Finance is the backbone for anything. The Main problem with Indian Education System is Lack ofFinancial resources. The education sector in India is underfunded, leading to inadequate resources andfacilities. The education sector in India has not received sufficient funding from the government, whichhas impacted its quality and reach. Indian Government only spends 2% of country’s GDP in educationsector. The teachers are not getting desired salary for the work they are doing. Teachers could not live withsalary so most of them seeking job in Govt sector or do additional job to cope with the living standards.Many rural areas lack adequate schools, infrastructure, and resources compared to urban regions. Despitedevelopments, cultural expectations and safety issues continue to prevent girls in rural areas andvulnerable populations from accessing an education. Financial constraints and the need for children tosupport family incomes lead to high dropout rates, particularly in secondary education. The study wasdone by Umm e Habiba and Madiha Liaqat (2022) to show the impact of financial aid and scholarships onstudents' academic achievement. According to the survey, most of the students were from rural areas, andmost students in need are reluctant to apply for need-based scholarships. It was important that thescholarships provide youngsters the confidence to pursue their passions. Additionally, scholarships are themost efficient means of rewarding students for encouraging a competitive environment and improvingtheir academic performance. According to the study, the students concurred that the scholarships theywere given aided in their motivational growth