What is Interest Subsidy Schemes for Education Loan?

Under the interest subsidy scheme, the central government would reimburse the interest due on the loan amount till the expiry of the moratorium period.

Who is eligible for an education loan subsidy scheme?

Each student eligible for subsidy on an educational loan should fulfil the criteria regarding income, religion, or cast as applicable in the 3 subsidy schemes.

How do I claim my education loan subsidy?

At the time of sanction, if you had submitted the right certificates of your income/cast and were found eligible for the interest subsidy scheme. Then, you will receive an account from the Government of India through Direct benefit transfer (DBT).

How many education loan interest subsidy schemes are available?

There are 3 types of interest subsidy schemes.Central Scheme of Interest Subsidy for Education Loan (CSIS) for studying in IndiaPadho Pradesh Interest Subsidy Scheme, introduced by PMDr. Ambedkar Central Sector Interest subsidy for OBCs and EBCs

Who is eligible for an education loan subsidy?

Take a look at the criteria’s interest subsidy scheme. Central Scheme of Interest Subsidy for Education Loan – for students belonging to economically weaker sections.Padho Pardesh Scheme of Interest Subsidy for Education Loans – for Muslim, Christian, Sikh, Buddhist, Jain, and

A right career begins with a right education.

Leave a missed call on: 8467001122

Education Loan EMI Calculator

Loan Amount:

10000

10000000

₹500000
Rate of Interest (%):

5%

15%

8.15
Loan Terms (monthly):

12

180

180
Equated Monthly Installment (EMI) will be

Government of India Interest Subsidy Schemes for Education Loan

Q: Who is eligible for an education loan subsidy?

Take a look at the criteria&rsquo;s interest subsidy scheme. Central Scheme of Interest Subsidy for Education Loan &ndash; for students belonging to economically weaker sections.Padho Pardesh Scheme of Interest Subsidy for Education Loans &ndash; for Muslim, Christian, Sikh, Buddhist, Jain, and

By checking his eligibility under education loan subsidy schemes, a student can apply for an education loan and receive a loan subsidy.

Introduction
Benefits
Features
Eligibility
Interest rates & charges
Documents Required
Most Important Terms and Conditions (MITC)

Government of India Interest Subsidy Schemes for Education Loan : Introduction

Central Scheme of Interest Subsidy for Education Loan

For economically weaker sections to pursue technical/professional courses in India.

Padho Pardesh Scheme of Interest Subsidy for Education Loans

Padho Pardesh Scheme: For students of minority communities to study abroad.
Please click here for detailed guidelines of the Scheme

Dr. Ambedkar Central Sector Scheme of Interest Subsidy for Educational Loans

Dr. Ambedkar Central Sector Scheme of Interest Subsidy for Educational Loans: For Other Backward Classes (OBCs) and Economically Backward Classes (EBCs) to pursue education abroad.
Please click here for detailed guidelines of the Scheme

Government of India Interest Subsidy Schemes for Education Loan : Benefits

Interest subsidy is provided to the Eligible students for the interest charged in the account during the moratorium period of the loan.

Government of India Interest Subsidy Schemes for Education Loan : Features

Salient features of scheme are as under:

Scheme will be named as “Education Loan Interest Subsidy Scheme” specially designed to provide interest subsidy for the period of moratorium on educational loans taken by students from economically weaker sections from our bank under the educational loan scheme of the Indian Banks’ Association to pursue technical/professional education studies in India.
Government of India will provide a full interest subsidy to the eligible students during the moratorium period on loans taken by students from the bank.
After the moratorium period interest will be borne by student.
State Government will designate appropriate authority or authorities who are competent to issue income certificates, based on economic index and not social background, for the purpose of this scheme.
Subsidy will be available only to students enrolled in recognized technical/professional courses (after XII) in India in educational institutions established by acts of parliament, other institutions recognized by the concerned statutory bodies, Indian Institutes of Management (IIMs) and other institutions set up by the Central/State Government.
Interest rates charged on the loan shall be as per interest rates applicable under our education loan scheme.
Interest subsidy 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 (graduates + post graduates).
Subsidy shall not be available if a student discontinues the course in midstream, expelled from Institutions on disciplinary or academic grounds.
There would be a tag/marker on the degree and marksheet of the student indicating his repayment liabilities. Electronic tag will enable employers to identify loanees. Nodal Bank for the scheme shall be Canara Bank and monitoring shall be finalized in consultation with the Canara Bank.
List of technical/professional courses for which the scheme would be applicable, shall be publicized from time to time by UGC and AICTE and the same would be immediately displayed at their websites, which may be accessed for verification purposes.
Agreement is also to be signed by the student and bank.

