Interest Free Loan Scheme granted by the Government as declared by the budget proposal of 2024 to pursue selected Degree Programs offered by Non-State Higher Education Institutes

What is IFSLS?

IFSLS stands for the Interest Free Student Loans Scheme. This scheme is implemented by the Ministry of Education, Higher Education and Vocational Education.

The main objective of the IFSLS is to increase higher education opportunities for students in collaboration with Non-State Higher Education Institutes (NSHEIs).

This program addresses the fact that the state university system in Sri Lanka can only accommodate approximately 25% of students qualified for university entrance based on G.C.E (A/L) results.

Under this scheme, the government provides an interest-free loan for students to pursue degree programs that possess high market demand and professional value.

The government bears the interest on behalf of the students during the entire loan period of twelve (12) years.

Who are eligible to submit an application to the IFSLS?

For the academic year 2025/26 (10th Intake), candidates must meet the following minimum qualifications for admission:
  1. The candidate must have passed the G.C.E (A/L) Examination in 2022, 2023, or 2024 and have been notified as qualified for university entrance.
  2. The candidate must have obtained a minimum of simple (S) passes for all three subjects in one attempt, with a maximum limit of three sittings in total.
  3. The candidate must have achieved a minimum of 30 marks for the Common General Test at any sitting (within three sittings), and this result must be obtained at the time of the interviews conducted.
  4. The candidate must have a minimum of a simple (S) pass for General English at the G.C.E (A/L) Examination OR a minimum of a simple (S) pass for English Language at the G.C.E (O/L) Examination.
  5. The age of the candidate must be 25 years or below by November 30th, 2025.

Why should I apply for IFSLS?

You should apply for the IFSLS primarily to gain an opportunity for higher education and professional development that is financially supported by the government.

  • Addressing the Higher Education Gap: The scheme helps fill the lack of opportunities for the majority of students who qualify for university entrance but cannot enter state universities or afford non-state institutions.
  • Interest-Free Student Loan: The government provides an interest-free loan for degree programs with high market demand.
  • Government-Borne Interest: The government bears the interest on the loan for the entire loan period of twelve (12) years.
  • Stipend Option: Students can also obtain an interest-free stipend loan, up to Rs. 300,000/- for a four-year program, to cover additional expenses.
  • Career Focus: The loan supports enrollment in degree programs known to have high market demand and professional value.

What are the available institutes to study under IFSLS?

There were seventeen approved Non-State Higher Education Institutes (NSHEIs) under the IFSLS for the 9th Intake*.

These institutions included:

AbbreviationInstitute Name
SLIITSri Lanka Institute of Information Technology
NSBMNational School of Business Management
CINECCINEC Campus (Pvt) Ltd
SIBASri Lanka Institute of Buddhist Academy
ICASLInstitute of Chartered Accountants of Sri Lanka
HORIZONHorizon College of Business and Technology (Pvt) Ltd
KIUKIU Campus (Pvt) Ltd
SLTCSLT Campus (Pvt) Ltd
SAEGISSaegis Campus (Private) Limited
ESOFTESOFT Metro Campus (Pvt) Ltd
AQUINASAquinas College of Higher Studies
ICHEMInstitute of Chemistry Ceylon
ICBTInternational College of Business Technology
BCIBenedict XVI Catholic Institute
RICRoyal Institute Colombo (Pvt) Ltd
NIIBSNagananda International Institute for Buddhist Studies
BMSBusiness Management School

What are the available subject streams to study under IFSLS?

Courses available under the Interest Free Student Loan Scheme at NSHEIs are categorized into five subject streams:

  1. Engineering & Technology
  2. Information and Communication Technology
  3. Science
  4. Management and Commerce
  5. Humanities and Social Sciences

What are the available degree programs and durations to study under IFSLS?

The IFSLS supports various full-time degree programs, primarily with durations of 3 years or 4 years.

Examples of available programs and their durations include:

Subject StreamDegree Program (Example)Duration
Engineering & TechnologyBachelor of Science Engineering (Honours) in Civil Engineering4 years
Engineering & TechnologyBachelor of Interior Design3 years
ScienceBachelor of Science Honours in Biomedical Science4 years
Information and Communication TechnologyBachelor of Science in Information Technology4 years
Information and Communication TechnologyBachelor of Information Technology3 years
Management and CommerceBachelor of Business Administration (Special) (Honours)4 years
Management and CommerceBachelor of Science in Applied Accounting (General)3 years
Humanities and Social SciencesBachelor of Education Honours in English4 years
Humanities and Social SciencesBachelor of Arts in English3 years

Does the Government/Bank pay the loan amount directly to me?

