1. Central Scheme of Interest Subsidy for Education Loans (CSIS)

The Ministry of HRD launched the Central Government scheme of Interest Subsidy on educational loans for economically weaker sections (whose annual parental income is up to Rs. 4.5 Lakh from all sources) of the society. The main motive of the government to bring in this scheme is that nobody is denied professional education because he or she is poor. The scheme provides full interest subsidy during the period of moratorium i.e., Course Period plus one year or six months after getting job, whichever is earlier, on loans taken by students belonging to Economically Weaker Sections from scheduled banks under the Educational Loan Scheme of the Indian Banks’ Association, for pursuing any of the approved courses of studies in technical and professional streams, from recognised institutions in India. Features of the Scheme

• This scheme is applicable for studies in Technical/Professional courses in India only.
• This scheme can be availed by those individuals whose family annual income is up to 4.5 lakhs from all sources.
• The interest subsidy can be availed only once either for the first undergraduate degree course or the post graduate degrees/diplomas in India. Interest Subsidy shall, however, be admissible for integrated courses (graduate + postgraduate).
• The interest rates charged on the educational loan shall be as per the BPLR/Base Rate of the individual banks and as per the provisions for interest rates under the IBA (Indian Banks’ Association) Model Educational Loan Scheme.
• A subsidy will be available for the loan amount of up to Rs 10 Lakhs (even if the loan is more than Rs 10 Lakhs).
• Full Interest subsidy is available for the moratorium period

Eligibility Criteria

• This scheme applies for education loans taken from a scheduled bank for pursuing professional/technical courses after 12th from recognized institutes in India under the Education loan scheme of IBA.

**Educational Institutions established by Acts of Parliament, other institutions recognized by the concerned Statutory Bodies, Indian Institute of Management (IIMs), and other institutions set up by the Central/State Government.

• This scheme can be availed by those individuals whose family annual income is up to 4.5 lakhs from all sources.
• This scheme is applicable for the loans amount availed from April 01, 2009. For loans sanctioned before that, only amounts disbursed during the above period are eligible.
• Interest Subsidy under this Scheme shall not be available for those students once they discontinue the course midstream, or who are expelled from the Institutions on disciplinary or academic grounds. However, the interest subsidy will be available only if the discontinuation was due to medical grounds for which necessary documentation to the satisfaction of the Head of educational institution will have to be given.

Documentation The following documents are required along with your Central Government Interest Subsidy Scheme application:

• An original income certificate issued by the authorized officer of the State Govt. under the scheme
• Interest Subsidy Agreement, to be executed by all borrowers and stamped as per the State Stamp Act
• An Original bonafide student letter issued by the Institute
• Aadhaar Card No. of the student
• Additional Interest Subsidy Details

2. PADHO PARDESH: Scheme of Interest subsidy on Educational Loans for Overseas Studies belonging to the minority communities

As the name suggests, it is a scheme made by the Central Government to provide interest subsidy to meritorious students belonging to minority communities wanting to study abroad. Padho Pardesh scheme was formulated to promote educational advancement of students from minority communities. The main objective of this scheme to give interest subsidy to meritorious students belonging to economically weaker sections of notified minority communities declared as minority communities in terms of section 2 (c) of National Commission for Minorities Act, 1992, on the interest payable during the period of moratorium ( i.e. course period plus one year or six months after getting job whichever is earlier) for Education Loans for Overseas studies to pursue approved courses of studies abroad at Masters , M. Phil and Ph.D. levels only once either for Masters or Ph.D. levels. Features of the scheme

• The scheme is applicable for higher studies abroad. The interest subsidy shall be linked with the existing Education loan scheme of IBA and restricted to students enrolled for course at Masters, M.Phil. and PhD levels.
• The interest subsidy is available to the eligible students for only once, either for M.Phil or for PhD levels.
• Subsidy shall not be available to those students who either discontinued the course mid-stream due to any reason or those who are expelled from the institutions on disciplinary or academic grounds. If a student violates any conditions of the scheme, the subsidy will be discontinued forthwith.
• The Scheme is applicable to students who have availed educational loans from 2013-14 (1st April 2013) onwards and have a family income up to Rs. 6 lakhs per annum.
• Total income from all sources of the employed candidate or his /her parent’s, guardians in case of an unemployed candidate shall not exceed Rs. 6.00 lakh per annum.
• The students obtaining benefits under this scheme shall not be given interest subsidy if he gives up Indian Citizenship during the tenure of the loan.

Eligibility

• The student should have secured admission in the approved courses at Masters, M.Phil or Ph. D levels abroad
• The student should have availed loan from the scheduled bank under the education loan scheme of the IBA for the purpose.

Rate of Interest subsidy

• Under the scheme, the interest payable by the students availing the education loan of the IBA for the moratorium period shall be borne by the Government
• After the loan moratorium period is over the interest on the outstanding amount shall be paid by the student
• The student will bear the principal installments and interest beyond moratorium period

 

3. Dr Ambedkar Central Sector Scheme of Interest Subsidy on Educational Loan for Overseas Studies for Other Backward Classes (OBCs)

This scheme of Interest Subsidy on educational loans for overseas studies will promote educational advancement of a student from Other Backward Classes. The motive of the scheme is to award interest subsidy to meritorious students belonging to other weaker sections of the society so as to provide them better opportunities for higher education abroad and enhance their employability. Features

• A subsidy will be provided for higher studies abroad viz. Masters, M. Phil and PhD levels.
• The interest subsidy under the scheme shall be available to the eligible students only once, either for Masters or PhD levels
• The students obtaining benefits under this Scheme shall not be given the interest subsidy if he/she gives up Indian citizenship during the tenure of the loan.
• Total income from all sources of the employed candidate or his/her parents/guardians in case of an unemployed candidate shall not exceed Rs.3.00 lakh per annum.
• Scheme applicable for loans sanctioned from 01.04.2014 onwards.
• The subsidy is available for the course and moratorium period only.

Eligibility

• The students should have secured admission in the approved courses at Masters, M.Phil or PhD levels abroad.
• He/she should have availed loan from a scheduled bank under the Education Loan Scheme of the Indian Banks Association (IBA) for the purpose.

Rate of Interest Subsidy

• Under the scheme, interest payable by the students availing the education loans of the IBA for the period of the moratorium (i.e. course period, plus one year or six months after getting job, whichever is earlier) as prescribed under the Education Loan Scheme of the IBA, shall be borne by the Government of India.
• After the period of moratorium is over, the interest on the outstanding loan amount shall be paid by the student, in accordance with the existing Educational Loan Scheme as may be amended from time to time.
• The candidate will bear the Principal installments and interest beyond moratorium period.

4. Vidya Lakshmi Portal

The Vidya Lakshmi portal has been developed under the guidance of Department of Financial Services, (Ministry of Finance), Department of Higher Education (Ministry of Human Resource Development) and Indian Banks Association (IBA).The portal has been developed and is maintained by NSDL e-Governance Infrastructure Limited. Students can view, apply and track the education loan applications to banks anytime, anywhere by accessing the portal. The portal also provides linkages to National Scholarship Portal. The features of the scheme are:

• The scheme gives loans up to Rs.7.5 lakh for studies in India and up to Rs. 15 lakh for studies abroad.
• For loans up to Rs. 4 lakh no collateral or margin is required and the interest rate does not exceed the Prime Lending Rates (PLR). For loans above Rs. 4 lakh the interest rate will not exceed PLR plus 1 percent.
• The loans are to be repaid over a period of 5 to 7 years with provision of grace period of one year after completion of studies.