursuing professional degrees. Thus, boosting the enrollment rate in higher education colleges or institutes. However, despite this growing interest in higher studies, the road to pursue it remains blocked due to the unavailability of secure and beneficial education loan offers, which they find predominantly in the schemes education loan schemes by the government. 

The benefits of education loans by the government are as follows:

• Secure Loan

• Easy repayment conditions

• Low Interest rates

• Multiple options for economically weaker section 

Now, let’s take a look at some of the prominent govt. loan schemes for higher education, available to the students of India.

PRADHAN MANTRI UCHCHATAR SHIKSHA PROTSAHAN (PM-USP) - CSIS (CENTRAL SECTOR INTEREST SUBSIDY) Scheme

The CSIS component of PM-USP Yojana was launched in the year 2009, to offer financial assistance to students interested in pursuing higher studies but lacking in sufficient funding for the same. With this education loan scheme, the government aims to increase the number of students enrolling in professional/technical courses to ensure a robust workforce of qualified professionals in the country. This education loan scheme works in tandem with the model education loan scheme of the Indian Banks’ Association (IBA). Under this government scheme, students can avail a full interest subsidy during the moratorium period of their availed loan. 

The scheme can be availed through all Scheduled Banks/Regional Rural Banks (RRBs)/Cooperative Banks and provides a subsidy limit of up to Rs. 10 lakh only.

Eligibility of loan scheme:

• The annual family income of the student must be less than or equal to Rs. 4.5 Lakh.

• The scheme focuses on professional/technical courses in NAAC, NBA, or CFTIs. 

• The scheme benefits can be availed only once, either for pursuing an Undergraduate degree or a Post-graduate degree. (Also admissible for Integrated (Graduate + PG) courses)

• For more information on the specific enrollment criteria and application process, visit here.

PRADHAN MANTRI UCHCHATAR SHIKSHA PROTSAHAN (PM-USP) - CSSS (CENTRAL SECTOR SCHEME OF SCHOLARSHIP) 

With PM-USP (CSSS), the government aims to extend financial aid to meritorious students from poor families. The scheme is rolled out by the Ministry of Education, Government of India, based on their marks in class XII exams. The scheme benefits/scholarships are divided and allocated as per the population of respective states for state boards, CBSE, ICSE, Female Candidates, J&K, and Ladakh, and as per stream(Humanities, Science, Commerce). 

Under this education loan scheme, the government will provide Rs.12,000/-per annum at the graduation level for the first three years of College and University courses and Rs.20,000/-per annum at the post-graduate level. The payment of the scholarship money will be through Direct Benefit Transfer (DBT) in the student’s savings bank account. 

Eligibility of loan scheme:

• The applying candidate must be above the 80th percentile of successful students in respective streams in Class XII/Equivalent.

• The scheme is only applicable on regular degree pursuant (not correspondence, distance, or diploma)

• The student must be applying for colleges/institutions approved by AICTE/Respective regulatory authority.

• Gross family incomes up to Rs. 4.5 lakh/annum

• Students in reserved categories are eligible for benefits based on merit subjects as per the central reservation policy. 

Check out more information and the application procedure here.

Special Scholarship Scheme For The Students Of Union Territories Of Jammu & Kashmir And Ladakh

The PMSSS was rolled out as an education loan scheme in the year 2011 by the All India Council for Technical Education (AICTE) to provide financial assistance for higher education to the students who are domiciled in the Union Territories of Jammu & Kashmir and Ladakh. 

The main aspect of the scheme is that it offers educational loan assistance to students seeking admission in government colleges/institutes within the territory or other institutions outside but through an AICTE counselling procedure. The unique aspect of this education loan scheme is that it offers maintenance fees along with academic fees. 

The salient features of the scheme are:

The disbursement of the scheme will be through direct transfer to the respective college/institute as per the claim raised for academic fees, and through DBT using the PFMS gateway for maintenance fees. 

*The flexible number of scholarships for professional and medical courses is subject to 5000 fresh applications per annum. 

For more information visit: https://www.myscheme.gov.in/schemes/pmsss

EDUCATION LOAN SCHEME BY NBCFDC

Through this loan scheme, the government is specifically aiming to aid students from backward classes, who live below double the poverty line. The education load offered under this scheme is to pursue general/professional studies at the graduate/post-graduate level.

The financial aid limit for studying in India is up to Rs. 15 Lakh and for abroad is up to Rs. 20 lakh.

For more information: https://www.ksbcdc.com/index.php/nbcfdc-schemes

To sum up, if you are also seeking financial aid for your higher study goals, you can explore the above-mentioned government loan schemes. And for further exploration you can check out Vidya Laxmi Portal, which is an online portal run by the government of India, offering easy and one-stop access to the best-suited education loan offers as per your needs.