No, the full course fee loan amount is not paid directly to you.

  • The semester fee for the degree course will be paid by the bank directly to the respective NSHEI at the recommendation of the Ministry of Education, Higher Education and Vocational Education at the beginning of each semester.
  • However, if you obtain the optional interest-free stipend loan, this money is paid directly to the students quarterly at Rs. 18,750/- (Rs. 6,250/- per month) by signing a voucher issued by the Bank.

What is the maximum loan amount offered under the IFSLS?

The maximum loan amount varies based on the degree stream and duration (for the 10th intake onwards):

Subject Stream (4-Year Programs)
Subject StreamMaximum Loan Amount (Rs.)
Engineering (e.g., Engineering)1,500,000
Science (Biological/Bio Medical/Chemical)1,200,000
Science (Physical), Bio Technology, Engineering Technology, ICT (BSc)1,000,000
Management and Commerce900,000
Humanities and Social Sciences, ICT (Bachelor of Computer Science)800,000

Subject Stream (3-Year Programs)
Subject StreamMaximum Loan Amount (Rs.)
Engineering and Technology, ICT (Bachelor of Science)800,000
Humanities and Social Sciences, Management and Commerce, ICT (Bachelor of Computer Science)600,000

Additional Stipend Loan: Students can also obtain an interest-free stipend loan subject to a maximum of Rs. 300,000/- for four-year study periods or Rs. 225,000/- for three-year study periods, to cover additional expenses. This stipend loan is added to the course fee loan.

Do I have to bear the rest of the course fee on my own?

For the degree programs listed in the guide book under the IFSLS, the Course Fee (Rs.) column indicates the maximum loan amount offered for that stream/duration (e.g., Bachelor of Education Honours in English is Rs. 800,000).

Although non-state institutions generally offer their degree programs at higher prices, for the purposes of the Student Loan Scheme they have agreed to provide these programs at the stated course fee.

Therefore, students are required to pay only the course fee mentioned in the student guidebook, and not any additional charges.

Do I have to bear any other costs during my studies?

Yes, you must bear certain costs yourself during your studies:

  1. Repeat Examinations: If a student fails any compulsory subject, he/she must bear the cost of repeat examinations.
  2. ICT Bridging Course Fee: If applying for an ICT degree without adequate G.C.E. (A/L) qualifications (Physical Science stream qualification or a simple pass (S) for Information & Communication Technology), the candidate must follow a mandatory bridging course. The course fees for this bridging course may vary depending on the NSHEI facilitating it.

How do I apply for the Stipend loan?

A student can obtain the interest-free stipend loan at their discretion to cover additional expenses during the study period. The loan amount for the stipend is added to the course fee loan.

To secure this, selected students must enter into a loan agreement with the bank that grants the loan facility.

The stipend money is subsequently paid to the students quarterly at Rs. 18,750/- (Rs. 6,250/- per month) by signing a slip issued by the Bank, upon the recommendation of the Ministry of Education.

What is the repayment procedure of the loan?

The total loan period is 12 years.

  1. Grace Period: Students are given a grace period of one (1) year after the duration of the degree program, before commencing repayment.
  2. Repayment Commencement: The principal loan amount must be repaid by the students after the grace period.
  3. Repayment Duration:
    • Students selected for four-year degree programs will be given 7 years (84 equal installments) to complete the repayment.
    • Students selected for three-year degree programs will be given 8 years (96 equal installments) to complete the repayment.
  4. Due Repayment: The repayment of the loan should be duly made by the students as per the agreements signed with the bank.

Do I have to pay back the interest of the loan?

Generally, no, you do not have to pay back the interest of the loan. The scheme is called the Interest Free Student Loans Scheme (IFSLS), and the government bears the interest on behalf of the students during the entire loan period.

Exception: If the student fails to complete his/her studies in the middle of the course for any reason, he/she has to pay the outstanding capital (Semester fee + Stipend) to the bank along with the interest borne by the government up to the date of settling the loan.