Government of India Interest Subsidy Schemes for Education Loan : Eligibility

Place of Study	Study in India	Study in Abroad	Study in Abroad
Scheme Name	CSIS (Central Sector Interest Subsidy)	PPIS (Padho Pardesh Interest Subsidy )	ACSISOBCEBC (Dr. Ambedkar Central Sector Interest subsidy for OBC & EBC )
Scheme applicable from year	FY 2009-10	FY 2013-14	FY 2014-15
Eligibility	Students belonging to Students belonging Economically Weaker Section (EWS)	Students belonging to notified minority communities (Muslims, Christians, Sikhs, Buddhists, Jains and Parsis).	Student belonging to the Other Backward Classes (OBC) and Economically Backward Classes (EBC)
Courses	For pursuing Technical / Professional Education studies in India (after XII) only from NAAC accredited Institutions or programmes accredited by NBA or INIs (Institutes of National Importance) and CFTIs (Centrally Funded Technical Institutions) Note: Those Professional institutions/programmes, which do not come under the ambit of NAAC or NBA, would require approval of the respective regulatory body via, approval of Medical Council of India for Medical courses, Nursing Council of India for Nursing courses, Bar Council of India for Law etc	For pursuing approved courses at Masters, M.Phil. and Ph.D. levels abroad.	For pursuing approved courses at Masters, M.Phil. and Ph.D. levels abroad.
Loan Amount	Maximum loan amount on which subsidy will be available is rs.7.50 Lakh from FY 2018-19 onwards and rs. 10.00 Lakh prior to that.	Maximum loan amount on which subsidy will be available is of rs.20.00 Lakh.	Maximum loan amount on which subsidy will be available is of rs.20.00 Lakh.
Period to get the Subsidy	Moratorium period (i.e. course period, plus one year)	Moratorium period (i.e. course period, plus one year)	Moratorium period (i.e. course period, plus one year)
Security	On education loans without any collateral security and third party guarantee.	NA	NA
Income Criteria	Total parental/family income from all sources is upto Rs.,4.5 lac per annum.	Total income from all sources of the employed candidate or his/ her parents/guardians in case of unemployed candidate shall not exceed Rs. 6.00 lakh per annum.	Total income from all sources of the employed candidate or his/ her parents/guardians in case of unemployed candidate shall not exceed Rs. 8.00 lakh per annum for OBC and r Rs. 2.50 lakh for EBC Candidates.
Income Certificate	Income certificate issued by the competent authority in the State/ Union Territory should be obtained only once i.e. at the time of sanction.	Income certificate issued by the competent authority in the State/ Union Territory should be obtained only once i.e. at the time of sanction.	ITR/Form 16/Audited Accounts/Income certificate issued by the authority of State Government/UT Administration is acceptable to determining Income ceiling. It should be obtained only once i.e. at the time of Sanction.
Caste certificate	NA	Self-Certificate	Candidate applying under the OBC category, OBC Caste certificate in the prescribed Performa issued by the competent authority

*Beneficiary eligible for receiving the benefits under the CSIS, PPIS and ACSISOBCEBC shall be required to furnish the proof of possession of AADHAAR number ad to undergo AADHAAR authentication. [The AADHAAR architecture created by UIDAI provides multiple methods of authentication (biometric/demographic or OTP, QR code etc). In case the same is not available the beneficiary shall have to apply for AADHAAR enrollment.

Government of India Interest Subsidy Schemes for Education Loan : Interest rates & charges

