Dr. Ambedkar Central Sector Scheme of Interest Subsidy on Educational Loan for Overseas Studies for OBC

The Interest Subsidy on Educational Loan for Overseas Studies for OBC is started by central government (Ministry of Social Justice and Empowerment) Department of Social Justice & Empowerment for OBC students to promote educational advancement of the student from other backward classes by providing subsidy over education loan interest. The objective of the scheme is to award interest subsidy to meritorious students belonging to weaker sections of the society so as to provide those better opportunities for higher education abroad and enhance their employability

Benefits of Interest Subsidy on Educational Loan for Overseas Studies for OBC:

• Under this scheme subsidy will be provided for the education loan interest for pursuing masters and Ph.D. level courses
• Rate of Interest Subsidy

1. 50% Interest Subsidy will be given to the girl candidate
2. Under the scheme, interest payable by the students availing the education loans of the IBA (Indian Bank Association)for the period of moratorium (i.e. course period, plus one year or six months after getting job, whichever is earlier) as prescribed under the education loan scheme of the IBA, shall be borne by the Government of India
3. The candidate will bear the principal installments and interest beyond moratorium period
4. After the period of moratorium 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

Required eligibility and conditions for Interest Subsidy on Educational Loan for Overseas Studies for OBC:

1. Student should have availed loan from a scheduled bank under the education loan scheme of the Indian Banks Association (IBA) for the purpose
2. Total income from all sources of the employed candidate or his/her parents/guardians in case of unemployed candidate shall not exceed Rs.3.00 lakh per annum
3. 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
4. Student should belong to OBC category
5. The students should have secured admission in the approved courses at Masters, M.Phil or Ph.D. levels abroad e.g. Arts/Humanities/Social Sciences for more please visit: http://www.nbcfdc.gov.in/res/pdf/Guidelines%20Dr.%20Ambedkar%20Interest%20Subsidy%20OBC.pdf

Application procedure for applying Interest Subsidy on Educational Loan for Overseas Studies for OBC and document required:   

1. OBC Caste certificate
2. Income certificate/ ITR/Form 16/Audited Accounts of an employed candidate or his/her parents/guardians below Rs. 300000 (3 lakh)
3. Admission proof that student is pursuing higher education in abroad e.g. I-20
4. Aadhar card
5. Identity proof e.g. passport
6. Address proof e.g. electricity bill
7. Bank details, account holder name, account number, IFSC code, MICR code

Application procedure:

1. The scheme is applicable for higher studies abroad. The interest subsidy will be linked with the existing educational loan scheme of Indian Banks Association (IBA) and restricted to students enrolled for course at Masters, M.Phil and Ph.D. level
2. Student has to go designated bank the designated banks will lay down the detailed procedure for processing and sanctioning of interest subsidy to eligible students in consultation with NBCFDC

Whom to contact and where to contact:

1. Student has to contact designated bank where he has applied for education loan and should check eligibility and apply with proper documents
2. Should contact the District. Collector or District. Manager/Officer of respective SCA’s (state channelizing agencies)
3. Forgetting state channelizing agencies address and contacts states please visit following link: http://nbcfdc.gov.in/nbcfdc-scas.php

References & details:

1. http://www.nbcfdc.gov.in/res/pdf/Guidelines%20Dr.%20Ambedkar%20Interest%20Subsidy%20OBC.pdf
2. http://www.nbcfdc.gov.in/#