The CGFSEL Education Loan Scheme in India

Scholarship Details

The CGFSEL Education Loan Scheme, facilitated by the National Credit Guarantee Trustee Company Ltd. (NCGTC), under the aegis of the Department of Financial Services, Ministry of Finance, Government of India, is a commendable step towards accessible higher education. This initiative extends educational loans of up to INR 7.5 lakh to aspiring students, whether they intend to pursue their studies in India or abroad. What sets this scheme apart is its commitment to inclusivity, as it allows students to secure loans even in the absence of collateral or third-party guarantees. Additionally, the capped interest rate, not exceeding 2% over the base rate, ensures that students can pursue their dreams without the burden of exorbitant interest charges.

Award

• Maximum loan amount of up to INR 7,50,000 without any collateral security and third-party guarantee.
• The charged interest rate is a maximum of 2% per year over and above the Repo Linked Lending Rate (RLLR) or any other external benchmark interest conforming to RBI guidelines.

Loan Margin:

• For education loan of up to INR 4 lakh: Nil
• For education loan of above INR 4 lakh: 
• Study in India - 5%
• Study Abroad - 15%

Eligibility

• Applicants must be Indian nationals.
• They should have completed Higher Secondary Education (HSC), i.e., Class 12 or equivalent class.
• Candidates should have secured admission to a higher education course in recognized institutions in India or abroad.
• Admission should be based on an entrance test or a merit-based selection process after completing Class 12.
• Admission to postgraduate courses or research programs may not be solely based on marks obtained in the qualifying examination. Instead, other factors such as entrance tests or selection processes may be considered for determining eligibility and admission.

Documents Needed

Students need to submit a duly completed application form along with the required supporting documents mentioned by banks. The scheme partners with esteemed regional, private, and public sector banks to provide financial assistance to students pursuing higher education in India and abroad.

Provider

National Credit Guarantee Trustee Company Ltd.

How To Apply

Visit the official website to apply for this scholarship.