The cost
of education is increasing every day. Students face problems while funding
their higher education. To facilitate access to higher education, the Government
of India has introduced an education loan subsidy scheme for financially
underprivileged students. Here we are explaining the characteristics of
subsidized education loan in India:
- The objective of the scheme
This scheme is the initiative by Indian's bank association
to lend a helping hand to economically unprivileged students. The government of
India sponsors this subsidy which includes complete payment of interest
incurred while availing an education loan. The student is also awarded a
waiting period of maximum one year after completion of course when they are
free to avoid the repayment.
- Eligibility criteria
Education loan subsidy scheme is open to all citizens of India who belong to an
economically weaker section of society. All the students whose family income is
less than Rs.4.5 lakh a year can avail this facility. There is no
discrimination based on caste and religion. There is a separate scheme running
for socially backwards students as well, and they can apply in both the
programs. This scheme is applicable from April 2009 onwards
.
- Eligible Courses
The economically weaker section of students can enroll in
any institute, as long as the UGC and AICTE recognize it. The institutes
established by parliamentary Acts and central & state government
initiatives are also fit to apply.
- Documents required
To avail of this facility to forfeit the education loan interest rate, the student has to produce the family income certificate
validated by an approved authority. Ministry of HRD, Government of India,
issues the advisory to assign the authority to verify the documents. The
student can submit the documents after due validation and avail the facility
following the rules and regulations.
- Geographical Limit
The student is eligible for this scheme to pursue only
under-graduation and post-graduation courses. Those who wish to visit abroad
for studies are not eligible to apply. Some other reasons for exclusion from
this facility are:
● Opting out of studies for reasons
other than medical.
● Rustication of a student from the
Institute on academic or disciplinary grounds.
● Enrollment for a course without
completing Intermediate or 10+2 examinations.
● Enrolling for non-technical courses
as sociology commerce and music.
- Maximum loan amount
Everyone can avail this education loan scheme irrespective
of the loan amount; however, there is a limit on interest for loans up to Rs.10
lakh.
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