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Government Education Loan Scheme

With higher education becoming a costly affair, the Indian Government has introduced several financial aid programs for students. These education loan schemes allow capable students from economically challenged families to pursue their dream courses without needing to worry about the financial shortfall.

In some cases, meeting the eligibility requirements of these government education loan schemes can be tricky. Parents can opt for a loan against property for education to fund their child’s education as well.

Loan Against Property for Education: Features and Benefits

Financing education through a Bajaj Housing Finance Loan Against Property is convenient because of the following reasons:

  • Simple documentation process

    Unlike most student loan schemes, applicants of a loan against property for education do not have to undertake an extensive documentation process. Bajaj Housing Finance loans are available to individuals who can complete KYC documentation and produce the relevant property paperwork.

  • Substantial loan amount

    One of the drawbacks of most government schemes for education loans is the limited loan amount available. However, a loan against property offers a significant principal amount. This amount is generally sufficient to cover one’s course expenses, along with other associated costs for travel, accommodation, books, etc.

  • Significant repayment flexibility

    Borrowers can extend the loan against property repayment to up to 18 years. The longer tenor helps keep EMIs affordable. This is yet another way in which the Bajaj Housing Finance credit differs from most government education loan schemes. A Loan Against Property EMI Calculator helps determine the most suitable tenor based on a borrower’s repayment capabilities.

  • Top-up loans on refinancing

    Refinancing an existing loan against property with Bajaj Housing Finance offers several benefits. Apart from affordable interest rates, borrowers can also apply for a significant top-up amount. This loan is over and above the original loan against property.

    This financial assistance can help cater to additional expenses that may arise during the particular course. Education loans by the Government generally do not offer such benefits.

Different Education Loan Schemes

An individual looking for education loan financing can consider the following government schemes to reduce his/her liabilities significantly:

  • Padho Pardesh Scheme

    This particular Padho Pardesh Scheme  addresses the financial difficulties faced by minorities when pursuing education abroad. Eligible applicants receive attractive subsidies on their education loan interest.

    Borrowers belonging to the economically weaker section with a family income of less than Rs.6 lakh a year qualify for this credit. Additionally, one can only pursue Masters, M.Phil. or PhD level studies under this scheme.

    The courses where this scheme’s benefits are applicable include Commerce, Humanities, MBA, Pure Science, Veterinary Science, Farm Power and Machinery, Atmospheric and Ocean Sciences, and others.

  • Vidya Lakshmi Scheme

    Through the Vidya Lakshmi Scheme , which allows eligible borrowers to take advantage of significant education loans at affordable rates. Interested individuals can borrow using an online portal, known as the Vidya Lakshmi portal.

    One of the primary benefits of this initiative is that applicants do not need to fill up multiple forms when applying for credit at more than one institution. Instead, a common application form is applicable everywhere. This reduces application times and facilitates faster credit approvals.

  • Central Scheme of Interest Subsidy for Education Loan

    The Central Scheme of Interest Subsidy is another highly useful initiative for students belonging to the economically weaker section. Under this specific higher education loan scheme, beneficiaries receive a complete subsidy on interest during the loan moratorium. Additionally, the subsidy continues for an additional year or 6 months after the concerned student secures a job, whichever happens sooner.

    Only domestic courses are supported under this scheme. Moreover, the education loan principal must not exceed Rs.7.5 lakh.

  • Dr Ambedkar Central Sector Scheme of Interest Subsidy

    OBCs and EBCs are eligible for benefits under this study loan scheme. The Dr Ambedkar Central Sector initiative promotes higher education among these financially backward sections of society, aiding students to pursue their academics abroad. Significant subsidies on education finance ensure the affordability of credit.

    One must remember that EBCs are applicants whose annual income is less than Rs.1 lakh. An individual is considered OBC if he/she earns up to Rs.3 lakh a year.

    If none of these schemes fulfils an individual’s education-related finance requirements, he/she can always opt for a high-value loan against property for education from Bajaj Housing Finance.