Why Corporates Choose Fixed Amount Scholarship over Variable Amount Scholarship?

Scholarship programmes are generally designed to cover the cost of education of the beneficiaries.  The scholarship benefits include tuition fees, hostel fee, stationery, uniform, books, internet and other education-related expenses. However, what education expenses are covered and what remains outside of the purview of a particular scholarship programme, largely depends on the fund availability under that scholarship programme and the needs of the potential beneficiaries. 

Depending on the nature of scholarship benefits, the scholarship programmes can be categorised in two broad categories:

  1. Fixed amount scholarship: A pre-decided definitive award is given to the beneficiaries every academic year irrespective of the cost of education of students.
  2. Variable amount scholarship: A variable award is given which is decided when beneficiaries provide receipts of their incurred education expenses during any academic year.

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However, of late, many corporates have been offering their CSR scholarship programmes with fixed benefits for scholars. Many government schemes also offer fixed annual scholarships to support deserving students. A few such programmes which offer fixed scholarships are listed below:

S.#Scholarship nameFor Class Level Scholarship amount 
1Ishan Uday Scholarship for North-Eastern RegionGraduation

(General or Professional) 

INR 5,400 p.m. for general degree

INR 7,800 p.m. for professional courses

2Begum Hazrat Mahal National Scholarship for Minorities GirlsClass 9-12INR 5,000 per annum for Class 9 and 10 

INR 6,000 per annum for Class 11 and 12

3Post Graduate Merit Scholarship for University Rank Holders Post GraduationINR 3,100 per month for 2 years
4Post Graduate Indira Gandhi Scholarship for Single Girl Child Post GraduationINR 36,200 per annum for 2 years
5Keep India Smiling Foundational Scholarship Programme Class 11 

Graduation/Diploma/Engineering/BDS

INR 20,000 per annum for 2 years (for Class 11)

INR 30,000 per annum for 3/4 years (for Graduation/Engg/BDS/Diploma)

6Keep India Smiling Foundational Scholarship for SportspersonsSportspersons INR 75,000 per annum for 3 years
7FIHFC ScholarshipClass 10-12INR 10,000
8HP Udaan Scholarship programDiploma/ITI/Class 11/

Graduation

INR 20,000 per annum for 1/2 years (for Diploma/ITI/Class 11)

INR 30,000 per annum for 3 years (for Graduation)

9Rolls-Royce Unnati ScholarshipsBTech/BE (Girls)INR 35,000 per annum
10IDFC FIRST Bank MBA Scholarship MBA INR 1,00,000 per annum for 2 years
11PNB HFL Protsahan ScholarshipMBA/CA/LawINR 2,00,000 (for MBA)

INR 75,000 (for BA-LLB)

INR 30,000 (for CA Level 1) and INR 50,000 (for CA Level 2)

12LIC HFL Vidhyadhan ScholarshipClass 8-10/

Class 10 passed/

Graduation/Post Graduation

INR 10,000 per annum (for Class 8-10)

INR 15,000 per annum (for Class 10 passed)

INR 20,000 per annum (for Graduation)

INR 30,000 per annum (for Post Graduation)

13HDFC Bank Parivartan’s ECS ScholarshipClass 6 to 8

Class 9 to 12

Diploma

UG- General

UG- Professional 

PG – General 

PG- Professional

INR 25,000 per annum

INR 35,000 per annum

INR 20,000 per annum

INR 30,000 per annum

INR 50,000 per annum

INR 45,000 per annum

INR 75,000 per annum

14Ericsson Merit Girl ScholarshipGraduation, MBAINR 75,000 per annum
15L’Oreal India – For Young Women In Science ScholarshipGraduationINR 62,500 per annum for max. 4 years

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How fixed scholarship works better?

Though all scholarship programmes ultimately benefit students and meet the end objective of encouraging young students for their further education, fixed scholarship programmes bring multiple advantages for both scholarship providers and students.

Fixed Scholarship – Benefits & Advantages 

Operational convenience for scholarship provider: 

For the scholarship providers, scholarship programmes with fixed awards bring a lot of operational convenience. For example, a fixed scholarship model over a variable model is easy to manage as it requires lesser documentation process, limited follow-ups with the beneficiaries for supplementary expense proofs and hence lesser administrative efforts. 

Better planning and utilisation of scholarship funds for beneficiaries: 

Though the fixed amount of scholarship may not fit the actual cost of tuition fee and related expenses, it always helps beneficiaries to plan the fund and its utilisation in much better ways. 

For example, if the scholarship amount is INR 60,000 and the college tuition fee is just INR 30,000, the beneficiaries can plan other educational expenses including travelling, internet, accommodation, food, books, etc. So, the scholarship amount beyond the tuition fee can add much more value to the beneficiary’s academic journey.

Fixed Scholarship – Benefits & Advantages

Similarly, if the scholarship amount is less than actual college fees, the beneficiaries can plan their cost of education in advance. It also brings them enough time to plan and arrange the rest of the amount required to cover their academic expenses. 

Minimum hassle for the beneficiaries:

The fixed scholarship reward also reduces hassles for students. In the variable scholarship model, the beneficiaries are required to submit fee receipts and other expenses documents multiple times in the academic year. This exercise, sometimes, is time consuming and tiring. It also brings additional stress to beneficiaries. With a fixed scholarship model, students get a hassle-free experience which helps them to focus on their studies. 

Less admin, fast implementation for scholarship providers

The fixed award model also brings a clear timeline for implementation of the scholarship programme in terms of budget planning for the year and document due-diligence administration (document collection at multiple stages are not required).