The Delhi Government recently launched the Higher Education and Skill Development Guarantee Scheme (HESDGS) to aid students in Delhi willing to pursue higher education. With an aim to make higher education an easily affordable deal, the Delhi government has promised education loans up to INR 10 Lakh.
At a time when the cost of pursuing graduate courses is constantly increasing, the government is presenting Education Loans for Students without any collateral or margin money. Most of the banks charge collaterals for an education loan above INR 7.5 Lakh and some even ask for margins up to 5%.
The government has introduced this scheme under its 70 Action Points Framework. A Higher Education and Skill Development Credit Guarantee Fund worth INR 30 Crore has also been established.
The government will act as a guarantor for the student availing loan.
The benefits of this scheme are in accordance with the Credit Guarantee Fund Scheme for Education Loans (CGFSEL).
In a first-of-its-kind move, the banks will conduct follow-ups to monitor the progress of the student in the university.
A facility for providing a top-up loan is also available.
Multiple siblings can avail the benefits of this scheme without any complications.
The student must have done Class X and Class XII from Delhi.
There is no kind of age limit criterion.
The student must be pursuing a diploma, degree or vocational course from an institute approved by the government.
Under HESDGS scheme, banks are allowed to charge their normal interest rates. However, the government has kept an upper cap of Base Rate+2%. This scheme also ensures that the families availing education loan are not charged any kind of processing fee.
Students will also not be charged with any prepayment money. In addition to that, if due to any reasons the student is not able to complete the course within its duration, an extension permit of 2 years will be provided.
The scheme is applicable for a limited set of colleges and institutes in Delhi which have been approved by the government. Some of the approved universities are:
National Law University
Ambedkar University Delhi
State Council of Education Research and Training
For the complete list of colleges, click here. The scheme has ensured that only those colleges are included whose fee is regulated by the Government.
The scheme also has a provision of offering 1% concession to students who serve the interest during the study period.
The application procedure for education loans under HESDGS is very much similar to a normal education loan procedure. The entire procedure, however, is monitored by the Directorate of Higher Education and the State Level Bankers Committee.
Students can apply by visiting the bank’s branch or the online portals.
After the application is acknowledged, a reference number will be issued.
The acknowledgement slips will also have the contact details of bank officials for emergency situations.
Students need to complete a KYC verification at the bank branch nearest to the residence of parents.
After all the necessary approvals, the loan will be disbursed in stages directly to the institution. Moreover, the bank branch will later be shifted to the one close to the institution. This is done to smooth the follow-up process.
It is a must for the student to provide a domicile issued by the Revenue Department, Govt. of NCT of Delhi to apply for this particular loan scheme.
HESDGS will be covering the following courses:
All the approved diploma, degree and vocational courses.
Courses like ICWA, CA, CFA
Courses conducted by institutes like IIT, NIFT, NLU and IIFT.
Courses like pilot training, shipping and other skill development courses.
The scheme will be covering all kinds of expenses including Tuition Fee, Hostel Fee, Examination Fee and other Miscellaneous expenses. If the student gets any scholarship, that will also be taken into account.
HESDGS will play a crucial role in empowering higher education in the NCT of Delhi. Offering education loans through a convenient and hassle-free process, the government wants to ensure that no child misses proper higher education on financial grounds.