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Education Loan EMI Calculator
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    8.45
  • Loan Terms (monthly):

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  • Introduction
  • Benefits
  • Features
  • Eligibility
  • Interest rates & charges
  • Documents Required
  • Most Important Terms and Conditions (MITC)

Government of India Interest Subsidy Schemes for Education Loan : Introduction

Central Scheme of Interest Subsidy for Education Loan

For economically weaker sections to pursue technical/professional courses in India.

Padho Pardesh Scheme of Interest Subsidy for Education Loans

Dr. Ambedkar Central Sector Scheme of Interest Subsidy for Educational Loans

Government of India Interest Subsidy Schemes for Education Loan : Benefits

Interest subsidy is provided to the Eligible students for the interest charged in the account during the moratorium period of the loan.

Government of India Interest Subsidy Schemes for Education Loan : Features

Salient features of scheme are as under:
  • Scheme will be named as “Education Loan Interest Subsidy Scheme” specially designed to provide interest subsidy for the period of moratorium on educational loans taken by students from economically weaker sections from our bank under the educational loan scheme of the Indian Banks’ Association to pursue technical/professional education studies in India.
  • Government of India will provide a full interest subsidy to the eligible students during the moratorium period on loans taken by students from the bank.
  • After the moratorium period interest will be borne by student.
  • State Government will designate appropriate authority or authorities who are competent to issue income certificates, based on economic index and not social background, for the purpose of this scheme.
  • Subsidy will be available only to students enrolled in recognized technical/professional courses (after XII) in India in educational institutions established by acts of parliament, other institutions recognized by the concerned statutory bodies, Indian Institutes of Management (IIMs) and other institutions set up by the Central/State Government.
  • Interest rates charged on the loan shall be as per interest rates applicable under our education loan scheme.
  • Interest subsidy shall be available to the eligible students only once, either for the first undergraduate degree course or the post graduate degrees/diplomas in India. Interest subsidy shall, however, be admissible for integrated courses (graduates + post graduates).
  • Subsidy shall not be available if a student discontinues the course in midstream, expelled from Institutions on disciplinary or academic grounds.
  • There would be a tag/marker on the degree and marksheet of the student indicating his repayment liabilities. Electronic tag will enable employers to identify loanees. Nodal Bank for the scheme shall be Canara Bank and monitoring shall be finalized in consultation with the Canara Bank.
  • List of technical/professional courses for which the scheme would be applicable, shall be publicized from time to time by UGC and AICTE and the same would be immediately displayed at their websites, which may be accessed for verification purposes.
  • Agreement is also to be signed by the student and bank.

