Financial Aid & Study Loans For CU Students

Chandigarh University is a stepping stone for students who aspire to transform their dreams into reality. In order to encourage students to take up higher education despite their financial shortcomings, nowadays, Banks/NBFCs and State Government, are providing loans to students.

Chandigarh University strives to support students to pursue higher education. The fraternity has set up a separate loan assistance cell to accommodate the students, during the admission process (Online or Offline) to acquire loans from university-partnered banks.


Vidya Lakshmi

Gateway to Education Loans

Vidya Lakshmi is a distinctive portal for students seeking Study Loans. The portal has been developed under the guidance of the Department of Financial Services (Ministry of Finance), Department of Higher Education (Ministry of Education), and Indian Banks Association (IBA). The portal gives access to students to view, apply and track study loan applications to banks anytime and anywhere. It also provides links to the National Scholarship Portal.

The process is easy and online, log in to https://www.vidyalakshmi.co.in/Students/ and fill the Common Education Loan Application Form (CELAF). Students have to submit the essential details. After filling out the form, the applicant can search for “Educational Loan” and then “APPLY” according to the need, eligibility, and convenience.

Students can apply to three banks consecutively of their choice at a time. The online system of having an educational loan through Vidya Lakshmi has decreased the weight and trouble of applying for loans manually. The student can also share their grievances with the financial institution to which they have applied.

Student Credit Card Schemes / EMI

(Tap to View more)

Documents required to avail Study Loan

  • KYC (Aadhaar Card/ Voter Card/ Driving License/ Passport)
  • 2 Recent Passport Size Photographs
  • Mark Sheets/Passing Certificates of 10TH, 12TH/Diploma & Degree
  • PAN Card
  • CUCET Scorecard available at CUCET Id
  • Vidyalakshmi Registration ID

  • Admission Offer Letter via automatic generated mail on registered email id after registration.
  • Full Fee Structure of the Chosen Course via CUIMS.
  • Prospectus of the University available at CUCET id till closure of admission.
  • Courses (Fee Payments Slips/ Registration Slip) available at CUIMS Payment Section.
  • Placement Record available at https://www.cuchd.in/placements/
  • Recognitions and approvals available at https://www.cuchd.in/recognitions-and-approvals/

  • KYC (Aadhaar Card/ Voter card/ Driving License/ Passport)
  • 2 Recent Passport Size Photographs
  • PAN Card
  • Last 6-month bank account statement
  • IT returns/ IT assessment order of previous 2 years/ Form no 16/16A/Salary Slip or Income Proof issued by Magistrate/Tehsildar
  • A brief statement of assets & liabilities of co-borrower/ guarantor

Central Sector Interest Subsidy Scheme, 2009

The scheme is restricted to students enrolled in professional/ technical courses only from NAAC accredited Institutions or professional/ technical programmes accredited by NBA or Institutions of National Importance or Central Funded Technical Institutions (CFTIs). Being a NAAC A+ graded Chandigarh University is eligible for CSIS Scheme.

CSIS is a unique scheme that pivots around the vision that no student desiring to pursue higher education is denied the opportunity if he/ she is financially poor. Students belonging to Economically Weaker Sections, i.e. students whose annual gross parental income is up to Rs 4.5 lakhs can avail this scheme. The subsidy is admissible only once either for the undergraduate or postgraduate or integrated course. Study loan is provided without any collateral security and third-party guarantee and for a maximum amount of Rs 7.5 lakhs.

This scheme was introduced to benefit all categories of economically weaker students who wish to pursue professional/ technical courses in India and intends to provide affordable higher education. The motive is to uplift the students from the grassroots level and increase the number of qualified technicians/ professionals in the nation.

Name of the banks tie-up with Chandigarh University & Scheme offered.

HDFC Logo
Axis Logo
ICICI Logo
UCO Bank Logo
SBI Logo
PNB Logo
IDFC Logo
Canara Bank Logo
IDBI Logo
Punjab & Sind Bank Logo
Credenc Logo
J & K Bank Logo
Punjab Gramin Bank Logo
Bank of Baroda Bank Logo

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Bank Loan

Chandigarh University gives an option to apply study loan via various banks to fund your education with attractive rates and different schemes.

