With the escalating cost of education, borrowing funds continues to be a viable option to finance a child’s higher studies. However, many people find it difficult to get a loan because of their financial capability. An education loan interest subsidy scheme aims to make credit affordable for economically weak and minority communities.
Under such schemes, eligible applicants can avail of an education loan in India at a subsidized rate of interest.
The government of India has increased its efforts to enhance the quality and accessibility of education for students. Here are three major education loan interest subsidy schemes that eligible borrowers can avail of:
|Interest Subsidy Schemes||Purpose||Eligibility|
|Dr. Ambedkar Central Sector Scheme||Finance for higher education outside India||Economically backward classes (EBC) and various other backward communities|
|Padho Pardesh Scheme||Finance for higher education outside India||Minority communities including Jains, Parsis, and others|
|Central Scheme of Interest Subsidy||Finance for professional or technical courses||Economically weaker sections of society|
This interest subsidy scheme on education loans is available for students belonging to economically backward classes who wish to continue their studies overseas. Some of its conditions are:
This is an education loan interest subsidy scheme available for meritorious students from the minority communities and economically weaker sections, to help them study abroad. With Padho Pardesh, the Government of India aims to offer educational opportunities, and thus increase employability. Some of its conditions are:
This scheme is for students belonging from the society's economically weaker sections. Eligible candidates can avail of a subsidy on education loan interest rate to pursue any technical or professional course. They must be enrolled at an accredited institution in India for a graduate or post-graduate course. Some other conditions include:
Considering the increasing cost of education in India or abroad, you can avail of a loan against property for education and get a higher sanction. Bajaj Finserv offers credit at competitive interest rates with additional benefits that help you make repayments conveniently and give your child the best education possible.