Interest Subsidy on Education Loan

Ministry of Human Resource Development has formulated an Interest Subsidy Scheme to provide full interest subsidy during the period of moratorium on educational loans taken by students belonging to economically weaker sections from scheduled banks under the Model Educational Loan Scheme of the Indian Banks’ Association (IBA) for pursuing any of the approved courses of studies in technical and professional streams from recognized institutions in India.

Students whose parental income is less than Rs. 4.5 lakhs per annum and are enrolled in recognized technical & professional courses, after class twelfth, in India are eligible under the scheme. Educational loans of such students disbursed from 1st April 2009, irrespective of date of sanction are eligible for interest subsidy.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in the Rajya Sabha today.

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0 responses to “Education Loan – Eligibility Criteria for interest subsidy”

  1. Santosh kumar says:

    Dear sir/Mam.
    i too the education loan 2009 SBI 400000.
    but family income less than two lakh.and last one year i am not working bcz of low salary. salary is less than 200000. but education loan is increasing.there for i want to pay the loan.could i get the subsidiry. i am too weak section
    santosh kumar
    West champaran Bihar

  2. Prabhakar says:

    My daughter availed educational loan from Indian Bank for Rs.1,81,000/-for studying B.Com Course at Ethiraj College, Chennai from the academic 2009-10 on wards. After finishing the course, I came to knew that the Indian Bank calculating 14.5% omterest from the 2009 on wards. According to Intream Budget 2014-15 Hon’ble Finance Minister announced that Interest Subsidy given to all educational loan. According to his announcement am i eligible or not please reply by return of this mail. Is B.Com Course is eligible for this Interest Subsidy ? Thanking for your early reply.

    Yours faithfully,


  3. devprasad says:

    is the scheme applicablefor those who have taken education loan to study in non-government collages?

  4. Amir Khan says:

    hello sir,
    I have taken Rs 3,00,000 loan sectioned in june 2009 from state bank academic year(2009-2011) according to latest budget announced 17 feb 2014(Interest subsidy education loan). Am i eligible for this getting subsidy or not?

  5. pratik agrawal says:

    dear sir,

    i have taken this loan and submited required income certificate

    1)am i required to submit income cetificate every year?
    2) what happens if my income exceeds 4.5 lakhs during moratarium period?

  6. pratibha says:

    hello sir,
    I would like to know about the full subsidy educational loan scheme.
    I took education loan for for 2007-2011 from pnb bank. I appiled for 5% subsidy as per haryana govt scheme for female candidate at that time & also got the subsidy for the first year. but after that I didn’t get any for last 3 years. after completion of my course i was told by the bank no subsidy have come so u have to pay all or otherwise i was told to consult zila mahila vikas ayog for the same. when i asked them (zila mahila ayog hisar) the reason they told me that i was supposed to submit interest every year as i didnot I would not be getting any subsidy now but this information was not known to us earlier otherwise we would have done something for this. my father & I was told to pay the installment after four and a half year at the time of taking loan they did not inform us before this information that we would not be getting any subsidy if u would not pay the interset every year. right now i m jobless. & our financial condition is also not good & our loan is increaing day bya day it have reached around 5.3 lakh. i took a total sum of 3,77000 Rs in 4 years at 11.75 tare of interst which is now 13.50. My father’s annual income is less than 4.5 lakh. kindly guide me what should I do. can I get any subsidy now or how?
    My father is facing difficulty paying monthly emi to the bank and its continously there any possibility to get some more time to start repayment? please guide me.I shall be very thankful to you.

  7. Dongare Yogesh says:

    Dear sir,
    I have education loan Rs 1,56,600.00 taking from Bank of Baroda in in the year 2008-2010.
    I want detail about loan interest rate & their subsidy scheme.
    After completion of my education i can’t make repayment up to 02 years. So BOB added my interest amount in my principle amount & covering interest on total amount.
    Up to 31.01.2013 my loan recovery amount is 1,84,600.00 & BOB taking interest @12-13% on this amount.
    SO please reply me , for above matter is legal or not.

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