Girl’s education is one of the major factors in the promotion of gender equality, economic growth, and social progress. Education not only gives young women the tools to achieve their goals, but it also has a significant impact on how future leaders get shaped.
In an attempt to reduce the academic disparity, the Indian government has collaborated with non-profits and financial institutions to introduce a number of education loan programmes aimed at empowering female students. Understanding the diverse range of education loan options available is essential for building a more equitable future for women in India.
So in this article we will explore different types ofeducation loans for girl students available in India and their eligibility criteria.
Types of Education Loans for Girl Students in India
The Indian government, in collaboration with non-profit organisations and financial institutions, provides a range of education loan schemes expressly intended to benefit female students. Here is a list of a few education loans for girls in India:
1. Pragati Scholarship Scheme
The All India Council for Technical Education (AICTE) launched this scheme to empower female students pursuing technical education. It offers financial support to enable students to pursue further education in management, technology, and engineering-related sectors.
Eligibility criteria:
– Accessible to female students at AICTE-approved universities who are enrolled in their first year of diploma or degree programs, as well as those who are lateral entering in their second year.
– Candidates must be citizens of India.
– The family’s annual income shouldn’t be more than Rs. 8 lakh. For married candidates, the higher income of parents or in-laws will be taken into account.
2. Beti Bachao, Beti Padhao Yojana
This flagship initiative by the Government of India is focused on promoting the welfare of girl children across the country. The program’s objectives are to advance education, increase knowledge of girls’ rights, and enhance the effectiveness of welfare services for girls.
Eligibility criteria:
– Targeted at districts with low Child Sex Ratios (CSR).
– All girl children born in these districts are eligible for benefits.
– Parents and guardians of girls in these districts are encouraged to participate and avail themselves of the scheme’s benefits.
3. Corp Vidya Scheme
This loan is provided by Corporation Bank, which helps women pay for their education at low interest rates and offers extra perks for studying overseas.
Eligibility criteria:
– Graduate and postgraduate degree programs, certificates, and authorised professional courses from approved Indian and international universities are eligible for loans.
– Programs offered by prestigious institutions such as IIMs, IITs, and other government-approved universities qualify for financial support.
– Research courses (PhD) and non-degree programs, including correspondence and certificate courses, are not eligible for loans under this scheme.
4. Vidya Lakshmi Loan
This collaborative initiative by the Ministry of Finance, Ministry of Education, and Indian Banks Association aims to support students financially, especially those from lower-income families.
Eligibility criteria:
– The applicant must be an Indian citizen.
– The loan can be availed only once for either undergraduate (UG), postgraduate (PG), or integrated courses.
– The candidate must be accepted into an accredited school, domestically or internationally. The institution should be authorised or recognised by a government agency.
5. Sukanya Samriddhi Yojana (SSY)
A government-backed savings program called the SSY encourages parents to invest in their daughter’s future. It provides favourable tax advantages and interest rates.
Eligibility criteria:
– Up until the age of ten, a girl child’s parents or legal guardians can open an account on her behalf.
– A family may open up to two accounts, one for each girl child. A third account is permitted in cases of twins or triplets.
– A minimum deposit of Rs. 250 is required to open the account, and a maximum deposit of Rs. 1.5 lakh is permitted each financial year.
6. Cent Vidyarthi
The Central Bank of India offers loans up to Rs. 10 lakh for education within the country and Rs. 20 lakh for education overseas. Low interest rates are maintained to guarantee student accessibility.
Eligibility criteria:
– The applicant must be an Indian citizen.
– The student must have been accepted into a reputable university in India or overseas for a higher education programme.
– Selection to this program must be gained through an entrance exam or merit-based selection process.
7. Vidhya Jyoti
This education loan, by the Indian Overseas Bank, is open to all female students. It includes a flexible repayment duration and a loan limit of Rs. 30 lakh for studies in India and Rs. 40 lakh for education abroad.
Eligibility criteria:
– The applicant must be a Person of Indian Origin (PIO), an Overseas Citizen of India (OCI), or a Non-Resident Indian (NRI).
– The student must have been accepted into a reputable university in India or overseas for a higher education programme.
– Applicants are selected based on merit through an entrance exam or other merit-based system.
Loan repayment and application process for female students
Loan repayment
The majority of lenders offer a grace period that allows female students to concentrate on their education without having to worry about making loan repayments. Each institution may have a different grace period duration. You are expected to start repaying after this time. However, you can also make payments before the grace period expires.
Application process
1. Compare various education loan schemes available and check their eligibility criteria
2. Register and fill out an application form
3. To complete the application process, provide documents for verification, including proof of enrollment in accredited schools, educational credentials, and KYC (Know Your Customer) paperwork.
4. Make sure you meet all the conditions and are aware of the specifics of the loan for which you are seeking.
Conclusion
Education loans are essential to the empowerment of female students in India because they allow them to follow their academic goals. A variety of government programs and initiatives give prospective female scholars access to customised financial assistance that meets their particular requirements.
Understanding the different types of education loans and their eligibility criteria can lead to more informed decisions and a promising future. For those seeking student loans, visit the Tata Capital website or download the app today.
Tata Capital provides comprehensive education loan solutions designed to meet diverse needs.
20 November 2024
6 mins read
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