5 Government Education Loan Schemes to Study Abroad

Government Education Loan: Recent trends indicate that the number of students who are going to study abroad is increasing every year. The Government of India offer financial support to Indian students who want to pursue higher education abroad. 

A government education loan is financial aid provided by the Central or state government to students facing issues in financing their higher studies. Not only the central government but some state governments offer scholarships and student loans in India. Such government loans aim to help candidates who have the talent & potential to study abroad but are facing financial issues.

Here we have mentioned 5 popular government education loan schemes to provide financial assistance. Such central government schemes are helpful for economically weaker section students to study abroad or in India. The major difference between a government education loan and private financial aid is the rate of interest. In this blog, you will get to know about the government loan schemes, how to apply for student loan and everything you need to know about education loans.  including the official websites of these schemes.

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Government Education Loan Schemes for Studying Abroad

Recent trends indicate that the number of students who are going to study abroad is increasing every year. There are two main reasons for this. First, students are becoming more aware of the opportunities available overseas. Second, financial help through student loans makes studying abroad more achievable.

The Government of India offer support to Indian students who want to pursue higher education abroad.  Students can get either a government education loan or help with the interest on loans they take from banks. Here are 5 popular government loan schemes for students who are planning to study out of India.

1. Vidya Lakshmi Portal Education Loan 
2. Gujarat Government Education Loan for Studying Abroad 
3. Education Loan Scheme of the NBCFDC 
4. Padho Pardesh Scheme 
5. Dr Ambedkar Central Sector Scheme 

Apart from these popular student loans, you can explore the official websites of your state government. There you can get information about financial aid for students to study abroad.

 

Let us discuss the government student loans mentioned above.

Vidya Lakshmi Portal Education Loan 

Vidya Lakshmi Portal or Vidya Laxmi Portal is the most recent government loan scheme for students. This portal is a single-window portal where students can explore, compare, and apply for educational loans and scholarships from anywhere and anytime. The interest rate of Vidya Lakshmi education loan starts at 8.40%.

There are 45 banks registered with Vidya Lakshmi Portal to offer 139 schemes of student loans. Indian students who want to study abroad can borrow INR 1.5 cr as an education loan to study abroad. Check out the quick information about Vidya Laxmi Portal.

• One-stop Portal for Education Loans: Apply for student loans from multiple banks (up to 3!) through a single platform
• Simplify the Process: Upload documents and track your application status easily through the Vidyalakshmi portal.
• Explore Scholarship Options: Access the National Scholarship Portal conveniently through Vidyalakshmi and find scholarship opportunities alongside loan options.
• Peace of Mind for Studying Abroad: The portal caters to both domestic and international studies. This makes it ideal for your study abroad journey.

Eligibility for Vidya Lakshmi Portal

A student needs to fulfil some eligibility to apply for a student loan through this vidyalaxmi portal.

1. Candidates should be Indian.
2. Applicants must have proof of admission to an international university or college (In the case of study abroad)
3. Students must have passed their class 12^th board exam from a recognized board of education.

Vidya Lakshmi Portal Official Website: https://www.vidyalakshmi.co.in/Students/index

Gujarat Government Education Loan for Studying Abroad

The Gujarat Government Education loan is helpful for those students of Gujarat state who want to study abroad but facing financial issues. Under this student loan, economically weaker students can get a 100% subsidy on the interest of the loan amount. This means you take the education loan for studying abroad and after completing your higher education repay the amount you borrowed.

After getting approval, eligible candidates can get up to INR 15 lakh at a 4% interest rate as a student loan to study abroad under this government education loan.

Gujarat Government Education Loan Eligibility

• Candidates should be a resident of Gujarat state.
• 60% score in 12th standard is mandatory.
• Annual family income should be below INR 6 lakhs.
• Acceptance letter from a college/university abroad.

Gujarat Government Education Loan Official Website: https://kcg.gujarat.gov.in/

Education Loan Scheme of the NBCFDC 

The aim of the Education Loan Scheme offered by the NBCFDC (National Backward Classes Finance and Development Corporation to provide financial assistance to students from backward classes. Professional, technical, and vocational education courses are covered in this. Candidates need to show valid documents that they belong to a BPL (Below Poverty Line) family and that their family income is less than INR 3.00 Lakhs annually. Students can get up to 20 Lakhs as a student loan under this scheme at 4% interest rate. Female students will get a 0.5% concession.

NBCFDC Education Loan Scheme Eligibility

• Candidate should be a member of Backward Classes.
• Candidates must have passed the entrance test required to get admission to the university (India/Abroad).
• Family income should not be more than 3.00 Lakhs.

Official Website for NBCFDC Education Loan- https://www.nbcfdc.gov.in/

Dr Ambedkar Central Sector Scheme 

The government of India offers this education loan with 100% interest subsidies to meritorious students of Minority communities. Under the Dr. Ambedkar Central Sector Scheme, students can pursue M.Phil and PhD courses in abroad. There are certain eligibility criteria that students need to fulfil to get this government education loan. The loan amount of Dr Ambedkar Central Sector scheme is not defined.

Eligibility Criteria

• Availability of caste certificates
• Family income should not be more than INR 3.0 lakhs.
• Offer Letter or acceptance letter from a college/ university abroad
• Must have scored at least 60% in 12^th board exam.

Official Website: https://socialjustice.gov.in/schemes/11

Padho Pardesh Scheme 

Another government education loan for students of minority groups (Muslims, Christians, Buddhists, Sikhs, and Parsis) to study abroad. The aim of this increase the employability of these students, the government offer them loans with subsidies on student loan interest rates. The government of India discontinued this scholarship program in the year 2022.

The government made it easier for all students (including minorities) to get education loans up to INR 7.5 lakh without needing collateral. However, the National Minorities Development & Finance Corporation (NMDFC) offers a student loan at lower interest rates.

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Benefits of Government Education Loan

Different student loan schemes launched by the government offer different benefits. Here are some well-known advantages of availing a government education loan under state or central government schemes.

1. Minimal student loan interest rates.
2. Interest subsidy.
3. No need for collateral up to 7.5 Lakhs.
4. Loan financing up to INR 1.5 crore is available.
5. Easy loan approval process.
6. Flexible repayment options.
7. The moratorium period is 1 year after course completion.

Eligibility to Apply for Student Loan

Here are some basic eligibility criteria to get government loans for education.

• 60% or more in 12^th board exam.
• Must have valid proof if applying to get minority or caste or EWS-based scholarships.
• An admission letter from the university is mandatory.
• Nationality of student.

Apart from these criteria, you may need to fulfil other eligibility depending on the scheme. You can check the relevant details on the official website of the scholarship scheme.

How to Apply for Government Education Loan?

To apply for a government education loan, the Indian government launched Vidya Lakshmi Portal. This portal is a single window for government loan schemes and scholarships for students. Eligible students can use this portal to apply for a student loan with relevant documents.

Required Documents to Apply for Student Loan

Here is the list of required documents for an education loan.

• Academic documents
• Two passport-sized photographs
• Photo ID proof
• Residence Proof
• Admission letter/Offer letter/CAS
• Collateral or Immovable Property Documents

That's all about the government education loan for students. You can check the detailed eligibility criteria for student loans to apply for it.

Note: Students, who wish to study abroad, may get in touch with India’s top-rated loan providers and apply for an education loan through Shiksha Study Abroad.