How To Apply For Education Loan Interest Subsidy?
Gujarat Education Loan Interest Subsidy Application / Registration Form – Below is the complete procedure to apply online for Interest Subsidy Scheme on Education Loan in Gujarat:- STEP 1: Visit the official website of Knowledge Consortium Of Gujarat kcg.gujarat.gov.in STEP 2: On the homepage, click at the ” Interest Subsidy Scheme on Education Loan (Registration Open) ” link or directly click https://kcg.gujarat.gov.in/education_loan/ 
Gujarat Education Loan Interest Subsidy Scheme Apply Online STEP 3: At the opened page, click at the ” Online Registration Form for Interest Subsidy Scheme on Education Loan ” link or directly click https://kcg.gujarat.gov.in/education_loan/student_login/sign_up.php, 
Gujarat Education Loan Interest Subsidy Scheme Online Application Form
Here candidates can fill their details such as name, e-mail ID, contact number, aadhar number, HSC / Diploma Passing Year, choose stream, enter income details, username, password and then click at the ” Register ” button. Afterwards, the page to enter scholarship information in Gujarat Government Education Loan Scheme online application form will appear as shown below:-
Gujarat Government Education Loan Scheme Scholarship Info Online Application Form
Enter all your scholarship details correctly and click at “Save” button to proceed to edit the profile to complete the Gujarat Education Loan Interest Subsidy Scheme online registration form filling process.
Gujarat Education Loan Interest Subsidy Scheme Registration Form For more details on “How to Apply Online for Education Loan Interest Subsidy Scheme in Gujarat”, see the Complete Procedure (with Documents List) – Gujarati (PDF), English (PDF)
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Contents
What is interest subsidy scheme?
To ensure that no student is denied the opportunity to pursue higher education because he or she is poor. Ministry of Human Resource Development (MHRD) launched a Scheme titled “Central Sector Interest Subsidy Scheme” (CSIS) in 2009. Students whose annual gross parental/ family income is up to Rs.4.5 lakhs are eligible under the scheme. Users can view their claim details. –
Direct Benefit Transfer (DBT)Education Skills & Employment
Is there any subsidy on education loan in India?
Education Loan – Subsidies and CGFSEL
| CENTRAL GOVERNMENT INTEREST SUBSIDY SCHEME: |
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The Ministry of HRD, GOI has launched a scheme of Interest Subsidy on educational loans for economically weaker sections of the society. The students who satisfy all the following parameters would only be eligible for the interest subsidy: The scheme is applicable for inland studies only. The student should secure admission after Class XII in any of the professional/technical courses approved by NAAC accredited Institutions or Professional Technical Programmes accredited by NBA or Institutions of National Importance or Central Funded Technical Institutions (CFTIs). 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 India for Medical Courses, Nursing Council of India for Nursing Courses, Bar Council of India for Law etc. Only those education loans are eligible which are sanctioned without any collateral security or third-party guarantee. Subsidy is available up to a maximum amount of Rs.10.00 lakh irrespective of the sanction amount from academic session starting from 01.04.2022. Annual gross parental/ family income from all sources should not exceed Rs.4.50 Lakh. To Avail the benefit of Government Subsidy schemes, Income certificate/proof from the designated officials of the respective states/Competent Authority is mandatory before sanctioning of the loan and applicant need to submit the same to the branch from where the loan is availed and also execute the documents as required. (Ref: IBA model Scheme 2021 Page no.6) Aadhaar no. is mandatory for claiming the subsidy. The interest subsidy is towards the interest charged in the loan account during the course and moratorium period only. As the scheme is on-going basis, it is advisable that all the branches may collect the income certificate (for parental income up to Rs.4.50 Lakh per annum) at the time of submission of application form by the student. However, this should not be construed as a pre-condition for sanction of the loan. In other words, the loan has to be processed/sanctioned/disbursed as per norms and the student / parents should be advised that the claim for subsidy can only be lodged upon submission of income certificate. |
| PADHO PARDESH SCHEME |
