Government Education Loan in India

A Government Education Loan is a financial assistance scheme supported by the Government of India
to help students pursue higher education in India or abroad. These loans are offered through public sector banks
under government-backed schemes with lower interest rates and education loan subsidies.

Why Choose Government Education Loan in India?

• Lower interest rates compared to private loans
• Government interest subsidy schemes available
• No repayment pressure during study period
• Easy repayment after course completion
• Available for studies in India and abroad

Major Government Education Loan Schemes

1. Central Sector Interest Subsidy Scheme (CSIS)

Under this scheme, the Government of India pays the interest on education loan during the moratorium period
(course duration + 1 year) for eligible students from economically weaker sections.

2. Vidya Lakshmi Education Loan Scheme

Vidya Lakshmi is a government portal where students can apply for education loans from multiple public sector
banks through a single application form.

3. State Government Education Loan Schemes

Several state governments offer additional education loan subsidies, especially for SC, ST, OBC, Minority
and economically weaker students.

Eligibility for Government Education Loan in india

• Applicant must be an Indian citizen
• Admission secured in a recognized college or university
• Course should be approved by UGC / AICTE / Government
• Family income limits apply for subsidy schemes

Courses Covered Under Education Loan

• Graduate & Postgraduate courses
• Professional courses (Engineering, Medical, Law, MBA)
• Diploma & Technical courses
• Higher studies abroad

Education Loan Amount

Interest Rate on Government Education Loan in india

Interest rates generally range between 8% to 11% depending on the bank and scheme.
Interest subsidy may be provided for eligible students.

Repayment Period

• Moratorium period: Course duration + 6 to 12 months
• Repayment tenure: Up to 15 years
• Flexible EMI options available

Documents Required for Education Loan

• Admission letter from institution
• Mark sheets & certificates
• Aadhaar card & PAN card
• Income certificate (for subsidy)
• Bank statements of parents/guardian

How to Apply for Government Education Loan?

1. Visit the official Vidya Lakshmi Portal
2. Register using Aadhaar and mobile number
3. Fill education loan application form
4. Select preferred public sector banks
5. Upload required documents
6. Submit application and track status

Benefits of Government Education Loan

• Affordable interest rates
• Interest subsidy for eligible students
• Tax benefit under Section 80E
• No margin money for small loans

Conclusion

Government education loans make higher education accessible and affordable for students from all backgrounds.
With low interest rates, subsidies, and flexible repayment options, these loans are an excellent choice for
students planning their academic future.

Frequently Asked Questions (FAQs)

Q1. Who can apply for government education loan?
Indian students with confirmed admission in recognized institutions can apply.

Q2. Is collateral required?
No collateral is required for loans up to ₹7.5 lakh.

Q3. Can I get interest subsidy?
Yes, eligible students can get interest subsidy under CSIS.

Q4. Is education loan available for studying abroad?
Yes, government-backed loans are available for foreign studies.

Q5. Are there tax benefits?
Yes, interest paid is eligible for deduction under Section 80E.