Product	Conditions		Repo Rate + Spread	Effective Rate of Interest
Baroda Vidya			Repo Rate + Spread BRLLR + SP+ 3.10%	Effective Rate of Interest 0.00%
Baroda Gyan	Upto Rs.7.50 Lakh		Repo Rate + Spread BRLLR + 2.00%	Effective Rate of Interest 0.00%
	Above Rs 7.50 lakh		Repo Rate + Spread BRLLR + 1.90%	Effective Rate of Interest 0.00%
	Special concession in ROI @ 0.50% for female students is available Additional concession of 0.50% in ROI will be applicable to the students pursuing Bachelor and Master in Medical courses (MBBS/BDS/MS/MD/MDS etc). Ayurvedic and Homeopathic courses would not be eligible.
Baroda Education Loan to Students of Premier Institutions (For Studies in India)
	Conditions List-AA Institutions:		Repo Rate + Spread BRLLR - 0.60% to BRLLR	Effective Rate of Interest 0.00%
	Conditions List A Institutions:		Repo Rate + Spread BRLLR - 0.60% to BRLLR	Effective Rate of Interest 0.00%
	Conditions List B:	If the borrower provides minimum 100% security, ROI applicable would be BRLLR + 0.65 (concession of 0.20)	Repo Rate + Spread BRLLR + 0.65% to BRLLR + 0.85%	Effective Rate of Interest 0.00%
	Conditions List C:	If the borrower provides minimum 100% security, ROI applicable would be BRLLR+0.65 (concession of 0.20)	Repo Rate + Spread BRLLR + 0.85% to BRLLR + 1.05%	Effective Rate of Interest 0.00%
Baroda Scholar	Conditions List of Institutes specified in the list of Premier Institutions:		Repo Rate + Spread BRLLR + 0.55%	Effective Rate of Interest 0.00%
	Conditions List of Institutes NOT specified in the list of Premier Institutions:	Upto Rs 7.50 lakh	Repo Rate + Spread BRLLR + 2.00%	Effective Rate of Interest 0.00%
		Above Rs.7.50 Lakh	Repo Rate + Spread BRLLR + 1.05%	Effective Rate of Interest 0.00%
	No concession in ROI for girl child for Premier Institutes . However, for Non- Premier institutes concession of 0.20% will be available to girl child.
Baroda Executive Development Premier Institutions (For Studies in India)	Conditions List-AA/A Institutions:		Repo Rate + Spread BRLLR	Effective Rate of Interest 0.00%
	Conditions List B:	If the borrower provides minimum 100% security, ROI applicable would be BRLLR+0.65 (concession of 0.20)	Repo Rate + Spread BRLLR + 0.65% to BRLLR + 0.85%	Effective Rate of Interest 0.00%
	Conditions List C:	If the borrower provides minimum 100% security, ROI applicable would be BRLLR+0.65 (concession of 0.20)	Repo Rate + Spread BRLLR + 0.85% to BRLLR + 1.05%	Effective Rate of Interest 0.00%
Baroda Executive Development Premier Institutions (For Studies abroad)	Upto Rs. 7.5 lakhs		Repo Rate + Spread BRLLR + 2.00%	Effective Rate of Interest 0.00%
	Above Rs. 7.5 lakhs		Repo Rate + Spread BRLLR + 2.35%	Effective Rate of Interest 0.00%
Digital Education Loan
	Conditions List-AA Institutions:		Repo Rate + Spread BRLLR - 0.60% to BRLLR	Effective Rate of Interest 0.00%
	Conditions List A Institutions:		Repo Rate + Spread BRLLR - 0.60% to BRLLR	Effective Rate of Interest 0.00%
	Conditions List B:	Up to Rs. 7.50 Lacs	Repo Rate + Spread BRLLR + 0.85%	Effective Rate of Interest 0.00%
	Conditions List B:	Above Rs.7.50 Lacs	Repo Rate + Spread BRLLR + 0.65%	Effective Rate of Interest 0.00%
	Conditions List C:	Up to Rs. 7.50 Lacs	Repo Rate + Spread BRLLR + 1.05%	Effective Rate of Interest 0.00%
	Conditions List C:	Above Rs.7.50 Lacs	Repo Rate + Spread BRLLR+ 0.85%	Effective Rate of Interest 0.00%
Baroda Skill Loan Scheme			Repo Rate + Spread BRLLR + 1.50%	Effective Rate of Interest 0.00%
Additional Risk Premium @ 0.10% (All Education loans above Rs 7.50 lakhs) over the above rates would be applicable for customers not obtaining Group Credit Life/ Life Insurance cover to the extent of the loan amount.

Government of India Interest Subsidy Schemes for Education Loan : Documents Required

KYC of applicant and co-applicants
Academic Records
Proof of admission
Entrance Exam Result(if applicable)
Statement of cost of study/ Schedule of expenses
Income Proof for Salaried Co-applicant/ Guarantor (if applicable)
Bank account statement for last 6 months etc.
Property Documents (if applicable).
Income related/Caste related Certificate as per the Scheme.
Income related/Caste related Certificate as per the Scheme.
Income Certificate/Other documents to be submitted by student within maximum limit of 45days from the date of sanction.