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Scheme to provide interest subsidy on educational loans for overseas studies for the students belonging to the minority communities. The students should satisfy all the following parameters: Secured admission to higher studies abroad viz. Masters, M-Phil and Ph.D. levels only The student belongs to the Economically Weaker Section (EWS) of Minority communities with an annual gross family income not exceeding Rs.6.00 Lakh. The student has to submit income certificate issued by authorized officers appointed by the respective State Governments Eligible loan amount is up to Rs.20.00 Lakh only. Subsidy is available for interest charged on the loan amount disbursed during a financial year Available for course and moratorium period only The scheme is applicable for higher studies abroad. Note: As per recent communication received from IBA, the Scheme has been discontinued from FY 2022-23. The existing beneficiaries as on 31/03/2022 will continue to receive the interest subsidy during the moratorium period of the loan, subject to the compliance with the extant guidelines. |
| ACSISOBCEBC SCHEME – DR. AMBEDKAR CENTRAL SECTOR SCHEME OF INTEREST SUBSIDY ON EDUCATIONAL LOAN FOR OVERSEAS STUDIES FOR OTHER BACKWARD CLASSES (OBCS) & ECONOMICALLY BACKWARD CLASSES (EBCS): |
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Scheme to provide interest subsidy on educational loans for overseas studies for the students belonging to the other backward classes (OBCs) & Economically Backward Classes (EBCs). The students should satisfy all the following parameters: Secured admission to higher studies abroad viz. Masters, M. Phil and Ph.D. levels only The student belongs to the other backward classes (OBC) & economically backward classes (EBC) with an annual gross family income not exceeding Rs.8 Lakh & Rs.5.00 Lakhs respectively. The student has to submit income proof either of Form-16/ITR/certificate issued by authorized officers appointed by the respective State Governments Eligible loan amount is up to Rs.20.00 Lakh only. Subsidy is available for interest charged on the loan amount disbursed during a financial year Available for course and moratorium period only The scheme is applicable for higher studies abroad |
| CREDIT GUARANTEE FUND SCHEME FOR EDUCATIONAL LOANS (CGFSEL): |
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Government of India through Ministry of Human Resource Development, Department of Higher Education has notified Credit Guarantee Fund Scheme for Educational Loans (CGFSEL) vide Gazette Notification No.18-1/2013-U.5 (Vol. III) dated September 16, 2015. The objective of scheme is to provide guarantee for educational loans up to Rs.7.50 lakh (where no collateral security or third-party guarantee is available, and the applicable ROI is not more than External Benchmark Rate + 2%) National Credit Guarantee Trustee Company Ltd. (NCGTC) has been set-up by the Department of Financial Services, Ministry of Finance, Government of India to, inter alia, act as a common trustee company to manage and operate various credit guarantee trust funds. |
| CREDIT GUARANTEE FUND SCHEME FOR SKILL DEVELOPMENT (CGFSSD): |
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Government of India through Ministry of Skill and Entrepreneurship has notified Credit Guarantee Fund Scheme for Skill Development (CGFSSD) vide Gazette Notification No.8-8/2014-SD&E (Vol. II) dated November 20, 2015. The objective of scheme is to provide guarantee for skill development loans up to Rs.1.50 lakh (where no collateral security and third-party guarantee is available, and the applicable ROI is not more than External Benchmark Rate + 1.50%) National Credit Guarantee Trustee Company Ltd. (NCGTC) has been set-up by the Department of Financial Services, Ministry of Finance, Government of India to, inter alia, act as a common trustee company to manage and operate various credit guarantee trust funds. Details of CGFSSD are available on website of NCGTC. |
*Conditions Apply** **Contact our nearest Branch for more details** : Education Loan – Subsidies and CGFSEL
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Which bank is best for applying education loan?
List of Educational Loans – Leverage Edu has formulated a list of best education loans in India that can help you reach your dream university:
| Bank | Student Loan Interest for Indian Universities | Student Loan Interest to Study Abroad |
| Axis Bank | 13.70% | 13.70% |
| Bank of Baroda | 7.70% | 8.35% |
| Bank of India | 9.05% | 9.05% |
| Canara Bank | 8.50% | 8.50% |
| Central Bank of India | 8.50% | 8.50% |
| Federal Bank | 10.05% | 10.05% |
| IDBI Bank | 6.90% | 8.40% |
| Indian Overseas Bank | 10.65% | 10.65% |
| PNB | 7.05% | 10.65% |
| SBI | 7.00% | 8.80% |
| UCO Bank | 9.30% | 9.30% |
| Union Bank of India | 8.40% | 8.05% |
Is education loan interest free in India?
