Many times, there are students belonging to lower sections of society that, although being brilliant, are not able to afford higher education. And this is more prevalent in a developing country like ours, where many states are still deprived of quality education institutes, due to a number of reasons. The students in these states are hence, required to go to other places to pursue their education. This leads to increased expenses, and in most cases students either have to take a loan or drop the idea altogether. The concept of scholarships has been initiated for such students in particular, so that one is not deprived of quality education just because of the cost factor.
There are currently many scholarships in India that are being offered by the government as well as private institutions to students who excel in a number of criteria. These might be entrance tests, +2 examinations, or any other criteria that may be set up by popular and reputed institutions to give scholarships in India. Further, scholarships can also be used as a means to attract students to institutions. Since there is rising competition among the leading MBA, engineering and other streams' colleges in the country to get the best students to improve their placement records and deliver the best results year after year, a scholarship can prove to be a handy means of attracting students. For instance, if an institution at a remote location is facing problems in getting students to enroll themselves in its courses, this problem can be solved by the institution offering some percentage of the fees as scholarship to students scoring over 90% in their CBSE exams. Since there would be a sizable number of students who would qualify for this, there would be ample applicants for the institution to consider for admissions, since the discounted fees would prove to be a vital factor in attracting students to that particular, especially those coming from different cities. This is most beneficial for government colleges, since they today face stiff competition from private players. Hence, scholarships prove to be a very vital and irreplaceable part of the Indian education system.