According to government data, there are more than 5.50 Lakh Indian students studying in 86 different countries around the world. While the UK, the US and Canada remains the top three preferences for students, several countries in Asia and Australia are also emerging as choices for students to pursue their studies.
This trend to study abroad among students has increased significantly in the last few years with the introduction of several education loan scheme by the government. These schemes come with benefits like interest subsidies, waivers during the moratorium period, etc. that can help students from economically backward households avail education loans more easily.
Following are some of the government schemes for student education under which they can avail education loan against property at subsidised interest rates.
Padho Pardesh Scheme
This scheme was introduced by the Government of India, Ministry of Minority Affairs and IBA to provide financial aid to students belonging to minority communities to pursue higher education abroad. Under this scheme, students can avail a subsidy on the interest rate during the moratorium period for their education loan from various financial institutions in India.
Following are the eligibility criteria to avail the benefits of the scheme:
- Students belonging to the economically weaker section of the society with a gross annual family income of less than Rs. 6 Lakh can avail the benefits of the scheme.
- Students must be able to furnish certificate or self-declaration to certify that they belong to a minority community declared under Section 2(C) of the National Commission for Minorities Act, 1992.
Dr Ambedkar Central Sector Scheme of Interest Subsidy
This is an education loan scheme under the Central Government to aid students belonging to minority communities and backward classes of the society to avail education overseas.
Under this scheme, students can avail a subsidy on the interest rate of their loan against property for educational purposes. This subsidy is available in the duration of the moratorium period plus 1 year or 6 months after getting recruited.
They need to comply with the following eligibility criteria to enjoy the benefits of this scheme:
- Students need to secure admission in any university overseas in any approved course for Masters, PhD or MPhil.
- Students should belong to a family having an annual household income of Rs. 1 Lakh for economically backward classes and Rs. 3 Lakh for other backward classes.
Central Scheme of Interest Subsidy for Education Loans
This loan, also known as CSIS, can be availed by students belonging to the economically backward classes of the society. Under this scheme, students can avail an interest subsidy during the moratorium period of their loan plus 1 year after recruitment.
Following are the education loan details like eligibility criteria under this scheme:
- Students should belong to a family with an annual household income of less than Rs. 4.5 Lakh.
- Students can avail an advance of up to Rs. 7.5 Lakh under this scheme.
- The benefits of this scheme are available on professional and technical courses.
- To avail the loan, students must get enrolled in an accredited institution in any country overseas.
These are the three education loan schemes under the government that students belonging to the economically backward classes can avail to meet the financial needs of their education abroad.
However, if you do not comply with the above eligibility criteria, you can still avail a Loan against Property for education at competitive interest rates from financial institutions like Bajaj Finserv.
They also provide pre-approved offers that can make availing the loan faster and easier. These offers also come with various financial products such as secured credits like home loans and unsecured credits like business loans, personal loans, etc.
Benefits You Can Avail From A Loan Against Property For Education
Availing a loan against property for education can help you to enjoy all the benefits of an education loan in India along with several additional benefits.
- Cover expenses like airfare, hostel fee, food and other costs of living abroad.
- A high loan amount
- Flexible tenor
- Instant approval of loan along with easy disbursal
However, make sure that you check the things you need to do before applying for education loan on property. This can help you avoid rejection during the application process. Thus, students who do not satisfy the eligibility criteria of government schemes can also avail a loan against property easily to cover the expenses of their education abroad.