Government Will Pay Interest of Your Education Loan

Government of India has finalized a scheme to make education loans cheaper. The scheme, which was approved by the cabinet, last year, provides interest subsidy to the students with annual family income below Rs.4.5 lakhs for the period till there course finishes to pursue technical and professional courses. The moratorium period (the time taken by the student to get a job, or one year, whichever comes first) also cover in this scheme.

It will provide interest subvention from the academic year 2009-10. The scheme will be valid for all loans from scheduled banks for pursuing courses in professional and technical streams from recognized institutes in India. The scheme is effective for all IBA-approved educational loans.

All eligible students who wish to avail the benefits should approach the respective bank branch from where they availed of the education loan and complete the necessary formalities, including obtaining the certification in respect of annual family income from the competent authority at the local level. The individual student accounts will then be credited with the interest due on the loan for the academic year 2009-10 onwards.

PLEASE NOTE

• Only for Educational Loans availed from Scheduled Banks for pursuing any of the approved courses after Class XII in Technical and Professional streams from recognized institutes in India under the Educational Loan Scheme of IBA.
• Students belonging to Economically Weaker Sections with annual gross parental/family income from all sources with an upper limit of Rs.4.50 lacs. Certificate to this effect issued by authorized officers of State Government are to be submitted.
• Full interest subsidy is available for the period of moratorium i.e. Course Period plus 1 year or 6 months after getting the job, whichever is earlier.
• Scheme is applicable for the loan amount availed from April 01, 2009 to March31, 2010(Academic Year 2009-10)
• For Loans sanctioned earlier to 1.04.2009, only amounts disbursed during the above period are eligible.

Eligible students have to contact our branches where they have availed/availing loans for further details.

Source: http://anishu-prerit.blogspot.in/2011/01/govetment-will-pay-interest-of-your.html