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Education Loan – Govt Abides for A Guarantee Scheme

Education loan is the easiest medium for every students, those who are unable to digest the fee structure of higher education in India. A General category or a backward category candidates are the ones who are highly dependent on Education Loans.

RBI Governor, ( Reserve Bank of India ), D.Subba Rao said “On A Proposal to remove problems faced by students in obtaining education loans, government was working on a scheme under which it would extend guarantee for advances up – to ₹ 7.5 lakhs”.

On the interactive programme which was organized by the RBI and ABP News he said “There are grievances of students not getting loans or encountering problems. Understanding that there is a problem, the government is now working on a guarantee scheme”.

“For loans upto ₹ 7.5 lakhs where there was no third party guarantee or collateral security there would be guarantee given by the government. Well, It is yet to be launched. Hopefully, it would come and resolve some of these issues”, he said.

He further informed that, on paper for loans upto ₹ 4 lakhs there should be no collateral security or guarantee. For good students and good institutions it is easier to get loans than for students not so good or institutions not rated so high. But our endeavor is irrespective of level of achievements of institutions, they must have access to education loan upto ₹ 4 lakhs.

He also explained that RBI wanted to deepen penetration of banks either through bank branches or Business Correspondents since more than 50% of the households in the country did not have bank accounts. Nothing that RBI and the Government had initiated several steps towards financial inclusion with a view to ensuring that every household had bank accounts. It becomes successful only when banks see it as business opportunity.

On security and safety of electronic transactions, he said “Securing security is shared responsibility. It is not exclusive concern of RBI alone. It is responsibility of commercial banks and to the customers.” All the three should share the responsibility and work together to ensure that banking transactions especially electronic and mobile transactions were safe, he added.

Very soon, the govt shall approve a guaranteed Scheme for students Education loan. This is an important scheme to bring out higher education reach more students who opt to study higher in India.

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Availing Interest – Free Education Loan for Higher Studies

The Interest – Free Education Loan Scheme, launched by the state government in 2003, provides financial assistance to students in Goa to undertake approved degree and diploma courses at the undergraduate and postgraduate levels in India or abroad. It’s implemented by the Goa Education Development Corporation and grants students interest – free loans where the beneficiary pays back the Principal amount and the government bears the interest. This week we run through the procedure to apply for assistance under this scheme.

Eligibility Criteria :

  • The applicant should be less than 30 years old
  • Should be born and domiciled in Goa for at least 15 years
  • Should have cleared Class X and XII exams for admission to courses at diploma or degree level in any recognized institution in Goa
  • Should have received a graduation certificate from any recognized institution
  • Should have cleared final exams of a post – graduation course for admission to PhD courses
  • Should have passed the qualifying exam with a minimum aggregate of 55% in case of general category. For candidates belonging to SC / ST / OBC categories, the qualifying marks are 45%

  • Combined annual family income of the applicant should not exceed ₹ 7 lakh for courses within India. In case one of applicant’s sibling is pursuing a course in higher education, the income ceiling is ₹ 8 lakh per annum
  • For pursuing higher education in an institution outside India, the annual family income limit is ₹ 12 lakh. In case one of applicant’s sibling is pursuing a course in higher education, the income ceiling is ₹ 14 lakh per annum
  • The entitled fees payable to the institution for undertaking the course should be at least ₹ 10,000 per annum
  • The course for which admission is sought should be recognized by an accreditation authority approved by the government of India or the government of Goa

Documents Required :

  • Application form available at the office of the Goa Education Development Corporation for ₹ 150
  • Attested copy of resident certificate
  • Attested copy of applicant’s birth certificate
  • Attested copy of parents’ I – T returns for the last financial year
  • Attested copies of marksheets of the last qualifying exams taken by the applicant
  • Attested copy of proof of admission ( in case of foreign institutes )
  • Original fee receipt for the running academic year
  • Original, bonafide certificate issued by the institute for the running academic year along with the fee structure of the course
  • Power of Attorney in the name of a working parent ( in case of studies outside Goa )
  • Attested copy of caste certificate ( if required )
  • Bonafide certificate of sibling ( if required )
  • Self – attested envelope with ₹ 5 postage stamp