Government of India Interest Subsidy Schemes for Education Loan : Eligibility

Place of Study Study in India Study in Abroad Study in Abroad
Scheme Name CSIS (Central Sector Interest Subsidy) PPIS (Padho Pardesh Interest Subsidy ) ACSISOBCEBC (Dr. Ambedkar Central Sector Interest subsidy for OBC & EBC )
Scheme applicable from year FY 2009-10 FY 2013-14 FY 2014-15
Eligibility Students belonging to Students belonging Economically Weaker Section (EWS) Students belonging to notified minority communities (Muslims, Christians, Sikhs, Buddhists, Jains and Parsis). Student belonging to the Other Backward Classes (OBC) and Economically Backward Classes (EBC)
Courses For pursuing Technical / Professional Education studies in India (after XII) only from NAAC accredited Institutions or programmes accredited by NBA or INIs (Institutes of National Importance) and CFTIs (Centrally Funded Technical Institutions)
Note: Those Professional institutions/programmes, which do not come under the ambit of NAAC or NBA, would require approval of the respective regulatory body via, approval of Medical Council of India for Medical courses, Nursing Council of India for Nursing courses, Bar Council of India for Law etc
For pursuing approved courses at Masters, M.Phil. and Ph.D. levels abroad. For pursuing approved courses at Masters, M.Phil. and Ph.D. levels abroad.
Loan Amount Maximum loan amount on which subsidy will be available is rs.7.50 Lakh from FY 2018-19 onwards and rs. 10.00 Lakh prior to that. Maximum loan amount on which subsidy will be available is of rs.20.00 Lakh. Maximum loan amount on which subsidy will be available is of rs.20.00 Lakh.
Period to get the Subsidy Moratorium period (i.e. course period, plus one year) Moratorium period (i.e. course period, plus one year) Moratorium period (i.e. course period, plus one year)
Security On education loans without any collateral security and third party guarantee. NA NA
Income Criteria Total parental/family income from all sources is upto Rs.,4.5 lac per annum. Total income from all sources of the employed candidate or his/ her parents/guardians in case of unemployed candidate shall not exceed Rs. 6.00 lakh per annum. Total income from all sources of the employed candidate or his/ her parents/guardians in case of unemployed candidate shall not exceed Rs. 8.00 lakh per annum for OBC and r Rs. 2.50 lakh for EBC Candidates.
Income Certificate Income certificate issued by the competent authority in the State/ Union Territory should be obtained only once i.e. at the time of sanction. Income certificate issued by the competent authority in the State/ Union Territory should be obtained only once i.e. at the time of sanction. ITR/Form 16/Audited Accounts/Income certificate issued by the authority of State Government/UT Administration is acceptable to determining Income ceiling. It should be obtained only once i.e. at the time of Sanction.
Caste certificate NA Self-Certificate Candidate applying under the OBC category, OBC Caste certificate in the prescribed Performa issued by the competent authority

*Beneficiary eligible for receiving the benefits under the CSIS, PPIS and ACSISOBCEBC shall be required to furnish the proof of possession of AADHAAR number ad to undergo AADHAAR authentication. [The AADHAAR architecture created by UIDAI provides multiple methods of authentication (biometric/demographic or OTP, QR code etc). In case the same is not available the beneficiary shall have to apply for AADHAAR enrollment.

Government of India Interest Subsidy Schemes for Education Loan : Interest rates & charges

