Apply for the Haryana Education Loan Program 2026 online at atmanirbhar.haryana.gov.in: The Haryana administration has launched a new Education Loan Scheme for 2026 to support students. Under this initiative, the state government offers a credit guarantee on education loans. Former Chief Minister Manohar Lal Khattar introduced this plan while discussing the 2020-2021 State Budget on March 4, 2020. Previously, students struggled to secure funding for higher studies because banks frequently demanded collateral security.
To roll out the Haryana Govt. Education Loan Scheme 2026, the state is establishing a credit guarantee fund covering various medical, engineering, and professional degree programs. Once students finish their studies and begin earning, they are required to pay back the loan to the lending banks. Funding for this 2026 scheme has been formally allocated in the state budget.
Haryana State Education Loan Scheme 2026
The core purpose of this initiative is to assist students from Haryana who have completed their 12th grade at recognized institutions and wish to pursue higher education but lack the necessary collateral for bank loans. This program provides these students with a pathway to secure funding for their studies.
Through this scheme, the State Government provides a guarantee via a specialized fund, eliminating the need for students to provide personal collateral. The primary goal is to ensure that no student is denied access to higher education due to financial security requirements. Participating banks or lending institutions can claim benefits by paying a small fee in the event of a loan default or NPA.
Key Aspects of the Higher Education Credit Guarantee Fund
The program involves the establishment of a dedicated "Higher Education Credit Guarantee Fund."
A) To utilize this fund, lending institutions must pay an annual guarantee fee of 0.3% of the total outstanding loan amount. This fee is non-refundable and is paid annually, and it may be recovered by the bank from the student.
B) The interest rate charged by lenders for these education loans should not exceed the current RBI repo rate by more than 2%. This limit may be adjusted by authorities in the future based on changing economic conditions.
C) In case of default, the fund will cover up to 100% of the principal and interest for students in Haryana’s government medical colleges. For institutions with an 'A' grade or higher from NAAC, 90% coverage is provided. For 'B' or 'C' graded institutions, 75% is covered, and for 'D' graded institutions, 50% is covered. Lenders must recover the remaining balance from the borrower.
D) The government guarantees loans covering tuition, hostel fees, bonds, and laboratory/library charges. For government medical colleges in Haryana