The Delhi government education loan for abroad lets eligible residents borrow up to ₹15 lakh to pursue professional and technical courses overseas. This scheme offers discounted interest (base rate + 2%) and a repayment period of up to 15 years, designed to break financial barriers for students in Delhi.
Did you know nearly one in three Indian students now rely on loans to study abroad? This growing trend underscores why accessible government-backed support like this scheme is more vital than ever.
This blog covers Delhi government education loan eligibility, limits, required documents, and a stepwise application guide.
Study Loan in Delhi for Abroad by Delhi Government: Overview
Below is an overview of the loan, eligibility, and other key details on the Delhi government education loan for abroad.
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What Is the Delhi Govt Education Loan for Abroad?
The Delhi Government Education Loan for Abroad is a need-based initiative designed to help deserving students from Delhi pursue professional and technical courses overseas. Managed via the DSFDC (Delhi Scheduled Castes Finance & Development Corporation), this scheme supports students from underrepresented and economically weaker categories, providing financial aid specifically for overseas studies.
Key Features:
1. Loan Amount
Students can borrow up to ₹15 lakh for courses abroad. Conversely, domestic study loan limits are capped at ₹7.5 lakh.
2. Scope of Support
This initiative is part of Delhi’s broader Higher Education & Skill Development Guarantee Scheme, which provides loan guarantees to enhance access to higher education financing. Through this, additional loan support up to ₹10 lakh may be covered by the guarantee mechanism.
3. Target Beneficiaries
The scheme prioritizes marginalized groups, including SC, ST, OBC, Minority communities, and Persons with Disabilities (PwD), supporting equitable access to global education.
4. Channeling Mechanism
Access the loan through DSFDC and designated banks (e.g., SBI, Bank of Baroda). The guarantee framework and required documentation will be coordinated through these entities under the oversight of the Delhi government.
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Who Can Apply for the Delhi Government Education Loan for Abroad?
To benefit from the Delhi government education loan for abroad, students must meet both category-based and general eligibility conditions.
- Category Eligibility:
- Scheduled Castes (SC)
- Scheduled Tribes (ST)
- Other Backward Classes (OBC)
- Minority communities (with affidavit proof)
- Persons with Disabilities (PwD) – with a valid disability certificate from a government hospital
- General Eligibility Criteria:
- Must be a permanent resident of Delhi.
- Annual family income should be less than ₹5 lakh (income certificate from SDM required).
- Admission must be secured in a recognized foreign university for professional or technical courses.
- The course duration should not exceed 5 years.
- Applicants must provide proof that no other government loan has been taken for the same purpose.
This scheme specifically supports economically weaker students from underrepresented communities in Delhi who aspire to study abroad.
Looking for a quick and hassle-free way to get an education loan for studying abroad? Our guide on How to Get an Education Loan for Abroad Studies in 2024 can help you smoothly navigate the process.
Documents Required for the Delhi Government Education Loan for Abroad
To apply for DSFDC abroad loan, here’s a structured breakdown of documents needed:
A) Documents Required Before Sanction (with Application)
- Aadhaar cards of applicant, co-borrower, and guarantor.
- Income certificate (from SDM office) with family income under ₹5 lakh.
- Caste certificate, minority affidavit, or disability certificate for PwD applicants.
- Admission letter and course fee schedule from the recognized foreign university.
- Mark sheet of the qualifying exam.
- Passport-size photographs: 4 of each applicant, co-borrower, and guarantor; plus 1 full-size for PwD applicants.
- Bank statement for the last 6 months (applicant and co-borrower).
- Affidavit stating that no other government loan has been taken for the same purpose.
- Scholarship letter, if applicable.
- Foreign exchange permit, if required.
- Bank signature identification and asset/liability statement.
B) Documents Required After Sanction
- Sanction-cum-agreement letter, duly signed by applicant and co-borrower.
- Guarantee deed and hypothecation deed, if applicable.
- Affidavits: legal heir (if required), personal guarantee from applicant and co-borrower.
- ECS mandate or post-dated cheques for repayment.
- Processing fee payment receipt (typically ₹350).
- Two witnesses with their ID proofs.
- Last year’s student result.
- Undertaking that the borrower’s account will not be closed until the loan is repaid.
- Guarantor documents: Aadhaar/Election ID/Passport, latest pay slip, Form 16, ID proof, 4 passport-size photos, PDCs for loans > ₹2 lakh, and collateral documents (NSC/KVP/FDR or property papers).
Looking for collateral-free education loan options for your overseas studies? Read about Education Loan Without Collateral for Abroad: Lenders & ROI to find the best lenders.
How to Get Education Loan in Delhi
Here’s a streamlined, step-by-step guide to applying for the Delhi government education loan for abroad studies:
1. Obtain the Application Form
Available free at DSFDC branches (e.g., Ambedkar Bhawan, Rohini; Mangol Puri; Rajpur Road) or download from the official DSFDC website.
2. Complete the Application
Fill the form with black ink, attach a passport-size photo, and ensure documents are self-attested.
3. Submit to DSFDC
Submit the filled form with all pre-sanction documents to the DSFDC office (Room No. 208, 2nd Floor, Ambedkar Bhawan, Sector-16, Rohini).
4. Document Verification & Sanction
DSFDC reviews eligibility (domicile, income, category, admission). If approved, they issue the Sanction-cum-Agreement Letter.
5. Post-Sanction Formalities
Submit post-sanction documents: guarantee deed, affidavits, ECS instructions, witnesses, etc.
6. Disbursal
Once approved, funds are disbursed to your university account (tuition) and your personal account (living expenses), based on the fee structure.
Want to compare various education loans available in India and find the best interest rates? Our Best Education Loans in India & Interest Rates 2025 guide will assist you in making an informed choice.
Interest, Repayment & Other Key Terms
Here’s what you need to know about the financial terms of the Delhi government education loan for abroad:
- Interest Rate: The loan is provided at base rate + 2% per annum, making it more affordable than many standard education loans.
- Repayment Period: You can repay the loan over up to 10 years, with early repayment allowed without penalties.
- Promoter’s Contribution:
- ₹0 for loans up to ₹4 lakh
- 15% of the loan amount for studies abroad if the loan amount exceeds ₹4 lakh
- Processing Fee: A nominal fee of ₹350 is charged for the loan application.
Curious about the benefits of education loans for both domestic and international students? Check out Education Loan Benefits in India and Abroad 2025 for a comprehensive overview.
The Delhi government education loan for abroad offers a powerful opportunity, up to ₹15 lakh in funds, reasonable interest, and a solid repayment structure. You can finance your studies abroad without the stress of heavy initial costs.
But the process involves multiple documents, tight timelines, and maintaining co-applicant coordination. That’s where Propelld comes in.
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