Introduction
For many Mizo students, the Students’ Aid Fund (SAF) is more than financial help — it is a lifeline that enables them to continue education despite financial challenges. The SAF provides assistance in two main forms:
- Grants (Non-repayable support)
- Interest-Free Loans (Repayable under agreed terms)
Understanding the difference between these two is essential because the SAFMC (Students’ Aid Fund Management Committee) carefully decides who receives a grant and who receives a loan based on need, urgency, and available resources.
This guide explains how SAF grants and loans work, who gets what, how repayment functions, and how students can choose wisely.
What Is a SAF Grant?
A grant is financial support that does not need to be repaid.
The purpose of SAF grants is to support:
- Students from economically distressed families
- Students facing severe or urgent hardship
- Students who cannot continue education without immediate monetary relief
- Students belonging to priority groups (rural, ST, first-generation, differently-abled)
When are grants usually given?
The SAFMC considers grants when:
- The student’s family income is extremely low
- A sudden crisis occurs (medical emergency, death of parent, disaster)
- The student is an orphan or semi-orphan
- The expenses are unavoidable (admission fees, medical bills, hostel dues)
- The student cannot repay a loan due to circumstances
Grant Characteristics
| Feature | Description |
|---|---|
| Repayment | Not required |
| Amount | Based on need & fund availability |
| Priority | Highest priority for distressed students |
| Purpose | Essential educational needs |
Grants are limited, and SAFMC ensures that they go only to the most deserving cases.
What Is a SAF Interest-Free Loan?
A SAF loan is financial assistance that must be repaid, but without any interest.
Interest-free loans help:
- Students who need financial support but can repay later
- Students pursuing long-term or higher professional courses
- Students whose financial condition is difficult but not extreme
When are loans given?
SAF loans are common when:
- The student needs recurring yearly or semester fees
- The family has some income but not enough for full expenses
- The student requests support for long-term courses (engineering, nursing, medical, etc.)
- The committee wants to maintain fund sustainability
Loan Characteristics
| Feature | Description |
|---|---|
| Interest | 0% (Interest-free) |
| Repayment | Required as per schedule |
| Agreement | Loan contract must be signed |
| Mode of payment | Bank transfer or paid directly to institution |
Loans allow the fund to support more students while keeping resources circulating.
Grants vs Loans: What’s the Difference?
1. Repayment Requirement
- Grant: No repayment
- Loan: Must be repaid after studies or employment
2. Priority Level
- Grant: Highest priority for severe hardship
- Loan: Suitable for moderate financial needs
3. Amount
- Grant: Often smaller, crisis-specific
- Loan: May be higher, especially for semester-based fees
4. Documentation
- Grant: Must show extreme need
- Loan: Requires a repayment agreement
5. Impact on Future Applications
- Grant: Must be used strictly as declared
- Loan: Repayments help future students access SAF
How SAFMC Decides Between Grant or Loan
The committee examines:
1. Financial Need Level
- No stable income → Grant
- Moderate income difficulty → Loan
2. Emergency Nature
- Medical or family crisis → Grant
- Regular semester fees → Loan
3. Family Background
- Single parent / orphan → Grant
- Parents with some earnings → Loan
4. Student Performance
- Strong academic commitment → any type
- Lack of seriousness → loan or rejection
5. Fund Availability
- High demand year → more loans than grants
- Ample funding → more grants may be awarded
What Students Must Sign Before Receiving Aid
For Grants
Students must sign:
- A declaration to use the fund only for education
- A confirmation that all information is true
- A commitment to follow SAF rules
For Loans
Students must sign:
- A formal loan agreement
- A repayment schedule
- Terms and conditions
- A declaration of correct information
Failure to follow these agreements may lead to repayment enforcement or disciplinary action.
Repayment Rules for SAF Loans
Repayment terms are set by SAFMC based on:
- Course duration
- Student’s future income prospects
- Family situation
- Total loan amount
Typical Repayment Rules
- Begins after completing studies
- May start only after securing a job
- Paid in monthly or yearly installments
- No interest is ever added
- Early repayment is encouraged
Repayments strengthen SAF and help future students.
Misuse of Grants or Loans = Strict Action
SAF has zero tolerance for misuse.
Misuse includes:
- Using the money for non-educational purposes
- Submitting false documents
- Taking a loan and refusing repayment
- Hiding information during verification
Consequences:
- Entire amount must be repaid
- Permanent disqualification
- Legal action by MZP
Which One Should You Apply For? (Grant or Loan)
Apply for a GRANT if:
Apply for a LOAN if:
Tips to Maximize Your Chances of Receiving the Right Type of Aid
1. Be very clear in your application
Explain whether you need:
- Emergency one-time support (grant), or
- Regular academic support (loan)
2. Provide correct and complete financial proof
Income certificates, fee slips, medical bills, etc.
3. Never exaggerate hardship
SAFMC verifies every claim.
4. Express willingness to repay (if loan)
It shows responsibility.
5. Attach a financial need letter
A simple one-page explanation goes a long way.
