How Education Loan Is Helpful For Indian Students


19 Jul 2017 | 4 min read

Thanks to the technology, any information is just seconds away. According to a report, India had more than one billion mobile subscribers. Now, you can imagine how swiftly young India has adapted to technology and made it a way of life. With the most Indians literally carrying a warehouse of information in their pockets, the Indian youngsters are more aware and knowledgeable.

They are no more average clueless juveniles; rather they are focused on what they want and have already chalked a path for them in their minds. Indian students are not going through the conventional college mode anymore. There is no more run for the doctors, management grads, lawyers etc. You will see adolescents playing more to their sensibilities.

Education Loan Is Nurturing Future of Indian Student

Indian students are more interested in doing courses related to their interests, be it fine arts, creative arts, astronomy, aeronautics and what not! Be it sports or arts, they are into it all. Some are moving abroad to do an advanced course in foreign languages while some want to improve their cooking skills by enrolling in a foreign university that would give them a chance to intern under a renowned chef.

But nowadays education is becoming expensive. When chasing for their dreams, today’s generation doesn’t bother about the cost of pursuing it. Youth is the future of our nation and education loans provide them with the greatest thrust towards meeting their goals.

Earlier, students would have to give up on their aspirations due to lack of funds. What a person must pursue was decided on the basis of one’s affordability rather than based on their interests. Now they are carving their own destinies because finance is not an obstacle anymore.

With an education loan, they come one step closer to their dreams. Young students can freely choose courses of their interests because they know they have an education loan at their disposal. With such financial aid, students are coming forward & achieving greater heights in every discipline. Therefore education loans have an edge over other loans as it is securing future of the country.

The government is clear that no student should be denied his right to education, especially due to financial limitations. It has worked on ways to improve accessibility to loans & extending education loan subsidy. In 2015, it launched Pradhan Mantri Vidya Lakshmi Karyakram wherein any aspiring candidate can register through a common online application form and apply to several banks for an education loan in a single shot.

With the financial loan, comes the freedom to pursue courses that would otherwise be out of their reach. Students have increasingly benefitted from education loans. One important thing that makes Education loans so attractive is the “moratorium period”. This period of “repayment holiday” states that the borrower does not have to pay a single penny until the student is studying in a regular course.

Even in 2017,the government launched Central Scheme of Interest Subsidy for Education Loans. Under this scheme, interest subsidy is given during the moratorium period i.e., course period plus one year on Education Loan taken from the Scheduled Banks under the Model Education Loan Scheme of Indian Banks Association to students belonging to economically weaker sections, whose annual parental income is up to Rs. 4.5 Lakh from all sources.

In fact, the first EMI begins somewhere six months to one year after the course is completed. This means that the borrower and the co-borrower have course period plus six months to one year’s time before they start repaying their student debt.

However, often people forget how important it is to repay the debt in time. One misstep can cause your CIBIL score to fall. Therefore, you should pay your education loan in time so that you build a fair credit score. A good score keeps the doors to credit open.

Banks too have widened their range of courses & institutes approved for loans. This has made it relatively easier for children to learn, gain new skills and prosper in their chosen domains.

Reports suggest that more and more Indian students are looking for opportunities to study newer streams and possess skills that will give them a firmer footing on the global platform.

Therefore, Indian students are shining in every domain. Be it animation, music and dance, astronomy or any other field, you will certainly find more Indians gaining ground. Now that is a thing to be proud about. To get expert advice & support on education loans you can log on to, or email us at



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