Delhi Government’s Education Loan Scheme


In News
Lt Governor Anil Baijal has approved the Delhi government’s higher education and skill development loan guarantee scheme under which students will be provided loans by banks with the government as a guarantor. Students will not be required to furnish any collateral or margin money and the scheme will be universal in nature regardless of the student’s background.

Objectives of the scheme:

The scheme aims at providing financial support from the banking system to meritorious students for pursuing higher education in Delhi. The main emphasis is that a meritorious student is provided with an opportunity to pursue higher education with the financial support from the banking system with reasonable and affordable terms and conditions.

Eligibility Criteria:

  • Students who wish to pursue diploma or degree or specified skill development courses in Delhi and have done their Class-X and Class – XII from Delhi are eligible under this Scheme.
  • For courses for which the qualifying examination is Class-X, students who have done ClassX in Delhi would be eligible under this Scheme.
  • Students who are children of employees of Govt. of NCT of Delhi or Officials/government servants who are posted with the Govt..of NCT of Delhi are also eligible under this scheme.
  • The student should have secured admission to a higher education course or specified Skill development courses in recognized institutions in Delhi through Entrance Test/ Merit Based Selection process after completion of Secondary Examination/Senior Secondary Examination/required qualifying examination.

Courses Eligible for Studies in Delhi:

  • Approved courses leading to graduate/ post graduate degree and PG diplomas conducted by recognized colleges/ universities recognized by UGC/ Government/ AICTE/ AIBMS/ ICMR etc.
  • Courses like ICWA, CA, CFA etc
  • Courses conducted by IIT, NIFT, NLU, IIFT etc
  • Regular Degree/Diploma courses like aeronautical, pilot training, shipping, including those run by Polytechnics etc., degree/diploma in nursing, physiotherapy or any other discipline approved by Director General of Civil Aviation/Shipping/Indian Nursing Council or any other regulatory body as the case may be, if the course is pursued in Delhi.
  • Skill Development Courses as may be specified by Govt. of NCT of Delhi.

Expenses Considered For Loan:

  • Fee payable to college++/ school/ hostel
  • Examination/ Library/ Laboratory fee
  • Caution deposit, Building fund / refundable deposit supported by Institution bills/receipts
  • Purchase of books/ equipment / instruments / uniforms/ computer at reasonable cost
  • If the scholarship component is included in the loan assessment, it may be ensured that the scholarship amount gets credited to the loan account when received from the Government.

Quantum Of Finance:

Studies in Delhi – Maximum upto ₹10 lakhs.

  • Ordinarily loans upto ₹ 7.5 lakhs where conditions as prescribed under the Credit Guarantee Fund Scheme for Education Loans (CGSEL) of Govt. of India are satisfied can be granted by the Banks under the Govt. of India scheme as and when the same becomes operational.
  • However loans above ₹7.5 lakhs & upto Rs. 10 lakhs and loans in respect of Private Institutions which presently do not have NAAC accreditation as required under Govt. of India scheme but have SFRC grading of A+ or A and otherwise satisfy the requirements under the scheme of Govt. of NCT of Delhi will be covered under this scheme.

Margin: Upto Rs. 10 lakhs – Nil

Security: Upto Rs. 10 lakhs Parents/legal guardians to be joint borrower(s). No security

Rate Of Interest : Interest to be charged at rates linked to the Base rate as decided by individual banks. Simple interest to be charged during the study period and up to commencement of repayment. The maximum interest rate to be charged in Base Rate + 2 %.


Repayment Holiday / Moratorium – Course period + 1 year.

  • Banks may arrange for life insurance policy for the students availing Education Loan. Individual Banks may work out the modalities with insurance companies. Schemes such as Pradhan Mantri Jeevan Jyoti Bima Yojna (PMJJBY) and Pradhan Mantri Suraksha Bima Yojna (PMSBY) may be availed to ensure reasonability of premium and to cover the loan and act as a safety net for the parents.

No processing charges may be levied on the loans sanctioned under the scheme.


For Detailed Information of the Scheme CLICK HERE


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