Education loan schemes are a part of the Government of India’s bid to promote the number of students opting for higher studies. Additionally, there are other financial products like education loan against property through which students can avail of financial advances.
Education loan schemes offered by the Government of India are enumerated below:
# Central Scheme of Interest Subsidy for Education Loan: In this scheme, the government allows a subsidy on the interest rate during the moratorium period that lasts up to 12 months. This scheme can be availed only when the student has enrolled for technical or professional course education in India.
# Padho Pardesh Scheme of Interest Subsidy for Education Loans: Under this scheme, the government of India provides a subsidised interest rate on the study loan to meritorious candidates who hail from socially backward class or are economically lacking. Students who cannot fund their study abroad can opt for this beneficial scheme and fulfil their academic pursuits.
# Dr Ambedkar Central Sector Scheme of Interest Subsidy for Educational Loans: Under this scheme, the HRD Ministry offers an interest subsidy to students who belong from OBCs and EBCs and are willing to pursue their post-graduation degree abroad.
Alternatively, a student can also opt for a loan against property that comes with easy to meet eligibility criteria and longer repayment tenor. It also offers an individual with the liberty to choose the term of their loan according to their repayment capability.