Delhi Government’s Higher Education Guarantee Scheme

Under the Delhi government’s recent Higher Education & Skill Education Guarantee Scheme, students, regardless of their financial status, are provided loans up to Rs 10 lakhs without any collateral or thirdparty guarantee or margin money. There are no processing charges for the loan. Students pursuing any skill development course or diploma or degree course after finishing qualifying examination from any school/educational institution in Delhi are eligible for loans under this scheme. The scheme is also applicable to industrial training institutes (it is) and polytechnic institutes/colleges. The loan repayment schedule carries a moratorium period covering the study period required to finish the course and one year thereafter to find a job. Repayment is in equated monthly instalments (EMIs) of 15 years. The maximum interest rate is lower than that of banks. A fund has been created for providing guarantee to the banks in case of default. This fund is managed by a Higher Education Credit Guarantee Fund Trust.