What are my commitments during the study period under IFSLS?

During the study period under the IFSLS, your primary commitments are:

  1. Agreements: Enter into an agreement with the Ministry of Education and a separate loan agreement with the bank.
  2. Guarantors: Ensure the loan agreement is signed by mother/father or a close relative (first guarantor) and a close relative/known person (second guarantor).
  3. Academic Performance: Obtain a minimum of a credit pass (C) for every compulsory subject.
  4. Attendance: Maintain 80% attendance in your study hours.
  5. Re-sitting Exams: If a compulsory subject is failed, repeat the exam in the next semester or academic year and obtain a ‘C’ pass, bearing the cost yourself.
  6. Timely Completion: Complete the degree program within the specific time frame of 3 or 4 years.

When will the applications be opened for the 10th Intake of IFSLS?

The time period specified for the submission of online applications for the degree courses at NSHEIs under the IFSLS, based on the results of the G.C.E. (A/L) Examination 2022, 2023, and 2024, is from 01.11.2025 to 30.11.2025 at 12:00 midnight.

How do I apply?

Application submission is compulsory through the IFSLS online system:

  1. Access the Website: Use the online system via www.studentloans.mohe.gov.lk.
  2. Read Instructions: Read the student handbook thoroughly before filling the online application.
  3. Registration: Register using your National Identity Card (NIC) and G.C.E (A/L) index number. A password will be sent to your email for registration.
  4. Select Preferences: Select any number of degree programmes at NSHEIs, ensuring your most preferred program is listed first.
  5. Finalize: Confirm the accuracy and click “Finalize” before the closing date.
  6. Alternative Access: If you cannot apply online, access facilities at NODES, Provincial/Zonal ICT Centers, or Nanasala Centers (processing fee may apply).

What documents are required?

Documents must be submitted in two phases: prior to the online interview (scanned originals) and for physical registration (originals).

Documents required prior to online interview:
  1. Printed copy of the online application, signed by the applicant.
  2. If a school candidate: Certificate of the Principal certified by the Principal/authorized teacher.
  3. If a private candidate: Certification by Justice of the Peace/Commissioner for Oaths.
  4. National Identity Card or Passport (Original).
  5. Original certificate of G.C.E (A/L) Examination.
  6. Original certificate of G.C.E (O/L) Examination.
  7. Original certificate of G.C.E (A/L) Examination of the relevant year (if CGT passed in a different year).
  8. Original School Leaving Certificate.
  9. Result sheet of bridging course (if applicable).
  10. Grama Niladari Certificate.
  11. Original birth certificate.

What happens after I submit an application?

After submission:

  1. Selection Process: Based on minimum qualifications, preferences, number of applications, and NSHEI seating capacity. Selection is merit-based using Z-score.
  2. Interview Call: Online interviews will be called via email within one month after submission. Qualified applicants list is also published on Ministry website.
  3. Selection Confirmation: Selected applicants are notified via email with details of degree program, NSHEI, link for online registration, and date for physical registration.

When can I commence my degree program under the 10th Intake of IFSLS?

Selected applicants will be registered in relevant NSHEIs during March 2026, and enrolled according to the academic calendar of the respective NSHEIs.

What makes me ineligible to submit an application to the IFSLS?

You are ineligible if you meet any of the following:

  1. Sat G.C.E. (A/L) Examination more than 3 times.
  2. Already selected/registered as internal student for a Bachelor’s degree at a state university (UGC).
  3. Already selected for first degree in a state higher educational institute under other Acts.
  4. Already registered as internal student in a College of Education to follow a diploma course.
  5. Already selected for full-time HND (SLIATE) or NDES (NAITA) courses.
  6. Already registered for 3-year diploma course at University of Vocational Technology.
  7. Already selected for any other degree fully/partially funded by public funds.
  8. Already selected under any foreign scholarship program by Ministry of Education.
  9. Already registered for full-time degree course at NSHEI associated with IFSLS.
  10. Already engaged in full-time employment.
  11. Already obtained a Bachelor’s degree or relevant qualification from institutes mentioned in criteria 3–8.
  12. Provided false information or forged documents for admission.

**** Note.****

*The available Institutions may vary for the 10th Intake of IFSLS.

**The available degree programs may vary for the 10th intake of IFSLS.

***The more number of preferences increases the chance of successful application.
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