Government of India Interest Subsidy Schemes for Education Loan : Most Important Terms and Conditions (MITC)

Place of Study	Study in India	Study in Abroad	Study in Abroad
Scheme Name	CSIS (Central Sector Interest Subsidy)	PPIS (Padho Pardesh Interest Subsidy )	ACSISOBCEBC (Dr. Ambedkar Central Sector Interest subsidy for OBC & EBC )
Scheme applicable from year	FY 2009-10	FY 2013-14	FY 2014-15
Eligibility	Students belonging to Students belonging Economically Weaker Section (EWS)	Students belonging to notified minority communities (Muslims, Christians, Sikhs, Buddhists, Jains and Parsis).	Student belonging to the Other Backward Classes (OBC) and Economically Backward Classes (EBC)
Courses	For pursuing Technical / Professional Education studies in India (after XII) only from NAAC accredited Institutions or programmes accredited by NBA or INIs (Institutes of National Importance) and CFTIs (Centrally Funded Technical Institutions) Note: Those Professional institutions/programmes, which do not come under the ambit of NAAC or NBA, would require approval of the respective regulatory body via, approval of Medical Council of India for Medical courses, Nursing Council of India for Nursing courses, Bar Council of India for Law etc	For pursuing approved courses at Masters, M.Phil. and Ph.D. levels abroad.	For pursuing approved courses at Masters, M.Phil. and Ph.D. levels abroad.
Loan Amount	Maximum loan amount on which subsidy will be available is rs.7.50 Lakh from FY 2018-19 onwards and rs. 10.00 Lakh prior to that.	Maximum loan amount on which subsidy will be available is of rs.20.00 Lakh.	Maximum loan amount on which subsidy will be available is of rs.20.00 Lakh.
Period to get the Subsidy	Moratorium period (i.e. course period, plus one year)	Moratorium period (i.e. course period, plus one year)	Moratorium period (i.e. course period, plus one year)
Security	On education loans without any collateral security and third party guarantee.	NA	NA
Income Criteria	Total parental/family income from all sources is upto Rs.,4.5 lac per annum.	Total income from all sources of the employed candidate or his/ her parents/guardians in case of unemployed candidate shall not exceed Rs. 6.00 lakh per annum.	Total income from all sources of the employed candidate or his/ her parents/guardians in case of unemployed candidate shall not exceed Rs. 8.00 lakh per annum for OBC and r Rs. 2.50 lakh for EBC Candidates.
Income Certificate	Income certificate issued by the competent authority in the State/ Union Territory should be obtained only once i.e. at the time of sanction.	Income certificate issued by the competent authority in the State/ Union Territory should be obtained only once i.e. at the time of sanction.	ITR/Form 16/Audited Accounts/Income certificate issued by the authority of State Government/UT Administration is acceptable to determining Income ceiling. It should be obtained only once i.e. at the time of Sanction.
Caste certificate	NA	Self-Certificate	Candidate applying under the OBC category, OBC Caste certificate in the prescribed Performa issued by the competent authority

Need Assistance?

Toll Free Number (Domestic):
1800 5700
Toll Free Number
For Domestic Customers
Calling From Abroad (24X7):
+91 79-66296009
Locate Our Branch
Find Our BC Agent

What is Interest Subsidy Schemes for Education Loan?

Under the interest subsidy scheme, the central government would reimburse the interest due on the loan amount till the expiry of the moratorium period.
Who is eligible for an education loan subsidy scheme?

Each student eligible for subsidy on an educational loan should fulfil the criteria regarding income, religion, or cast as applicable in the 3 subsidy schemes.
How do I claim my education loan subsidy?

At the time of sanction, if you had submitted the right certificates of your income/cast and were found eligible for the interest subsidy scheme. Then, you will receive an account from the Government of India through Direct benefit transfer (DBT).
How many education loan interest subsidy schemes are available?
There are 3 types of interest subsidy schemes.

Central Scheme of Interest Subsidy for Education Loan (CSIS) for studying in India

Padho Pradesh Interest Subsidy Scheme, introduced by PM

Dr. Ambedkar Central Sector Interest subsidy for OBCs and EBCs
Who is eligible for an education loan subsidy?
Take a look at the criteria’s interest subsidy scheme.

Central Scheme of Interest Subsidy for Education Loan – for students belonging to economically weaker sections.

Padho Pardesh Scheme of Interest Subsidy for Education Loans – for Muslim, Christian, Sikh, Buddhist, Jain, and Parsi communities.

Dr. Ambedkar Central Sector Scheme of Interest Subsidy for Educational Loans – For students who belong to Other Backward Classes (OBC) and Economically Backward Classes (EBC).