CENTRAL GOVERNMENT INTEREST SUBSIDY SCHEME:

• The Ministry of HRD, GOI has launched a scheme of Interest Subsidy on educational loans for economically weaker sections of the society.
• The students who satisfy all the following parameters would only be eligible for the interest subsidy:
  • The scheme is applicable for inland studies only.
  • The student should secure admission after Class XII in any of the professional/technical courses approved by NAAC accredited Institutions or Professional Technical Programmes accredited by NBA or Institutions of National Importance or Central Funded Technical Institutions (CFTIs).
  • Those Professional Institutions /Programmes, which do not come under the ambit of NAAC or NBA, would require approval of the respective regulatory body viz, approval of Medical Council of India for Medical Courses, Nursing Council of India for Nursing Courses, Bar Council of India for Law etc.
  • Only those education loans are eligible which are sanctioned without any collateral security or third-party guarantee.
  • Subsidy is available up to a maximum amount of Rs.10.00 lakh irrespective of the sanction amount from academic session starting from 01.04.2022.
  • Annual gross parental/ family income from all sources should not exceed Rs. 4.50 Lakh.
  • To Avail the benefit of Government Subsidy schemes, Income certificate/proof from the designated officials of the respective states/Competent Authority is mandatory before sanctioning of the loan and applicant need to submit the same to the branch from where the loan is availed and also execute the documents as required. (Ref: IBA model Scheme 2021 Page no. 6)
  • Aadhaar no. is mandatory for claiming the subsidy.
• The interest subsidy is towards the interest charged in the loan account during the course and moratorium period only.
• As the scheme is on-going basis, it is advisable that all the branches may collect the income certificate (for parental income up to Rs.4.50 Lakh per annum) at the time of submission of application form by the student. However, this should not be construed as a pre-condition for sanction of the loan. In other words, the loan has to be processed/sanctioned/disbursed as per norms and the student / parents should be advised that the claim for subsidy can only be lodged upon submission of income certificate.

PADHO PARDESH SCHEME

• Scheme to provide interest subsidy on educational loans for overseas studies for the students belonging to the minority communities. The students should satisfy all the following parameters:
  • Secured admission to higher studies abroad viz. Masters, M-Phil and Ph.D. levels only
  • The student belongs to the Economically Weaker Section (EWS) of Minority communities with an annual gross family income not exceeding Rs.6.00 Lakh.
  • The student has to submit income certificate issued by authorized officers appointed by the respective State Governments
  • Eligible loan amount is up to Rs.20.00 Lakh only.
  • Subsidy is available for interest charged on the loan amount disbursed during a financial year
  • Available for course and moratorium period only
  • The scheme is applicable for higher studies abroad.

  Note: As per recent communication received from IBA, the Scheme has been discontinued from FY 2022-23. The existing beneficiaries as on 31/03/2022 will continue to receive the interest subsidy during the moratorium period of the loan, subject to the compliance with the extant guidelines.

ACSISOBCEBC SCHEME - DR. AMBEDKAR CENTRAL SECTOR SCHEME OF INTEREST SUBSIDY ON EDUCATIONAL LOAN FOR OVERSEAS STUDIES FOR OTHER BACKWARD CLASSES (OBCS) & ECONOMICALLY BACKWARD CLASSES (EBCS):

• Scheme to provide interest subsidy on educational loans for overseas studies for the students belonging to the other backward classes (OBCs) & Economically Backward Classes (EBCs). The students should satisfy all the following parameters:
  • Secured admission to higher studies abroad viz. Masters, M. Phil and Ph.D. levels only
  • The student belongs to the other backward classes (OBC) & economically backward classes (EBC) with an annual gross family income not exceeding Rs.8 Lakh & Rs. 5.00 Lakhs respectively.
• The student has to submit income proof either of Form-16/ITR/certificate issued by authorized officers appointed by the respective State Governments
• Eligible loan amount is up to Rs.20.00 Lakh only.
• Subsidy is available for interest charged on the loan amount disbursed during a financial year
• Available for course and moratorium period only
• The scheme is applicable for higher studies abroad

Note: As per the communication received from IBA, the Ministry of Social Justice and Empowerment (MoSJE), Government of India (GoI) has instructed that the fresh applications pertaining to interest subsidy under the ACSIS scheme will not be considered/accepted till further orders.

CREDIT GUARANTEE FUND SCHEME FOR EDUCATIONAL LOANS (CGFSEL):

• Government of India through Ministry of Human Resource Development, Department of Higher Education has notified Credit Guarantee Fund Scheme for Educational Loans (CGFSEL) vide Gazette Notification No. 18-1/2013-U.5 (Vol. III) dated September 16, 2015.
• The objective of scheme is to provide guarantee for educational loans up to Rs.7.50 lakh (where no collateral security or third-party guarantee is available, and the applicable ROI is not more than External Benchmark Rate + 2%)
• National Credit Guarantee Trustee Company Ltd. (NCGTC) has been set-up by the Department of Financial Services, Ministry of Finance, Government of India to, inter alia, act as a common trustee company to manage and operate various credit guarantee trust funds.

CREDIT GUARANTEE FUND SCHEME FOR SKILL DEVELOPMENT (CGFSSD):

• Government of India through Ministry of Skill and Entrepreneurship has notified Credit Guarantee Fund Scheme for Skill Development (CGFSSD) vide Gazette Notification No. 8-8/2014-SD&E (Vol. II) dated November 20, 2015.
• The objective of scheme is to provide guarantee for skill development loans up to Rs. 1.50 lakh (where no collateral security and third-party guarantee is available, and the applicable ROI is not more than External Benchmark Rate + 1.50%)
• National Credit Guarantee Trustee Company Ltd. (NCGTC) has been set-up by the Department of Financial Services, Ministry of Finance, Government of India to, inter alia, act as a common trustee company to manage and operate various credit guarantee trust funds.
• Details of CGFSSD are available on website of NCGTC.