Ambethkar’s scheme: The Education Loan Scheme for Overseas Studies for Other Backward Classes (OBCs) and Economically Backward Classes (EBCs), provided under the Department of Social Justice and Empowerment within the Ministry of Social Justice and Empowerment administers the
Dr. Ambedkar Central Sector Scheme of Interest Subsidy.
Benefits of the Scheme:
- Under the scheme, the Government of India covers the interest payable by students during the moratorium period.
- The moratorium period includes the duration of the student’s course plus one year or six months post-employment, whichever is earlier.
- The interest subsidy applies to education loans from the Indian Banks’ Association (IBA).
- Students can receive an interest subsidy on the actual loan amount they take, with a maximum cap of ₹20,00,000 per student form Ambethkar’s scheme.
- Beyond the moratorium period, students are responsible for paying the interest on the outstanding loan amount as per the prevailing Educational Loan Scheme.
- The student is responsible for both principal and interest payments beyond the moratorium period.
Eligibility for the Scheme:
– The applicant must be a student.
– They should have secured admission in an approved Master’s, M.Phil, or PhD program abroad for specified courses.
– The individual must have availed a loan from a scheduled bank under the Education Loan Scheme of the Indian Banks Association (IBA).
– The applicant’s total annual income, from all sources, should not exceed ₹8,00,000.
Application Process for this Scheme:
]The interest subsidy will be tied to the current Educational Loan Scheme of the Indian Banks Association (IBA) and reserved for students enrolled in Master’s, M.Phil, and PhD programs.
The Nodal Bank will establish detailed procedures for processing and approving interest subsidies for eligible students, in consultation with the Ministry.
A Recommendatory Committee, led by the Joint Secretary overseeing the Backward Classes Division and including representatives from the Finance Division, a Nodal Bank representative, and the relevant Director/Deputy Secretary as convener, will assess and endorse applications for interest subsidy awards every quarter.
Documents Needed to Apply:
– Passport-size photograph
– Aadhaar number
– Proof of educational qualification
– Bonafide certificate
– OBC caste certificate (for candidates applying under the OBC category)
– Income certificate (ITR/Form 16/Audited Accounts/Income certificate issued by State Government/UT Administration)
– Details of Aadhaar-linked bank account