Construction of buildings or facilities therein, required for academic or research purposes, including the requirements for accommodating students/scholars/faculty/staff of the institution. Only the non-recurring portion shall be financed.

Setting up laboratories/high performance computing (HPC) facilities/libraries and equipping them, provided further, that the projects are accompanied by detailed plans for utilisation of such facilities. Only the non-recurring portion shall be financed.

Research projects that are sanctioned by Ministry of Education or any other Ministry of Government of India provided further that the Company would meet only the cost of the non-recurring portion of the research project, and the cost of maintenance shall be borne by the institution from the resources generated through such project.

Setting up Centres of Excellence (CoE) sanctioned by the MoE or other Ministries of Government of India, provided that only cost of the non-recurring portion of the coe project shall be financed.

Campus common infrastructure/facilities including student facility centres. Only the non-recurring portion shall be financed.


HEFA’s role is hugely expanded under RISE 2022 to cover all educational institutions under higher education, school education and institutions under Ministry of Health which is referred to us by the concerned ministry.


Institutes need to take up the projects requiring financing from HEFA to their concerned bureau for approval.


Detailed Project Report (DPR) of institutions will be appraised and approved by Expenditure Finance Committee [ EFC] / Standing Finance Committee [ SFC] / Cabinet as the case may be and loan quantum for each institution will be fixed by them.


On approval Institutions can apply for loan online through the “Login” button and our loan processing system is explained below.


Create your Institution account through the Login Button and detaild guideline available there.


Statement of loan account with other banks (if any) for the past one year


Duly Filled Application form


KYC Documents of signatories and institutes. [Self-attested copy of PAN Card, Aadhaar Card & Institute Identity Card of Authorised Signatories. Copy of PAN Card of Institute].


Copy of Detailed Project Report submitted to Ministry of Education/MoE for Approval of Proposed Projects.


The letter from the Ministry recommending the Loan Amount and Window in which the loan shall be considered; and also committing adequate funds for servicing the HEFA loan through OH-31 / through the Internal and Extra Budgetary Resources [IEBR] of institution as the case maybe.


Balance Sheet for last 3 years, Current Year estimates & projections covering the proposed repayment period.


Income and expenditure for last 3 years, Current Year estimates & projections covering the proposed repayment period.


Cash flow statement for last 3 Years, Current Year estimates & projections covering the proposed repayment period.


Calculation of IRR, projected cash flows for the life of the project


Total project cost, amount so far spent and the balance cost certified by the chartered accountant for ongoing projects

Details regarding the projects requiring funding from HEFA


Details regarding steps to enhance existing capacity utilisation, revenue generation strategies, revenue generation from the assets created


Brief details of the project including the area to be constructed, equipment to be procured along with the broad specifications


Cost of the project as per administrative approval by the competent authority, along with cost per sq.ft (in case of construction)


a. Estimates and designs as per technical sanction by the competent authority.
b. Month-wise Loan Drawdown schedule for the projects.
c. Modalities for procurement and execution of the project.
d. Systems for Project Management and Monitoring of quality and progress.
e. Systems for maintenance of the project including resource generation.
f. The method and timelines for selection of Agency(ies) for execution,
g. Bank account particulars for release of funds directly to the concerned agency.


Copies of Office Notes placed before internal committees i.e. Building committee, Finance committee etc


Copy of the project approval from the Board of Governors or Executive Council



Loan Eligibility for Institute will be decided by their corresponding ministry/bureau in compliance with our credit and exposure norms.


a) Till 31.07.2020 – 8.50% p.a
b) W.e.f 1.8.2020 – 7.85% p.a
c) W.e.f 01.04.2021 – 7.5% p.a
d) W.e.f 01.04.2022 – 7.0% p.a
e) W.e.f 01.04.2023 – 5.55% p.a
f) W.e.f 01.07.2023 – 5.55% p.a
g) W.e.f 01.10.2023 – 5.55% p.a
h) W.e.f 01.01.2024 – 5.55% p.a

Interest reset quarterly. Next reset date 01.04.2024


The cost of the borrowing will be market determined and ROI on loans will be linked to the cost of funds of HEFA, which will ensure competitive pricing on loans.

A well-structured ESCROW mechanism is in place for recovery of principal and interest obligations of the Institutions.

On sanction of loan proposal, Institute open escrow accounts with the bankers.

The institute opens an escrow account with our Bank and escrows a portion of their cash flows from their internal accruals as per the window under which the repayment is made.

Loan portion agreed to be serviced by the Government will be made through normal grants.

There will be close monitoring of projects by HEFA besides monitoring by project monitoring group of institutions.

MoE will assess the performance of each institution on a continuing basis and fix a period beyond which servicing of interest shall also be taken over by the institution in part or full.



When granting loans, we begin a long-term commitment with customers. This means that we always make a careful evaluation to gain an understanding of the institutions financial requirements. We offer loans that are appropriate to their needs and that they understand their financial obligations. We place an emphasis on exercising expertise in credit assessments and our due diligence process. You can view our fair practices code here.