  • A wide range of expenses covered
  • No Collateral up to 7.5 Lacs by Maximum Banks.
  • Apply for multiple banks under one roof (Vidya Lakshmi).
  • Study Loan with 100% Subsidy on interest rates (family income Rs. 4.5 Lacs P.A.)
  • Moratorium Holiday-Pay after your course completion
  • Tax benefit- Section 80E
  • Build your CIBIL score
  • No need to liquidate valuable assets
  • Liberating your parents from loan burden

Steps to Register and apply for Education Loan

FAQs

The question should ideally be, why choose an Education Loan over a personal loan, or the money accumulated in your savings account? The versatility and advantages of Education Loans are listed below-

If self-finance, the full year fee has to be paid at the beginning of the semester. Also the living cost needs to be saved for, which in many cases is about 50% of the cost of education. Education loan

Education loan can cover tuition fee + living costs too. Repayment of the principal amount needs to be done only POST course completion. An addition 6 months is also given by the lenders, before principal repayment starts.

When self-finance, full year payment goes out of the account in one shot. Education loan – Period

Education loan is paid in Easy EMIs. Bank gives a repayment Period up to 10 years, which makes it easy on the pocket.

Self-finance amounts to liquidating savings, which could have been kept back as investments OR also kept us a financial security for family/health contingencies.Education loan

Education loan helps you retain your savings to keep them invested and also keep them for family/medical contingencies.

To self-finance, one often needs to break savings, sell property, pledge gold, and borrow from relatives.Education loan

Education loan empowers you to preserve your savings and not go through the harrowing experience of either selling land, jewelry or even borrowing. Education loan empowers you to finance by the strength of your education background, current financial status and collaterals.

When self-finance, the money that could have been invested and earned you interest/profits is used up in one shot. (Example: 10 lakhs earning 10%pa = Rs. 1 lakh earning.) This opportunity to earn is lost.Education loan

Availing an Education loan makes financial sense! If Education loan availed: (example) Borrow Rs. 10 Lakh@ 9.33% * (effective rate of interest) & spend Rs. 93,000 as interest Invest your money @ min 10%: earn Rs. 1,00,000/- Hence, make Profit of Rs. 7,000 per annum by availing education loan.

To get admission confirmation, a solvency letter needs to be given to show liquid funds. One needs to show liquid funds to cover one-year fee + approx. 50% more to be able to convince the University about the fee payment capacity Education loan

One can get the loan sanction from Bank even before admission confirmation. Infect students get the loan sanction at the time of application to University & use Bank Sanction/Solvency letter to show 'proof of funds'.

One needs to keep liquid funds to get a solvency letter to show 'Proof of funds'. With cost of overseas education ranging between 10-20 lakhs, it's not an easy task to keep such a high amount of liquid funds. Education loan

One need not keep such high amount of liquid funds when one avails on an Education loan. Sanction/ Solvency letter is received basis the profile of the students, parent and the collateral. And the loan needs to be repaid in easy EMIs.

One cannot avail the attractive benefits if fee is self-financed. Education loan

One can avail attractive Tax benefits on Education loan availed from Bank. The complete interest amount has Tax exemption, without any upper cap! Truly, a benefit not to miss!

With the fluctuation in the foreign currency, the cost of education can vary up to 20-30%, as experienced recently. It can be tough to produce liquid funds to pay such additional amounts. Education loan

Availing an Education loan sanction can be very useful at this stage. Even if the cost increases, loan can be availed up to the sanctioned credit limit.

One needs to keep a track of the fee payment date & ensure the transaction goes through in time to make timely payments to the University. This is especially cumbersome when the payment needs to be sent overseas. Education loan

Availing an Education loan makes it easy. One simple instruction to Bank & the fee payment will be done.

