What is a Concessional Educational Loan in India? Here's the Complete Guide!

Education is a basic fundamental right that should be accessible to all, including people who are especially challenged because they are no different from us. In India, the government offers various schemes to support Person With Disability ( PWD) as they face additional challenges with the financial crisis. To help PWD overcome the hurdles such as social barriers and financial impediments, the government has Concessional Education Loan in India to help them pursue higher education and ensure equal opportunities to them. Read this blog article till the end to know about Concessional Educational Loan in India.

What are Concessional Education Loans in India?

Concessional loans are basic loans for disabled students with financial backwardness, allowing them to pursue further studies at lower interest rates. This ensures that everyone can access education regardless of background and makes a difference in higher education by providing disabled individuals with purchases.

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Importance of Concessional Educational Loan in India

Concessional education loans in India are crucial for PWD for such reasons:

Financial accessibility: The grant helps students with disabilities get an education without financial barriers.
Social empowerment: The grant acknowledges PWD’s ability to promote social inclusion to overcome barriers to academic success.
Equal access: Ensure equal opportunity and access to education for all and empowers them to gain skills, knowledge and high qualification for overall growth and development.

Eligibility Criteria

The eligibility criteria for concessional education loans in India may vary across the schemes and banks, but a general criterion of eligibility is

The loan shall be granted to students with 40% or more disability. They must possess a valid document of disability issued by a recognized government authority.
The student must be a citizen of India
The student must be of 18 years or above
The course opted for must be from an accredited university.
The student shall have proof of secured admission to the educational institution for which the loan will be granted.

Application Process

To get a grant or concessional education loan an individual need to follow certain steps:

Choose the scheme

Explore various schemes and programs offering concessional education loans for PWD and have a thorough research of their interest rates, repayment terms, loan amount and other important details.

Documentation

After the selection of a specific program, gather the documents which will be required during the application submission process. Documents such as:

Disability certificate
Photograph
Identity proof
Address proof
Income certificate
Academic transcripts
Offer letter from the university
Other documents as required by the financial institution

Application Submission

Fill up the form and submit it along with the documents required to the chosen program or financial institution and pay the applicable charges.

Loan approval

If your application is confirmed, the institution will process the grant and provide the student with the fund for the educational institution.

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Loan Amount

The standard amount of loan provided to the student will be as follows:

Country	Loan Amount in INR ( minimum)	Loan Amount in INR ( maximum)	Interest rate per annum
Study in India	10,00,000	50,00,000	4%
Study Abroad	20,00,000	50,00,000	4%

Repayment

The maximum period to repay the loan depends upon the scheme or the financial institution, but as per the guidelines of various projects, the maximum period of amount repayment is 10 years. The commencement of the amount repayment will start after 1 year of completion of the course.

Overall concessional education loans play a crucial role in ensuring proper education access for people with disabilities.