Product Conditions Repo Rate + Spread Effective Rate of Interest
Baroda Vidya
Repo Rate + Spread
BRLLR + SP+ 3.10%
Effective Rate of Interest
0.00%
Baroda Gyan
Upto 4 Lakhs
Repo Rate + Spread
BRLLR + 2%
Effective Rate of Interest
0.00%
Above 4 Lakhs
Repo Rate + Spread
BRLLR + 2.25%
Effective Rate of Interest
0.00%
Baroda Education Loan to Students of Premier Institutions (For Studies in India)
Conditions
List-AA Institutions:
Repo Rate + Spread
BRLLR
Effective Rate of Interest
0.00%
Conditions
List A Institutions:
Repo Rate + Spread
BRLLR+0.25%(for any Amount)
Effective Rate of Interest
0.00%
Conditions
List B:
Up to Rs. 7.5 lakhs
Repo Rate + Spread
BRLLR+ 1.35%
Effective Rate of Interest
0.00%
Above Rs. 7.5 lakhs
Repo Rate + Spread
BRLLR+1.10%
Effective Rate of Interest
0.00%
Conditions
List C:
Upto Rs. 7.5 lakhs
Repo Rate + Spread
BRLLR+ 2.10%
Effective Rate of Interest
0.00%
Above Rs. 7.5 lakhs
Repo Rate + Spread
BRLLR+1.85%
Effective Rate of Interest
0.00%
Additional Risk Premium @ 0.05% (Loans above Rs 7.50 lakhs) over the above rates would be applicable for customers not obtaining Credit Life Insurance.
Baroda Scholar (For Studies abroad)
Conditions
List of Institutes specified in the list of Premier Institutions:
Repo Rate + Spread
BRLLR + 1.75%
Effective Rate of Interest
0.00%
Conditions
List of Institutes NOT specified in the list of Premier Institutions:
Repo Rate + Spread
BRLLR + 2.40%
Effective Rate of Interest
0.00%
Additional Risk Premium @ 0.05% (Loans above Rs 7.50 lakhs) over the above rates would be applicable for customers not obtaining Credit Life Insurance
Baroda Executive Development Premier Institutions (For Studies in India)
Repo Rate + Spread
BRLLR+2.25% (For Institutes not specified in Premier Institutions List)
Effective Rate of Interest
0.00%
Conditions
List-AA/A Institutions:
Repo Rate + Spread
BRLLR+0.25%(for any Amount)
Effective Rate of Interest
0.00%
Conditions
List B:
Up to Rs. 7.5 lakhs
Repo Rate + Spread
BRLLR+ 1.35%
Effective Rate of Interest
0.00%
Above Rs. 7.5 lakhs
Repo Rate + Spread
BRLLR+1.10%
Effective Rate of Interest
0.00%
Conditions
List C:
Upto Rs. 7.5 lakhs
Repo Rate + Spread
BRLLR+ 2.10%
Effective Rate of Interest
0.00%
Above Rs. 7.5 lakhs
Repo Rate + Spread
BRLLR+1.85%
Effective Rate of Interest
0.00%
Additional Risk Premium @ 0.05% (Loans above Rs 7.50 lakhs) over the above rates would be applicable for customers not obtaining Credit Life Insurance.
Baroda Executive Development Premier Institutions (For Studies abroad)
Repo Rate + Spread
BRLLR + 2.35%
Effective Rate of Interest
0.00%
Baroda Skill Loan Scheme
Repo Rate + Spread
BRLLR + 1.75%
Effective Rate of Interest
0.00%
Baroda Education Loan: For family members of our Bank’s Employees:BRLLR + SP + 0.25%

Government of India Interest Subsidy Schemes for Education Loan : Documents Required

  • KYC of applicant and co-applicants
  • Academic Records
  • Proof of admission
  • Entrance Exam Result(if applicable)
  • Statement of cost of study/ Schedule of expenses
  • Income Proof for Salaried Co-applicant/ Guarantor (if applicable)
  • Bank account statement for last 6 months etc.
  • Property Documents (if applicable).
  • Income related/Caste related Certificate as per the Scheme.

Government of India Interest Subsidy Schemes for Education Loan : Most Important Terms and Conditions (MITC)

Place of Study Study in India Study in Abroad Study in Abroad
Scheme Name CSIS (Central Sector Interest Subsidy) PPIS (Padho Pardesh Interest Subsidy ) ACSISOBCEBC (Dr. Ambedkar Central Sector Interest subsidy for OBC & EBC )
Scheme applicable from year FY 2009-10 FY 2013-14 FY 2014-15
Eligibility Students belonging to Students belonging Economically Weaker Section (EWS) Students belonging to notified minority communities (Muslims, Christians, Sikhs, Buddhists, Jains and Parsis). Student belonging to the Other Backward Classes (OBC) and Economically Backward Classes (EBC)
Courses For pursuing Technical / Professional Education studies in India (after XII) only from NAAC accredited Institutions or programmes accredited by NBA or INIs (Institutes of National Importance) and CFTIs (Centrally Funded Technical Institutions)
Note: Those Professional institutions/programmes, which do not come under the ambit of NAAC or NBA, would require approval of the respective regulatory body via, approval of Medical Council of India for Medical courses, Nursing Council of India for Nursing courses, Bar Council of India for Law etc
For pursuing approved courses at Masters, M.Phil. and Ph.D. levels abroad. For pursuing approved courses at Masters, M.Phil. and Ph.D. levels abroad.
Loan Amount Maximum loan amount on which subsidy will be available is rs.7.50 Lakh from FY 2018-19 onwards and rs. 10.00 Lakh prior to that. Maximum loan amount on which subsidy will be available is of rs.20.00 Lakh. Maximum loan amount on which subsidy will be available is of rs.20.00 Lakh.
Period to get the Subsidy Moratorium period (i.e. course period, plus one year) Moratorium period (i.e. course period, plus one year) Moratorium period (i.e. course period, plus one year)
Security On education loans without any collateral security and third party guarantee. NA NA
Income Criteria Total parental/family income from all sources is upto Rs.,4.5 lac per annum. Total income from all sources of the employed candidate or his/ her parents/guardians in case of unemployed candidate shall not exceed Rs. 6.00 lakh per annum. Total income from all sources of the employed candidate or his/ her parents/guardians in case of unemployed candidate shall not exceed Rs. 8.00 lakh per annum for OBC and r Rs. 2.50 lakh for EBC Candidates.
Income Certificate Income certificate issued by the competent authority in the State/ Union Territory should be obtained only once i.e. at the time of sanction. Income certificate issued by the competent authority in the State/ Union Territory should be obtained only once i.e. at the time of sanction. ITR/Form 16/Audited Accounts/Income certificate issued by the authority of State Government/UT Administration is acceptable to determining Income ceiling. It should be obtained only once i.e. at the time of Sanction.
Caste certificate NA Self-Certificate Candidate applying under the OBC category, OBC Caste certificate in the prescribed Performa issued by the competent authority

