Higher Education & Skill Development Guarantee Scheme – While obtaining an education loan is an easy process, repaying it demands meticulous planning. The Higher Education & Skill Development Guarantee Scheme seeks to solve this very problem by supporting the students of Delhi with financial support from the banking system along with ‘reasonable and affordable’ terms and conditions.
Announced in June 2015, this first-of-its-kind scheme aims to provide collateral-free loans of up to INR 10 lakhs to students of Delhi who aim to pursue diploma/degree level courses or specified skill development courses in government-run institutions after the completion of Class 10 or Class 12.
Note: While initially the scheme was limited for students willing to pursue higher studies in Delhi only, it has now been extended to those who wish to study in government institutions outside Delhi too.
Higher Education & Skill Development Guarantee Scheme – Overview
|Launched By||Government of National Capital Territory of Delhi|
|Loan Provider||Participating/Member Banks and Financial Institutions*|
|Maximum Loan Amount Guaranteed||Up to INR 10 lakh|
|Educational Qualification Required||Students who have passed Class 10 and Class 12 from Delhi|
|Application Timeline||Always open|
*Students can find the list of participating banks under the scheme towards the end of this article.
Higher Education & Skill Development Guarantee Scheme – Eligibility
1. Educational Criteria
- Students who have completed Class 10 and Class 12 in Delhi and wish to pursue diploma/degree/specified skill development courses within India
- To apply for higher education courses whose qualifying exam is Class 10, students must have completed Class 10 in Delhi.
2. Admission Status Criteria
- Students must have been admitted to a higher education course or specific skill development course (Diploma or Degree, including Bachelor’s, Master’s, and Doctoral Degree) through an entrance test/merit-based selection process after completing their secondary examination/senior secondary examination/other required qualifying examination in:
- Government or Private/Self-financed institutions located in Delhi**
- Central/State Govt. Universities/Institutions outside of Delhi (within India)
|**Important Note Included in the Official Notification of Higher Education and Skill Development Guarantee Scheme:
3. Age Criteria
Under the Higher Education & Skill Development Guarantee Scheme, the government has not set a specific age requirement for eligibility for education loans. However, if the loan was approved when the student was a minor/underage, a few documents will need to be updated once the student becomes an adult. Furthermore, this information should be communicated to the bank.
4. Background/Category of Applicant
Meritorious students of all social and economic backgrounds are eligible to apply.
5. Collateral Required
No collateral, guarantee or margin money is required to be paid by the students under this scheme
|Did You Know?
In the case of these students, the amount they receive as scholarships or fee waivers will also be taken into account when determining the loan amount they can receive. Once the loan is approved, the scholarship scheme will be directly linked to the student’s loan account. This means that any funds received as scholarships from the government will automatically be credited to the loan account under the HECGS.
Higher Education & Skill Development Guarantee Scheme – Benefits
- Security in case of education loan default – If a beneficiary student defaults on an education loan up to INR 10 lakhs, the Higher Education and Skill Development Credit Guarantee Fund will guarantee the loan to the bank.
- No collateral or margin money required – Under this scheme, students will not be required to provide any collateral or margin money for the education loan availed.
- Merit-based approach – This scheme provides benefits to meritorious students regardless of their background
- The maximum amount of education loan guaranteed under this scheme is up to INR 10 lakh only.
- The moratorium period for the loan is equal to the length of the course plus one year, and the repayment period is 15 years.
Higher Education & Skill Development Guarantee Scheme – Application Process
- Visit the official website of e-District Portal Delhi.
- Navigate to CITIZEN’S CORNER
- Go to New User Registration
- Fill in the details to get registered
Higher Education & Skill Development Guarantee Scheme – Guidelines for Online Registration
- A valid mobile number is mandatory for online registration.
- After registration, the access code and password will be sent to the respective mobile number provided in the registration form.
- The registration needs to be completed within 72 hours by providing the access code and password at the e-District Delhi website otherwise registration will not be completed and citizens will be required to provide the registration details again.
