Major Education Loan Schemes in India:
IBA Model Education Loan Scheme (Bank Education Loan Scheme)
Education Loan Schemes in India This scheme, formulated by the Indian Banks Association (IBA), is adopted by almost all major banks. Under this, students can get loans for studies in India or abroad:
Loan Limit:
For studies in India: Up to ₹10 lakh.
For studies abroad: Up to ₹20 lakh (higher in some cases).
Loan up to ₹4 lakh without collateral or third-party guarantee.
Margin Money: For loans above ₹4 lakh:
In India: 5%
Abroad: 15%
Repayment: 12 months moratorium period after completion of course. Total repayment period up to 10-15 years.
Cover: Includes tuition fees as well as expenses on books, accommodation, computer/laptop etc.
Interest Subsidy Schemes of Government of India
CSIS – Central Sector Interest Subsidy Scheme:
For students of EWS category.
Annual income of the family should be less than ₹4.5 lakh.
100% subsidy on interest during the moratorium period of course + 1 year.
Dr. Ambedkar Central Sector Interest Subsidy Scheme:
For OBC and EBC students.
Interest subsidy on loans taken for higher education abroad.
Also Read :
Read Pardesh Scheme:
For students from minority communities (Muslim, Christian, Sikh, Buddhist, Jain, Parsi).
Subsidy on interest during moratorium period while studying abroad.
Highlights:
- Education loan up to ₹20 lakh available under IBA model, loan up to ₹4 lakh without guarantee.
- Moratorium period of 12 months, repayment period up to 10-15 years.
- Government interest subsidy schemes like CSIS, Padho Pardesh and Dr. Ambedkar Scheme.
- Application and loan tracking facility on a single platform through Vidya Lakshmi portal.
- Tax exemption under section 80E on interest paid on education loan.
Vidya Lakshmi Portal – One-stop solution for Education Loans
This government-run portal provides a single platform for students to avail education loans:
One-stop application for schemes of different banks.
Loan application tracking system.
Comparative information of banks and government schemes available.
