In order to provide education loans, and create ease in processing of loans, the Government has launched various education loans and subsidy schemes. These include Central Scheme, Padho Pardesh Scheme and Dr Ambedkar Central Sector Scheme.
The Central Scheme to provide interest Subsidy (CSIS) is a scheme available for the economically weaker students. Under this scheme, students can avail full interest subsidy for educational loans disbursed on or after 1st April, 2009 during the period of moratorium.
Under Padho Pardesh Scheme, meritorious students belonging to economically weaker sections of notified minority communities are awarded with interest subsidy for overseas education.
Dr Ambedkar Central Sector Scheme of Interest Subsidy is a scheme for educational loan for overseas studies for Other Backward Classes whereby interest payable by the students for the period of moratorium is borne by the Government of India.
The government has also launched a web-based portal i.e. Vidya Lakshmi Portal wherein students can track and apply education loans. In addition to that, Credit Guarantee Fund Scheme for Education Loans (CGFSEL) has also been introduced under which students can avail collateral free loan of upto Rs. 7.5 lakh.