Pursuing higher education on loan puts a lot of pressure on students to deliver after the completion of the course. A student loan leaves one with no option to study further as there are EMIs to worry about. In fact, financial planners often advise against taking loans because jobs are not always readily available.
Higher Education & Skill Education Guarantee Scheme
The scheme provides guarantee through the government’s Higher Education and Skill Development Credit Guarantee Fund so that students do not have to worry about sanctioning of the loan or providing collateral or guarantee, and the banks are obliged to give the loan if a student meets the criteria.
The loan repayment schedule carries a moratorium period covering the years required to finish the course and one year thereafter to find a job. After that, the repayment is divided in EMIs over 15 years.
Many students who applied for the education loan during its launch to pursue certificate and skill development courses have finished their programme and are now looking for placements.
No financial burden : Satish Sharma, whose daughter Himani just completed a skill development course in retail services, said: “The processing of the loan was trouble-free and quick, and it did not put any financial burden on me. My daughter has finished with her course. Since her institute is known for 100 per cent placements, she will hopefully be able to repay the loan in small amounts over 15 years.”
During the launch of the online application portal for the scheme, Chief Minister Arvind Kejriwal had said: “We want to inculcate a feeling among aspiring students that they can educate themselves without the burden of lack of financial resources.”
Rajesh Kumar, who is pursuing his B.Tech from IIIT-D, said the scheme helped him immensely as he was in the process of taking a loan that would have put a huge burden on his family. “Placements in my college are good. I am sure I will get a job and be able to repay the loan without burdening my father. I always liked science and this loan has helped me pursue B.Tech.”
Rajat Kumar, another student at IIIT-D who had applied for the loan, said it motivated him to work hard and made him more serious about academics and getting a job. “Earlier, it was not easy to get large loans, especially if your financial history was poor. But now any student who wants to pursue a course can do so without worrying.”
Varun Kumar, who completed his course in hospitality operations from World Class Skill Centre, said he was looking to go to Dubai to work to repay the loan. “Many of my course-mates are getting offers to work within Delhi or outside. Once you develop a skill from a reputed institute, you will get placed. Students must keep in mind how the placements of an institute are before taking a loan.”
Students pursuing any skill development course or diploma or degree course after finishing a qualifying examination from any school/educational institution in Delhi are eligible under this scheme. The scheme is also applicable for ITIs and polytechnic colleges.
The scheme covers all government institutions/universities and constituent colleges of Delhi University, ITIs, polytechnics, private/self-financed institutions with NAAC/NBA rating of A/B.
Note: News shared for public awareness with reference from the information provided at online news portals.
