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Central Scheme of Interest Subsidy for Education Loan

The rising cost of education in India has deprived millions, especially children from humble backgrounds, of quality education. It compels the parents to opt for an education loan to bridge the fund deficit for studying costs.

However, it often becomes difficult for them even to repay the loan. To help such borrowers, the government initiated the interest subsidy on education loans.

What is Interest Subsidy on an Education Loan?

Students from economically weaker sections and low-income groups can now claim the interest of an education loan as a subsidy from the government. Depending on the scheme, the percentage of the subsidy varies.

The eligibility of interest subsidy schemes on education loans is also different for different schemes. Check out the most popular schemes available right now from the Central Government.

Padho Pardesh Scheme

This Padho Pardesh Scheme is available to students from minority communities for overseas studies. This scheme aims at improving the employment scenario after completing a course. Meet the eligibility of this scheme and avail of interest subsidy on education loan.

Following are the eligibility criteria:

  • The annual family income should not exceed Rs.6 lakh. Submit the Central Government issued income certificate to qualify for this interest subsidy on education loan scheme.
  • Must show proof of belonging from minority communities declared under section 2 (c) of the National Commission for Minorities Act, 1992.
  • The subsidy is available only on the Masters/M.Phil or Ph.D courses.
  • Should have Indian citizenship.
  • This subsidy is available during moratorium period and 1 year after course completion or 6 months after employment, whichever is first.

Besides this interest subsidy scheme for education loans, the central government offers additional initiatives. Learn about it in detail.

Central Scheme of Interest Subsidy

The students from economically weaker sections of the society are eligible for this Central Government interest subsidy scheme. The fund availability is limited only for studying within the country. Avail of this subsidy to pursue any professional and technological courses. The eligibility of this scheme is mentioned below.

  • The annual income of a household should not exceed Rs.4.5 lakh.
  • The maximum loan amount available under this scheme is Rs.7.5 lakh.
  • The duration for availing of this subsidy is course duration plus 1 year.

Note that most of these interest subsidy schemes can be availed only once in a lifetime for the courses specified. Therefore, in case of a credit requirement further for higher education, settle for a high-value amount by pledging property as collateral.

Apply for an education loan against property for high-value credit requirements. Bajaj Housing Finance extends this credit at competitive interest rates and other lucrative offers. Learn more about its unique offerings from the features and benefits of this loan. It includes:

  • Simple Eligibility: Fulfil only a few basic parameters to opt for a loan against property from us. Use our loan against property eligibility calculator for better understanding.
  • Instant Approval: With proper eligibility checks and documentation, the approval takes only 24 hours*. Start using the fund for any major expenses.
  • Quick Disbursal: We send the money to account within 72 hours* of loan approval. Check the eligibility and keep the documents nearby for faster loan processing.
  • Doorstep Facilities : Opt for our doorstep services and get a loan against property from the comfort of your home. Our representatives will collect the documents from home or workplace.
  • Repayment Flexibility: Bajaj Housing Finance accompanies a repayment tenor of up to 18 years. Use a loan against property EMI calculator to decide the suitable tenor and estimate monthly instalments.
  • Online Calculators: We offer several easy-to-use online tools such as the Loan Against Property EMI Calculator, Loan Against Property Eligibility Calculator and Loan to Value Calculator to simplify the borrowing process.
  • Balance Transfer with Top-up Loan: Transfer outstanding loan against property balance to Bajaj Housing Finance and qualify for additional high-value funds as a top-up loan.
  • 24/7 Online Services : Track loan account details online through our customer portal. Choose from a range of services and enhance the borrowing experience.

*Conditions apply.

Apply for a loan against property with us and utilise the fund without any restrictions. Finance course, admission and tuition fees using this credit and fund other miscellaneous expenses may or may not be related to study.