We get a lot of questions about government schemes to help students with education loans. The Indian government has launched a few schemes to make it easier for students from low-middle income groups to afford education loans for studying abroad. In this article, we have summarized all such schemes.
What are the documents required to be submitted to claim the benefits of the scheme?
Will the government cover some part of the principal loan amount? What happens when the moratorium period ends?
You will have to submit the documents as per the requirement of the lending bank. The document list can vary depending on the type of loan you have taken - that is secured education loan or unsecured education loan. You will not have to submit any document to the ministry to claim the benefits of this scheme.
No, the government will not cover the principal loan amount. The student will have to bear that cost. Once the moratorium period is over, the student will have to pay the principal installments and the interest. You can claim the benefits only till the moratorium period, which is course period, plus one year or six months after getting the job, whichever is earlier.
Hope this helps you.