The progress of a nation depends upon the development of human resources. Human resource development is achieved through proper education. However, today the cost of education has gone up to such an extent, that getting quality education is not everybody’s cup of tea. Poor and meritorious students are mainly being deprived of higher education. Government realizing the pathetic condition of education in India has come up with scheme of Educational loan. The scheme would support meritorious students who are being denied opportunities to pursue higher education for the want of financial support.

Loans for education are seen as an investment towards economic development and prosperity of the nation. The scheme for educational loan covers professional courses in school and colleges within India and abroad. Most of the nationalized banks and some private banks in India offers educational loan under government scheme.

Basic objective of scheme of Educational loan:

• To provide financial support to the poor and needy student to get basic education
• To provide financial support to meritorious and needy students in pursuing higher/technical/ professional education in our own country as well as abroad.

Maximum loan amount according to Govt.’s scheme:

• Maximum of Rs7.50 lacs for studies within India
• Maximum of Rs15 lacs for studies abroad

Basic eligibility for getting educational loan under govt. scheme:
Apart from meritorious and needy, a deserving student applying for the educational loan.

• Should be a citizen of India.
• Should have secured admission to technical/ professional course through entrance test or any other selection procedure.
• Should have secured admission to foreign university or foreign institution.

Basic expenses covered by the educational loan:
Loan obtained through government educational loan scheme covers.

• school/college/ hostel fee
• Library, laboratory and examination fee
• Cost of books, uniforms, educational equipments and instruments
• Building fund, caution deposit and refundable deposit supported by institution bill or receipt
• Travel expenses to study abroad
• Cost of computers, project work, study tours, dissertation and other expenses that are required for the completion of the course