#20
Higher Education Guarantee Scheme
Students who wish to pursue any diploma or degree course after finishing Class 12 from any school in Delhi will be given bank loans with the government standing as a guarantor. Students will not be required to furnish any collateral and the scheme will be universal in nature regardless of a student’s financial background. The loan will cover both tuition fees and living expenses. The loan repayment schedule will carry a moratorium period covering the years required to finish the course and one year thereafter to find a job. Under this scheme no loan request will be rejected.
Project Updates

  • In first of its kind decision in India, the Delhi Government on Thursday, June 11, gave nod to the Higher Education & Skill Education Guarantee Scheme giving a huge relief to the students and parents of Delhi.
  • Under the scheme, which is universal in nature regardless of the student’s financial scheme, students would be provided Rs. 10 lakh as loan without any collateral or third party guarantee or margin money.
  • There would be 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 under this scheme.
  • The scheme will also be applicable for ITIs and polytechnic colleges.
  • The loan repayment schedule will carry a moratorium period covering the years required to finish the course and one year thereafter to find a job.
  • Repayment of loan will be in Equated Monthly Instalments (EMIs) of 15 years.
  • The maximum interest rate would be lower than the normal education loans as compared to the banks.
  • Students would be able to pay tuition & other fee, buy books, equipments like laptops, hostel/boarding & lodging fees, Insurance premium etc.
  • The scheme would cover all government institutions/Universities and constituent colleges of Delhi University, ITIs & polytechnics, private/self Financed Institutions with NAAC/NBA rating of A/B. In the interim, Private/Self Financed Institutions which have rating of A+, A by 3rd State Fee Regulatory Committee (SFRC) will also be covered.
  • The institutions of skill development such as courses by World class skill centre or any other technical training/skill development institution specified by the government of NCT of Delhi are also covered under the scheme.
  • Other reputed and recognized Institutions may be considered by banks on the basis of employability.
  • The scheme covers all recognised degree and diploma, skill development courses of the above said institutions through Entrance Test/ Merit Based Selection.
  • To keep a check on the scheme the government has decided to have a grievance redressal committee, progress report of students from institutions to be sent to banks, credit score like Credit Information Bureau (I) Ltd. (CIBIL) to be maintained, UIDIA/ PAN number to be captured on Bank’s System, applications will be received either directly at bank branches or through on-line mode.
  • The loan will be disbursed in stages as per the requirement/ demand directly to the Institutions/ Vendors of equipment / instruments to the extent possible.
  • Fund will be created for providing guarantee to the banks in case of default. This fund will be managed by a Higher Education Credit Guarantee Fund Trust.

  • In first of its kind decision in India, the Delhi Government on Thursday, June 11, gave nod to the Higher Education & Skill Education Guarantee Scheme giving a huge relief to the students and parents of Delhi. Under the scheme, which is universal in nature regardless of the student’s financial scheme, students would be provided Rs. 10 lakh as loan without any collateral or third party guarantee or margin money.
  • There would be 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 under this scheme.
  • The scheme will also be applicable for ITIs and polytechnic colleges.
  • The loan repayment schedule will carry a moratorium period covering the years required to finish the course and one year thereafter to find a job.
  • Repayment of loan will be in Equated Monthly Instalments (EMIs) of 15 years.
  • The maximum interest rate would be lower than the normal education loans as compared to the banks. Students would be able to pay tuition & other fee, buy books, equipments like laptops, hostel/boarding & lodging fees, Insurance premium etc.
  • The scheme would cover all government institutions/Universities and constituent colleges of Delhi University, ITIs & polytechnics, private/self Financed Institutions with NAAC/NBA rating of A/B. In the interim, Private/Self Financed Institutions which have rating of A+, A by 3rd State Fee Regulatory Committee (SFRC) will also be covered.
  • The institutions of skill development such as courses by World class skill centre or any other technical training/skill development institution specified by the government of NCT of Delhi are also covered under the scheme. Other reputed and recognized Institutions may be considered by banks on the basis of employability.
  • The scheme covers all recognised degree and diploma, skill development courses of the above said institutions through Entrance Test/ Merit Based Selection.
  • To keep a check on the scheme the government has decided to have a grievance redressal committee, progress report of students from institutions to be sent to banks, credit score like Credit Information Bureau (I) Ltd. (CIBIL) to be maintained, UIDIA/ PAN number to be captured on Bank’s System, applications will be received either directly at bank branches or through on-line mode.
  • The loan will be disbursed in stages as per the requirement/ demand directly to the Institutions/ Vendors of equipment / instruments to the extent possible.
  • Fund will be created for providing guarantee to the banks in case of default. This fund will be managed by a Higher Education Credit Guarantee Fund Trust.

  • The Higher Education & Skill Education Guarantee scheme, which consists of loan of upto Rs. 10 lakh with a payment period of 15 years, has been designed and was launched in September 2015.
  • There will be no processing charges, and a moratorium period covering the years required to finish the course and one year to find a job is in place. The scheme covers all government institutions/universities, ITIs and polytechnics, private/self-financed institutions with NAAC/NBA rating of A/B. Skill development institutions are also covered.

Proof