The scheme is effective from the year 2009-10 and the scheme is an ongoing scheme till further instructions from IBA. Further, the modified scheme is applicable for the academic year 2018-19 & 2019-20 starting 01st April, 2018.
The loan amount taken starting from the Academic year 2009-10 (irrespective of the date of sanction) are covered under the scheme for interest subsidy. Interest on any amount disbursed for courses starting before the academic year 2009-10 is not to be considered for subsidy.
It is the further clarified that the disbursements made during the academic year 2009-10 starting 1st April, 2009 are eligible for subsidy irrespective of the date of sanction i.e. only disbursements made by the Bank to student borrowers on and from 1st April, 2009 are covered under the Scheme. In respect of courses which have started prior to 1st April, 2009, claims could be considered only in respect of disbursements made on and from 1st April, 2009 for such courses. Disbursements made prior to 1st April, 2009 are not eligible.
2. OBJECTIVE OF THE SCHEME
This scheme benefits all categories of economically weaker students for pursuing Professional/ technical courses in India only. CSIS aims to check the existing geographical imbalance with regard to Gross Enrolment Ratio (GER) in higher Education Institutions.
3. APPLICABILITY OF THE SCHEME
The Scheme is adopted by all Scheduled Banks and is linked with the existing Model Educational Loan scheme of the lndian Banks` Association, and restricted to students enrolled in professional/technical courses only from NAAC accredited institutions or professional/ technical programmes accredited by NBA or institutions of National importance or Central Funded Technical Institutions (CFTls). Those Professional institutions/ programmes, which do not come under the ambit of NAAC or NBA, would require approval of the respective regulatory body viz, approval of Medical Council of lndia for Medical courses, Nursing courses, Bar Council of India for Law etc.
The 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 inclusive of integrated courses (Graduate + Post graduate).
Interest subsidy under this scheme shall not be available for those students who either discontinue the course midstream or who are expelled from the Institutions on disciplinary or academic grounds. However, the interest subsidy will be available for the actual period of study, 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.
4. BENEFITS AVAILABLE UNDER THE PRESENT SCHEME
This scheme benefits all categories of economically weaker students for pursuing Professional/technical courses in India only and provides full interest subsidy during the period of moratorium on Education loans taken by EWS students.
Subsidy amount will be only for Rs. 7.50 Lakh irrespective of sanctioned loan amount (within the parameters of IBA model education loan scheme).
5. INCOME LIMIT /PROOF OF INCOME:
The benefits of the Scheme are applicable to students belonging to economically weaker sections, with having parental income upto Rs. 4.5 lakh per year (from all sources).
6. COMPETENT AUTHORITY FOR INCOME PROOF:
Competent authority for income proof is given in Annexure
7. OTHER TERMS AND CONDITIONS:
It is the responsibility of students to submit the required documents to their branches in time to enable them to claim subsidy within the time schedule as per guidelines.
For Education loans exceeding Rs.10 lakh the subsidy under the scheme is available up to Rs.10 lakh only for studies in India upto 31.03.2018.
Further, subsidy amount will be only for Rs.7.50 lakh irrespective of sanctioned loan amount (within the parameters of IBA Model Education Loan Scheme) for all loans taken w.e.f. 01.04.2018.
Third Party Guarantee or Collateral Security: Loan sanction on or after 01.04.2018, account having third party guarantee or collateral security” will not eligible for subsidy.
8. LIST OF ELIGIBLE COURSES:
The eligible courses / institutes: The professional and technical courses as approved under the IBA’s scheme are eligible for the purpose of the scheme. The indicative list of approved courses of IBA is as under:-
- Approved courses leading to Graduate/ Post Graduate degree and PG Diplomas conducted by recognized colleges/ universities recognized by UGC/Govt. / AICTE/ AIBMS/ ICMR etc.
- Courses like ICWA, CA, CFA etc.
- Courses conducted by IIMs, IITs, IISc, XLRI. NIFT, NID etc.
- Regular Degree/Diploma courses like Aeronautical, pilot training, shipping Nursing or any other discipline approved by Director General of Civil Aviation/Shipping/State Nursing Council or any other regulatory body as the case may be, if the course is pursued in India.
- Approved courses offered in India by reputed foreign universities.
- Research Programmes recognized by designated academic authority/regulatory body.
Further, list of Centrally Funded Technical institutions and institutions of National importance is available on MoHRD website URLs http://mhrd.gov.in/technical-education-1 & http://mhrd.gov.in/institutionsnational- importance. The list of NAAC accredited universities/institutions is available at NAAC website URL http://www.naac.gov.in/universities_colleges.asp and NBA recognized professional courses is available at NBA website URL http://www.nbaind.org/accreditation-status.aspx. In case of doubt, field functionaries may approach UGC/AICTE and other councils for clarification, for which UGC/AICTE and other councils would be requested to create Cells and identify Nodal officers, whom banks can approach for relevant information.
List of accredited universities /Central Institutes of Hotel Management and Catering Technology, State Institutes of Hotel Management and Catering Technology, Food Craft Institutes and Indian Institutes of Tourism and Travel Management which are administered by the Ministry of Tourism and are also eligible for Interest Subsidy Scheme on Education loans.
9. NODAL BANK:
The nodal Bank for the scheme is Canara Bank.
10. DISBURSEMENT OF INTEREST SUBSIDY CLAIMS
As per IBA vide their letter No. RB/CIR/EDL/5439 dated 05.07.2018, MoHRD, GOI has decided to implement Direct Benefit Transfer (DBT) process, so that the subsidy released by the Ministry can be credited directly to the individual loan accounts by Nodal Bank (Canara Bank).