Higher Education & Skill Development Guarantee Scheme
Scholarship Amount
About This Scholarship
The Higher Education & Skill Development Guarantee Scheme is designed to provide crucial financial assistance to students in Delhi aspiring to pursue higher education or specific skill development courses. This initiative ensures that no deserving student faces financial barriers to education.
Under this scheme, students can access an education loan of up to ₹10,00,000. A significant advantage is that no security is required for these loans. Interest is charged at rates linked to the base rate set by individual banks, with a maximum chargeable rate of base rate + 2%. Simple interest is applied during the study period and moratorium.
Key Benefits and Loan Features:
The loan scheme covers a comprehensive range of expenses, including:
• Reasonable lodging and boarding charges, if the student chooses or is required to live in outside accommodation.
• Examination, Library, and Laboratory fees.
• Insurance premium for the student borrower.
• Caution deposit, Building fund/refundable deposit, supported by Institution bills/receipts. These expenses may be considered, provided the total amount does not exceed 10% of the total tuition fees for the entire course.
• Purchase of books, equipment, instruments, and uniforms.
• Purchase of a computer at a reasonable cost, if required for the completion of the course.
• Any other expense required to complete the course, such as study tours, project work, and thesis.
Repayment Details:
• Servicing of interest during the study period and the moratorium period until the commencement of repayment is optional for students. Accrued interest will be added to the principal amount borrowed when calculating the EMI for repayment.
• The student and the parent/guardian should execute the loan documents as joint borrowers. No processing charges may be levied on the loans sanctioned under the scheme.
• The repayment holiday or moratorium period extends for the duration of the course plus 1 year. If students cannot complete the course on time, they may be granted up to 2 years of extension. In exceptional circumstances, the sanctioning authority can approve further extensions. If a student drops out, the bank will determine a suitable repayment plan in consultation with the student or parent.
• Interest accrued during the repayment holiday is added to the principal, and the loan is repaid in equated monthly installments (EMIs). Students who pay interest during the study and moratorium periods might receive a 1% interest concession. The repayment term for all borrowers is 15 years.
• While EMIs are standard, the bank may consider alternative repayment plans for borrowers with lower initial incomes, such as gradually increasing installments.
Quantum Finance:
• Ordinarily, loans up to ₹7,50,000 that meet the conditions prescribed under the Credit Guarantee Fund Scheme for Education Loans (CGSEL) of the Government of India can be granted by banks under the Government of India scheme when it becomes operational.
• However, loans exceeding ₹7,50,000 but not exceeding ₹10,00,000, and loans for private institutions without NAAC accreditation as required under the Government of India scheme but with SFRC grading of A+ or A that otherwise meet the requirements of the Government of NCT of Delhi scheme, will be covered under this scheme.
The scheme covers a wide range of approved diploma and degree courses offered by recognized institutions in Delhi. It also extends benefits to students from Delhi pursuing recognized courses in Central/State Government universities/institutions located outside Delhi, within India, provided they meet specific criteria. The guarantee is primarily available for loans to institutions whose fees are regulated by the government, including NAAC/NBA accredited private institutions or those with specific SFRC gradings.
Eligibility Criteria
To be eligible for the Higher Education & Skill Development Guarantee Scheme, applicants must meet the following criteria:
• Students who are willing to pursue a diploma or a degree in specified skill development courses in Delhi.
• Students must have completed their Class 10 and 12 from a recognized institution/school in Delhi.
• Students must have secured admission to a higher education course or specified skill development courses (diploma, degree, including bachelor's, master's, and doctoral degrees) in recognized institutions in Delhi through an entrance test or merit-based selection process after completing the Secondary Examination/Senior Secondary Examination or equivalent qualifying examination.
Eligible Courses:
Students enrolled in one of the following courses are eligible to apply for the scheme:
• Approved courses leading to graduate/postgraduate degrees, and postgraduate diplomas conducted by recognized colleges/universities recognized by the University Grants Commission (UGC), Government/ All India Council for Technical Education (AICTE) /All India Institute of Medical Sciences (AIBMS)/Indian Council of Medical Research (ICMR) etc.
• Courses like Cost Accountant (CMA • Cost Management Accountant), Chartered Accountant (CA), Chartered Financial Analyst (CFA), etc.
• Courses conducted by the Indian Institutes of Technology (IIT), National Institute of Fashion Technology (NIFT), National Law University (NLU), Indian Institute of Foreign Trade (IIFT), etc.
• Regular degree/diploma courses like aeronautical, pilot training, shipping, including those run by Polytechnics etc., degree/diploma in nursing, physiotherapy or any other discipline approved by the Director-General of Civil Aviation/Shipping/Indian Nursing Council or any other regulatory body as the case be, pursued in Delhi.
• Skill development courses as may be specified by the Government of NCT of Delhi.
Important Notes regarding Eligibility:
• The above list is indicative. Banks may approve other job-oriented courses leading to technical/professional/vocational or other degrees, as well as postgraduate degrees/diplomas offered by recognized institutions under this scheme.
• Courses other than the above offered by reputed institutions may also be considered based on employability.
• The guarantee will be available for loans for only those institutions whose fees are regulated by the government.
• For the List of approved Banks for Loan Guarantee Scheme, refer to the document available on the official website.
