mhrd.gov.in Central Scheme to Provide Interest Subsidy on Education Loan

Organisation : Ministry of Human Resource Development
Scheme Name : Central Scheme to Provide Interest Subsidy on Education Loan

Website : http://mhrd.gov.in/scholarships-education-loan-4

Provide Interest Subsidy Education Loan :

The Government of India has launched a scheme to provide 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.

Related : MHRD National Means Cum-Merit Scholarship Scheme : www.scholarships.net.in/1376.html

Introduction :
One of the major concerns of the Government is to ensure that nobody is denied Professional education because he or she is poor.

The Indian Banks’ Association (IBA) had formulated a comprehensive model educational loan scheme for adoption by all Banks aimed at providing financial support from the banking system to deserving/meritorious students for pursuing higher education in lndia and abroad.

Objective of the Scheme :
The Government of India has now approved a scheme to provide 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.

The nomenclature of the Scheme would be “Central Scheme to provide Interest Subsidy (CSIS) for the period of moratorium on Educational Loans taken by students from Economically Weaker Sections from scheduled banks under the Educational Loan Scheme of the Indian Banks’ Association to pursue Technical/Professional Education studies in India”.

Applicability of the Scheme :
The Scheme would be adopted by all scheduled Banks and would be applicable only for studies in recognised Technical/Professional Courses in India.

The interest subsidy shall be linked with the existing Educational Loan Scheme of IBA and restricted to students enrolled in recognised Technical / Professional courses in India in Education institutions established by Acts of Parliament, other institutions recognised by the concerned Statutory Bodies, Indian Institutes of Management (IIMs) and other institutions set up by the Central/State Government.

Interest Rates :
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 Model Educational Loan Scheme.

Eligibility for Interest Subsidy :
The interest subsidy under the Scheme shall be available to the eligible students 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 + post graduate).

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.