The interest rates will be floating for entire period of loan – Education Loan Portal mean rate of interest 9.37%.
| SBI STUDENT LOAN SCHEME | ||||
|---|---|---|---|---|
| Loan Limit | EBR | CRP | Effective Interest Rate | Rate Type |
| Upto Rs 7.5 Lakhs | 8.55% | 2.00% | 10.55% | Floating |
| Concession | 0.50% concession in interest for girl students | |||
| Above Rs 7.5 Lacs | 8.55% | 2.00% | 10.55% | Floating |
| Concession | 0.50% concession in interest for girl students | |||
| 0.50% concession for students availing of SBI Rinn Raksha or any other existing policy assigned in favour of our Bank |
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Last Updated On : Tuesday, 15-11-2022 
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How much subsidy we get on education loan?
Education Loan – Subsidy Schemes – Indian Bank | Your Own Bank :: Financial services company 
There are three subsidy schemes available for Education Loan which is detailed below: 1. Central Scheme to provide Interest Subsidy to Educational Loan (CSIS)
The scheme is applicable for “Study in India” only. If a course is pursued partly in India and partly abroad, the same is not eligible for subsidy. The Scheme is applicable for pursuing any of the approved courses of studies in technical and professional streams from recognized Institutions in India. As per the scheme, annual gross parental / family income from all sources should not be above Rs.4.50 lakh. Income proof should be obtained from designated authorities approved by respective State Government / U.T. for this purpose (e.g. for Tamil Nadu from Zonal Deputy Tahsildar) and to be submitted to the lending branch. The income of the family as on the date of educational loan application shall be taken for arriving eligibility. Subsequent increase or decrease in income will have no effect on the eligibility. Interest Subsidy is available towards the amount of interest charged for educational loans for limit up to Rs.10.00 lakh. If an educational loan is sanctioned for more than Rs.10.00 lakh, interest subsidy will be available for the interest charged for the limit up to Rs.10.00 lakh only. No collateral security or 3rd party guarantee is required for loans sanctioned up to Rs.7.50 lakhs. However, this part of the loan should be eligible to be covered for guarantee under Credit Guarantee Fund scheme for Education Loan (CGFSEL). The interest subsidy is available up to the moratorium period. The interest charged up to the moratorium period will be borne by Government of India. After the moratorium period is over, the interest on the outstanding loan amount shall be paid by the student in accordance with the existing Educational Loan Scheme as may be amended from time to time. The candidate will bear the Principal instalment and interest beyond moratorium period. The Interest subsidy is available only once either for the first undergraduate degree course or the post graduate degrees / diplomas in India. Admissions for the courses secured under Management Quota are not eligible.
2. PADHOPARDESH SUBSIDY
The Interest subsidy is available for educational loans sanctioned to students of minority community upto the moratorium period (course period + holiday period) for the educational loans sanctioned to pursue Masters/ M.Phil/ Ph.D. courses abroad. Annual family/parental income shall not be more than Rs.6.00 lakh currently (which may be revised from time to time) are eligible under the scheme. Income certificate should be submitted from the notified authority in the State/Union territory. Interest Subsidy is available towards the amount of interest charged for educational loans for limit up to Rs.20.00 lakh. If an educational loan is sanctioned for more than Rs.20.00 lakh, interest subsidy will be available for the interest charged for the limit up to Rs.20.00 lakh only. The benefit of 1 % interest reduction in the interest rate offered by Banks in normal course on Pre-payment of interest during the moratorium period shall be passed on to the students. The students obtaining benefits under this Scheme shall not be given the interest subsidy if he gives up Indian citizenship during the tenure of the loan. The interest charged up to the moratorium period will be borne by Government of India. After the moratorium period is over, the interest on the outstanding loan amount shall be paid by the student in accordance with the existing Educational Loan Scheme as may be amended from time to time. The candidate will bear the Principal instalment and interest beyond moratorium period. Students should apply for the benefits under the scheme during 1st year itself of the course. Fresh applications received during 2nd year or subsequent years will not be accepted in any case.