Paying through life savings does not give you the opportunity to build a positive credit history, which can be very useful for students as they invest in automobiles, credit cards and homes soon after getting their jobs. Education loan

Timely repayment of an Education loan can help a student build a positive Credit history and get loans for other products like your home, automobile, etc. easily and at attractive rates.

Parents financing their child's education takes away the opportunity for the child to take his own responsibility. Education loan

Taking an Education loan makes students value his education even more and helps him take the mature first step of taking financial responsibility. An opportunity for every parent to give his child 'the wings' to fly!

  • Parent’s Profession - Salaried, Businessman or Agriculturist
  • Family Income -BPL, Middle Class or Financially Sound

  • There is no best bank to avail an education loan. In India there are a number of banks both Public and private sector from which you can avail an education loan. There are also dedicated loan Companies from which you can avail an education loan. Many a time these Companies have a tie up or are supported by a bank. One needs to know the following before applying for an Education Loan
  • Nationality: You should be an Indian National to avail an education loan in India.
  • Age: You should be 18 years of age to avail an education loan or your parents can take the loan in their name. Banks might set an upper age limit of 35 years and no educational loan is given if you are above this age.
  • Admission to an educational course: You should have secured admission for a professional, technical or a management course in Chandigarh University. You should have secured at least 60% in all your previous qualifying examinations (For SC category at least 50%).
  • Documentation: You will have to fill the loan application form and submit documents such as an address proof, mark sheets, admission letter for the course. The co borrower (Parents or the third party Guarantor) has to show proof of income (salary slips) as well as the income tax statements of the past 2 years.
  • Loan Amount: You can avail a loan for a maximum amount of INR 15 Lakhs if you are studying at Chandigarh University.
  • Family Income: The applicant’s annual family income and the course pursued are primary determinants for the applicable loan amount.
  • Collateral for the loan: You do not need to place collateral (security) for loans up to 4 Lakhs. If you avail a loan between 4-7.5 Lakhs you require this loan to be guaranteed by a third party. For a loan above 7.5 Lakhs banks take collateral such as your house or a property a fixed deposit or a life insurance policy.
  • Margin (Amount you pay from your pocket): If you avail an education loan for an amount under 4 Lakhs and meet the requirement criteria the bank will disburse (pay) the entire loan amount. You do not have to pay anything from your pocket. For an education loan between 4-10 Lakhs you have to shell out (pay) 5% of the loan amount from your own pocket.
  • Time Period of the loan: Banks give you an educational loan for a time period of 10-15 years including the years of study (time taken to complete the course). You have to repay the educational loan through EMI either within 6 months after you get a job or after a year of completing the course whichever is earlier called Moratorium period.
  • Past credit history: Your credit score is maintained with CIBIL (Credit information Bureau of India Limited) called CIBIL TransUnion Score on a scale of 300-900. An ideal score is around 750.If you have defaulted on your past loans then you will not be able to avail an educational loan due to a bad credit score.
  • Processing Fees: No processing fee if the loan is availed to study at Chandigarh University.
  • Prepayment Charges: If you prepay your loan there are no prepayment charges. RBI has recently abolished prepayment penalty on all floating rate loans (Loans whose interest rate fluctuates with the market or the economy).
  • Disbursement of the educational loan: The loan amount will be disbursed in stages directly to the institution where you have secured admission.
  • Types of interest rates: Private banks and foreign banks offer educational loans at a fixed rate where the rate of interest remains constant across the tenure (time period) of the loan.
  • Nationalized banks offer educational loans at a floating rate where the rate of interest fluctuates with the market (economy) rates.

You can avail tax benefit on your educational loan under Section 80 E of the income tax act if the loan is taken in your name for a higher education or for your spouse and children.

You can claim a tax deduction on the interest portion of your educational loan. You can avail these tax deductions for a period of 8 years after you start paying back the EMI on your educational loan.

You cannot claim a deduction on the principal of your educational loan.

If you had availed an educational loan before March 31st 2009 and you are unable to repay the interest component of the loan even after December 31st 2013 the Government will bear the interest burden on the education loan. (You do not have to pay any interest on the education loan if even after December 31st 2013 there is interest pending/outstanding) as per the interim budget in February 2014.