*Beneficiary eligible for receiving the benefits under the CSIS, PPIS and ACSISOBCEBC shall be required to furnish the proof of possession of AADHAAR number ad to undergo AADHAAR authentication. [The AADHAAR architecture created by UIDAI provides multiple methods of authentication (biometric/demographic or OTP, QR code etc). In case the same is not available the beneficiary shall have to apply for AADHAAR enrollment.

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Select Education Loan Type
  • Baroda Vidya
  • Baroda Gyan
  • Baroda Scholar
  • Baroda Education Loan to Students of Premier Institutions
  • Skill Loan Scheme
  • Vidya Lakshmi Portal
  • Government of India Interest Subsidy Schemes for Education Loan
  • Baroda Education Loan for EDP being offered by Premier Institutions in India
  • Baroda Education Loans for EDP being offered by Premier Institutions Abroad
  • Higher Education and Skill Development Guarantee Scheme for Pursuing Higher Education in Delhi
  • Others

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Frequently Asked Questions (FAQs)

  • What is Interest Subsidy Schemes for Education Loan?

    Under the interest subsidy scheme, the central government would reimburse the interest due on the loan amount till the expiry of the moratorium period.

  • Who is eligible for an education loan subsidy scheme?

    Each student eligible for subsidy on an educational loan should fulfil the criteria regarding income, religion, or cast as applicable in the 3 subsidy schemes.

  • How do I claim my education loan subsidy?

    At the time of sanction, if you had submitted the right certificates of your income/cast and were found eligible for the interest subsidy scheme. Then, you will receive an account from the Government of India through Direct benefit transfer (DBT).

  • How many education loan interest subsidy schemes are available?

    There are 3 types of interest subsidy schemes.

    1. Central Scheme of Interest Subsidy for Education Loan (CSIS) for studying in India
    2. Padho Pradesh Interest Subsidy Scheme, introduced by Narendra Modi
    3. Dr. Ambedkar Central Sector Interest subsidy for OBCs and EBCs 
  • Who is eligible for an education loan subsidy?

    Take a look at the criteria’s interest subsidy scheme. 

    1. Central Scheme of Interest Subsidy for Education Loan – for students belonging to economically weaker sections.
    2. Padho Pardesh Scheme of Interest Subsidy for Education Loans – for Muslim, Christian, Sikh, Buddhist, Jain, and Parsi communities.
    3. Dr. Ambedkar Central Sector Scheme of Interest Subsidy for Educational Loans – For students who belong to Other Backward Classes (OBC) and Economically Backward Classes (EBC).

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