Top 5 government education loan schemes to study abroad , check details



Top 5 government education loan schemes to study abroad! –

Deciding to study abroad requires a careful and thorough understanding of finances and related resources. The Indian government offers several schemes that are designed to help you achieve your academic goals. If you are considering higher studies in a foreign country, here are 5 government education loan schemes to make your dreams a reality!

Between 2016 and 2020, the number of Indian students studying abroad increased by 20%! This has led to several remarkable government education loan schemes that provide financial support. The demand for education overseas has risen significantly, attracting millions of students on an annual basis. The primary reasons for this surge present a plethora of lucrative career opportunities and international exposure that students gain by studying abroad. 

Completing your higher education overseas, however, requires careful planning of your finances for the duration of your course. For students from economically disadvantaged families, studying abroad can seem like a distant dream. If you are keen on pursuing your higher studies internationally, here are 5 government education loan schemes that can give you the financial leverage you need! 

Studying abroad has significant prominence in India, given the easily available government education loans that are economically-disadvantaged students. The top 5 government education loan schemes you should consider are as follows –

Dr. Ambedkar Central Sector Scheme 

The Dr. Ambedkar Central Sector Scheme is one of the most popular government education loan schemes in India. Its objective is to help students belonging to minority communities achieve opportunities for education overseas. 

This education loan provides a 100% subsidy for education. This allows meritorious students the financial assistance they require. It is important to note, however, that the scheme is only applicable for higher levels of study such as Masters, MPhil, and Ph.D. courses. Moreover, you can avail of this scheme only once for your higher education.

Padho Pardesh Education Loan Scheme 

Student-loan-government education loan

The scheme is to award interest subsidies to meritorious students belonging to minority communities.

The Padho Pardesh Education Loan Scheme is another government launch to aid aspirants belonging to minority groups. This government education loan scheme provides the financial resources needed for students from economically-weak backgrounds. The minority groups covered in this loan scheme are as declared in Section 2(C) of the National Commission for Minorities Act (1992). This includes the following communities –

  • Jains 
  • Zoroastrians (Parsis) 
  • Buddhists 
  • Sikhs
  • Christians
  • Muslims

This is also a government education loan scheme that is applicable only for higher education courses such as Masters and Ph.D. In order to be eligible for this loan, the family income should not be more than the stipulated amount of INR 6 lakhs per annum. 

Gujarat Government Education Loan Scheme 

The State Government of Gujarat launched the Gujarat Government Education Loan Scheme to promote opportunities for higher education. This scheme offers education loans with up to 100% subsidy for economically-backward students in the state with academic merit. 

The maximum amount awarded via this government scheme is INR 15 lakhs. One of the key benefits of this scheme is that the loan is applicable for different kinds of courses to study abroad. These include undergraduate & postgraduate degrees, certification courses, language courses, and professional training. 

In order to be eligible for this loan, you need to score a minimum of 60% in 10+2 examinations. Complete Class 12 via full-time classroom mode. Distance completion of Class 12 will not grant you eligibility for this loan. Additionally, the subsidy is only offered when the loan amount granted is more than INR 10 lakhs. 

Education Loan Scheme of the NBCFDC 

The NBCFDC provides excellent government education loan schemes for students from the OBC category. This loan is applicable to technical, professional, and general undergraduate & postgraduate courses from universities abroad. 

The maximum amount as an award via this scheme is INR 20 lakhs over the duration of the course. The interest rate for this loan is 4%, with a 0.5% concessional for female students. In order to be eligible for this loan, you will need to provide a copy of your government-issued OBC certificate. The family income should also not exceed INR 3.5 lakhs per annum as this can affect eligibility for the loan. 

Vidya Lakshmi Education Loan 

government education loan with Vidya Lakshmi Education

First of its kind portal for students seeking Education Loan

The Vidya Lakshmi Education Loan is a government education loan for students seeking to study abroad at undergraduate, postgraduate, and doctoral levels. The maximum amount awarded via this scholarship scheme is INR 30 lakhs, spread over the duration of the course. 

In order to be eligible for this loan, you will need to complete your 10+2 examinations from a recognized board. Your Grade 12 should also be a full-time classroom course, distance learning qualifications are not recognized for this loan. You will also need to submit proof of acceptance to a foreign university in order to be eligible for this loan. 

Key takeaways 

  • The number of Indian students pursuing education abroad has increased dramatically owing to the plethora of associated benefits. 
  • In order to pursue education overseas, you will need to have a firm understanding of the finances needed to fund your studies. 
  • The Indian government has created several unique government education loan schemes that are designed to help students study abroad. 
  • As an aspirant, you can opt for the loan that is most suited to your requirements. Ensure you check the eligibility for each loan before completing your registration. 


Q1. What are the documents required to complete the application for government education loans? 

Answer – All the documents you will need to provide will be listed on the official website of the government loan scheme you are applying for. These include proof of address, scorecards of entrance exams, income proof statements, and a letter of admission from the university overseas. 

Q2. Are applicants from Union Territories eligible to apply for the listed scholarships? 

Answer – Absolutely! If you have the required documents confirming proof of your category, you will be eligible for any of the listed scholarships. 

Q3. When will the repayment process be initiated? 

Answer – The repayment process will be initiated after the moratorium period has expired. The moratorium period is the duration of the entire course plus an additional six months or one year after you have secured employment.

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