Haryana Govt. Education Loan Scheme – Guarantee Fund [Apply Now]

Haryana Govt Education Loan Scheme | Application / Registration Form at atmanirbhar.haryana.gov.in | Credit Guarantee for Students

Haryana’s CM Manohar Lal Khattar has announced to start of a new Education Loan Scheme 2022 for students. In the Assembly earlier on 4 March 2020, he made this announcement while replying to the State Budget 2020-2021. Due to the lack of collateral guarantees, students had to face difficulties in getting loans from banks for higher education.

In this Loan Scheme, the Haryana govt. will provide credit guarantees against education loans for students. Also, govt. will set up a credit guarantee fund for students for engineering, medical, and other professional courses.

In the state budget, a provision for the Haryana Govt Education Loan Scheme has made. Students will have to refund loan amounts to banks after completion of the course and become earning hands. 

Haryana Govt. Education Loan Scheme 2022

This Education Loan scheme is mainly for the students, who want to study high after 12th standard. Because of financial issues, they can’t. Such students would get a great opportunity to study under the umbrella of this Scheme.

The main goal of the Haryana Govt Education Loan scheme is to ensure the higher education of needy students. Due to a lack of collateral guarantee security, they are not denied in professional and other institutes.

A Bank or Member Lending Institution can avail of the benefit by paying nominal fees in case of default/NPA, under this scheme.

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Eligibility Criteria for Haryana Govt Education Loan Scheme

Like the other government schemes, this scheme has also some eligibility criteria, which the applicants need to fulfil. 

• Students must pass the 12th class
• He/She has to be a resident of Haryana State with the I-card / PPP (Parivar Pehchan Patra) 
• His/Her family income does not exceed six lakh per annum.
• For the MBBS course, there will be no income criteria. Anyone who has qualified NEET examination and has secured a seat through open counselling will be eligible.

Additional Criteria for applying Haryana Govt Education Loan Scheme

• If the student discontinues his studies before the completion of the course, then the scheme benefit will not be available.
• Even if the student is not able to complete the course within the schedule, scheme benefits will not be provided.
• However, the Medical Education and Research Department or Higher Education Department stated that as the case may be and where the student makes an effort to complete the courses in a reasonable time the loan will be funded by the State Government. 

Salient features of the Higher Education Credit Guarantee Fund

We describe some features of the “Higher Education Credit Guarantee Fund” in the following points: 

1. The Interest charged by the Member Lending Institutions for education loans shall not exceed a maximum of up to 2% over and above the repo rate declared by RBI from time to time. 
2. For availing the benefit of the Fund, the Member Lending Institution or Banks shall pay the annual guarantee fee at the rate of 0.3% of the total outstanding loan amount against their respective borrowers. The amount of the annual guarantee fee must be recovered from the students after their given timeline.
3. The beneficiary can utilize the fund in repayment of the loan irrespective of accreditation status. Along with the interest, the applicant repays up to 100% of the principal amount for the Govt medical colleges of Haryana. Banks/Member lending Institutions shall recover the same amount from the borrower, for the balance amount.
4. The interest earned over the term of the loan and the moratorium will added to the principle. Payment will made in fixed-interest monthly instalments (EMIs) for a minimum of 15 years from the start of the repayment period.
5. The provisions in the scheme are mandatorily applicable to Member Lending Institutions. The Government will pay the subsequent loan on account of the bond amount of the student, once he/she joins Government service. After completion of the courses, he/she gets selected through the due procedure. 

How to avail Guarantee Amount of the Higher Education Credit Guarantee Fund under the Haryana Education Loan Scheme

• If the students obtain admission to MBBS in Government Medical Colleges, 100% of the principal amount of the loan along with interest will guaranteed.
• If the students obtain admission to an institution that has at least an ‘A’ grade in NAAC accreditation or higher than that then 90% of the Principal Amount of the loan along with interest will guaranteed.
• In the event of students get admission to an institution with a B++, B+, B, or C grading in NAAC certification, 75% of the principal amount of loans, along with interest guaranteed.
• If the student obtains admission to an institution that has a D grading in NAAC accreditation then 50% of the loan will guaranteed.
• The margin money in respect of medical courses shall be 2% of the approved loan and 10% of the approved loan in respect of other courses.

Implementation of the Scheme

• The banks who will agree to provide loans under this scheme will enter into an MOU with the Government of Haryana (Department of Finance). 
• Proper documentation must be done for the loan. It will be the responsibility of the respective banks to their procedures.
• The banks shall apply to the Department of Medical Education and Research in case of default by any student within the prescribed timeline after exhausting all the means available at their disposal for a claim of default.

Application Procedure to apply for Education Loan Scheme in Haryana

To fill up the Application for Education Loan Scheme in Haryana, follow the link – https://services.india.gov.in/service/detail/application-for-education-loan-scheme-for-backward-classes-haryana-1

The Nigam provides education loans to the backward classes for pursuing professional and technical education at the graduate and higher levels. This scheme approves a maximum loan of Rs 1000000/- in India and Rs 2000000/- Abroad @4% interest per annum. For girls students, the loan is provided at 3.5% interest per annum. The moratorium, besides being termites with the course for which a loan has been obtained by the student, will have a further six-month period for starting a job.

• You need to visit the website: https://services.india.gov.in/service/detail/application-for-education-loan-scheme-for-backward-classes-haryana-1
• Fill up the given application form with valid credentials, i.e. Details of the applicant, Qualifications, Family details, property details etc.
• Go through the page 
• Review your application
• And finally, submit the application