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July 30th, 2016, 11:33 AM
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Join Date: Mar 2013
Re: SBBJ Education Loan Interest Subsidy

Central Scheme for Interest Subsidy has been announced by Ministry of HRD for providing interest on Education Loans during moratorium for technical and professional courses for studies in India

It is under the IBA Model Education Loan Scheme for students from Economically Weaker Sections (EWS) with annual gross parental/family income upto Rs. 4.50 lacs per annum

The scheme would be applicable only for studies in recognized Technical/Professional courses in India.

Under IBA Model Education Loan Scheme for studies in India maximum eligible loan limit is Rs.10 lacs.

Eligibility-

The scheme shall be available to the students only once either for the first undergraduate degree course or the post graduate degree/diploma in India.

Interest subsidy shall however, be admissible for integrated courses (graduate plus postgraduate).

The scheme shall not be available for those students once they discontinue the course midstream

Criteria for Economically Weaker Section/ Income Limit -

Students belonging to economically weaker sections with an annual gross parental/family income with upper limit of Rs.4.5 lacs per year (from all sources)

CENTRAL SCHEME FOR INTEREST SUBSIDY ON EDUCATION LOANS
Central Scheme for Interest Subsidy has been announced by Ministry of HRD
for providing interest on Education Loans during moratorium 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 parental/family income upto Rs. 4.50 lacs per annum from the
academic year 2009-10.
1. Applicability of the Scheme
The scheme would be applicable only for studies in recognized Technical/Professional
courses in India. The interest subsidy shall be linked with the existing Education Loan
Scheme of IBA and restricted to students enrolled in recognized
Technical/Professional courses (after class 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. Under IBA Model Education Loan Scheme for
studies in India maximum eligible loan limit is Rs.10 lacs.
2. Moratorium Period
The subsidy is provided for the period of moratorium i.e. course period plus one year
or six months after getting job whichever is earlier as prescribed under the IBA
Model Education Loan Scheme. 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.
3. Criteria for Economically Weaker Section/ Income Limit
The benefit of the scheme would be applicable to those students belonging to
economically weaker sections with an annual gross parental/family income with
upper limit of Rs.4.5 lacs per year (from all sources).
4. Competent Authority to issue Certificate
The Ministry of HRD, Government of India has issued an Advisory to all the State
Governments requesting them to 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. Banks shall implement the scheme
based on the notification of the certification authority by State Governments
communicated through District Level Consultative Committees (DLCCs). The DLCCs
would be given the list and the signatures of the competent authority to issue the
income certificate.
5. 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
degree/diploma in India. Interest subsidy shall however, be admissible for
integrated courses (graduate plus postgraduate).
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.
6. Awards/ Certificates
The Ministry of HRD has initiated the proposal to dematerialize the educational
awards/certificates, setting up of Depository for maintaining the records in
dematerialized form and providing service to the users. Banks can have online
access for verification process which would eliminate fraudulent practices like forging
of certificates and mark sheets
7. Nodal Bank
The scheme shall be implemented through Canara Bank, which is the Nodal Bank for
the Ministry of Human Resources Development.
8. Applicable Academic Year
The scheme shall be applicable from the academic year 2009-10 starting 1st April
2009. The scheme shall be applicable only in respect of disbursements made by the
Banks on or after 1st April, 2009 for the academic year 2009-10, irrespective of date
of sanctioning. In case of loans sanctioned prior to 1.4.2009, for the courses
beginning prior to academic year 2009-10, the interest subsidy is available to the
extent of disbursements made after 1.4.2009.
9. Disbursement of Interest Subsidy Claims
The disbursement of Interest Subsidy Claims to the Banks shall be on half-yearly or
yearly basis which has to be worked out in consultation with the Ministry of HRD.
10. Eligible students have to contact the SBBJ Branch concerned for any
further details along with Income Certificate from the certifying authority.

Customer service: 1800 180 6005


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