Govt-funded education loans for overseas studies! OBC & EBC students can get an interest subsidy on loans up to βΉ20 lakh. Click to apply now!
Dr. Ambedkar Central Sector Scheme of Interest Subsidy on Educational Loans for Overseas Studies for OBCs & EBCs
Ministry of Social Justice and Empowerment
The Dr. Ambedkar Central Sector Scheme of Interest Subsidy on Educational Loans for Overseas Studies is an initiative by the Department of Social Justice and Empowerment, under the Ministry of Social Justice and Empowerment. It provides interest subsidies on education loans to students from Other Backward Classes (OBCs) and Economically Backward Classes (EBCs) pursuing higher studies abroad.
Implementing Agency
The scheme is implemented through a Nodal Bank, as per the Memorandum of Understanding (MoU) between the Ministry and participating banks.
Scope
This scheme covers interest payable during the moratorium period (course duration + one year or six months after securing a job, whichever is earlier) on education loans taken by OBC and EBC students for Masterβs, M.Phil., and Ph.D. programs abroad.
Objective
To support meritorious students from OBC and EBC categories by providing interest subsidies on education loans, thereby enabling better access to global education opportunities and enhancing their employability.
Benefits
- The Government of India will bear the interest on education loans during the moratorium period.
- The maximum loan amount eligible for interest subsidy is βΉ20,00,000.
- After the moratorium period, the student must bear the interest on the outstanding loan as per the Indian Banks Association (IBA) Education Loan Scheme.
- The principal loan amount and interest beyond the moratorium period must be repaid by the student.
Fund Release
Funds are disbursed on a first-come-first-served basis, subject to annual budget availability under the scheme.
Eligibility Criteria
- The applicant must be a student.
- Admission must be secured in an approved Masterβs, M.Phil., or Ph.D. course abroad.
- The student must have availed an education loan from a scheduled bank under the IBA Education Loan Scheme.
- Annual family income (from all sources) should not exceed βΉ8,00,000.
- Reservation/Relaxation: 50% of the total outlay is reserved for girl candidates.
Application Process
Offline Process
- The interest subsidy is linked to the IBA Education Loan Scheme and applies only to eligible Masterβs, M.Phil., and Ph.D. students.
- The Nodal Bank will define the detailed processing and sanctioning procedures in consultation with the Ministry.
- A Recommendatory Committee, headed by the Joint Secretary of the Backward Classes Division, along with representatives from the Finance Division, Nodal Bank, and a Director/Deputy Secretary (convener), will review applications quarterly and recommend eligible candidates.
Required Documents
- Passport-sized Photograph
- Aadhaar Number
- Proof of Educational Qualification
- Bonafide Certificate
- OBC Caste Certificate (if applicable, in the prescribed format issued by a competent authority)
- Income Certificate (ITR/Form 16/Audited Accounts/Income Certificate issued by the State Government/UT Authority)
- Aadhaar-linked Bank Account Details
How to Apply
This scheme aims to bridge the financial gap for OBC and EBC students, promoting higher education abroad and fostering equal opportunities in global academia.
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