3. ACSISOBCEBC SUBSIDY
The scheme is applicable for educational loans for higher studies abroad sanctioned under IBA scheme only. The interest subsidy under the scheme shall be available to the eligible students only once, either for Masters or Ph.D levels. Interest subsidy shall not be available to those students who either discontinued the course mid-stream due to any reason, or those who are expelled from the institutions on disciplinary or academic grounds. Interest charged for the educational loans during the moratorium period (course period + holiday period) is provided as subsidy. The candidate will pay the Principal installments as well as interest beyond moratorium period. If the educational loan is sanctioned for more than Rs.20.00 lakh, the eligible loan component is reckoned as Rs.20.00 lakh only for the purpose of interest subsidy claim. The scheme is applicable for courses leading to Masters (including PG Diploma), M.Phil and Ph.D courses only. If the course pursued by the student is partly in India and partly abroad, the course will be eligible for interest subsidy, if the Degree is awarded by Foreign University The scheme is envisaged to provide interest subsidy to two target groups; OBCs and EBCs. The income ceiling for OBCs is Rs.8.00 lakh p.a., and for EBCs Rs.5.00 lakh p.a. currently which may be revised from time to time. The income certificates provided by appropriate authority designated by State Government/ITR forms/Form 16/Audited accounts are acceptable to determine the income ceiling. Income certificate submitted during loan application shall be treated as proof of annual income. Subsequent increase /decrease will have no effect on the eligibility. For the scheme for OBCs, those who are included in the Central List of OBCs are only eligible (the respective state lists shall not be followed). The OBC certificate in the prescribed proforma issued by the competent authority has to be obtained. The students obtaining benefits under this scheme shall not be given the interest subsidy, if he gives up Indian citizenship during the tenure of the loan.
( Last modified on Nov 23, 2022 at 11:11:47 AM ) 
: Education Loan – Subsidy Schemes – Indian Bank | Your Own Bank :: Financial services company
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How education loan subsidy works?
CSIS Scheme Central Scheme for Interest Subsidy for EWS Central Scheme for Interest Subsidy has been announced by Ministry of HRD for providing interest on Education Loans during moratorium for technical and professional courses for studies in India under the IBA Model Education Loan Scheme for students from Economically Weaker Sections (EWS) with annual gross parental/family income upto Rs.4.50 lacs per annum from the academic year 2009-10.
The scheme is applicable only for studies in recognized Technical/ Professional courses in India. Under the Scheme, the interest payable on the Educational Loan for the moratorium period i.e., Course Period plus one year as will be borne by the Government of India. After the period of moratorium, the interest on the outstanding loan amount shall be paid by the student, in accordance with the provisions of the existing Model Educational Loan Scheme of Banks and as may be amended from time to time. The benefit of the scheme would be applicable to those students belonging to economically weaker sections with an annual gross parental/family income with upper limit of Rs.4.5 lacs per annum (from all sources). This needs to be certified by an ‘Income Certificate’ issued by the Income Certifying Authority designated by the State Government. The Ministry of HRD, Government of India has issued an Advisory to all the State Governments requesting them to designate appropriate authority or authorities who are competent to issue income certificates, based on economic index and not social background for the purpose of this scheme. Banks shall implement the scheme based on the notification of the certification authority by State Governments communicated through District Level Consultative Committees (DLCCs). The DLCCs would be given the list and the signatures of the competent authority to issue the income certificate. Eligibility for Interest Subsidy
The interest subsidy under the scheme shall be available to the eligible students only once either for the first undergraduate degree course or the post graduate degree/diploma in India. Interest subsidy shall however, be admissible for integrated courses (graduate plus postgraduate). 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.
The scheme shall be implemented through Canara Bank, which is the Nodal Bank for the Ministry of Human Resources Development. The scheme is applicable from the academic year 2009-10 starting 1st April 2009. The scheme is applicable only in respect of disbursements made by the Banks on or after 1st April, 2009 for the academic year 2009-10, irrespective of date of sanctioning. In case of loans sanctioned prior to 1.4.2009, for the courses beginning prior to academic year 2009-10, the interest subsidy is available to the extent of disbursements made after 1.4.2009. The disbursement of Interest Subsidy Claims to the Banks shall be on half-yearly or yearly basis which has to be worked out in consultation with the Ministry of HRD.
Last Updated On : Wednesday, 27-07-2022 SIA is Typing. character(s) remaining Was this helpful ? : CSIS Scheme
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Which type of loan provides interest subsidy?
What is a subsidized loan? – A subsidized loan is a type of federal student loan, With a subsidized direct loan, the bank, or the government (for Federal Direct Subsidized Loans, also known as Subsidized Stafford Loans) is paying the interest for you while you’re in school (a minimum of half time), during your post-graduation grace period, and if you need a loan deferment.
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How can I get SBI education loan subsidy?
Application Process: Students who are eligible for SBI Central Scheme for Interest Subsidy (CSIS) can apply for it at any branch of State Bank of India. To apply, they will have to provide their income certificate from the certifying authority.
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Can we claim interest on education loan?
Section 80E of Income Tax Act The education industry in India is reportedly estimated to reach US$ 144 billion by 2020 1, The sector has constantly managed to push the importance of pursuing basic and higher education for economic development. Demographically India has the advantage of having one of the largest youth populations, coupled with widespread educational institutes and schools, and hence educational expenses naturally become one of the liabilities one has to account for.