• For the Colleges/Institutions Covered Under Higher Education and Skill Development Guarantee Scheme (HESDGS) in Delhi, refer to the document available on the official website.
Terms and Conditions:
• Students who are children of employees of the Government of NCT of Delhi or Officials or government servants who are posted with the Govt. of NCT of Delhi are also eligible under this scheme.
• The guarantee would be available for loans for all recognized diploma/degree courses offered by Government Institutions/Universities and constituent colleges of the University of Delhi. It would also extend to private/self-financed institutions located in Delhi that hold the National Assessment and Accreditation Council (NAAC), National Board of Accreditation (NBA), or State Fee Regulatory Committee (SFRC) accreditation.
• The department will encourage all Private Institutions to obtain NAAC or NBA accreditation. Until then, the grading assigned by the Third State Fee Regulatory Committee (SFRC), established by the Directorate of Higher Education and Directorate of Training & Technical Education, may be used for Private Institutions. This grading is based on the institution's infrastructure, faculty, academic standards, and operational costs.
• It would also be available for Institutions of technical/training skill development such as courses by the World Class Skill Centre or any other technical training/skill development institutions specified by the Government of NCT of Delhi.
• It would also be available to those students who have passed Class 10 and 12 from Delhi and are pursuing recognized degree or diploma level courses or skill development courses from Central/State Government universities/institutions located outside Delhi, within India.
• The existence of a previous education loan to a sibling will not affect the eligibility of another deserving student from the same family to obtain an education loan under this scheme.
• There is no specific age restriction for students applying for an education loan. However, if the student was a minor when the parent signed the loan documents, the bank will require a letter of ratification from the student upon reaching the age of majority.
• The joint borrower is typically a parent or guardian of the student borrower. In the case of a married student, the joint borrower may be either a spouse or parent(s)/parent(s)-in-law.
• Other reputed and recognized institutions may be considered based on employability.
• The private institution in which admission has been secured should have NAAC/NBA accreditation. Since presently not all institutions have NAAC/NBA accreditation, SFRC grading will also be considered for a limited period.
• For private institutions having NAAC/NBA accreditation, a minimum grade of A or B is required.
• For private institutions having SFRC grading, an A+ or A is required. (SFRC grading has been given by the 3rd State Fee Regulatory Committee (SFRC) and is based on various parameters including infrastructure, faculty, and academic standards. Institutions are advised to obtain NAAC/NBA accreditation as soon as possible.)
Required Documents
Applicants are required to submit the following documents for the Higher Education & Skill Development Guarantee Scheme:
• A passport-size photograph.
• Aadhaar card of student.
• PAN card of student.
• Class 10 certificate (passed from Delhi).
• Class 12 certificate (passed from Delhi).
• Employer’s Certificate (for students who are children of employees of the Government of NCT of Delhi or officials/government servants who are posted with the Government of NCT of Delhi).
• A domicile certificate issued by the Tehsildar (Executive Magistrate), Revenue Department, Government of NCT of Delhi, will be accepted by banks as proof of domicile (if required).
Important Notes regarding Documents:
• PAN number is not mandatory at the time of application/sanction of an education loan. However, students must furnish PAN details before the release of the second installment.
• A certificate is required to be submitted mandatorily at the time of application/sanction of an education loan only for meritorious students pursuing recognized degree or diploma level courses or skill development courses from Central/State Government Universities/Institutions located outside Delhi, within India.
• A no-dues certificate will not be required as a prerequisite for consideration of an education loan. However, banks must obtain a declaration or affidavit confirming that no loans have been availed from other banks.
• Students must provide banks with authenticated copies of academic performance sheets, if required by the banks.
• To mitigate the risk of deliberate default, educational, technical training, or skill development institutions will be involved in the process. These institutions will share progress reports of loan recipients with the banks at regular intervals, as required by the banks.
How to Apply
Eligible applicants can follow these steps to apply for the Higher Education & Skill Development Guarantee Scheme:
1. Visit the official application portal for the scheme (such as the Directorate of Higher Education, Delhi website) and click on the 'Apply Now' button.
2. Click on the 'Register' button on the right-hand side of the dashboard and fill in the required details to 'Register'. (If already registered, log in using the registered email ID.)
3. Navigate to the 'Apply Now' button and click on it.
4. Fill in the required details, upload the necessary documents, and submit.
Important Application Notes:
• Applications may be submitted either directly to bank branches or through the online mode. Upon receipt of an application, a standard acknowledgement containing a reference number will be issued. The acknowledgement will include contact details of the bank official who can be contacted in case of delays in application processing.
• Students may submit loan applications at either a bank branch near the parents' residence or the educational institution. However, once the loan is sanctioned, the case is transferred to the bank branch nearest the institution for ongoing interaction with the student and the institution. The branch nearest the parents' residence must complete the KYC requirements.
• Normally, a decision to sanction or reject a loan application will be communicated within fifteen days of receiving a complete application with supporting documents.
• Typically, when assessing a loan application, the bank will consider only the student's future income prospects.
• The State Level Bankers Committee (SLBC) will provide quarterly information regarding loans sanctioned under the Government of India scheme to Delhi students.
• Any loan application rejection must be approved by the controlling authority of the concerned branch and communicated to the Directorate of Higher Education, Delhi. The student will also be notified of the rejection, including the reason for the decision.