The scheme provides interest subsidy to the students belonging to the OBCs and EBCs on the interest payable for the period of the moratorium for the Education Loans for overseas studies to pursue approved courses of studies abroad at Masters, M.Phil. and PhD level.
💰Under the scheme, interest payable by the students availing the education loans of the IBA for the period of moratorium (i.e. course period, plus one year or six months after getting a job, whichever is earlier) as prescribed under the Education Loan Scheme of the IBA, shall be borne by the Government of India. | - For a student, the eligible loan component shall be the actual loan taken subject to a maximum of ₹ 20,00,000 for the purpose of an Interest subsidy claim. | NOTE 1: 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. | NOTE 2: The candidate will bear the Principal instalments and interest beyond the moratorium period. | Release of Funds | The funds will be released to the applicants on a first-come-first-served basis, subject to a maximum amount to be worked out every year based on the total budget made available that year, under the scheme.