In a country where education is both a fundamental right and a powerful tool for social upliftment, access to quality learning should never be hindered by financial constraints.
Recognizing this, the Government of India has introduced a range of education loan schemes designed to support students from diverse economic and social backgrounds. From subsidized interest loans for economically weaker sections to collateral-free loans for meritorious students and special provisions for backward and tribal communities, these schemes aim to bridge the financial gap and ensure that every aspiring student has the opportunity to pursue higher education—whether in India or abroad.
This article explores in detail the major government-backed education loan schemes, their features, eligibility criteria, and how they contribute to building an inclusive and educated India.
Table of Contents
Here’s a detailed description of the major government schemes related to education loans in India, covering eligibility, benefits, interest rates, and application procedures:
1. Central Sector Interest Subsidy Scheme (CSIS)
Launched by: Ministry of Education (formerly MHRD)
Objective: To provide full interest subsidy during the moratorium period.
Key Features:
- Coverage: Loans up to ₹10 lakh for technical/professional courses in India.
- Interest Subsidy: 100% interest subsidy only during moratorium period (course period + 1 year or 6 months after employment).
- Family Income Limit: ≤ ₹4.5 lakh annually.
- Applicable Institutions: Recognized by NAAC, NBA, or approved by regulatory bodies like AICTE, MCI, UGC, etc.
- No collateral required for the scheme itself (though banks may have their own policy for loans > ₹7.5 lakh).
How to Apply:
- Through scheduled banks at the time of taking the education loan.
- Provide income certificate issued by a competent authority.
2. PM Vidya Lakshmi Education Loan Scheme
Portal: www.vidyalakshmi.co.in
Launched by: Ministry of Finance + NSDL e-Gov + IBA
Key Features:
- A single-window digital portal to apply for education loans to multiple banks.
- Integrated with the National Scholarship Portal.
- Offers collateral-free loans up to ₹7.5 lakh under Credit Guarantee Scheme.
- Various loan schemes like SBI Student Loan, PNB Pratibha, Canara Vidya Turant, etc.
How to Apply:
- Register on the Vidya Lakshmi portal.
- Fill in the Common Education Loan Application Form (CELAF).
- Apply to up to 3 banks at once.
3. Credit Guarantee Fund Scheme for Education Loans (CGFSEL)
Launched by: Government of India
Implemented by: NCGTC (National Credit Guarantee Trustee Company)
Key Features:
- Loans up to ₹7.5 lakh without collateral or third-party guarantee.
- Covers eligible Indian students for higher education in India.
- Offered under IBA’s Model Education Loan Scheme.
Eligibility:
- Students who meet income and merit criteria as per banks’ education loan scheme.
- For courses approved by AICTE, UGC, MCI, etc.
How to Access:
- Bank will automatically cover your loan under this scheme if you meet criteria.
4. PRAGATI Scholarship Scheme (For Girls in Technical Education)
Launched by: AICTE, Ministry of Education
Key Features:
- Eligibility: One girl per family, income ≤ ₹6 lakh/year.
- Coverage: ₹30,000 tuition fee + ₹2,000/month for 10 months as contingency.
- Courses: Diploma or Degree in technical fields.
How to Apply:
- Through AICTE portal: https://www.aicte-india.org
5. National Backward Classes Finance & Development Corporation (NBCFDC) – Education Loan Scheme
Ministry: Ministry of Social Justice & Empowerment
Key Features:
- Beneficiaries: Students belonging to OBC, EBC, DNT (Denotified Tribes).
- Loan Limit: ₹10 lakh (India), ₹20 lakh (Abroad).
- Interest Rate: 4% per annum (Girls get 0.5% concession).
- Moratorium: Course duration + 1 year.
How to Apply:
- Via state channelizing agencies or NBCFDC office.
6. GUEEDC Education Loan for Foreign Studies (Gujarat)
Launched by: Gujarat Unreserved Educational and Economical Development Corporation (GUEEDC)
Key Features:
- Beneficiaries: General category students (non-reserved) in Gujarat.
- Loan Amount: ₹15 lakh.
- Interest Rate: 4% simple interest (0% until 5 years of repayment starts).
- Purpose: To study abroad in professional or technical fields.
How to Apply:
- Apply on GUEEDC portal: https://gueedc.gujarat.gov.in
7. NSTFDC Adivasi Shiksha Rin Yojana (ST Students)
Launched by: National Scheduled Tribes Finance & Development Corporation (NSTFDC)
Key Features:
- Loan Limit: ₹10 lakh for India; ₹20 lakh for abroad.
- Interest Rate: 6% simple interest.
- Eligibility: Scheduled Tribe (ST) students with family income below ₹2.5 lakh/year.
How to Apply:
- Via state tribal welfare department or NSTFDC offices.
8. Skill Loan Scheme
Launched by: Ministry of Skill Development and Entrepreneurship
Key Features:
- Loan Amount: ₹5,000 to ₹1.5 lakh.
- Courses Covered: NSDC-approved skill development programs.
- No collateral required.
- Repayment Period: 3 to 7 years.
How to Apply:
- Through banks offering the Skill Loan Scheme (SBI, BoB, Canara, etc.).
Summary Table:
| Scheme Name | Beneficiaries | Loan Limit | Interest / Subsidy | Remarks |
| CSIS | EWS students | ₹10 lakh | 100% interest subsidy during moratorium | For Indian institutions |
| PM Vidya Lakshmi | All students | ₹10 lakh+ | Depends on bank | Online multi-bank portal |
| CGFSEL | All students | ₹7.5 lakh | Collateral-free | Through IBA banks |
| PRAGATI | Girl students | ₹30,000 + ₹2,000/month | Grant | For tech/diploma girls |
| NBCFDC | OBC/EBC/DNT | ₹20 lakh | 4% (girls 3.5%) | Indian & foreign education |
| GUEEDC | Gujarat general students | ₹15 lakh | 4% | Foreign education |
| NSTFDC | ST students | ₹10-20 lakh | 6% | ST-specific education aid |
| Skill Loan | All (short-term learners) | ₹1.5 lakh | Low rate, no collateral | Vocational training loans |
Disclaimer
The information provided in this article is for general awareness and informational purposes only. While efforts have been made to ensure the accuracy and currency of the data, readers are advised to verify specific scheme details, eligibility criteria, and application procedures directly from official government websites or authorized bank portals. The availability, terms, and conditions of loan schemes may change over time based on policy updates by respective ministries or financial institutions. The author and publisher disclaim any liability for decisions made based on this information.