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Tuesday, July 20, 2010

About Educational Loan Moratorium By Govt Of India


Central Scheme to provide Interest Subsidy (CSIS) for the period of moratorium on Educational Loans taken by students from Economically Weaker Sections from scheduled banks under the Educational Loan Scheme of the Indian Banks' Association to pursue Technical/Professional Education studies in India



The Government of India has launched a scheme to provide full interest subsidy during the period of moratorium i.e., Course Period plus one year or six months after getting job, whichever is earlier, on loans taken by students belonging to Economically Weaker Sections from scheduled banks under the Educational Loan scheme of the Indian Banks' Association, for pursuing any of the approved courses of studies in technical and professional streams, from recognised institutions in India.

Introduction

One of the major concerns of the Government is to ensure that nobody is

denied Professional education because he or she is poor. The lndian Banks'

Association (IBA) had formulated a comprehensive model educational loan

scheme for adoption by all Banks aimed at providing financial support from

the banking system to deserving/meritorious students for pursuing higher

education in lndia and abroad.



Obiective of the Scheme

The Government of lndia has now approved a scheme to provide full interest

subsidy during the period of moratorium i.e., Course Period plus one year or

six months after getting job, whichever is earlier, on loans taken by students

belonging to Economically Weaker Sections from scheduled banks under the

Educational Loan scheme of the lndian Banks' Association, for pursuing any

of the approved courses of studies in technical and professional streams,

from recognised institutions in lndia. The nomenclature of the Scheme would

be " Central Scheme to provide Interest Subsidy (CSIS) for the period of

moratorium on Educat~onal Loans taken by students from Economically

Weaker Sections from scheduled banks under the Educational Loan Scheme

of the lndian Banks' Association to pursue Technical Professional Education

studies in lndia".



Applicabilitv of the Scheme

The Scheme wuld be adopted by all scheduled Banks and would be

applicable only for studies in recognised Technical/Professional Courses in

India. The interest subsidy shall be linked with the existing Educational Loan

Scheme of IBA and restricted to students enrolled in recognised

T e c h n i c a l / P r o s S I O n c S anal)

lnstitutions established by Acts of Parliament, other lnstitutions recognised by

the concerned Statutory Bodies, lndian Institutes of Management (IIMs) and

other lnstitutions set up by the CentrallState Government.



lnterest Rates

The interest rates charged on the educational loan shall be as per the

BPLRJBase Rate of the individual banks and as per the provisions for interest

rates under the IBA Model Educational Loan Scheme.



For More Details

http://www.education.nic.in/scholarship/IBAM.pdf