Interest subsidy schemes available on education loans

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The rising cost of higher education, both on a domestic and international level, often requires parents to borrow funds. Popular credit facilities include offerings like education loans,but even with these, many find it difficult to afford monthly.

To address this problem, the Government of India offers education loan interest subsidy schemes to make the credit affordable for members of the EWC and minority communities. Under such schemes, eligible applicants can avail of an education loan in India at a subsidized rate of interest. The three main interest schemes on education loans are:

Interest Subsidy Schemes



Dr. Ambedkar Central Sector Scheme

Financing education abroad

Economically backward classes (EBC) and various other backward classes

Padho Pardesh Scheme

Financing education overseas

Minority communities including Jains, Parsis, and others

Central Scheme of Interest Subsidy

Funding for professional or technical courses

Economically weaker sections

However, in case you are ineligible for these schemes or require a higher loan amount or flexible funding, explore options like a loan against property for education.

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