Interest Subsidy for Overseas Studies

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

To enhance educational opportunities for students from Other Backward Classes (OBCs) and Economically Backward Classes (EBCs), the Dr. Ambedkar Central Sector Scheme provides interest subsidies on educational loans for overseas studies. Eligible students pursuing Masters, M.Phil, or Ph.D. programs can benefit from the subsidy during the moratorium period, with a maximum loan amount of Rs.20 lakh, subject to specific income and documentation requirements.

Central Financial Assistance

Ministry / nodal: Ministry of Social Justice and Empowerment

Department: Nodal Bank

Nodal department: Nodal Bank

Scheme for: Individual

Scheme profile

DBT (direct benefit transfer): No

Categories: Interest Subsidy, Overseas Education

Target beneficiaries: OBC, EBC

Tags: Education, Loans, Overseas Studies

Details

Why this scheme

The scheme aims to promote educational advancement for students from Other Backward Classes (OBCs) and Economically Backward Classes (EBCs) by providing interest subsidies on educational loans for overseas studies.

Overview

This scheme provides interest subsidies on loans for meritorious students from OBC and EBC categories pursuing higher education abroad.

Additional details

The interest subsidy is applicable for courses at the Masters, M.Phil, and Ph.D. levels and is linked to the Educational Loan Scheme of the Indian Banks Association.

Timeline & validity

The scheme is effective from 01.10.2017. The funds are released on a first-come, first-served basis, subject to budget availability each financial year.

Benefits

  • The government will bear the interest payable on the education loans during the moratorium period which includes the course duration plus one year or six months after securing a job whichever is earlier. The maximum loan amount eligible for subsidy is Rs.20.00 lakh

The government will bear the interest payable on the education loans during the moratorium period, which includes the course duration plus one year or six months after securing a job, whichever is earlier. The maximum loan amount eligible for subsidy is Rs.20.00 lakh.

Eligibility

Students must secure admission in approved courses at Masters, M.Phil, or Ph.D. levels abroad and avail a loan from a scheduled bank under the Education Loan Scheme. OBC candidates need a caste certificate, and EBC candidates must have an annual income not exceeding Rs.2.50 lakh.

Exclusions

Students who discontinue their course or are expelled are not eligible. The subsidy is also not available if the student renounces Indian citizenship.

Application Process

Online

Where to apply

Applications can be submitted through the Nodal Bank as per the Memorandum of Understanding (MoU) with the Ministry. Details will be available on the Nodal Bank's official website.

How to apply

Eligible students must apply through the Nodal Bank, which will process and sanction the interest subsidy based on the guidelines.

Contact & grievance redressal

For queries, contact the Ministry of Social Justice and Empowerment. Helpline numbers and email addresses can be found on the Ministry's official website.

Documents Required

  • Admission proof for approved courses
  • Loan agreement with a scheduled bank
  • OBC caste certificate (for OBC applicants)
  • Income certificate (for EBC applicants)

References

Apply

Apply now

Opens the official application or programme portal in a new tab. If in doubt, confirm details on the ministry site.

Documents Required for Government Schemes

Most government schemes require basic documents for verification. While the exact requirements vary, common documents include:

  • Aadhaar Card
  • Income Certificate
  • Caste Certificate (if applicable)
  • Residence Proof
  • Bank Account Details
  • Educational Certificates (for student schemes)

How to Apply for Government Schemes?

The application process for government schemes may be online or offline depending on the scheme. In most cases, you can follow these steps:

  1. Check eligibility criteria
  2. Collect required documents
  3. Fill the application form
  4. Submit the application online or at the relevant office
  5. Track application status