Quantum of Loan :

  • For courses conducted in India, a maximum of ₹ 10 lakh will be disbursed over 5 years
  • For courses abroad, a maximum of ₹ 16 lakh will be disbursed over 2 years

Procedure :

  • The above – mentioned documents have to be submitted to the office of Goa Education Development Corporation
  • Once the documents are scrutinized and their authenticity established, the funds are released through the electronic clearing system, which requires the applicant to have an active account in any national or private sector bank

Points to Remember :

  • Under this scheme, a maximum five – year course is covered for studies in India and a maximum two – year course is covered for studies abroad. In the event that the situation faced by a particular candidate requires minor modification in study period, the scheme provides for flexibility to make adjustments
  • Failure to comply with the repayment schedule will attract liability of payment of interest at a prescribed rate
  • The last date for submission of application form is 31st October, 2012, extendable to 31st December, 2012, only in cases where the course commences after 31st October, 2012

Contact Details :

Goa Education Development Corporation,
DIET Hostel Building,
Near Teacher’s Training College,
Provorim, Goa – 403521
Phone :
2411187 / 2411194
Email :

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Best Education Loan Banks to your Higher Education

Education Loans have made life easier, it is one of the popular means to fulfill academic dreams these days. Education costs have become extremely expensive and often even after planning appropriately, one tends to fall short of funds.

There are numerous options to choose from in case one is looking for education loans. However, there are few parameters that one should consider whilst choosing an education loan. Here are few names of Banks which are the most popular and well known banks for Education loans.

We would like to give you the deep information on the bank, procedure, financial support and what students personally say about that bank.

HDFC Bank :

With over 2544 branches across India, it is a popular education loan provider. Its interest rate presently ranges between 12 to 13% per annum. A rate of 24% per annum is due on late repayments. It has a strong financial support for candidates looking to study in India. A loan can be granted for up – to ₹ 15 lakhs. Foreign education loans are also possible here up – to ₹ 20 lakhs with no collateral required if the amount is less than 7.5 lakhs.

Students Speak :

An MBA student of IIM – A says that “The reason I opted for HDFC Education loan is for the simple fact that you don’t have to start repayment until one year after you graduate or 6 months after you get a Job”.

Procedure :

In order to be eligible for a loan the applicant must be an Indian citizen and aged between 16 – 35 years old. A loan amount for more academic records, identity proof, income documents, relevant stamp duty and a completed application form must be provided. Please note that an appointment letter from he institute with joining date mentioned is mandatory.

Apply now in HDFC Bank :

AXIS Bank :

This bank aims in funding aspiring students applying for career – oriented courses such as medicine, engineering and management. Interested rates range from 15.50 to 18%. Girls can avail lower interest rates. Financially it supports the quantum of finance under the scheme is capped at ₹ 10 lakhs for studies in India and ₹ 20 lakhs for studies in abroad to cover tuition fees and expenses. The minimum loan amount available is ₹ 50,000.

Student Speak :

A film graduate from NYU said “My sister had taken a loan from AXIS bank for her MBA in India. I decided to do the same as the disbursements of funds is excellent. Money is credited on time with zero hassles”.

Procedure :

Applicants need to submit proof of identity income and residence along with a copy of the original admission letter with fees and joining date clearly mentioned. All relevant academic documents like mark sheets and pass certificates also need to be produced. In order to apply, aspiring students can check their eligibility online, through the banks call centre or by visiting any branch of AXIS bank.

Apply now in AXIS Bank :

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State Bank of India & HSBC Helps in Education Loan

Other than the well known HDFC and Axis banks there are options of other banks where you can try for an Education Loan. Yes ! The State Bank of India and HSBC Banks are also helpful in providing a Education Loan. Here are a few details on these banks you can look for.

SBI ( State Bank of India ) :

All students applying for their higher studies eligible to be funded by the SBI Education Loans. The bank has no upfront charges. Current interest rate is 11 to 13.75% per annum. SBI also provided special loans for girl candidates.

