To ensure that no Himachal student faces difficulty in pursuing higher education due to financial limitations, the state government of Himachal Pradesh has introduced a new interest subsidy scheme called the Himachal Pradesh 1% Interest Education Loan Scheme to make higher and professional education more affordable for students in the state. Under this scheme government provides access to educational loans to eligible students at a subsidized rate of just one percent via scheduled banks working in Himachal Pradesh. If you’re a student whose age is less than 28 years and wish to get a loan at a low interest rate of 1% by applying for the scheme, by knowing all about this scheme, including eligibility documents, and more so, to get the details, carefully read this article till the end to grasp the complete details.
About Himachal Launches 1% Interest Education Loan Scheme
The “Himachal Pradesh 1% Interest Education Loan Scheme” is an interest subsidy educational loan scheme designed to provide education loans at a subsidized rate of 1% through scheduled banks operating in Himachal Pradesh. Under this scheme, the government offers loan facilities to students enrolled in diploma and degree courses in fields including medical, Engineering, Management, pharmacy, paramedical, law, nursing, and other technical forces offered by ITI polytechnic and recognised institutions. This scheme is also applicable for those students seeking post-graduation and PhD degrees from institutions recognised by bodies such as AICTE, NMC, AIMA, PCI, INC, BCI, and UGC. By offering this scheme, the government aims to cover students pursuing education both in India and abroad, and further extends to fresh admissions as well as those already enrolled in eligible courses by enabling students to meet their regular expenses, including tuition fees, books, hostel charges, and other related educational expenses.
Objective of Himachal Launches 1% Interest Education Loan Scheme
The main objective of this scheme is to enable students to pursue their studies by offering educational loans at a subsidized rate of just 1% to those interested in financing their educational journey. By offering this scheme, the government aims to ensure that no student facing any kind of financial trouble can easily overcome it and pursue higher education without any financial limitations.
Key Highlights of Himachal Launches 1% Interest Education Loan Scheme
| Scheme Name | Himachal Pradesh 1% Interest Education Loan Scheme. |
| Department | Department of Higher Education. |
| Revised by | Government of Himachal Pradesh. |
| Nodal Bank | UCO Bank. |
| Year | 2025-26. |
| Objective | To enable students to pursue their studies by offering educational loans at a subsidized rate of just 1% to those interested in financing their educational journey. |
| Aim | To provide educational loans to students in need. |
| Benefits | Get loans up to Rs. 20 lakh. |
| Coverage | Both Indian & Abroad Students. |
| Beneficiaries | Students of HP.. |
| Mode | Online. |
| Official website | DHE |
Eligibility Criteria
To be eligible, applicant needs to meet the following eligibility criteria’s these are as follows:-
- Applicant must be a permanent resident of Himachal Pradesh.
- Age of the applying applicant must be less than 28 years at the time of application submission.
- Applicant must be a student enrolled in Diploma and degree courses in engineering, medical, management, pharmacy, nursing, paramedical, law, and other technical fields offered by IIT Polytechnic and recognized institutions.
- Applicants seeking post-graduation and PhD degrees from institutions recognised by bodies such as AICTE, NMC, AIMA, PCI, INC, BCI, and UGC can also apply for the same.
- Applicant pursuing education both in India and abroad, and extending to fresh admission as well as those already enrolled in eligible courses.
- The annual income of the applicant’s family must be less than Rs 12 lakh from all sources.
- Applicant must have their own bank account linked with an Aadhar card.
Financial Benefits
- Under this scheme, students can avail loans up to Rs. 20 lakh to cover their educational expenses, including tuition fees book hostel charges, and other education-related costs.
Important Dates
| Events | Date |
| Notification Made on | 21/11/2025 |
Required Documents
- Aadhar Card
- Bank Details
- Birth Certificate
- Educational Records
- Resident Proof
- Income Certificate
- Passport-Sized Photograph
- Phone Number
Salient Features
- Educational Loan:- Under this scheme, students can away loans up to Rs 20 lakh to meet educational expenses, including hostel charges, tuition fees, books, and other education-related costs.
- Interest Rate:- Under the Dr Yashwant Singh Parmar Vidyarthi Rhin Yojana, eligible students can now access education loans at a subsidized interest rate of just one percent through scheduled banks operating in Himachal Pradesh.
- Nodal Bank:- The UCO Bank has been designated as the nodal Bank for the scheme, with its main branch at the mall in Shimla, responsible for processing interest subsidy claims for the higher education department.
- Coverage:- This schema applies to both students pursuing education in India and abroad, and extends to fresh admissions as well as those already enrolled in eligible courses.
- Loan Availability:– Under this, the loan facility is available for diploma and degree courses in engineering, medical, management, pharmacy, nursing, paramedical, law, and other technical fields offered by ITIs, polytechnics, and recognised institutions.
Application Process
- As per the news, it is noted that the UCO Bank acts as a nodal bank for the scheme, with its main branch at the mall in Shimla, responsible for processing inter-subsidy claims for the Higher Education Department.
- Those students who are interested in applying can access detailed guidelines and eligibility information on the official Department’s website.
Helpline Number
- Phone:- +91-177-2656621(0), Fax:- 2811247
- Email ID:- dhe-sml-hp@gov.in
FAQs
Who announced this scheme and for whom?
The state government of Himachal Pradesh has introduced this interest subsidy scheme called the Himachal Pradesh 1% Interest Education Loan Scheme for students in the state.
What is the loan amount and interest subsidy rate for the Scheme?
Under this scheme, students can avail loans up to Rs 20 lakh at just 1% interest rate to meet educational expenses, including hostel charges, tuition fees, books, and other education-related costs.
Who can apply for the HP Education Loan Scheme?
Under this scheme, the government offers loan facilities to students enrolled in diploma and degree courses in fields including medical, Engineering, Management, pharmacy, paramedical, law, nursing, and other technical forces offered by ITI polytechnic and recognised institutions.
Is this scheme residency-based?
Yes, this scheme is only available for students who live in Himachal Pradesh and wish to get an education loan for the continuation of their higher studies.