With the growth of the Indian economy and rise in income levels, the spending on education has increased too, that accounts for the second-highest share of wallets for middle-class households in the country. The spending for pursuing education can let you save on income taxes *, You can claim a deduction of Interest paid on a loan taken for pursuing higher education from taxable * income under Section 80E of the Income Tax Act, 1961 *,
According to Section 80E *, the deduction is allowed on the total interest amount of the EMI paid during the financial year. The loan has to be taken from a bank or financial institution to pursue higher studies. One needs to obtain a certificate from the bank wherein the principal and interest amounts of the education loan paid during the financial year should be mentioned separately.
- It is because no deduction is allowed on the principal repayment amount.
- The interest amount paid during the financial year is allowable as a deduction from taxable * income.
- There is no limit on the deduction amount.
- The benefit of the deduction is available for a maximum of 8 years or till the interest is paid, whichever is earlier.
It is applicable even when you have taken an education loan for your spouse, children or for a student for whom you are the legal guardian. It is advisable to wind up the higher education loan within the next 8 years to get the maximum benefit of Section 80E *,
Parents can make use of this section to give their children the best of opportunities in higher education and secure their careers too. If they wish to send their children for foreign studies and take a loan for financing it, can also claim the deduction under Section 80E *, The deduction is applicable to all courses pursued after the senior secondary examination or equivalent and it should be from a school/institute/university recognised by the government.
Let us look at one example to know how Section 80E * deduction helped Shivam. Shivam is a regular salaried IT executive living in Mumbai with his family. His 19-year-old son, Aman is ready to pursue engineering from one of the reputed colleges in the country.
- Shivam took an education loan of ₹ 10 lakh to fund Aman’s college fees for 4 years.
- Aman is comfortably studying in his college with a secured career to look forward to.
- Shivam has taken the loan for a period of 6 years, and in this duration, he can claim a deduction of Interest paid on the loan taken for higher education under Section 80E *,
An education loan indirectly supports career-building by financing the crucial years of education. If you have taken an education loan and are in the process of repaying the same, then avail the Tax * benefit of Section 80E *, This way you can save some money while moving towards a successful career ahead.
Any individual applying for a loan for further studies or higher education for himself or on behalf of their spouse, children or student for whom the individual is the legal guardian Companies and Hindu Undivided Family (HUF) cannot claim a deduction Only the taxpayer who has applied for the loan can claim a deduction
How the subsidy is calculated in loan?
How is PMAY subsidy calculated? – The subsidy amount is taken as the Net Present Value (NPV) of the interest subsidy amount. NPV is calculated at a discount rate of 9%.
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Does Government pay education loan interest?
Central Scheme of Interest Subsidy for Education Loans Interest subsidy is provided to the Eligible students for the interest charged in the account during the moratorium period of the loan.
- Scheme will be named as “Education Loan Interest Subsidy Scheme” specially designed to provide interest subsidy for the period of moratorium on educational loans taken by students from economically weaker sections from our bank under the educational loan scheme of the Indian Banks’ Association to pursue technical/professional education studies in India.
- Government of India will provide a full interest subsidy to the eligible students during the moratorium period on loans taken by students from the bank.
- After the moratorium period interest will be borne by student.
- State Government will designate appropriate authority or authorities who are competent to issue income certificates, based on economic index and not social background, for the purpose of this scheme.
- Subsidy will be available only to students enrolled in recognized technical/professional courses (after XII) in India in educational institutions established by acts of parliament, other institutions recognized by the concerned statutory bodies, Indian Institutes of Management (IIMs) and other institutions set up by the Central/State Government.
- Interest rates charged on the loan shall be as per interest rates applicable under our education loan scheme.
- 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. Interest subsidy shall, however, be admissible for integrated courses (graduates + post graduates).
- Subsidy shall not be available if a student discontinues the course in midstream, expelled from Institutions on disciplinary or academic grounds.
- There would be a tag/marker on the degree and marksheet of the student indicating his repayment liabilities. Electronic tag will enable employers to identify loanees. Nodal Bank for the scheme shall be Canara Bank and monitoring shall be finalized in consultation with the Canara Bank.
- List of technical/professional courses for which the scheme would be applicable, shall be publicized from time to time by UGC and AICTE and the same would be immediately displayed at their websites, which may be accessed for verification purposes.