Banks allow you to repay the educational loan through an EMI either within 6 months after you get a job or after a year of completing the course whichever is earlier called Moratorium period (grace period). You can start making your interest payments on the educational loan as soon as your course starts. If you pay back the interest on the education loan in the moratorium period, you get a discount (cut) on the interest rates by 1% in this period.

So we would ask you to gain knowledge and then visit two three bank to compare their term and conditions and then choose the best one.

Vidya Lakshmi Portal provides single window for Students to access information and make application for Educational Loans provided by Banks and Govt. Scholarships. It has the following features:

  1. Information about Educational Loan Schemes of Banks
  2. Common Educational Loan Application Form for Students
  3. Apply to multiple Banks for Educational Loans
  4. Facility for Banks to download Students Loan Applications
  5. Facility for Banks to upload loan processing status
  6. Facility for Students to email grievances/queries relating to Educational Loans to Banks
  7. Linkage to National Scholarship Portal for information and application for Govt. Scholarships

(As Revised - Applicable for loans taken with effect from 01.04.2018)

One of the major objectives of the Government is to ensure that no student is denied the opportunity to pursue higher education because he or she is poor. To achieve this objective, Ministry of Human Resource Development (MHRD) launched a Scheme titled "Central Sector Interest Subsidy Scheme" (CSIS) in 2009. The scheme provides full interest subsidy during the moratorium period on modern education loans without any collateral security and third-party guarantee, for pursuing technical/professional courses in India. Students whose annual gross parental/ family income is up to Rs.4.5 lakhs are eligible under the scheme. The existing Scheme has been modified with the approval of the Cabinet on March 28th, 2018.

The Scheme is adopted by all Scheduled Banks and is linked with the existing Model Educational Loan scheme of the Indian Banks' Association, and restricted to students enrolled in professional/ technical courses only from NAAC accredited Institutions or professional/ technical programs accredited by NBA or Institutions of National Importance or Central Funded Technical Institutions (CFTIs). Those Professional Institutions/programs, which do not come under the ambit of NAAC or NBA, would require approval of the respective regulatory body viz, approval of Medical Council of India for Medical courses, Nursing Council of India for Nursing courses, Bar Council of India for Law etc. The scheme is applicable to students belonging to Economically Weaker Sections, i.e. students whose annual gross parental income is up to Rs.4.5 lakhs. Subsidy is admissible only once either for undergraduate or post graduate or integrated course. Under the scheme, education Ioan is provided without any collateral security and third-party guarantee and for a maximum amount of Rs. 7.5 lakhs.

Education Loans taken under IBA Model Education Loan Scheme.

Students having parental income up to Rs. 4.5 lakhs per annum.

Students enrolled in professional/ technical courses only from NAAC accredited institutions or professional/ technical programs accredited by NBA or Institutions of National Importance or Central Funded Technical Institutions (CFTIs). Those Professional institutions/programs, which do not come under the ambit of NAAC or NBA, would require approval of the respective regulatory body viz, approval of Medical Council of India for Medical courses, Nursing Council of India for Nursing courses, Bar Council of India for Law etc.

Admissible only for once either for UG, PG- Also admissible for integrated courses (graduate + post graduate).

Interest Subsidy under this Scheme shall not be available to those students who discontinue their course midstream, or who are expelled from the Institution on disciplinary or academic grounds. However, the interest subsidy would be available only if discontinuation is due to medical grounds for which necessary documentation to the satisfaction of the Head of educational institution needs to be provided.

The benefits of the Scheme is applicable to students belonging to economically weaker sections, with having parental income up to Rs. 4.5 lakhs per year (from all sources). Income proof is required from authorized Public authority of the State Government. The present scheme is intended to cater to the needs of students belonging to economically weaker sections with prescribed upper parental gross income limit of the family from all sources, which is based on economic index and not on social background- The scheme is independent of any other schemes which may cater to EWS.

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