Indian Scholarship Exam

Vidhya Bharathi

The Educational Loan Scheme aims at providing financial support from the banking system to meritorious students for pursuing higher education in India and abroad.

The main emphasis is that a meritorious student, though poor, is provided with an opportunity to pursue education with the financial support from the banking system under affordable terms and conditions.

The ultimate objective is that no Deserving / Meritorious student is denied an opportunity to pursue higher education merely for want of financial support.


Courses Eligible for Interest Subsidy under Education Loan

1. Loan for studies in India

  •   Approved courses leading to Graduate / Post graduate (Masters & PhD) Degree and PG diplomas conducted by recognized Colleges / Universities recognized by UGC / Govt. / AICTE/ AIBMS / ICMR etc.
  •   Professional Courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer etc.
  •   Courses like, ICWA, CA, CFA etc.
  •   Courses conducted by IIM. IIT, IISC, XLRI, NIFT, NID etc.
  •   Regular Degree / Diploma courses like Aeronautical, Pilot training, and Shipping etc., approved by Director General of Civil Aviation / Shipping if course is pursued in Educational Loan Scheme SL PARTICULARS GUIDELINES India.
  •   Approved courses offered in India by reputed foreign universities.
  •   Evening courses of approved institutes.
  •   Courses offered by National Institutes and other reputed private institutions.
  •   Computer Certificate Courses of reputed institutes accredited to DOE or institutes attributed to universities.
  •   Degree or Diploma Courses on Teacher Training, Nursing, B. Ed Courses conducted by Central/State Govt. approved private institutions. (The Conditions for Teacher Training course, Nursing and B.Ed. are)
    •   i. It should not be a certification course.
    •   ii. The fees should be as per the fees structure stipulated in Central / state Government colleges.

Interest Subsidy For Educational Loans
for Inland Studies

Interest Subsidy for Educational Loans

An initiative to help students from Economically Weaker Sections

One of the major concerns of the Government of India is to ensure that nobody is denied professional education because he or she is poor. Indian Banks' Association (IBA) has formulated a comprehensive model educational loan scheme for adoption by all Banks. In order to support students from Economically Weaker Sections of the Society, Department of Education, Ministry of Human Resource Development, Government of India has launched this interest subsidy scheme.


Eligibility :

  • Only for Educational Loans availed from Scheduled Banks for pursuing any of the approved courses after Class XII in Technical and Professional streams from recognized institutes in India under the Educational Loan Scheme of IBA.
  • Students belonging to Economically Weaker Sections with annual gross parental/family income from all sources with an upper limit of Rs.4.50 lakhs. Certificate to this effect issued by authorized officers of State Government is to be submitted.
  • Full interest subsidy is available for the period of moratorium i. e. Course Period plus 1 year.
  • Scheme is applicable for the loan amount availed from April 01, 2009 onwards.
  • For Loans sanctioned earlier to 1.04.2009, only amounts disbursed during the above period are eligible.

Eligible students have to contact branches where they have availed / availing loans for further details.

Email :

Website :

Interest Subsidy - FAQ

Interest Subsidy
Question : Who is eligible for the scheme? Answer : Students who want to pursue Technical/Professional courses in recognized institute in India. (Loan Sanctioned From 01.04.2009 to 31.03.2018). Revised CSIS (Loan Sanctioned From 01.04.2018). Students who want to pursue Technical/Professional courses in NAAC, NBA, CFTI accredited or regulatory approved institutes in India.
Question : It is compulsory to avail education loan for getting interest subsidy benefit? Answer : Yes, only students who availed education loan from scheduled banks are eligible for the interest subsidy.
Question : Is there any income criteria for claiming the subsidy Answer : Yes, the total Family annual income from all sources shall not exceed Rs.4.5 lakhs.
Question : Is there any limitation of limit/ liability for claiming the interest subsidy ? Answer : Interest charged on loan amount up to Rs 10.00 lakhs. (Loan Sanctioned From 01.04.2009 to 31.03.2018). Revised Interest Subsidy (Loan Sanctioned From 01.04.2018) Interest charged on loans sanctioned without any collateral security & third party guarantee and for maximum amount of Rs 7.5 lakhs.
Question : Is subsidy available for the entire Education loan period? Answer : No, Subsidy benefit is available up to the Moratorium period i.e Course period + one year.
Question : Who is the income certificate issuing authority? Answer : Appropriate authority designated by the state Governments.
Question : Whether it is necessary to submit the income certificate every financial year? Answer : No, borrowers need not submit income certificate every year. Any subsequent changes in family income will not affect the eligibility.
Question : How Borrower can claim the subsidy to Government of India? Answer : Borrower cannot claim the subsidy directly from GoI, it is the prime responsibility of the financing Bank/Branch to claim the subsidy on behalf of the borrower.
Question : When is the yearly subsidy claimed by banks? Answer : Web Portal for claiming subsidy will be opened as per the instructions of Ministry and portal opening and closing dates will be intimated to all the Member Banks. Concerned Banks have to claim the subsidy during the portal opening for respective years.
Question : What is the procedure to check the subsidy claimed amount of individual education loan accounts? Answer : We have created a dedicated web portal for this purpose i.e.: VIDYA BHARATI
Question : Whom should I have to contact for subsidy amount disbursed by the government? Answer : The details of the amount credited may be obtained from the concerned financing bank Branch. Head office of the concerned Bank may be contacted if the Branch reply is not satisfactory.

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