Central Sector Scheme of Interest Subsidy on Educational Loans
Posted on: 14/Sep/2015 1:02:31 PM
For students belonging to economically weaker sections (with parental family income from all sources of less than Rs.4.5 lakh annually) The Ministry of Human Resource Development had launched during 2009-10 a new Central Scheme to provide full interest subsidy during the period of moratorium on educational loans.
As per the order of Supreme Court orders, the banks are sanctioning educational loans to students. In the year 2009, The Ministry of Human Resource Development announced for students belonging to economically weaker sections (with parental family income from all sources of less than Rs.4.5 lakh annually) that it will provide full interest subsidy during the period of moratorium on educational loans. It was also announced that the loans can be repaid after one year.
Under the Scheme, proof of income is required to be certified by authorities to be designated by the State Governments. The eligible students may get the details of designated authorities from the concerned branch of the Bank where they have availed of loan.
Canara Bank is the Nodal Bank, for the Member Banks of IBA, for claiming reimbursement of interests to student accounts.
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 students accounts could be credited with he interest due on the Loans for the academic year 2009-10 onwards. Those who have already submitted such Certificates are not required to submit them again. The last day for submitting Certificates by students to respective branches is 6th October 2015.
