The revamped Central Sector Interest Subsidy Scheme 2009 lays some eligibility criteria which need to be met in order to avail subsidized education loan facility extended by the government. Here are given the various eligibility stipulations that need to be fulfilled in order to be eligible for such a loan offering:
It is important to mention that in the subsidized loan scheme, the loan of up to Rs. 7.5 lakh is made available without a third-party guarantee or collateral security.
1. Education loans availed under IBA Model Education Loan Scheme.
2. Students with parental income up to Rs. 4.5 lakhs annually.
3. The loan offering is extended particularly for courses offered by NAAX accredited institutions or technical or professional programmed with accreditation by NBA or Institutions of National Importance or Central Funded Technical Institutions (CFTIs).
4. Further those educational courses that do not form the part of the above specified accreditation need to obtain necessarily approval from their respective regulatory bodies such as Medical Council of India for medical course, Bar Council of India for law etc.
5. The loan is granted only either for undergraduate or post-graduate programme or for integrated programmes where the under-graduation and post-graduation programs are jointly covered.
Other important points
1. Interest subsidy in case of the subsidized loan will also be discontinued in a case when the candidate leaves the course mid-term or is expelled due to some disciplinary misconduct.
2. Nonetheless, when the candidate discontinues his or her course due to medical grounds, the subsidy shall be available.
3. HRD ministry guideline says, "Under the Scheme, 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."