Credit Guarantee Fund Scheme
Education Loan

Credit Guarantee Fund Scheme for Education Loans (CGFSEL)

Credit Guarantee Fund Scheme for Education Loans (CGFSEL)

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Read about (CGFSEL) Credit Guarantee Fund Scheme for Education Loans. Know features and criteria of Credit guarantee fund trust scheme for micro & small enterprises and students.

GyanDhan

Yogender Panchal

Updated on: 14 Nov 2023
 

In our previous blogs and YouTube videos, we have emphasized enough how a loan with collateral can save you big in study abroad loans. But what if you are unable to pledge collateral for your education loan?

CGFSEL stands for Credit Guarantee Fund Scheme for Education Loans. Other than unsecured loans from private banks and NBFCs, one of the solutions is the Credit Guarantee Fund Trust Scheme for micro & small enterprises and students. 

Under the CGFSEL, the borrower is eligible to get loans from lenders without pledging any security or providing any third-party guarantee..

  1. list items What is the Credit Guarantee Fund Scheme for Education Loans?
  2. list items What are the Requirements for the Credit Guarantee Fund Scheme for Education Loans?
  3. list items Features of the Credit Guarantee Fund Scheme for Education Loans?
  4. list items Which Loans will be Covered Under the Credit Guarantee Fund Scheme for Education Loans?
  5. list items Which Loans will not be Covered Under the Credit Guarantee Fund Scheme for Education Loans?

 Let’s explore in-depth about the scheme and related terms and conditions.

Check Your Education Loan Eligibility

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What is the Credit Guarantee Fund Scheme for Education Loans?

The Credit Guarantee Fund Scheme for Education Loan(CGFSEL) was launched by the Government of India in 2015. This scheme was launched to guarantee education loans to students from the economically weaker sections under the Model Education Loan Scheme of the Indian Banks’ Association (IBA).

This scheme is meant for student borrowers who are unable to pledge any collateral for their loan and are also unable to provide any third-party guarantee. Under this scheme, a student can get a collateral-free loan, and without a third-party guarantee, of INR 7.5 lakhs. 

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What are the Requirements for the Credit Guarantee Fund Scheme for Education Loans?

Students have to meet a few criteria in order to avail of an education loan under the Credit Guarantee Fund Scheme. These requirements are as follows:

  1. list items The student should belong to the EWS (Economically Weaker Section) category.
  2. list items The annual income of the family should be less than INR 4.50 lakhs. 
  3. list items The student should have got admission to a recognized University in India or abroad. They should have got admission to an approved technical or professional course after Class XII.   


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Features of the Credit Guarantee Fund Scheme for Education Loans?

Some prominent features of this scheme are as follows:

Check Your Education Loan Eligibility

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Which Loans will be Covered Under the Credit Guarantee Fund Scheme for Education Loans?

The following kind of loans are covered under the Credit Guarantee Fund Scheme - 

Read Also:

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Which Loans will not be Covered Under the Credit Guarantee Fund Scheme for Education Loans? 

The following kinds of loans are not covered under the Credit Guarantee Fund Scheme for education loan- 

Now that you know all about the Credit Guarantee Fund Scheme for Education loans, apply for it if you are eligible.