Interest subsidy to students on education loans

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For the students burdened under the heavy education loans, this might come as a great piece of news. It is believed that around 1343 students belonging to minority communities have been given interest subsidy on educational loans for overseas studies under government's 'Padho Pardesh' scheme. Mukhtar Abbas Naqvi, Union Minister of State for Minority Affairs informed that the government released a total sum of Rs 7.50 crore, which benefitted 1,343 students between 2014-15 and 2015-16. The scheme is 100 percent centrally sponsored and is implemented by the Ministry through the Canara Bank.

He further stated that the bank had received 364, 1,089 and 3,195 claims for interest subsidy on education loans during the years 2013-14, 2014-15 and 2015-16 respectively.

He concluded by saying that students can avail an educational loan through the existing Educational Loan Scheme of any of the member banks of the Indian Banks Association (IBA) and claims an interest subsidy.


About the scheme -

1. It is aimed at students enrolling in courses such as MPhil, PhD and masters.

2. The student would be required to secure admission into a foreign university to be eligible for the scheme.