Education Loan For Abroad Studies By Indian Government
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Education Loan for Abroad Studies by Indian Government

Education Loan for Abroad Studies by Indian Government

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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.

GyanDhan
Ananya Ghai
Updated on:  28 Jun 2024  | Reviewed By: 
Aman 
| 71.2K | 11  min read

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

  • list items Dr. Ambedkar Scheme
  • list items Central Sector Interest Subsidy
  • list items Interest Subsidy Scheme by the Government of Gujarat.
  • list items 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. 

    Eligibility criteria Student should belong to EBC or OBC For OBC candidates, total family income shall not exceed INR 8 Lakh per annum For EBC candidates, total family income shall not exceed INR 2.5 Lakh per annum

    Loan amount

    Not specified

     

    Guidelines ISEL Scheme

     

     

    Looking for an abroad Education Loan?
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    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. 

    Eligibility criteria Students should have secured admission to a recognized Indian/foreign university. Student’s total family income shall not exceed INR 4.50 Lakh per annum.

    Maximum loan amount

    INR 10 Lakh

     


    Read More About: Kerala Gramin Bank Abroad Education Loan

    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. 

    Eligibility criteria Students must have secured at least 60% in your 12th grade. Total family income of the students should be less than or equal to INR 6 Lakh annually

    Loan amount

    Up to INR 15 Lakh

    Courses eligible

    Professional courses at graduate, post-graduate, and diploma levels

     

    Read More About: Jain Jagruti Education Loan
     

    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

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

    Read more about: Direct or Indirect Liabilities in Education Loan

     

    Go through updated list of fully funded scholarships to study abroad

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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

  • list items Student should belong to Economically weaker section
  • list items Student’s annual family income should be less than INR 4.5 Lakh. 
  • list items 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 in India Up to INR 20 Lakh

    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 in India Up to INR 20 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

    Real more about: E-Samaj Kalyan Gujarat Education Loan

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

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

    Eligibility criteria Students should have obtained admission for a specified professional or technical course for the ongoing academic session. 

    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

     

     

    Looking for an abroad Education Loan?
    By entering my phone number, I give consent to override NCPR and recieve WhatsApp messages.

    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. 

    Eligibility criteria Students should be a member of a backward class (as notified by the Central Government/State Government). Student’s per annum income of the family should not exceed INR 3 Lakh.  Students should have secured admission to a professional or technical course through an entrance test/merit-based selection process.

    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


    Read More About: Education Loan with Backlogs

     

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

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

    Eligibility criteria Students must have a valid Scheduled Caste (SC) certificate. Students' family income should be up to INR 3 Lakh per annum. Students must have secured admission to a recognized university. university abroad on the basis of merit. 

    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

     

    Read more about: Education Loan For Management Quota Students

     

    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.

    Collateral requirement Required for loans more than INR 7.5 Lakh

    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

    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.

    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

    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

     

    Read more about: Mahatma Jyothiba Phule Overseas Vidya Nidhi Telangana Details

     

    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:

  • list items Types of Education Loans for Abroad Studies
  • list items NBFC Education Loan for Abroad Studies
  • list items Best Banks For Abroad Education Loans in India
  • list items Education Loan Process for Abroad Studies
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    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:

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

  • Read more about: A Complete Guide on JanSamarth Portal Education Loan

     

    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-

  • list items Photo ID
  • list items Residence proof
  • list items Academic documents of student
  • list items Offer letter of the university/college
  • list items Bank statement of the last 8 months of co-applicant
  • list items Income proof of the co-applicant
  • list items Collateral proofs
  • list items 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. 

    When will the repayment start for the education loan for abroad studies by the Indian government?

    The repayment tenure usually starts 6 months or 1 year after the program completion or after getting employed, whichever is first.

    Check Your Education Loan Eligibility


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