CENTRAL SECTOR SCHEME FOR INTEREST SUBSIDY ON EDUCATIONAL LOANS

PRESS INFORMATION BUREAU

GOVERNMENT OF INDIA

****

CENTRAL SECTOR SCHEME FOR INTEREST SUBSIDY ON EDUCATIONAL LOANS

New Delhi: August 18, 2010

The Central Government has launched a new Central Scheme to provide full interest
subsidy during the period of moratorium on educational loans for students belonging to economically weaker sections (with parental family income from all sources of less than Rs.4.5 lakh annually) from scheduled banks under the Educational Loan Scheme of the Indian Banks’ Association (IBA) for pursuing courses of studies in professional/technical streams from recognized institutions in India.



The Scheme is effective for all IBA approved educational loans sanctioned to eligible students in respect of courses of studies in technical and professional streams from recognized institutions in India, from the academic year 2009-10. This Scheme is an overlay of the existing IBA Education Loan Scheme.



The modalities have been finalized in consultation with the Indian Banks’ Association and circulated to all member banks for implementation. Under the Scheme, proof of income is required to be certified by authorities to be designated by the State Governments. Accordingly, the Ministry has written to all Chief Secretaries of States/Union Territories to intimate the designated authority / authorities (at the District/Sub-District/Block, etc. levels) to the District Level Consultative Committee (DLCC) so that banking authorities at the branch level where students would be approaching for availing the benefit of the scheme would be
aware of the same.



Eligible students who wish to avail of the benefits of the Scheme can approach the
respective bank branch from where they availed of the education loan and complete the necessary formalities including obtaining the certification in respect of annual family income from the competent authority at the Block/Tehsil/District Level, so that the individual student accounts could be credited with the interest due on the loan for the academic year 2009-10 onwards.



Canara Bank is the nodal Bank, for the member Banks of IBA, for claiming
reimbursement of interest credited to student accounts.



The details of the Scheme as well as the above communications are available on the
website of this Ministry at www.education.nic.in. The Scheme is effective from 1.4.2009.

Source: PIB

Government finalizes a new Central Scheme for Educational Loans

HRD MINISTRY FINALIZES SCHEME FOR INTEREST SUBSIDY FOR EDUCATION LOANS



A new Central Scheme has been finalized and implement by the Ministry of HRD Department. The procedure and details of the scheme has published in PIB (we reproduce and given below) and as well as communications are available on the
website of this Ministry at www.education.nic.in.



Ministry of Human Resource Development has finalized the modalities for
implementation of a new Central Scheme to provide full interest subsidy during the period of moratorium on educational loans for students belonging to economically weaker sections (with parental family income from all sources of less than Rs.4.5 lakh annually) from scheduled banks under the Educational Loan Scheme of the Indian Banks’ Association (IBA) for pursuing courses of studies in professional/technical streams from recognized institutions in India. The modalities have been finalized in consultation with the Indian Banks’ Association. The Scheme is effective for all IBA approved educational loans sanctioned in form of eligible students’ in respect of approval course of studies from the academic year 2009-10.



Under the Scheme, proof of income is required to be certified by authorities to be designated by the State Governments. Accordingly, the Ministry has written to all Chief Secretaries of States/Union Territories to intimate the designated authority/authorities (at the District/Sub-District/Block, etc. levels) to the District Level Consultative Committee (DLCC) so that banking authorities at the branch level where students would be approaching for availing the benefit of the scheme would be aware of the same.



All Scheduled member banks of the IBA have also been advised to take necessary action to adopt and implement the Scheme so that the benefits of the Scheme accrue to the eligible students. Canara Bank is the nodal Bank, for the member Banks of IBA, for claiming reimbursement of interests credited to student accounts.



The details of the Scheme as well as the above communications are available on the website of this Ministry at www.education.nic.in.



All eligible students who wish to avail of the benefits of the Scheme are advised to approach the respective bank branch from where they availed of the education loan and complete the necessary formalities including obtaining the certification in respect of annual family income from the competent authority at the Block / Tehsil / District Level, so that the individual student accounts could be credited with the interest due on the Loan for the academic year 2009-10 onwards.

PIB

Educational Loan for National Handicapped Finance & Development Corporation (NHFDC) students

Education Loans to Handicapped Students by Nhfd



National Handicapped Finance & Development Corporation (NHFDC) provides education loan at concessional interest rates to handicapped students (fulfilling eligilibility critera to avail loan) to pursue higher studies in India upto Rs. 7.50 lakh and abroad upto Rs. 15 lakh.



The interest rates are:



(i) Upto Rs. 50,000/- -5% p.a.



(ii) Above Rs. 50,000/- -6% p.a. and upto Rs. 5 lakh



(iii) Above Rs. 5 lakh -8% p.a.



Also, a rebate of 1% on interest is given to women beneficiaries.



14 Handicapped students have availed education loans from NHFDC from 2007-2008 to 2009-10. NHFDC functions as an apex corporation and channelises its funds through State Channelising Agecies (SCAs) for the welfare of Persons with Disabilities (PWDs).



The proposal for education loans above Rs. 1.50 lakh received from SCAs are sanctioned at NHFDC level and the proposals upto Rs. 1.50 lakh are sanctioned by the SCA under delegated authority.



This information was given by Shri. D. Napoleon, the Minister of State for Social Justice & Empowerment, in a written reply to a question in the Lok Sabha today.