Government Education Loan for Study Abroad

The trend of studying abroad has increased over the years among the students. The trend is fueled by better education, job opportunities, availability of courses, and the prestige of having an international degree. However, pursuing an education abroad often comes with financial challenges. This is where financial aid or loans come to the rescue. Government education loans are financial aid provided to students. This blog will explore how government education loans can help you achieve your study abroad goals.

Table of Contents:

1. Education Loan for Abroad Studies by the Indian Government
2. Vidya Lakshmi Portal Education Loan
3. Gujarat Government Education Loan for Study Abroad
4. GUEEDC Foreign Education Loan
5. Education Loan Scheme of NBCFDC
6. Educational Loan Scheme by NSFDC
7. WBMDFC Education Loan
8. Documents Required for Government Education Loan for Study Abroad
9. Frequently Asked Questions

Education Loan for Abroad Studies by the Indian Government

The Government of India (GOI) offers education loans to students planning to study abroad. Government education loans usually provide several benefits to students, some of them are:

• Lower Interest Rates: Government loans typically have lower interest rates than banks, making them more affordable for students.
• Flexible Repayment: Government loans offer flexible repayment options with longer moratoriums and grace periods.
• Wide Coverage: Government education loans generally cover tuition fees, living costs, travel expenses, and other essential costs.

Vidya Lakshmi Portal Education Loan

Vidya Lakshmi is a portal for students looking for education loans. It is a portal designed by the government where students can compare loans and apply for the same. The portal helps students connect with multiple banks for loans. The key features of the Vidya Lakshmi portal are:

• 38 banks are registered with 86 loan schemes
• To date, 37 lakhs+ students have registered, and 10 lakhs+ applications have been sanctioned
• Students can apply for Scholarships through the National Scholarship Portal
• Students can apply for loans in three simple steps
• With one single application form, students can apply to multiple banks for loan

Gujarat Government Education Loan for Study Abroad

The Gujarat Government Education loan is given to Gujarat students planning to study abroad. Eligible students can get loans for up to INR 15 lakhs at a 4% interest rate. The eligibility criteria for Gujarat government education loan is as follows:

• Passed class 12th with 60% marks or more
• Annual family income should not exceed INR 6 lakhs per year
• Students must have enrolled in a recognized University abroad

GUEEDC Foreign Education Loan

Gujarat Unreserved Education and Economic Development Corporation (GUEEDC) offers education loans for students planning to study abroad. The loans are offered to students at simple interest at 4% PA. Students must have 60% or more in standard 12, and their annual family income must be INR 6 lakhs or less. The other details for the GUEEDC foreign education loan are as follows:

Particulars	Details
Collateral / Documents for the Loan	For loans for INR 7.50 lakhs or less, One and a half times the loan amount must be registered on the beneficiary’s or relative’s property. For loans for INR 7.50 lakhs or more: Mortgage immovable property worth the loan amount in favor of the Corporation Borrower must provide 5 post-dated cheques signed in favor of the Corporation.
Repayment of Loan	For loans up to INR 5 lakhs: Repaid in equal monthly installments over 5 years, starting 1 year after studies For loans above INR 5 lakhs: Repaid in equal monthly installments over 6 years, starting 1 year after studies Repayments go towards interest first Borrower can repay the loan before the specified time limit

Education Loan Scheme of NBCFDC

The Education Loan Scheme of the National Backward Classes Finance and Development Corporation (NBCFDC) offers education loans to students of backward classes living below the poverty line. Students pursuing general/professional/technical courses or training at graduate and/or higher levels are eligible for the loan. NBCFDC education loans can be availed for a maximum of INR 20 lakhs abroad. The interest rate is 4%, while female students get a concession of 0.5% (3.5%). The eligibility criteria are as follows:

• Students must be members of backward classes
• Annual family income should not exceed INR 3lakhs per year
• Should have secured admission to a recognized University abroad

Educational Loan Scheme by NSFDC

An education loan scheme by the National Scheduled Castes Finance and Development Corporation (NSFDC) is provided to students pursuing their professional/technical courses at recognized universities abroad. The education loan covers scheme by NSFDC features are as follows:

Particulars	Details
Expenses Covered	Admission Fee Tuition Fee Books and Stationery Equipment Examination Fee Hostel and Mess Expenses Insurance Premium for policy to cover loanees against loan in case of death or permanent disability Travel Expenses/Passage Money, including Visa Expenses for studying abroad Caution Money Development Fund Clothing Allowance, including weather-protective clothing for extreme climates (for foreign study)
Loan Amount	INR 40 lakhs or 90% of the course fee (whichever is less)
Rate of Interest	7% per annum (6.5% for female students)
Repayment Period	Loan up to INR 10 lakhs – within 10 years Loan up to INR 12 lakhs – within 12 years

WBMDFC Education Loan

West Bengal Minorities Development and Finance Corporation (WBMDFC) education loan is designed for students who are from minor communities in West Bengal. The loan covers studies in India as well as abroad. The details are as follows:

Particulars	Details
Eligibility	75% marks in last examination
Eligible Courses	Job-oriented professional/technical degrees (MCA, MBA, MS) from reputed universities. CIMA (London) and CPA (USA) certification courses
Loan Amount	Maximum – INR 6 lakhs in a year and INR 30 lakhs for the entire course
Interest Rate	3% – 8% pa (depending on the family income)
Repayment Procedure	Starts after 6 months after course completion or on securing employment

Documents Required for Government Education Loan for Study Abroad

Various documents are required when applying for an education loan to study abroad. Some of the documents are:

Passport Sized Photographs	Identity Proof (PAN, Aadhar, Voter ID or Driving License)
Address Proof	Academic Records
Standardized Test Scores (if applicable)	Income Proof

Frequently Asked Questions

Who is eligible to apply for a Government education loan to study abroad?

Students must be Indian citizens to apply for a government education loan to study abroad. The student must have a confirmed admission to a recognized university abroad.

What expenses are covered by the government education loan for studying abroad?

Government education loans typically cover tuition, travel, living expenses, exam and library fees, lab charges, and more.

What is the interest rate for a Government education loan to study abroad?

The interest rate for Government loans to study abroad varies from 7%-10%. Female students typically get a 0.5% concession in their loan application.

Do I need collateral for a Government education loan to study abroad?

A collateral requirement for a Government education loan to study abroad depends on the loan amount. Typically, loans above INR 7.5 lakhs may require collateral or a guarantor.

Are part-time courses covered by government education loans for studying abroad?

On average, the government offers education loans to students studying abroad for full-time courses. However, some schemes may offer loans for professional certification programs.