SBI interest subsidy scheme 2019: How EWS students can avail interest subsidy on education loans
New Delhi: India’s banking giant State Bank of India (SBI) offers the education loan facility for the economically weaker section (EWS) under the Central Scheme for Interest Subsidy (CSIS) announced by the Ministry of Human Resource Development (HRD). With the help of SBI interest subsidy scheme, students from Economically Weaker Sections (EWS) with an annual gross parental/family income upto Rs 4.50 lakh per annum can avail education loans during moratorium for technical and professional courses for studies in India under the IBA Model Education Loan Scheme.
The Central Scheme for Interest Subsidy for EWS is applicable with effect from the academic year 2009-10. Students willing to pursue higher education can contact SBI branch for any further details along with Income Certificate from the authorised Certifying authority. The scheme is applicable only for studies in recognized technical/professional courses in India, SBI said.
The interest subsidy is provided for the moratorium period which is 12 months after the completion of the course or six months after getting the job, whichever is earlier as prescribed under the IBA Model Education Loan Scheme, SBI said, adding, after the completion of the moratorium period, the student is liable to service the interest on the outstanding loan in accordance with the provisions of the Education Loan Scheme.
According to SBI, the eligible EWS students can avail the facility of interest subsidy only once, either for the first undergraduate degree course or the post-graduate degree/diploma or integrated courses (graduate and postgraduate) in India. The interest subsidy scheme shall be implemented through Canara Bank, which is the Nodal Bank for the Ministry of Human Resources Development, SBI said.
The income proof showing an annual parental income of up to Rs 4.5 lakh per annum should be certified by an ‘Income Certificate’ issued by the Income Certifying Authority designated by the State Government. The disbursement of interest subsidy claims to the banks shall be on a half-yearly or yearly basis which has to be worked out in consultation with the Ministry of HRD.
Further, the interest subsidy under this scheme shall not be available for those students once they discontinue the course midstream, or who are expelled from the institutions on disciplinary or academic grounds. However, the interest subsidy will be available only if the discontinuation was due to medical grounds for which necessary documentation to the satisfaction of the Head of educational institution will have to be given, SBI said further.
