Which is the Subsidised Education Loan in India: Who Can Avail It?

Some eligibility criteria have been given in the revised Central Sector Interest Subsidy Scheme, 2009, which should be given by the government to avail the extended aid loan facility. Different eligibility conditions are given to qualify for such loan eligibility:

It is important to mention that in the concessional loan scheme, Rs. 7.5 lakhs are provided without third party guarantee or collateral security.


1. Education loan avail under IBA Model Education Loan Scheme.

2. Students with parents income will get Rs. 4.5 lakh annually.

3. The loan offer is specifically provided for courses run by NAAX recognized institutions or technical or professional programmed with accreditation by NBA or Institutions of National Importance or Central Funded Technical Institutions (CFTIs).

4. Apart from this, the educational curriculum which does not form part of the specified recognition above is required to obtain the necessary approval for medical related courses like Medical Council of India, Bar Council of India, law etc. for their respective regulatory bodies.

5. Loans are given only for graduate or postgraduate programs or for integrated programs – where undergraduate and postgraduate programs are jointly covered.

Another important point.

  1. In the case of subsidized loan, the interest subsidy will also be closed in case that the candidate leaves the course in the middle or is expelled due to some disciplinary misconduct.
  2. However, when the candidate closes his course on medical basis, the subsidy will be available.
  3. Guidelines of the Ministry of Human Resource Development say, “Under this scheme, the interest payable on educational loans for the moratorium period ie course period and one year which will be borne by the Government of India, after the period of moratorium, interest on the outstanding amount. According to the existing model educational loan scheme, the student can be paid and can be amended from time to time. “


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