Because of the easily available education loans for abroad studies by the Indian government and subsidies for economically disadvantaged students, studying abroad has gained prominence in India. Education loans are being offered under several government schemes to students to complete their higher education from top economies like the USA, Germany, and the UK, among others.
This article talks about some of the best Indian government loan schemes that can be availed by Indian students who wish to study abroad. Find the information regarding documents required for education loan for abroad studies, eligibility, and application process here.
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Popular education loans for abroad studies by the Indian government
Gujarat Government Education Loan for Studying Abroad
This is a recognized scheme by the state government of Gujarat to promote higher studies. The plan offers education loans with 100% subsidy to economically backward students in Gujarat with merit. It is applicable for an education loan of up to INR 15 lakhs. Students from Gujarat can avail of this loan for various study abroad programs, like professional courses, language programs, graduation, and post-graduation.
Eligibility criteria for Gujarat Education Loan for Studying Abroad
● The student needs to be a resident of Gujarat.
● Applicants should score at least 60% marks in their class 12.
● The annual family income should be less than INR 6 Lakhs.
● Students applying for an education loan under this scheme need to have all the documents in original.
● The applicant should pass their class 12 from a recognized board of study. It should be a full-time classroom program and not a distance one.
● The applicant needs to have an admission confirmation from any college or university in a foreign land.
● The subsidy will be offered only when the loan amount is more than INR 10 Lakhs.
● Co-applicant or power of attorney is important under this scheme. Only parents and legal guardians can become co-applicant.
How to apply for the Gujarat Education Loan for Studying Abroad?
● Apply online by clicking on the link: https://kcg.gujarat.gov.in/education_loan/
● After clicking on the link, download the registration form.
● Fill and submit the form with relevant documents as per the procedure mentioned there.
Vidya Lakshmi Education Loan
Vidya Lakshmi Education loan is available for graduation, post-graduation, and doctoral programs. For study abroad programs, a maximum of INR 30 lakhs will be offered to students.
Eligibility for Vidya Lakshmi Education Loan:
● Vidya Lakshmi Education loan is available only to Indian nationals.
● Students need to have secured admission to a foreign college or university.
● Applicants must have completed their class 12th from a recognized board of study. It should be a full-time classroom program.
How to apply for a Vidya Lakshmi Education Loan?
● Click on the link mentioned below to visit the Vidya Lakshmi portal: https://www.vidyalakshmi.co.in/Students/signup
● Register yourself with all the details and information. After registration, you will get all the information related to the application on your registered email address.
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Education Loan Scheme of the NBCFDC
The National Backward Classes Finance and Development Corporation (NBCFDC) provides education loans to students from backward classes living below double the poverty line for pursuing general/ professional/technical courses or training at graduate and/or higher levels. A maximum of INR 20 lakhs can be loaned to students wanting to study abroad under this scheme.
Eligibility for NBCFDC Education Loan:
● Backward class students need to provide their caste certificate.
● The annual family income should be less than INR 3.30 lakhs.
● Students must have confirmed admission to a university or college.
● Must have completed high school with 70% and above from a recognized board of study.
How to apply for an NBCFDC Education Loan?
● Click on the link: https://nbcfdc.gov.in/index.php/loanform/en
● Fill the online form and submit it along with all the documents as required.
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Padho Pardesh Scheme
This scheme covers Indian students enrolled for a postgraduate degree overseas. Padho Pardesh loan is granted to those with a good academic record. In this scheme, 100% subsidy can be availed by the minorities.
Eligibility criteria for Padho Pardesh:
● Students can avail Padho Pardesh scheme only when they have scored a minimum of 60% in class 12.
● The students must have a confirmed admission granted by a college or university abroad.
● Students can avail this scheme in the first year. It cannot be taken during the middle of the course.
● The average gross income of the family should be less than INR 4.5 Lakhs.
● It is applicable for students who are willing to take up master, MPhil, and PhD courses.
● Students applying under this scheme need to have all the relevant documents, without which the application will not be processed.
How to apply for Padho Pardesh?
