Education Loan for Abroad Studies by Indian Government

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Education loan for abroad studies by Indian government
Education loan schemes for study abroad education by the Government of India
Frequently asked questions

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Looking for an education loan for abroad studies by the Indian government? GyanDhan brings a comprehensive guide on government education loan for study abroad & interest subsidy schemes by the Government of India.

Education loan Study abroad

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The Government of India has implemented various schemes and interest subsidies to provide financial assistance to students pursuing studies abroad. These initiatives are designed to support students from economically weaker sections and marginalized communities in their educational pursuits.

It is important to note that though it is commonly referred to as government education loans for study abroad, these initiatives are not direct loans but rather schemes that offer financial aid and interest subsidies. By availing of these schemes, students can benefit from reduced interest rates, flexible repayment options, and other forms of support.

Check eligibility for these schemes

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Education loan for abroad studies by Indian government

Under the below-mentioned subsidy schemes, a full interest waiver during the moratorium period is provided. The Government of India interest subsidy scheme is linked with the Indian Banks Association (IBA) and hence applicable only to those banks that are members of the IBA. Loans from NBFCs are not eligible for these schemes.

Subsidy schemes by Indian government

Dr. Ambedkar Scheme
Central Sector Interest Subsidy
Interest Subsidy Scheme by the Government of Gujarat.
Padho Pardesh Scheme

Dr. Ambedkar Central Sector Scheme

The Dr. Ambedkar Central Sector Scheme provides interest subsidies on education loans. This scheme is available for meritorious students who have secured admission in the approved courses at Masters, M.Phil, or Ph.D. courses abroad.


Loan amount	Not specified

Guidelines ISEL Scheme

Central Sector Interest Subsidy (CSIS)

The Ministry of Human Resources Development and Department of Higher Education has formulated this education loan interest subsidy for the students of economically weaker sections for pursuing technical/professional courses in India.


Maximum loan amount	INR 10 Lakh

Interest Subsidy Scheme on Gujarat Government Education Loan for Study Abroad

Education loan for study abroad by the Gujarat government offers a 100% interest subsidy to economically weaker students from Gujarat who wish to pursue higher studies abroad.


Loan amount	Up to INR 15 Lakh
Courses eligible	Professional courses at graduate, post-graduate, and diploma levels

Padho Pardesh Scheme

Please note that this scheme has been discontinued by the Government of India.

The objective of this scheme was to award 100% interest subsidies on education abroad loans to meritorious students belonging to economically weaker sections of society and hence enhance their employability.

Eligibility criteria

You should have secured admission into the approved courses at the Master, Ph.D., or M.Phil level.
Student must belong to a minority community (Muslims, Christians, Buddhists, Sikhs, and Parsis)
Student’s total income must not exceed INR 6 Lakh per annum.

Check Your Education Loan Eligibility

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Education loan schemes for study abroad education by the Government of India

1. Credit Guarantee Fund Scheme for Education Loans (CGFSEL)

In 2015, the Credit Guarantee Fund Scheme for Education Loans (CGFSEL) was introduced by the Government of India. This government education loan for study abroad is primarily for students who wish to study abroad but do not have any collateral or co-applicant to pledge. Under this scheme, you can get up to INR 7.5 Lakh loan without any collateral or co-applicant.

Eligibility criteria

Student should belong to Economically weaker section
Student’s annual family income should be less than INR 4.5 Lakh.
Students should have secured admission to an approved technical or professional course.

2. National Minorities Development & Finance Corporation (NMDFC)

The National Minorities Development & Finance Corporation (NMDFC) is a government body that works toward financing the minority sections of society, through State Channelising Agencies (SCAs). NMDFC provides loans to study in India & abroad for professional and job-oriented courses.

NMDFC has divided the minorities into two subsections:

Credit line 1: It refers to the candidate with an annual family income of INR 1.20 Lakh in urban areas & INR 98,000 in rural areas.


Education loan for study abroad	Up to INR 30 Lakh
Rate of interest	3%
Moratorium period	Course duration + 6 months
Repayment time	5 years

For credit line 2: It refers to the candidate with an annual family income of INR 6 Lakh.


Education loan for study abroad	Up to INR 30 Lakh
Rate of interest	8% - men 5% - women
Moratorium period	Course duration + 6 months
Repayment time	5 years

3. National Safai Karamcharis Finance & Development Corporation (NSKFDC)

The NSKFDC actively works toward the economic development of the safai karamcharis/ Manual Scavengers community.


