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Central Scheme of Interest Subsidy for Education Loans
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Central Scheme of Interest Subsidy for Education 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 education 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.


1. Only for Education 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 Education Loan Scheme of IBA.

2. Students belonging to Economically Weaker Sections with annual gross parental/family income from all sources with an upper limit of Rs. 4.50 lakh. Certificate to this effect issued by authorized officers of State Government is to be submitted.

3. Full interest subsidy is available for the period of moratorium.

4. Scheme was applicable for the loan amount availed from April 01, 2009 to March 31, 2010 (Academic Year 2009-10) and will be made available in future as per notifications received from time to time.

5. For Loans sanctioned earlier to 1.04.2009, only amounts disbursed during the above period are eligible.
Eligible students can contact our branches where they have availed / availing loans for further details.