● Apply online by clicking on this link- https://canarabankcsis.in/Padho_STD_Portal/login.aspx
● You will be directed to the student portal from where you need to register and download the application form. Fill it up and submit it along with all the documents. Documents need to be scanned and uploaded as per the size that is mentioned on the website.
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Dr. Ambedkar Central Sector Scheme
This scheme is a central sector scheme under the government of India. The objective of the scheme is to encourage overseas education among the minority communities in India. This scheme offers education loans with a 100% subsidy so that the meritorious students from financially weaker sections can get better overseas education. The scheme is applicable only for higher levels of education like Masters, MPhil, and PhD programs. It can be taken only once by a student. For example, if you use this scheme for masters, you cannot use it again for the MPhil program.
Eligibility for Dr. Ambedkar Central Sector Scheme:
● The students applying under this scheme need to be Indian citizens.
● Applicants should score at least 60% marks in their class 12.
● Students must complete their class 12 and graduate from a recognized board of study. There should not be any gaps, and 10+2+3 should be a full-time classroom program.
● This scheme is applicable for higher levels of education like Masters, MPhil, and PhD. Graduation and high school level students are not eligible under this scheme.
● For OBC and ST categories, it is important to provide caste certificates.
● Students can apply for this scheme only when the average gross annual income of the family is below INR 3 Lakhs.
● It cannot be taken during the middle of the course. Applicants need to apply for this scheme in the first year before the commencement of the course.
How to apply for the Dr. Ambedkar Central Sector Scheme?
● Visit the official website and click on this link to apply online- https://web.umang.gov.in/landing/department/dr-ambedkar-central-sector-scheme-of-interest-subsidy.html
● Create an account and log in to the UMANG app.
● Fill up the required details and submit the form along with all the documents. The documents should be scanned and uploaded as per the size given.
● Confirmation for the application will be sent to the email address.
Documents required to apply for education loan
Documentation is an important step if you have applied for a loan. In fact, without verification of identity and economic conditions, an education loan application will not be processed by any financial institution under the government of India.
Following are the essential documents required to get an education loan approved:
● Duly filled online or offline application form.
● Printout of the filled form.
● Two passport-size photographs in formal wear.
● Income proof of the family to prove the applicant’s financial condition (form 16 of income tax return file, latest property tax documents, property papers, income proof of co-applicants, last six months’ bank statement).
● Scorecards of entrance examinations like GRE, GMAT, TOEFL, IELTS, ACT, or SAT.
● Scholarship documents, if any.
● Aadhaar card.
● Birth certificate.
● Driving License.
● Pan Card.
● Residential proofs.
● Bank documents.
● Copy of visa.
● University or college admission confirmation letter.
● University documents.
● Previous academic transcripts.
● Copy of the fee-related details.
● A self-declaration certificate.
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Education loan for abroad studies by Indian government: FAQs
Q1. How much percentage is required for an education loan?
A. Candidates applying for an education loan under the government of India need to score a minimum of 60% in their last academic degree. Education loan is granted to students with an impressive educational background. The track record of scores, merit, certificate, and achievements will decide whether a student will get an education loan to study abroad or not. Students with 60% and above marks are treated as meritorious.
Q2. Is there any subsidy on education loans?
A. Yes, a subsidy on education loans is granted by the government of India. Students from economically backward classes can claim interest rebates on their education loans from the government in the name of a subsidy. However, to get a subsidy, there are a few eligibility criteria and parameters that they need to fulfill. Students with good academic scores and parental income not more than INR 4.50 lakhs per annum can avail of subsidies on education loans. However, the eligibility criteria of loan subsidy vary from scheme to scheme.
Q3. Which loan is the best?
A. To improve access to foreign education, some of the best schemes offered by the government are Gujarat Education Loan for abroad studies, Dr. Ambedkar Central Sector Scheme, Vidya Lakshmi, Padho Pardesh, NBCFDC Education Loan, and NSFDC Education Loan. Students need to compare all the loan options offered by the government of India before selecting one.