Central Sector Interest Subsidy Scheme on Education Loan

This scheme has been announced by Ministry of Hunman Resource Development for providing interest on Education Loans during moratorium period for technical and professional courses for studies in India under the IBA Model Education Loan Scheme for students from Economically Weaker Sections (EWS) with annual gross family income upto Rs. 4.50 lacs per annum from the academic year 2009-10.

Moratorium Period
The subsidy is provided for the period of moratorium i.e. 12 months after completion of the course or 6 months after getting the job, whichever is earlier. After the moratorium period is over, the interest on the outstanding loan amount shall be paid by the student in accordance with the provisions of the Education Loan Scheme.

List of Technical/ Professional courses
If you are doing any engineering or medical cources then you are eligible for availing this scheme. For your information list of Centrally Funded Technical Institutions and Institutions of National Importance is available on MHRD website URLs http://mhrd.gov.in/technical-education-1 and http://mhrd.gov.in/institutions-national-importance. The list of NAAC accredited universities/ institutions is available at NAAC website URL http://www.naac.gov.in/19-quick-links/32-accreditation-status and NBA recognised professional courses is available at NBA website URL http://www.nbaind.org/accreditation-status.aspx. ln case of doubt, Banks may approach UGC/AICTE and other councils for clarification, for which UGC/AICTE and other councils would be requested to create Cells and identify Nodal officers, whom banks can approach for relevant information.

Nodal Bank
The Scheme shall continue to be implemented through Canara Bank, which is the Nodal Bank for the Ministry of Human Resource Development. Modalities for implementation and monitoring shall be finalised in consultation with the Canara Bank.


Applicable Academic Year
The Modified Scheme shall be applicable from the academic year 2018-19, starting 1st April, 2018.

Before applying education loan you should tell to your bank authorities and submit your parents income certificate (below 4.5 lakh) to availing this facility. On vidyalakshmi Portal also you will get information about that. Some banks ask Income certificate of your parents after sanctioning loan and some bank ask earlier, so you should tell bank manager before applying the education loan for safeguard.

After apply check status here.

For more information click here to download the PDF


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