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How to Apply for Subsidised Loans?

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Created on
May 16, 2023


What’s Inside

A subsidised student loan is a way to go if you want to take out a student loan for your future education. Subsidised student loan interest rates are low since the government or another organisation covers some interest expense.

Subsidised or Unsubsidised Loans: Which One is Better?

Subsidised Loan

Subsidised loans are offered by the government or another entity, which pays the interest on the loan while the borrower is enrolled in school or during other designated periods of deferment. This implies that you are not liable for paying the loan's interest during these time frames, which can result in considerable savings throughout the loan's term. Students who require financial help for their education may apply for this loan since the subsidised student loan interest rate is competitive. 

Unsubsidised Loan

Unsubsidised loans are also available from the government or other institutions; however, the borrower is liable for repaying the loan's interest at all times, including during deferral periods. Unsubsidised loans are available to all students, regardless of financial need, instead of subsidised loans. Unsubsidised loans often have higher interest rates than subsidised loans.

To identify which student loan is better, you may compare the advantages, interest rates, and other aspects of both forms of loans. 

How to Get Subsidised Student Loans

Here’s a step-by-step guide that will assist you in getting a subsidised student loan: 

Fill in the Free Application for Federal Student Aid (FAFSA)

Filling out the FAFSA is the initial requirement for receiving a subsidised loan. Your eligibility for financial aid, including grants, scholarships, work-study, and loans, is determined using this application.

Meet eligibility requirements

To qualify for subsidised loans, you must be an undergraduate student with demonstrated financial need. The information that you include on your FAFSA, such as your family's income, assets, and other financial responsibilities, is utilised in determining your financial need.

Accept your loan offer

If you are qualified for a subsidised loan, your college or university's financial assistance office will make you an offer. You may accept all or part of the loan offer.

Complete entrance counselling

You must complete entry counselling before you may get your subsidised loan payments. This brief online course explains your loan conditions, repayment alternatives, and other crucial elements.

Sign a Master Promissory Note (MPN)

The MPN is a legal document describing your loan's terms and circumstances. Before you may get your loan cash, you must sign this form.


Obtaining a subsidised student loan might be an excellent option to assist with the financing of your college education. By following the procedures indicated above, you may boost your chances of securing a subsidised loan. 

Fi Money provides instant loans that arrive directly in your account. These are pre-approved personal loans made available to select users with good credit scores. On Fi, this process is 100% paperless, and the loans are provided at competitive interest rates — where each user remains in control with complete visibility of all details. Plus, you can avoid EMI late fees by setting up automatic in-app payments. Our licensed partner bank assigns an eligible loan amount to each user (up to ₹5 lahks).

Frequently Asked Questions 

what are subsidised student loans?

Subsidised student loans are federal student loans that are granted depending on financial necessity. While the borrower is in school and during certain other periods, such as deferral or forbearance, the federal government pays the interest on these loans. 

This implies that the borrower does not accumulate interest on the loan throughout these times and that interest only begins to accrue when the borrower enters repayment. Subsidised student loans are only accessible to undergraduate students, and the amount borrowed each year is limited.

How subsidised student loan work?

Subsidised student loans are a sort of federal student loan in which the government covers the interest while the borrower is in school and at other times. To apply for a subsidised loan, the borrower must fill out the Free Application for Federal Student Aid (FAFSA) and demonstrate financial need. 


Fi Money is not a bank; it offers banking services through licensed partners and investment services through epiFi Wealth Pvt. Ltd. and its partners. This post is for information only and is not professional financial advice.
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