- Agreement is also to be signed by the student and bank.
| Place of Study | Study in India | Study in Abroad | Study in Abroad |
|---|---|---|---|
| Scheme Name | CSIS (Central Sector Interest Subsidy) | PPIS (Padho Pardesh Interest Subsidy ) | ACSISOBCEBC (Dr. Ambedkar Central Sector Interest subsidy for OBC & EBC ) |
| Scheme applicable from year | FY 2009-10 | FY 2013-14 | FY 2014-15 |
| Eligibility | Students belonging to Students belonging Economically Weaker Section (EWS) | Students belonging to notified minority communities (Muslims, Christians, Sikhs, Buddhists, Jains and Parsis). | Student belonging to the Other Backward Classes (OBC) and Economically Backward Classes (EBC) |
| Courses | For pursuing Technical / Professional Education studies in India (after XII) only from NAAC accredited Institutions or programmes accredited by NBA or INIs (Institutes of National Importance) and CFTIs (Centrally Funded Technical Institutions) Note: Those Professional institutions/programmes, which do not come under the ambit of NAAC or NBA, would require approval of the respective regulatory body via, approval of Medical Council of India for Medical courses, Nursing Council of India for Nursing courses, Bar Council of India for Law etc | For pursuing approved courses at Masters, M.Phil. and Ph.D. levels abroad. | For pursuing approved courses at Masters, M.Phil. and Ph.D. levels abroad. |
| Loan Amount | Maximum loan amount on which subsidy will be available is rs.7.50 Lakh from FY 2018-19 onwards and rs.10.00 Lakh prior to that. | Maximum loan amount on which subsidy will be available is of rs.20.00 Lakh. | Maximum loan amount on which subsidy will be available is of rs.20.00 Lakh. |
| Period to get the Subsidy | Moratorium period (i.e. course period, plus one year) | Moratorium period (i.e. course period, plus one year) | Moratorium period (i.e. course period, plus one year) |
| Security | On education loans without any collateral security and third party guarantee. | NA | NA |
| Income Criteria | Total parental/family income from all sources is upto Rs.,4.5 lac per annum. | Total income from all sources of the employed candidate or his/ her parents/guardians in case of unemployed candidate shall not exceed Rs.6.00 lakh per annum. | Total income from all sources of the employed candidate or his/ her parents/guardians in case of unemployed candidate shall not exceed Rs.8.00 lakh per annum for OBC and r Rs.2.50 lakh for EBC Candidates. |
| Income Certificate | Income certificate issued by the competent authority in the State/ Union Territory should be obtained only once i.e. at the time of sanction. | Income certificate issued by the competent authority in the State/ Union Territory should be obtained only once i.e. at the time of sanction. | ITR/Form 16/Audited Accounts/Income certificate issued by the authority of State Government/UT Administration is acceptable to determining Income ceiling. It should be obtained only once i.e. at the time of Sanction. |
| Caste certificate | NA | Self-Certificate | Candidate applying under the OBC category, OBC Caste certificate in the prescribed Performa issued by the competent authority |
Beneficiary eligible for receiving the benefits under the CSIS, PPIS and ACSISOBCEBC shall be required to furnish the proof of possession of AADHAAR number ad to undergo AADHAAR authentication. [The AADHAAR architecture created by UIDAI provides multiple methods of authentication (biometric/demographic or OTP, QR code etc).
