Looking to pursue higher education in Delhi but facing financial constraints? The Higher Education & Skill Development Guarantee Scheme (HESDGS), implemented by the Government of NCT of Delhi, can help. This initiative provides collateral-free education loans up to ₹10,00,000 to students domiciled in Delhi and enrolled in specific diploma, degree, or skill development courses offered by recognized institutions in the city.
Benefits of the Scheme
- Financial Assistance: Students can receive loans up to ₹10 lakh to cover tuition fees, hostel charges, examination fees, and other course-related expenses.
- Collateral-Free Loans: No collateral or security deposit is required to avail the loan.
- Flexible Repayment: Students benefit from a repayment holiday period (course duration + 1 year) and a maximum repayment term of 15 years.
- Competitive Interest Rates: Banks offer interest rates linked to the base rate, making the loan affordable.
- Wide Range of Courses Covered: The scheme encompasses diploma, degree programs (including bachelor’s, master’s, and doctoral degrees), and specified skill development courses.
Eligibility Criteria
- Students must be domiciled in Delhi (ordinarily residing in Delhi).
- They should have completed Class 10 and 12 from a recognized institution/school in Delhi.
- Admission to a recognized higher education program or specified skill development course in Delhi through an entrance test or merit-based selection process is mandatory.
- Eligible courses include:
- Approved diploma/degree courses and postgraduate diplomas offered by recognized universities/colleges (UGC recognized).
- Courses like Cost Accountant (CMA), Chartered Accountant (CA), Chartered Financial Analyst (CFA), etc.
- Programs conducted by IITs, NIFT, NLU, IIFT, etc.
- Regular degree/diploma courses in fields like aeronautical engineering, pilot training, shipping, nursing, physiotherapy, etc., approved by relevant regulatory bodies.
- Skill development courses specified by the Government of NCT of Delhi.
Note: This list is indicative. Banks may approve other job-oriented courses leading to technical/professional/vocational qualifications or postgraduate degrees/diplomas offered by recognized institutions under this scheme. Courses offered by reputed institutions outside the mentioned list may also be considered based on their employability potential.
Who Can Apply?
- Students who have passed Class 10 and 12 from Delhi and are pursuing recognized degree/diploma programs or skill development courses from Central/State Government universities/institutions located outside Delhi (within India).
- Children of employees working with the Government of NCT of Delhi or officials posted with the Govt. of NCT of Delhi.
Documents Required
- Passport-size photograph
- Aadhaar card (student)
- PAN card (student) (not mandatory at application stage)
- Class 10 and 12 certificates (passed from Delhi)
- Employer’s certificate (if applicable)
- Domicile certificate issued by the Tehsildar (Delhi) (if required)
- Authenticated copies of academic performance sheets (if required by the bank)
Application Process
- Visit the official website of the Directorate of Higher Education, Delhi (link to be included).
- Register or log in using your existing credentials.
- Click on ‘Apply Now’ and fill out the application form.
- Upload the necessary documents and submit the application.
Alternatively,
- Visit a participating bank branch near your residence or educational institution.
- Obtain the loan application form and fill it out.
- Submit the completed form along with required documents to the bank.
Important Points
- The deadline to apply for the HESDG Scheme is always open.
- The interest rate on the loan is linked to the base rate set by individual banks. Simple interest is charged during the study period and repayment commences after a moratorium period (course duration + 1 year).
- Students can opt to pay interest during the study period and moratorium period to avail a 1% interest concession.
- While standard repayment involves equated monthly installments (EMIs) for 15 years, banks may consider flexible repayment plans for borrowers with lower initial incomes.
- Educational institutions are involved in the process to mitigate the risk of deliberate defaults. They share students’ progress reports with banks at regular intervals.
HESDGS is a valuable scheme that bridges the financial gap for Delhi students seeking higher education or skill development. By offering collateral-free loans, flexible repayment options, and competitive interest rates, it empowers students to pursue their academic goals.
Disclaimer: This blog post is intended for informational purposes only. Please refer to the official website of the Directorate of Higher Education, Delhi, for the latest information,