- In case one does not have an Aadhaar Number or Voter ID Card, one can apply at any of the counters at the Tehsil/Sub-Division Office.
Higher Education & Skill Development Guarantee Scheme – Documents Required
- Aadhaar card
- PAN card
- Class 10 certificate certificate (passed from Delhi)
- Class 12 certificate certificate (passed from Delhi)
- Employer’s Certificate (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.)
Higher Education & Skill Development Guarantee Scheme – Eligible Courses
- Courses leading to graduate/postgraduate degree and PG diplomas conducted by recognized colleges/ universities recognized by UGC Government/AICTE/AIBMS/ICMR, etc.
- Courses like ICWA, CA, and CFA.
- Courses conducted by IIT, NIFT, NLU, IIFT, etc.
- Regular degree/diploma courses in Delhi, such as aeronautics, pilot training, and shipping, including those offered by polytechnics, as well as degrees and diplomas in nursing, physiotherapy, and any other discipline approved by the Director General of Civil Aviation/Shipping/Indian Nursing Council or any other regulatory body.
- Skill development courses as may be specified by Govt. of NCT of Delhi.
- Courses other than the above offered by reputed institutions may also be considered on the basis of employability.
- The guarantee would be available for loans for only those institutions whose fee is regulated by the government.
Higher Education & Skill Development Guarantee Scheme – Rate of Interest
- The interest rate on the loan will vary depending on the bank, but it will always be linked to the base rate.
- Simple interest will be charged during the study period and up to the commencement of repayment.
- The maximum interest rate will be charged at the base rate of the selected bank plus 2%.
*List of Member Banks Approved Under Higher Education & Skill Development Guarantee Scheme
|PARTICIPATING BANKS||LIST OF BRANCHES (IN DELHI) FOR THE PURPOSE OF EDUCATION LOAN|
|Bank Of Baroda||ALL|
|United Bank Of India||ALL|
|State Bank Of India||ALL|
|Union Bank Of India||ALL|
|Punjab National Bank||RAB, Anand Vihar|
|RAB, A- Block, Connaught Place|
|RAB, KHRMS Ashok Vihar|
|RAB, Gurudwara Road, Karol Bagh|
|Oriental Bank Of Commerce||South Ex-I|
|East Patel Nagar|
|New Friends Colony|
|M Block, Connaught Place|
Higher Education & Skill Development Guarantee Scheme – List of Colleges/Institutions
While the Higher Education & Skill Development Scheme was initially launched to benefit students who wished to pursue higher education within Delhi, it was later extended to students of Delhi who aim to pursue a degree, diploma or skill development courses outside of Delhi (within India) too.
- As per online sources, students who wish to pursue higher education in government or private/self-financed institutions located in Delhi are eligible to apply for this scheme.
- However, students who want to study outside the national capital (and also stand a chance to benefit under this scheme) have to get admission to central/state government universities/institutions outside of Delhi (within India).
Note: To know about all the Delhi-based colleges/institutions covered under this scheme, please click here.
Higher Education & Skill Development Guarantee Scheme – Contact Details
Nodal Bank : Vijaya Bank
Landline No: 011-23711093, 23711098
Email ID: rodelhiplanning@VIJAYABANK.co.in
Directorate of Higher Education
B-Wing, 2nd Floor, 5, Sham Nath Marg, Delhi-110054.
Contact No: 011-23980220
For more information about this scheme, please click here.
Higher Education & Skill Development Guarantee Scheme – FAQs
How much education loan amount will be provided under this scheme ?
Beneficiaries of the Higher Education & Skills Development Guarantee Scheme can take an education loan of up to INR 10 lakh.
Is there any processing fee charged by banks to provide education loan under this scheme?
No. There isn’t any processing fee charged by banks to provide education loan under this scheme.
Is there any specific restriction with regard to the age of the student to be eligible for an education loan?
No. There is no specific restriction with regard to the age of the student to be eligible for an education loan under this scheme.
Can more than one student apply for this education scheme belonging to the same family?
Yes, more than one student can apply for this education scheme belonging to the same family.