CGFSEL Education Loan Scheme
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The CGFSEL Education Loan Scheme is an initiative by the National Credit Guarantee Trustee Company Ltd. (NCGTC) set-up by the Department of Financial Services, Ministry of Finance, Government of India. This scheme provides educational loans of up to INR 7.5 lakh to help students pursue higher education in India and abroad, even if they do not have the necessary collateral or third-party guarantee for their loan. The maximum interest rate that can be charged on education loans under the CGFSEL scheme is 2% over the base rate.
Note: Base rate is the minimum interest rate that a bank can charge on loans. It is set by the RBI and the lending institution declares the base rate from time to time based on RBI's guidelines. The interest rate applicable for the education loan will be determined based on this base rate.
CGFSEL Education Loan Scheme
DeadlineAlways Open Eligibility - Applicants must be Indian nationals.
- They should have completed Higher Secondary Education (HSC), i.e., Class 12 or equivalent class.
- Candidates should have secured admission to a higher education course in recognized institutions in India or abroad.
- Admission should be based on an entrance test or a merit-based selection process after completing Class 12.
- Admission to postgraduate courses or research programs may not be solely based on marks obtained in the qualifying examination. Instead, other factors such as entrance tests or selection processes may be considered for determining eligibility and admission.
Benefits: - Maximum loan amount of up to INR 7,50,000 without any collateral security and third party guarantee.
- The charged interest rate is a maximum of 2% per year over and above Repo Linked Lending Rate (RLLR) or any other external bench mark interest conforming to RBI guidelines.
Loan Margin
- For education loan of up to INR 4 lakh: Nil
- For education loan of above INR 4 lakh:
- Study in India - 5%
- Study Abroad - 15%
Documents Students need to submit a duly completed application form along with the required supporting documents mentioned by banks. The scheme partners with esteemed regional, private, and public sector banks to provide financial assistance to students pursuing higher education in India and abroad. The names of some of the collaborating banks are mentioned below in the FAQ section.
How can you apply? - Visit the Vidya Lakshmi portal – vidyalakshmi.co.in to fill out the online application form for the Credit Guarantee Fund Scheme.
- Click on the ‘Register’ tab and fill out the required details to create an account.
- After submitting the details, click the ‘Student Login’ tab and enter the registered email-id, password and captcha code.
- Navigate to the ‘Login’ tab and fill out the application form which includes name, email id, phone number, and other important documents.
- After submitting, download the application form for future reference.
- Now, the application form will appear on the screen. It is advised to fill out the application form correctly and ensure that all necessary documents are enclosed.
- Click on the ‘Submit’ button and ensure to download the application form for future reference.
Previous Year Scholarships And Results
Frequently Asked Questions
How can students apply for CGFSEL Education Loan?
Students can apply for CGFSEL Education Loan either directly via bank branches or through online mode. They need to submit a duly completed application form along with the required supporting documents mentioned by the banks.
Can I apply for Credit Guarantee Fund Scheme for a distance learning or online course?
Yes, students can apply for Credit Guarantee Fund Scheme for distance learning or online courses, provided the course is approved by a recognized educational institution or authority.
Is there an age limit for availing the CGFSEL Education Loan?
There is no specific age limit mentioned for availing the CGFSEL Education Loan. However, banks may have their own age criteria and policies that applicants need to fulfil.
Can I prepay the loan amount of the Credit Guarantee Fund Scheme before the completion of tenure?
Yes, borrowers have the option to prepay or foreclose the CGFSEL Education Loan before the completion of the loan tenure. However, it is important to check with the lending institution regarding any prepayment penalties or charges that may apply.
Are there any approved list of courses under this scheme?
Yes. There is an approved list of courses under this scheme.
For Studies in India
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Approved courses conducted by recognized colleges/universities that are recognized by UGC/Government/AICTE/AIBMS/ICMR, etc., leading to graduate/postgraduate degrees and PG diplomas.
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Professional courses such as Institute of Cost Accountants of India (ICWA), Chartered Accountant (CA), and Chartered Financial Analyst (CFA), among others.
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Courses offered by prestigious institutions like IIMs, IITs, IISc, XLRI, NIFT, NID, etc.
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Regular degree/diploma courses in disciplines like Aeronautical, pilot training, shipping, and nursing.
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Approved courses offered in India by reputed foreign universities.
For Studies Abroad
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Graduation education loans are available for job-oriented professional/technical courses offered by reputed universities.
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Post-graduation education loans cover programs like MCA, MBA, MS, and other equivalent degrees.
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Education loans may also be available for courses conducted by professional bodies, such as CIMA in London, CPA in the USA, and similar institutions.
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Degree/diploma courses are eligible for loans if they are recognized by competent regulatory bodies in India/abroad for employment across India or abroad. This includes fields like aeronautical studies, pilot training, shipping, and others.
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Which banks are offering this education loan?
Regional Rural Banks:
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Andhra Pragathi Grameena Bank
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Chaitanya Godawari Grameena Bank
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Saptagiri Grameena Bank
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Chhattisgarh Rajya Gramin Bank
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Baroda Gujarat Gramin Bank
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Saurashtra Gramin Bank
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Sarva Haryana Gramin Bank
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Himachal Pradesh Gramin Bank
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Jharkhand Rajya Gramin Bank
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Karnataka Vikas Grameena Bank
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Kerala Gramin Bank
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Maharashtra Gramin Bank
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Meghalaya Rural Bank
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Mizoram Rural Bank
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Puduvai Bharathiyar Grama Bank
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Punjab Gramin Bank
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Baroda Rajasthan Kshetriya Gramin Bank
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Rajasthan Marudhara Gramin Bank
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Tamil Nadu Grama Bank
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Andhra Pradesh Grameena Vikas Bank
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Telangana Grameena Bank
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Uttar Banga Kshetriya Gramin Bank
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Tripura Gramin Bank
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Aryavart Bank
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Baroda U.P. Bank
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Prathama U.P Gramin Bank
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Uttarakhand Gramin Bank
Public Sector Banks:
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Bank of India
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Bank of Baroda
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Bank of Maharashtra
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Canara Bank
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Central Bank of India
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Indian Bank
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Indian Overseas Bank
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Punjab & Sind Bank
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Punjab National Bank
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State Bank of India
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UCO Bank
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Union Bank of India
Private Sector Banks:
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Dhanlaxmi Bank
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Jammu & Kashmir Bank
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Karnataka Bank Ltd.
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Tamilnad Mercantile Bank Ltd.
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The Karur Vysya Bank Limited
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The South Indian Bank Ltd.
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Contact
In case of any queries, please reach out to:
011-28044429 (Monday to Friday - 10:00AM to 06:00 PM (IST))eaap-dfs@nic.in
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1. Source of Information: Buddy4Study app compiles details on scholarships/fellowships from government websites and private scholarship sources. Links to the official sources accompany each listing detail pages.
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