A lot of students pursue higher education after they have completed their high school and many even do so after they have completed their graduation, but the continuously rising fees to pursue that education has made it even more difficult for parents to help their children study further. Today’s age is such where taken a bank loan is the only option for parents to help their study, but that also comes with a negative effect on the structure of the loan is such that the parents are held as the guarantors and the EMI of the loan starts when the child has completed his/her education. In, most cases there is a probation period of about 6 months to a year before the person begins to repay his/her loan. Most of the students are able to pay the loan but in certain circumstances, it turns out to be a problem when the child is unable to secure a job.
After recognizing the issue the government of Kerala made a decision to launch a scheme where the students where the students would have defaulted the repayment of the loan.
Via Brief of loan repayment Scheme
This scheme is would throw a helping hand forward to the students in repaying their education loan and the scheme is applicable to the families whose annual income is less than INR. 6 lakhs. As per records, the state has a total education loan of INR. 10220 crore. Out of which INR. 1315 crore is a bad loan and this poses a significant challenge for the banks as well as the government, the government of Rajasthan has approved a budget of INR. 900 crore to clear such bad loans.
| Name | Education Loan Repayment Subsidy Scheme |
| Launched Date | 2017 |
| Announced By | Chief Minister Kerala, Mr. Pinarayi Vijayan |
| Last date | 31 Dec |
| Official Site | www.elrs.kerala.gov, in |
| Monitored By | Education Department Kerala |
| Eligible | State Students |
Read the article below to gain more about the Education loan repayment scheme, Kerala.
Key features of Scheme
The following given are the key features of the scheme launched by the government of Kerala for the welfare of the Student of the state. Check the features of the schemes as follows:
- The Loan repayment scheme has been modified by the State Government to help the students for the repayment of the loan.
- The amount of loan can be repaid back after the completion of the course of the applicant.
- The government will ensure that the support will be given to the candidate during the tenure of course as the candidate can repay the loan after 4 years.
Budget For the Education loan repayment scheme Kerala
The State government of Kerala has set up a budget for the Kerala Loan scheme under the name Education loan repayment scheme, Kerala. In the budget of the year 2017, Rs. 900 crores have been sanctioned for the scheme. The scheme motive is to help the students to continue the studies.
Benefits of the scheme
- The students and the families will get a new life as their loan will be paid and they will be able to make a fresh start
- The tension on the banking system would reduce as the banks will be able to clear off their balance sheet
- Once the bank has funds, the banks will be able to provide funds to more people in the forms of loans.
Eligibility of the Education loan repayment scheme Kerala
Read the following points to know whether you are eligible for the Education loan repayment scheme, Kerala.
- The students should be a resident of Kerala.
- The bank within the state can be applied for the Education loan repayment scheme, Kerala.
- The loan taken by the students should be an educational loan. (Note- Personal loans are not applicable to the scheme)
- In addition to this, the families of the applicants should have a total annual income of less than INR. 6 lakhs
- The borrower would have to agree for repayment of 40 to 50 percent of the loan amount
- Student taken admission under any Quota reservation are not eligible for the Education loan repayment scheme, Kerala.
- The candidate who have taken admission in the nursing institute, training can apply for the scheme.
- The candidate who has taken credit from any other institute, bank for education are not eligible for the Loan.
- The Pan card is required to get the benefit of the scheme as without the PAN card the application will be rejected.
- The candidate applying, family income of the candidate annually should not be more than 9 lac.
Education loan repayment scheme Kerala Documents Required
The following mentioned are the documents required for the Education loan repayment scheme, Kerala.
- The KYC form is required for verifying the similarity of data.
- The Pan card is required to get the benefit of the scheme as mentioned earlier.
- The candidate has to give the Eligibility certificate.
- Disability certificate in case you are disabled.
- Course completion certificate of the candidate.
- Marksheet of the candidate of class 10th.
Implementation of the Education loan repayment scheme
Under the scheme, the government will recognize such stressed assets and will try to make the repayment, as per information, the government will be looking for an education loan of less than INR. 4 lakhs and in such circumstances, as the government will negotiate with the banks to remove the interest and the penalty. As this is done, the government will pay 60% of the loan on a condition that the borrower would have to pay the rest of the 40% remaining. The scheme is also applicable for the loans above INR. 4 lakhs which have not been defaulted and in addition to this, if the loan of above 4 lakhs in an NPA, the government will pay up to 50% of the loan amount.
Categorization of the Loan
The Kerala State Government Education Loan Repayment Yojana has been categorized in the following given categories of the loan if you are interested to apply for the loan then check the categories of the loan under the Kerala State Government Education Loan Repayment Yojana.
- Category I –As the category 1 is only for the people who have the income not more than 9 lac and the RBI state has designed under rules of IRCA.
- Category II (a) – Under the category, the loan amount for which the candidate is not more than 4 lakhs and the loan is sanctioned under the NPA means the Non-Performing Assets account and the installments are paid annually for it.
- Category II (b) – The category is under the category 2(A) as mentioned above, the major difference between the two categories is that the loan amount is above 4 lac but not more than 9 lac.
- Category III – category 3 deals with the accounts of the candidates who are physically or mentally injured or disabled. The candidate who has applied for the loan but died either during education or after the loan is also included in the category.
Apply education loan subsidy
You can apply for the Kerala State Government Education Loan Repayment Yojana online at the official portal as there is no other offline or manual process for the application of the education loan repayment scheme as you have to do registration and then fill the application form. You can visit the official site of the Kerala governmentGovernment Education Loan Repayment elrs.kerala.gov
elrs eligibility certificate
You can get the elrs eligibility certificate application form from the link of the pdf given below you can make use of it in case you opt to apply the Education loan repayment scheme, Kerala.
Check the pdf of elrs eligibility certificate application form:
Apply online education loan subsidy
You can apply online as mentioned earlier as you have to do registration at the official if in case you have not registered make use of the steps given below for the Online registration. Check the points as below:
- Make use of the link given below:
Reference Image:
- You will able to get to the Home page of the official portal of Kerala governmentGovernment Education Loan Repayment.
- Click on the “Students Registration.” Option on the homepage
- Then you will able to register at the page.
- Then enter the details asked such as name, birth date, address, contact details, Mobile number etc.
- Then click on “Generate OTP” Option.
- Then you will get the OTP on your registered Mobile Number.
- Then enter the OTP for verification.
- Then you have to upload the scanned copies of the documents such as PAN Card, Aadhaar Card, 10th pass certificate.
- Then click on the submit option.
- As then your registration process will be completed.
- You will get the ID and Password.
- Then you would able to fill the application form by login yourself at the official portal.
Application form Kerala Loan Scheme
If you have registered by making us of the steps given above then you can log in to the official portal by entering the login ID and password at the official portal whose link has been given above then only you would able to fill the Education Loan Subsidy Application Form.
After login, you would get the application form Kerala Loan Scheme.
- Then you have to enter the course details such as course name, management/ quota, completion date etc.
- Then you have to enter the employment details such as salary, the students who are physically disabled need not to fill this section.
- Then you have to enter the category, subcategory of the applicant details, family income, etc.
- Then the Disabled candidate has to fill the disability details such as dates, the percentage of disability and certificate is also required to be uploaded.
- Then the applicant has to enter the bank details such as bank name, branch, date of loan etc.
- Then you have to upload the documents required.
- You can check the application form to verify the form.
- Then submit the application form.
Contact info
Important Link
http://elrs.kerala.gov.in