Loan quantum	Up to INR 10 Lakh - India Up to INR 20 Lakh - abroad
Rate of interest	4% per annum (0.5% rebate for women who wish to pursue education in India)
Moratorium period	1 year
Repayment tenure	5 years

4. National Backward Classes Finance & Development Corporation (NBCFDC)

The NBCFDC is a government undertaking that provides education loans for both study in India and abroad.


Loan quantum	Up to INR 15 Lakh - India Up to INR 20 Lakh - abroad
Rate of interest	4% p.a. ( Men) 3.5% p.a. (Women)
Moratorium period	5 Years
Repayment tenure	15 Years

5. National Scheduled Castes Finance & Development Corporation (NSCFDS)

The NSCFDC is a government body that works for the welfare of the scheduled castes.


Loan quantum	Up to INR 20 Lakh - India Up to INR 30 Lakh - abroad
Rate of interest	4% (0.5% rebate for women beneficiaries)
Moratorium period	Course duration + 6 months
Repayment tenure	10 years for loans below INR 7.5 Lakh 15 years for loans above INR 7.5 Lakh

6. National Handicapped Finance & Development Corporation (NHFDC)

The NHFDC was formulated by the Ministry of Social Justice and Empowerment. Students with disabilities are eligible for availing education loans to study in India or abroad for professional undergraduate & postgraduate courses under this scheme.


Loan quantum	INR 10 Lakh - India INR 20 Lakh - abroad
Rate of interest	4% (0.5% rebate for women beneficiaries)
Moratorium period	Course duration + 1 year
Repayment tenure	7 years

Note: In exceptional cases, the collateral requirement can be waived off if the officer granting the loan is satisfied with the net worth of parents who would be executing the documents as ‘joint borrowers.

Check Your Education Loan Eligibility

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7. National Scheduled Tribes Finance and Development Corporation (NSTFDC)

The NSTFDC was set up by the Ministry of Tribal Affairs in 2001. It provides financial aid for technical and professional courses to study in India or abroad.


Rate of interest	4% (0.5% rebate for women beneficiaries)
Moratorium period	6 months after the course is completed or getting employment.
Repayment tenure	10 years for loans below INR 7.5 Lakh 15 years for loans above INR 7.5 Lakh

Rate of interest

4% (0.5% rebate for women beneficiaries)

Moratorium period

6 months after the course is completed or getting employment.

Repayment tenure

10 years for loans below INR 7.5 Lakh

15 years for loans above INR 7.5 Lakh

The Government of India has taken several initiatives to promote education for the underserved sections of society. Education loans for abroad studies by the Indian government offer benefits such as lower interest rates and flexible repayment options, enabling students to pursue higher education while minimizing their overall costs. You can seek an abroad education loan from the Indian government given that you meet the pre-set eligibility criteria and have accepted an offer letter from your chosen foreign university. Moreover, subsidy schemes have also been launched that provide the required financial help with lower interest rates and easy repayment options.

However, if you fail to fulfill the government eligibility criteria and are looking for the right education loan to fund your study abroad journey, then GyanDhan is your one stop solution. From evaluating your profile to providing the best education loan possible for you, we have it all covered. So check your education loan eligibility to start your education loan journey.

Read also:

Types of Education Loans for Abroad Studies

NBFC Education Loan for Abroad Studies

Best Banks For Abroad Education Loans in India

Education Loan Process for Abroad Studies

Frequently asked questions

What are some top education loans for abroad studies by the Indian government?

Some top government education loan for study abroad are:

Dr. Ambedkar Central Sector Scheme
Education loan scheme by NFDC
Central Sector Interest Subsidy

What is the minimum percentage required to apply for an education loan for abroad studies by the Indian government?

The minimum percentage required to apply for an education loan for abroad studies by the Indian government is 60% mostly. To avail the government loans/schemes, students should hold a strong academic background.

What are the documents required for applying for an education loan for abroad studies by the Indian government?

Documents required for education loan for abroad studies by the Indian government-

Photo ID
Residence proof
Academic documents of student
Offer letter of the university/college
Bank statement of the last 8 months of co-applicant
Income proof of the co-applicant
Collateral proofs
Income tax return documents (if the applicant is self-employed)

Is there any subsidy on education loans for abroad studies by the Indian government?

Yes, there are several government schemes to avail interest subsidies on education loans, such as the Central Scheme of Interest Subsidy, and Credit Guarantee Fund Scheme to name a few.