The financial support provided by SBI is been very helpful for the needy candidates. For studies in India the maximum loan amount is ₹ 10 lakhs, while it is ₹ 20 lakhs for studies in abroad. The repayment period is up – to seven years. No security is needed for amount less than ₹ 4 lakhs.

Student Speak :

A student named Karthick Mathew a B.A English student at Oxford University says “My friends approached private banks but I decided to take a loan from SBI because there are many concessions you can avail of only at Public banks”.

Procedure to Apply :

Applicants must be an Indian nationals and have already been granted admission to an institute of higher education. Students seeking vocational training and diplomas in India and Job oriented professional courses abroad are also eligible for loans in SVI.

Besides from academic documents and a completed application form, all loans taken must be secured by parents, guardians or spouse. The bank is extremely stringent when it comes to the format of documents submitted. Please be sure to check ahead before submitting your final loan application. For more details please click here on State Bank of India.

HSBC Bank :

This bank is in partnership with Global Student Loan Corporation, which aims to provide loans for Indian students. The present interest rate is around 12% per annum with respect to the total amount applied for.

Loans up – to ₹ 1 crore are provided against residential property. The property must be in cities like Ahmedabad, Bangalore, Chandigarh, Chennai, Mumbai, NCR Region, Jaipur or Pune. ₹ 5 lkahs is the minimum amount offered y HSBC.

Students Speak :

Prashant Singh, who is a B.A Physics stduent at Melbourne University says “The service is what blew me away. I went to 2 other banks prior to HSBC but their loan representatives were so unenthusiastic. HSBC was quite different, with good knowledge and offers.

How to Apply :

The minimum age for primary and co – applicants is 18 years, while the maximum age is 60 years. Eligible candidates need to provide relevant documentation, collateral and application forms in order for the loan amount to be granted. Co – applicants can only be parents or spouses for Indian nationals. It is vital to provide official documentation from the university stating expected tuition, lodging, food, books and transport costs.

The loan amount granted will be in Indian rupees over the course of applicant’s academic career. For more details please click on

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Links for applying Educational Loans for various Banks

Students can apply their educational loan directly to the various banks through the links mentioned below in the table.

S NoEventDate
1online application Start date05th July, 2019
2online application End date1st October, 2019
3Date of Entrance Examination15th - 30th October, 2019

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Number of Students applying for Educational Loans doubles in 5 years

The number of students applying for educational loans across the country has doubled in the last five years, data compiled by the Indian Banks’ Association has shown. The data, compiled annually from records of all 28 nationalized banks in the country, shows that 3.25 lakhs loan applications were received in 2009 – 10 against 1.48 lakh applications in 2004 – 05.

Bankers attribute this to an increase in the number of people pursuing higher education and a relaxation of educational loan norms. Earlier, the criteria were stricter and only meritorious students were given educational loans. Now, even an average student is eligible, says Nupur Mitra, Executive Director of Indian Overseas Bank, Chennai. Moreover, there is no collateral for loans up to ₹ 4 lakhs.

Indian Overseas Bank, which in 2006 received around 11,000 applications in Tamil Nadu, sanctioned about 30,000 applications from April to June in the year 2011.

The bank disbursed about 48,000 educational loans in 2010 – 11. Along with professional courses, loans are now available even for courses like teacher’s training, says a bank official.

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Full Interest Subsidy on Education Loans for Poor Students

Govt. decided to provide full interest subsidy on education loans for poor students to pursue technical and professional courses and fixed their parental income ₹ 4.5 lakh per annum to avail the benefit.

The scheme to enable students from economically weaker sections to continue any approved course in recognized technical and professional institutions in the country.

The scheme would benefit over five lakh students to pursue higher education in technical and professional streams.

The moratorium period begins from the launch of a course till one year after the course ends or six months after the student gets a job, whichever is earlier. The interest during this period would be borne by the government.

After this moratorium period is over, the interest on the outstanding loan would have to be paid by the student borrower as per its provisions.

The interest subsidy would be available to students only once, either for the first undergraduate degree course or the post-graduate degree and diploma courses.


JEE Main

Application Form Submission 16 Dec 2020 to 16 Jan 2021.