Education Loan Subsidy in India
Education Loan Subsidy
Ministry of Human Resource Development has finalized the modalities for implementation of a new Central Scheme to provide full interest subsidy during the period of moratorium on educational loans for students belonging to economically weaker sections (with parental family income from all sources of less than Rs.4.5 lakh annually) from scheduled banks under the Educational Loan Scheme of the Indian Banks’ Association (IBA) for pursuing courses of studies in professional/technical streams from recognized institutions in India. The modalities have been finalized in consultation with the Indian Banks’ Association. The Scheme is effective for all IBA approved educational loans sanctioned in form of eligible students’ in respect of approval course of studies from the academic year 2009-10.