Indian government educational loan scheme for students


Looking for educational loan for your child? Will like to know about the endeavours of the Indian government in providing financial assistance to every deserving student of the country? Learn in this article the initiatives of the government in providing educational loan to students.

Ours is a developing country with a billion plus population. It is a country blessed with diversity in culture, tradition, language and a long history. We are blessed with natural resources, rivers, hills and a long coastline. The youth today are ready to take on the world with their dreams and aspirations. However, all these positive facts notwithstanding, a large chunk of the population in the country is still illiterate. In the case of the girl child the scenario is even worse. Even those who take to studies, a large number of them, especially girls, are forced to cut short on their education. It is unfortunate that even after so many years of independence we as a country have not been able to educate its population. Even in this modern age a big percentage of the population in our rural areas still don't have any access to primary education. Some of those who do somehow complete their schooling through government aid and grants are not able to continue further. Their dreams of higher education are simply cut short because of lack of money. They are deprived of the benefits of higher education just because they are not able to afford an education, the costs of which are rising every passing year.

Since independence, successive governments have been taking initiatives in providing education to its people. A number of government aided schools and institutions have been set up, where education is almost free. The government has been providing aid, grants and scholarships to the neediest and the meritorious. But these initiatives alone were not enough. It was then that the government of India took steps in starting up schemes that would be able to provide financial aid to every deserving student. These were momentous steps, as the vision was to see that no one is denied higher education just for the shortage of funds. These financial aid were to be delivered in the form of educational loans that made it possible for every student to continue his or her education.

Educational loan scheme


For setting up these loan schemes, the government of India came to an understanding with the Reserve bank of India and the Indian Banking Association (IBA). Necessary guidelines were framed in this regard. The RBI and the IBA in turn took over the initiative in taking the various banks in the country in confidence. Thus started the various educational loan schemes that are being dished out by every nationalized and private bank these days. The scheme ensures that loans are available for all kinds of educational courses in colleges and universities across the nation as well as abroad. Loans are also available for the vocational and professional courses. The University Grants Commission (UGC) too has taken initiatives in encouraging colleges and universities to provide as much financial aid as possible so that none is deprived of education. The commission has also been proactive in arranging funds through the educational loan schemes that are being offered by the various banking institutions. As on today almost every large bank in the country has joined this scheme and offering loans to deserving students at attractive rates.

Features of the educational loan scheme


  • Loans valued up to Rs 7.5 lakh for studies done in India and Rs 15 lakh to those going abroad for higher studies.
  • There will be no collateral or margin required for loan amounts of up to Rs 4 lakhs.
  • The loan repayment period could be anywhere between 5 to 7 years and there will be a provision for a grace period of one year after completion of one's education.


Tax benefit


There's a tax benefit too while repaying the loan. Under section 80E of the Income Tax Act, an amount of Rs 40,000/- is deductible every year, for both the interest and the principal part. The deduction is available for a maximum period of 8 years after the start of the loan repayment. However the course should be a full-time graduate or postgraduate course in any field or stream.

Find below a list of the banks that are offering educational loans to one and all.
  • Allahabad ank
  • Andhra bank
  • Bank of India
  • Bank f Baroda
  • Canara bank
  • Corporation bank
  • Canara bank
  • Dena bank
  • Indian bank
  • Punjab National Bank
  • State bank of India
  • And so many more like them


While taking help of such educational loans, parents should check the terms and conditions very thoroughly at the the time of application itself. In order to keep pace with the ever-changing capital market conditions, one should always keep track of the interest rates, eligibility conditions and the other rules and regulations.


Article by Dhruv
Dhruv is an electrical engineer by profession. Apart from liking his job, he has a special love for writing and has often dabbled in writing scripts for skits and short plays. As a Content Developer at ISC, Dhruv is having a whale of a time, showcasing his writing skills.

Follow Dhruv or read 63 articles authored by Dhruv

Related Articles

How Education Related To The Development Of Our Country

The education has a great important in our country. India was contributed ‘Gurukul’ system to the world. Education is an important factor for the overall development of a country. There are various prestigious institutions in our country for providing quality education. The talented and skilled brains should be utilized in our country itself. Certain problems are existing in our educational system. Education is always a strong power for the development and growth of our country.

Quality of Education in private technical institutes of India

In this article I have given a brief description about education in a private college. There are numerous points to be seen in private college out of which I have stressed upon some. Also I have given some points to be noted before joining a private college.

Tips to Give CAT examination 2011

How to apply to CAT examination 2011? Duration of CAT 2011? Marks pattern of CAT 2011? When CAT result will be declared? How to apply to CAT exam 2011? In this article you will find answers of all such questions. For detailed information kindly read the article below.

Some Selection Strategy Tips for CAT Allied B-Schools

If you wish to study in CAT allied schools on CAT based score, this is the right time to apply for admission lest the date to apply slips by and you miss the bus. If it happens so, you shall miss the golden chance even after obtaining better percentile in CAT. What type of is required for selecting a better B-School and seeking admission into it forms the subject matter of this present dissertation.

New Zealand A Perfect Place For Higher Studies

New Zealand is combination of a perfect country, metropolitan cities, serene towns and Educational Institutions. Most colleges there offering Higher Education are well known all over the world. It is the goal of the New Zealand Government to make all colleges there at par with International quality learning institutions.In this resource I will review New Zealand as a place for higher studies and as a country in general.

More articles: CAT India Government Students Education

Comments

No responses found. Be the first to comment...


  • Do not include your name, "with regards" etc in the comment. Write detailed comment, relevant to the topic.
  • No HTML formatting and links to other web sites are allowed.
  • This is a strictly moderated site. Absolutely no spam allowed.
  • Name:
    Email: