In India, lakhs of students dream of pursuing higher education, but many cannot afford the high costs of tuition, hostel, books, and other expenses. That’s where an education loan by government steps in. Here provides a comprehensive overview of the top government students loab schemes for students in India.
This article provides a comprehensive overview of the Student Loans in India By Government, categorized into scholarships, education loans, free education, and skill development, with detailed insights into their objectives, eligibility, benefits, and application processes.
What Is an Education Loan by Government?
Studying in India or abroad can get expensive, no doubt. Government of India has introduced a range of education loan schemes designed to support students. If you’re facing this, you can take out an education loan. This can help you complete your education without burdening your family. Education loans cover tuition, hostel, and living costs, but repayment can be stressful.
Benefits of Government Education Loans
Here are the key advantages of government-sponsored education loans:
✅ Easy access to quality education
✅ Affordable repayment with low interest
✅ Schemes for both Indian and foreign education
✅ Assistance for poor and backward families
✅ Empowerment through education
✅ Transparent online application portals
✅ Moratorium period (relaxation during study)
Are You Eligible for a Student Education Loan?
- Family income under Rs 4.5 lakh for CSIS?
- Applying for a professional or technical course?
- Planning to study abroad for PG, Ph.D., or higher?
- Belong to OBC, EBC, SC, or minority community?
- Applied through a recognized bank or official portal?
Types of Education Loan Government Schemes
Loans for Studies in India: These loans are provided to students who wish to pursue higher education at recognised institutions within India. The loan amount typically covers tuition fees, exam fees, and other academic expenses.
Loans for Studies Abroad: Students who wish to pursue education in foreign countries can avail of an education loan for studies abroad. The government also provides special subsidies and schemes for such loans.
Comparison of Major Government Education Loan Schemes
| Scheme | Max Loan | Interest Subsidy | Target Group | Study Location |
| CSIS | ₹10 lakh | 100% (moratorium) | Low-income | India |
| PM-Vidya Lakshmi | ₹7.5 lakh (avg) | Partial/Subsidized | General Public | India/Abroad |
| Dr. Ambedkar Scheme | ₹20–30 lakh | 100% (moratorium) | OBC, EBC | Abroad |
| NBCFDC Loan | ₹20–30 lakh | Concessional | Backward Class | India/Abroad |
Student Loans by Government
A variety of education loans by the government for students today to make education loans more accessible and affordable.
NSFDC Educational Loan Scheme
The National Scheduled Castes Finance and Development Corporation (NSFDC) provides this loan scheme for Scheduled Caste (SC) students. If you want to pursue a technical or professional degree course in India or abroad, you can avail an education loan under the NSFDC Educational Loan Scheme.
Loans of up to ₹20 lakhs for domestic courses and ₹30 lakhs for international courses are available at concessional interest rates of 3% p.a. and 8% p.a.
PM Vidya Lakshmi Education Loan
This scheme initiate by the Government of India to provide a single-window platform for students to apply for education loans from multiple banks. The scheme caters to the needs of students from all economic backgrounds.
Central Sector Interest Subsidy Scheme
This scheme offers a full interest subsidy on education loans for students from Economically Weaker Sections. Offers 100% interest subsidy during the moratorium period (course duration + 1 year). Applicable for professional/technical courses in India.
Credit Guarantee Fund Scheme for Education Loans
CGFSEL Education Loan Scheme is an initiative by the National Credit Guarantee Trustee Company Ltd. The Central Government provides a guarantee cover of 75% of the amount in default. The maximum interest rate that can be charged on education loans under the CGFSEL scheme is 2% over the base rate.
Government-backed education loans have helped thousands of Indian students reach premier institutions both in India and internationally. It can cover tuition fees, living expenses, or a part of the education loan interest. This enables them to focus on their studies, ensuring a successful future.
FAQs for Student Loans by the Government
What is the repayment period for education students loans to studying abroad?
The repayment period for education loans for studying abroad typically starts after a moratorium period of 6 months to 1 year after course completion.