| Product | Conditions | Repo Rate + Spread | Effective Rate of Interest |
|---|---|---|---|
| Baroda Vidya | BRLLR + SP+ 3.10% | 0.00% | |
| Baroda Gyan | Upto 4 Lakhs | BRLLR + 2% | 0.00% |
| Above 4 Lakhs | BRLLR + 2.25% | 0.00% | |
| Baroda Education Loan to Students of Premier Institutions (For Studies in India) | |||
| List-AA Institutions: | BRLLR | 0.00% | |
| List A Institutions: | BRLLR+0.25%(for any Amount) | 0.00% | |
| List B: | Up to Rs.7.5 lakhs | BRLLR+ 1.35% | 0.00% |
| Above Rs.7.5 lakhs | BRLLR+1.10% | 0.00% | |
| List C: | Upto Rs.7.5 lakhs | BRLLR+ 2.10% | 0.00% |
| Above Rs.7.5 lakhs | BRLLR+1.85% | 0.00% | |
| Additional Risk Premium @ 0.05% (Loans above Rs 7.50 lakhs) over the above rates would be applicable for customers not obtaining Credit Life Insurance. | |||
| Baroda Scholar (For Studies abroad) | List of Institutes specified in the list of Premier Institutions: | BRLLR + 1.75% | 0.00% |
| List of Institutes NOT specified in the list of Premier Institutions: | BRLLR + 2.40% | 0.00% | |
| Additional Risk Premium @ 0.05% (Loans above Rs 7.50 lakhs) over the above rates would be applicable for customers not obtaining Credit Life Insurance | |||
| Baroda Executive Development Premier Institutions (For Studies in India) | BRLLR+2.25% (For Institutes not specified in Premier Institutions List) | 0.00% | |
| List-AA/A Institutions: | BRLLR+0.25%(for any Amount) | 0.00% | |
| List B: | Up to Rs.7.5 lakhs | BRLLR+ 1.35% | 0.00% |
| Above Rs.7.5 lakhs | BRLLR+1.10% | 0.00% | |
| List C: | Upto Rs.7.5 lakhs | BRLLR+ 2.10% | 0.00% |
| Above Rs.7.5 lakhs | BRLLR+1.85% | 0.00% | |
| Additional Risk Premium @ 0.05% (Loans above Rs 7.50 lakhs) over the above rates would be applicable for customers not obtaining Credit Life Insurance. | |||
| Baroda Executive Development Premier Institutions (For Studies abroad) | BRLLR + 2.35% | 0.00% | |
| Baroda Skill Loan Scheme | BRLLR + 1.75% | 0.00% | |
| Baroda Education Loan: For family members of our Bank’s Employees:BRLLR + SP + 0.25% |
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| Place of Study | Study in India | Study in Abroad | Study in Abroad |
|---|---|---|---|
| Scheme Name | CSIS (Central Sector Interest Subsidy) | PPIS (Padho Pardesh Interest Subsidy ) | ACSISOBCEBC (Dr. Ambedkar Central Sector Interest subsidy for OBC & EBC ) |
| Scheme applicable from year | FY 2009-10 | FY 2013-14 | FY 2014-15 |
| Eligibility | Students belonging to Students belonging Economically Weaker Section (EWS) | Students belonging to notified minority communities (Muslims, Christians, Sikhs, Buddhists, Jains and Parsis). | Student belonging to the Other Backward Classes (OBC) and Economically Backward Classes (EBC) |
| Courses | For pursuing Technical / Professional Education studies in India (after XII) only from NAAC accredited Institutions or programmes accredited by NBA or INIs (Institutes of National Importance) and CFTIs (Centrally Funded Technical Institutions) Note: Those Professional institutions/programmes, which do not come under the ambit of NAAC or NBA, would require approval of the respective regulatory body via, approval of Medical Council of India for Medical courses, Nursing Council of India for Nursing courses, Bar Council of India for Law etc | For pursuing approved courses at Masters, M.Phil. and Ph.D. levels abroad. | For pursuing approved courses at Masters, M.Phil. and Ph.D. levels abroad. |
| Loan Amount | Maximum loan amount on which subsidy will be available is rs.7.50 Lakh from FY 2018-19 onwards and rs.10.00 Lakh prior to that. | Maximum loan amount on which subsidy will be available is of rs.20.00 Lakh. | Maximum loan amount on which subsidy will be available is of rs.20.00 Lakh. |
| Period to get the Subsidy | Moratorium period (i.e. course period, plus one year) | Moratorium period (i.e. course period, plus one year) | Moratorium period (i.e. course period, plus one year) |
| Security | On education loans without any collateral security and third party guarantee. | NA | NA |
| Income Criteria | Total parental/family income from all sources is upto Rs.,4.5 lac per annum. | Total income from all sources of the employed candidate or his/ her parents/guardians in case of unemployed candidate shall not exceed Rs.6.00 lakh per annum. | Total income from all sources of the employed candidate or his/ her parents/guardians in case of unemployed candidate shall not exceed Rs.8.00 lakh per annum for OBC and r Rs.2.50 lakh for EBC Candidates. |
| Income Certificate | Income certificate issued by the competent authority in the State/ Union Territory should be obtained only once i.e. at the time of sanction. | Income certificate issued by the competent authority in the State/ Union Territory should be obtained only once i.e. at the time of sanction. | ITR/Form 16/Audited Accounts/Income certificate issued by the authority of State Government/UT Administration is acceptable to determining Income ceiling. It should be obtained only once i.e. at the time of Sanction. |
| Caste certificate | NA | Self-Certificate | Candidate applying under the OBC category, OBC Caste certificate in the prescribed Performa issued by the competent authority |
Beneficiary eligible for receiving the benefits under the CSIS, PPIS and ACSISOBCEBC shall be required to furnish the proof of possession of AADHAAR number ad to undergo AADHAAR authentication. [The AADHAAR architecture created by UIDAI provides multiple methods of authentication (biometric/demographic or OTP, QR code etc).
