Every girl deserves the chance to pursue higher education and build a financially independent future. But let’s face it, rising tuition fees and living costs can sometimes put those dreams on hold.
That’s where education loans step in. They enable girls to pursue higher education without being held back by financial constraints. Multiple options in India enable special loan schemes exclusively for girls, making it easier to fund your education with flexible terms and lower interest rates.
This blog lets you explore this topic in detail – read on.
Education Loans for Girls in India
To support and encourage education among female students, education loans for the girl child and financial assistance programmes are available in the country today.
1. Pragati Scholarship Scheme:
Launched by AICTE, this scheme supports girls who wish to pursue technical education in fields like engineering, technology, and management. It offers financial help to cover education-related costs for students enrolled in diploma or degree programmes.
2. Beti Bachao, Beti Padhao Yojana:
This is a national initiative aimed at improving the overall status of the girl child. While it's not an education loan in the traditional sense, it promotes education for girls by offering financial incentives and support programmes for families, particularly in areas with lower female literacy or skewed gender ratios.
3. Vidya Lakshmi Portal:
This platform, launched by the government in collaboration with Indian banks, provides access to multiple education loan providers. It’s especially useful for students from low-income families looking to fund their UG or PG studies in India or abroad through a single online portal.
Expenses Covered by Education Loans for Girls in India
Here are the expenses that an education loan typically covers for girls' students in India:
- Tuition Fees: Education loans for girl children cover the fees, thus helping pay for education without needing funds upfront from their families.
- Accommodation Charges: An education loan covers the cost of living in a hostel or dorm during the course term.
- Stationery: An education loan for women in India provides funds to purchase textbooks and other learning materials.
- Exam Fees: An education loan for girls covers exam fees.
- Equipment Cost: The loan provides funds to purchase equipment such as laptops or laboratory equipment if the course demands it.
Advantages of Availing an Education Loan
The advantages of an education loan for girls’ education in India are as follows:
No Immediate Repayment:
You do not need to repay the loan while you are studying. A moratorium period may be provided by lenders, consisting of the course duration plus up to one year after course completion. This helps students find a job before repaying the loan.
Lower Interest Rates for Girls:
Many lenders provide a concession of 0.5% on interest rates to female students. This keeps education loans low and motivates girls to pursue higher studies. A few government schemes also offer interest subsidies to selected students.
Encourages Financial Independence:
Since the student repays an education loan after studying, loans encourage financial responsibility. This allows students to fund their education without solely relying on their family's finances.
Improves Credit Score:
Payment of an education loan on time enhances a credit score. This can be useful in the future when seeking other loans, including home or car loans.
Flexible Repayment Options:
Lenders provide an education loan scheme for girl students with flexible repayment terms, with an option to avail fixed or floating interest rates. Some lenders also provide longer repayment periods, reducing the monthly financial burden.
Conclusion
Education loans help girls to study without any financial pressure. They pay for tuition fees, books, hostel charges, and miscellaneous expenses. Platforms such as Credila offer student loans for higher education.
Disclaimer:
As of March 31, 2024. T&C apply.
Credila Financial Services Limited (Formerly known as HDFC Credila Financial Services Limited)
The education loan facility provided by Credila Financial Services Limited ('The Company') will be at the sole discretion of the Company and within the Company's prescribed credit and underwriting norms/guidelines prevailing at the time of processing and disbursing the education loan. The Company maintains the right to change the interest rate at any time and at its sole discretion, without prior notice.
