AI SummaryComprehensive Educational Loan Scheme (CELS) provides interest free student loans to eligible candidates for professional and higher studies in India and abroad. This scheme, launched by the Government of Sikkim in July 2007, is run through SIDICO, the Sikkim Industrial Development and Investment Corporation, which acts as the nodal agency for its implementation.
Students from different economic backgrounds, including those from below poverty line (BPL) families, can get financial support to study in recognized institutions. The scheme continues to accept applications, and as per the latest official details the loan amounts have been revised. Till 31 March 2023, the corporation had sanctioned loans to 3,320 beneficiaries for an amount of ₹94.03 crore under this scheme.
Comprehensive Educational Loan Scheme - Introduction
Comprehensive Educational Loan Scheme is a state level scheme started by the Department of Personnel, Administrative Reforms, Training and Public Grievances, Government of Sikkim. It gives interest free loans for the duration of a course of study, followed by a one year moratorium period. The main aim is to help students, with special attention to those from below poverty line families, who want to pursue professional courses in recognized institutions within India or abroad.
The scheme covers technical, professional and higher academic courses in India and abroad. Correspondence courses are not eligible for financial support under this scheme, and loans for pursuing more than one course at a time are not considered.
Key Information
| Detail | Information |
|---|---|
| Scheme Name | Comprehensive Educational Loan Scheme |
| Level | State |
| State | Sikkim |
| Launched In | July 2007 |
| Nodal Agency | SIDICO (Sikkim Industrial Development and Investment Corporation) |
| Category | Banking, Financial Services and Insurance, Education and Learning, Women and Child |
| Benefit Type | Cash |
| DBT Scheme | No |
| Application Mode | Offline |
Benefits
This scheme offers strong financial support to help students reach their academic goals. The maximum loan amounts are now structured as follows as per the official SIDICO portal:
| Course Location | Maximum Loan Amount |
|---|---|
| Professional courses within Sikkim | ₹10,00,000 |
| Studies within India | ₹12,00,000 |
| Studies abroad | ₹15,00,000 |
The loan is interest free for the duration of the course plus one year, or six months after getting a job, whichever is earlier. After this period, interest of 6 percent per annum is charged on a simple interest basis. In the unfortunate event of study discontinuity or the death of the loanee, the co-applicant should refund the entire loan amount within a period not exceeding one year.
Eligibility
Before applying, students should check whether they meet the conditions set by the state government. The main eligibility points are given below.
- Applicant must be a bonafide student of a recognized institution.
- Family annual income must not exceed ₹2,50,000 for studies in India and ₹5,00,000 for studies abroad, as certified by the district collector.
- The academic institution chosen must be recognized by the relevant authority in India.
- Only one member per family may receive this benefit, except for individuals from below poverty line families.
- Only members of below poverty line families are eligible for study loans within Sikkim.
Children of government or public sector undertaking employees may also apply for this support. Correspondence courses are not covered, and a student cannot get a loan for more than one course at the same time.
Application Process
The application process for this scheme is offline. Interested students need to follow the steps given below.
STEP 1 - Visit the Sikkim Industrial Development and Investment Corporation (SIDICO) during office hours and request the required application form from the staff entrusted to issue and collect filled in applications.
STEP 2 - Carefully fill in all the mandatory details in the form. Make sure you attach self attested copies of all the required documents along with the application.
STEP 3 - Submit the completed and signed application form directly to the Sikkim Industrial Development and Investment Corporation.
STEP 4 - Always ask for a formal receipt or acknowledgment, which should include the submission date and a reference number for your records.
Documents
Applicants should prepare the following documents to complete their application without any delay.
- Income certificate certified by the district collector.
- Official admission proof from a recognized institution.
- A signed affidavit confirming that the applicant is not currently employed and has no outstanding dues with any financial institution.
- Project viability and technical feasibility certification for the chosen course.
References
Official SIDICO page for Comprehensive Educational Loan Scheme
SIDICO useful documents and forms
FAQ's
Who is eligible for the Comprehensive Educational Loan Scheme?
Students from families with a gross annual income not exceeding ₹2,50,000 for studies within India and ₹5,00,000 for studies abroad, as certified by the district collector, are eligible. The student must be a bonafide student of a recognized institution.
Is there a reserved quota for below poverty line families?
Yes, 50 percent of the allocated funds are reserved for below poverty line families. If there are fewer candidates from this group, the remaining funds become available to other eligible applicants.
Can more than one member of a family apply for the loan?
Generally, no. Only one member per family is eligible, with the exception of those from below poverty line families.
What is the interest rate on the loan?
The loan is interest free for the duration of the course plus one year, or six months after getting a job, whichever is earlier. After this period, a simple interest of 6 percent per annum is charged.
What happens if the student discontinues their studies?
If studies are discontinued, the beneficiary or the co-applicant must refund the entire loan amount within one year.
Which courses are covered under the scheme?
Technical, professional and higher academic courses in India and abroad are covered. Correspondence courses are not eligible, and loans for more than one course at a time are not considered.
How are loans disbursed under the scheme?
The government approves and disburses loans based on recommendations from a committee comprising the secretary of the human resource development department, the director of the directorate of capacity building, and the managing director of the Sikkim Industrial Development and Investment Corporation.
Is an affidavit required for the application?
Yes, applicants must submit an affidavit confirming that they are not currently employed, have no outstanding dues with any financial institution, and meet all the specified criteria.