Central Scheme of Interest Subsidy on Educational Loans to students belonging to

Economically Weaker Section

Central Scheme of Interest Subsidy for Educational Loans

An initiative to help students from Economically Weaker Sections

The Government of India, Ministry of Human Resource Development, Department of Higher

Education has formulated an Interest Subsidy scheme on Educational Loans for the students of
economically weaker sections (EWS) for pursuing technical/professional courses in India.

Salient features of scheme are as under:

• Scheme is applicable for the loan amount availed from April 01, 2009 to March31,
2010(Academic Year 2009-10).

• For Loans sanctioned earlier to 1.04.2009, only amounts disbursed during the above
period are also eligible.

• Applicable to students from EWS with a annual parental/family income limit of

Rs.4.50 lakhs or less and for studies in recognized technical and professional
courses in India after Class XII from institutes recognized by UGC/AICTE.

• Interest subsidy shall be available to the eligible students only once, either for the
first undergraduate degree course or the post graduate degrees/diplomas. Interest
subsidy shall, however, be admissible for combined undergraduate and post graduate
courses.

• Entire repayment holiday period interest to be provided as interest subsidy.

• In case of discontinuance of the course midstream, due to expulsion on disciplinary

or academic ground, no interest subsidy to be paid.

• Moratorium period: Course duration plus one year or six months after loanee's
 employment, whichever is earlier.

• After the period of moratorium is over, the interest on the outstanding loan amount
shall be paid by the student.

• Proof of income is required to be certified by Tehsildar or any other authorities to be

designated by the concerned State Government.

• The eligible student has to execute an Agreement with the disbursing Branch for
receiving Interest Subsidy.

• The scheme shall be implemented through Canara Bank, which is the Nodal Bank.

• UGC and AICTE display the names of such institutions and courses in their websites,
which may be accessed for verification purposes (i.e. at www.ugc.ac.in and also at
www.education.nic.in )

N.B. For further details, please contact the nearest branch of Central Bank of India or
branch of any other Scheduled Bank.

Central Scheme of Interest Subsidy for Educational Loans

An initiative to help students from Economically Weaker Sections

CANARA BANK, Nodal Bank to administer subsidy to scheduled banks.

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 educational 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 Resourse Development,Governemnt of India has
launched this interest subsidy scheme.

Eligibility:
 1. Only for Educational 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 Educational 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
lacs.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 i.e Course Period
plus 1 year or 6 months after getting the job, whichever is earlier.
4. Scheme is applicable for the loan amount availed from April 01, 2009 to
March31, 2010(Academic Year 2009-10)
5. For Loans sanctioned earlier to 1.04.2009, only amounts disbursed during the
above period are eligible.

Eligible students have to contact our branches where they have availed/availing loans for
further details.

Canara Bank
Priority Credit Section,
PC Wing, Head Office,
No.112, J.C.Road, Bangalore-560 002
Email: hopcs@canbank.co.in
Website: www.canarabank.com