With an objective to encourage students to study in a recognised institute in India and not make financial background a reason for denying this right to them, the Government of India in association with Indian Banks’ Association (IBA) has devised this interest subsidy scheme.
A collaborative effort by the Department of Education, the Ministry of Human Resource, the Government of India and the IBA, this scheme is easily available for students to make use of it.


  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.