Education Loan for Girl Students in India - Know Loan Scheme Details, Special Interest Concessions

In India, financial constraints coupled with traditional biases have resulted in restricted education opportunities for female students across the country. However, with changing times there is growing awareness of the importance of women’s education. Education loans for girl students play a major role in offering much-needed financial flexibility to families aspiring to educate their daughters.

Many banks and financial institutions offer lower interest rates, exclusive concessions, and flexible repayment options specifically intended to support female borrowers. There are various private bank offers and government initiatives intended to make the loan process more accessible and affordable. In this article, we have mentioned a few loan schemes that are available to support girl-child education.

1. Vidya Lakshmi Portal

The Pradhan Mantri Vidya Lakshmi Karyakram is an initiative aimed at providing financial support to students from poor and middle-class families, enabling them to pursue higher education without monetary constraints.

Features:

• Students can access details about educational loan schemes from various banks across India.

• The portal offers a Common Educational Loan Application Form (CELAF), allowing students to apply to multiple banks simultaneously.

• Banks can upload the loan processing status directly on the portal, enabling applicants to track their application progress seamlessly.

• The portal is linked to the National Scholarship Portal, providing students access to government scholarship schemes along with loans.

• Students can raise queries or grievances related to educational loans directly through the portal.

Benefits of Vidya Lakshmi Portal for Students

• A centralised platform eliminates the need to visit multiple banks or offices, saving time and effort.

• The process is simple, and there is greater clarity in loan terms and application status.

• Over 39 banks offering 70 different loan schemes have integrated their systems with the portal, making it a comprehensive resource for students.

• The portal ensures financial assistance reaches economically weaker sections as well.

2. SBI Student Loan Scheme

India’s largest public sector bank, the State Bank of India (SBI) offers various education loan schemes to support students aspiring for higher education in India or abroad. Recognising the importance of empowering girl students, SBI provides additional benefits and concessions for them.

Features:

• For a loan amount of up to INR 7.5 lakhs, there is an interest rate of 11.15% (9.15% EBR + 2.00% CRP). Above INR 7.5 lakhs will be the same interest rate of 11.15%, making it suitable for advanced or overseas studies.

• A 0.50% concession is offered to girl students across all loan categories, encouraging families to invest in their daughters' education.

Benefits of the SBI Student Loan Scheme:

• There are repayment schedules that allow students to repay loans after completing their education and securing a job.

• Loans cover tuition fees, accommodation, travel expenses (for overseas education), and other education-related costs.

• SBI’s extensive network ensures easy access to loan services, even in remote areas.

3. Central Sector Interest Subsidy (CSIS) Scheme

The Central Sector Interest Subsidy Scheme (CSIS) is a government initiative aimed at ensuring that financial challenges do not obstruct students from pursuing higher education. For girl students from economically weaker sections (EWS), this scheme is especially great, providing full interest subsidy during the moratorium period for educational loans taken under the Indian Banks' Association (IBA) Model Education Loan Scheme.

Features:

• The CSIS covers the moratorium period, which includes the course duration and one additional year, ensuring zero interest burden during this time.

• Students with parental income of up to INR 4.5 lakhs per annum who are enrolled in professional or technical courses at institutions accredited by NAAC, NBA, or recognised by regulatory bodies like the Medical Council of India or Bar Council of India are eligible.

• The maximum loan amount is INR 7.5 lakhs and there is no collateral security or third-party guarantee required.

Benefits of the Central Sector Interest Subsidy Scheme:

• CSIS ensures equitable access to higher education by addressing gender disparities. By removing financial barriers, it encourages families to support their daughters' educational aspirations.

• Enables girl students to pursue high-demand technical and professional courses, empowering them to secure better career prospects.

• Focuses on increasing the Gross Enrollment Ratio (GER) in certain regions, including for girl students in rural and economically backward areas.

4. Cent Vidyarthi Scheme

The Cent Vidyarthi Scheme by the Central Bank of India is an educational loan program intended to support students pursuing higher studies in India or abroad. With a focus on affordability and accessibility, the scheme offers several benefits that cater specifically to the financial needs of girl students, encouraging their participation in advanced education.

Features of the Cent Vidyarthi Scheme:

• The scheme covers expenses for tuition fees, hostel charges, books, equipment, travel (for overseas studies), and even study tours or project work, ensuring all education-related costs are met.

• The loan amount is up to INR 200 lakhs, providing ample financial coverage for both domestic and international education.

• The repayment tenure of 15 years post-moratorium, allows graduates to repay comfortably after securing employment.

Features of the Cent Vidyarthi Scheme for Girl Students:

• A 1% interest concession is provided if interest is serviced during the moratorium period, reducing the overall loan burden. Interest is calculated on a simple basis during the moratorium, further lowering the financial strain.

• Loans up to INR 4 lakhs are covered under the NCGTC Guarantee Scheme without the need for collateral.

• Payments are made directly to institutions, airlines, or relevant entities to ensure proper utilisation of funds.

• With flexible repayment and no immediate financial pressure, girl students can focus entirely on their studies and career aspirations.

5. Baroda Vidya Loan

The Baroda Vidya Loan by the Bank of Baroda is a financial solution aimed at ensuring that every child, including girls, can access uninterrupted school education from Nursery to Class 12. This scheme recognises the poignant role of school education in building a strong foundation for future learning and success.

Features of Baroda Vidya Loan:

• There is a loan amount of up to INR 4 Lakhs, catering to essential schooling expenses like tuition fees, books, uniforms, and other educational needs.

• There is zero processing and documentation fees, making it an accessible option for parents. There is also no margin money requirement, ensuring the loan is entirely focused on supporting education.

• Loan repayment is spread over 12 monthly instalments for each academic year, with interest serviced during the moratorium period.

Benefits of Baroda Vidya Loan:

• The loan provides financial support to parents, encouraging them to prioritise their daughters' schooling and invest in their future.

• By ensuring education up to Class 12, the scheme lays a strong academic foundation, paving the way for higher education opportunities for girls.

• Simple documentation and no processing fees make the loan easy to access, reducing financial stress on families aiming to support their daughters' schooling.