- Under the interest subsidy scheme, the central government would reimburse the interest due on the loan amount till the expiry of the moratorium period.
- Each student eligible for subsidy on an educational loan should fulfil the criteria regarding income, religion, or cast as applicable in the 3 subsidy schemes.
- At the time of sanction, if you had submitted the right certificates of your income/cast and were found eligible for the interest subsidy scheme. Then, you will receive an account from the Government of India through Direct benefit transfer (DBT).
- There are 3 types of interest subsidy schemes.
- Central Scheme of Interest Subsidy for Education Loan (CSIS) for studying in India
- Padho Pradesh Interest Subsidy Scheme, introduced by Narendra Modi
- Dr. Ambedkar Central Sector Interest subsidy for OBCs and EBCs
- Take a look at the criteria’s interest subsidy scheme.
- Central Scheme of Interest Subsidy for Education Loan – for students belonging to economically weaker sections.
- Padho Pardesh Scheme of Interest Subsidy for Education Loans – for Muslim, Christian, Sikh, Buddhist, Jain, and Parsi communities.
- Dr. Ambedkar Central Sector Scheme of Interest Subsidy for Educational Loans – For students who belong to Other Backward Classes (OBC) and Economically Backward Classes (EBC).
: Central Scheme of Interest Subsidy for Education Loans
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Which bank is registered to avail interest subsidy scheme on education loan?
Bonafide Student Certificate – If the student is qualifying for the subsidy scheme, the Interest Subsidy Agreement, Letter of undertaking cum Declaration needs to be signed by the borrowers. Bank is also offering education loans under the Padho Pardesh and West Bengal Student Credit Card subsidy schemes within the norms of these schemes.
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Is education loan subsidy taxable?
The income tax benefit can be only availed on the interest amount of the loan. Hence, the principal amount can be claimed for any tax benefit. The entire interest amount of the education loans repaid is deductible when calculating the taxable income.
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Is interest subsidy taxable?
Interest-free loan or Interest subsidy – Points to be noted –
- Interest will be calculated according to the method given above. No other method (e.g., cost of capital / fund to employer) shall be taken into consideration.
- If a closely- held company given a loan to an employee who holds at least 10% voting power, such loan is deemed as dividend under, if a few conditions are satisfied, Even in such a case, the perquisite value of interest-free loan is chargeable to tax.
- Notional interest on interest-free security deposit given by the employer (for a flat belonging to the employee taken on lease), cannot be treated as perquisite.
Author Details- Mr.S.K. TYAGI, M.Sc., LL.B., Advocate, Ex-Indian Revenue Service and Income-Tax Advisor Office Address – Flat No.2, (First Floor), Gurudatta Avenue, Popular Heights Road, Koregaon Park, PUNE – 411 001, Phone Office: 0212-633012, Residence Phone -0212-682032, 0212-682444 Disclaimer: The contents of this article are for information purposes only and does not constitute advice or a legal opinion and are personal views of the author.
- It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability.
- Readers are requested to check and refer to relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up.
The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that Author / TaxGuru is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof.
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Which type provides interest subsidy?
What is a subsidized loan? – A subsidized loan is a type of federal student loan, With a subsidized direct loan, the bank, or the government (for Federal Direct Subsidized Loans, also known as Subsidized Stafford Loans) is paying the interest for you while you’re in school (a minimum of half time), during your post-graduation grace period, and if you need a loan deferment.
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Who is eligible for home loan subsidy?
How to Apply for PMAY Scheme – Any household with an annual income up to 18 lakh can apply for PMAY scheme. If you wish to apply for the PMAY subsidy benefit, you can submit your application at any of our 135+ ICICI HFC branches. Our local branch experts will review your request and process your request at earliest. Our aim is to make the process quick and simple for you.
- Download and fill the self-declaration form
- Submit it at your nearest ICICI HFC Branch
- Carry your original ID proof along with Aadhaar card of all family members
*Assessment of your eligibility to avail the benefits of CLSS is at the sole discretion of the Government of India. The content herein is parameters outlined under the PMAY scheme for assessment of entitlement,
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