The Government is implementing a Central Scheme to provide full Interest Subsidy for the period of moratorium on Educational Loans taken by students from Economically Weaker Sections under the Educational Loan Scheme of the Indian Banks’ Association (IBA) to pursue Technical/Professional Education in India. The Scheme is based on income criteria. All students including girls belonging to economically weaker sections, with parental family income from all sources, less than Rs. 4.5 lakh annually, are eligible for interest subsidy on education loans obtained under the Scheme.
The Scheme is linked with the existing Educational Loan Scheme of IBA and restricted to students enrolled in recognised Technical/Professional Courses (after Class XII) in India in Educational Institutions established by Acts of Parliament, other Institutions recognised by the concerned Statutory Bodies, Indian Institutes of Management (IIMs) and other Institutions set up by the Central/State Government. There is presently no separate scheme to provide interest subsidy for loans obtained for pursuing vocational education by girl students.