NCLT: Suspended Directors Who are Prospective Resolution Applicants Cann’t Access Valuation Reports  ||  Supreme Court Clarifies Test For Granting Bail to Accused Added at Trial under Section 319 CrPC  ||  SC: Fresh Notification For Vijayawada ACB Police Station not Required After AP Bifurcation  ||  SC: Studying in a Government Institute Does Not Create an Automatic Right to a Government Job  ||  NCLT Mumbai: CIRP Claims Cannot Invoke the 12-Year Limitation Period For Enforcing Mortgage Rights  ||  NCLAT: Misnaming Guarantor as 'Director' in SARFAESI Notice Doesn't Void Guarantee Invocation  ||  Jharkhand HC: Mere Breach of Compromise Terms by an Accused Does Not Justify Bail Cancellation  ||  Cal HC: Banks Cannot Freeze a Company's Accounts Solely Due To ROC Labeling a 'Management Dispute'  ||  Rajasthan HC: Father’s Rape of His Daughter Transcends Ordinary Crime; Victim’s Testimony Suffices  ||  Delhi HC: Judge Who Reserved Judgment Must Deliver Verdict Despite Transfer; Successor Can't Rehear    

Interest Free Loans to IIT Students- (Press Information Bureau) (04 Aug 2016)

MANU/PIBU/0651/2016

Banking

Interest subvention on the education loans to be provided, for all students admitted for undergraduate and the 5-year integrated degree programmes in IITs, covering the period of the study plus one year of moratorium under the Vidyalaxmi Scheme, subject to the following guidelines:

(i) The facility shall be made available to all the students whose household income does not exceed Rs. 9 lakh per annum.
(ii) The education loan, for this purpose, shall cover only the tuition fee payable by the student as per his eligibility. The portion of the tuition fee paid by the student from his own sources at the time of securing admission could be reimbursed from the overall loan.
(iii) The terms of the loan shall be in accordance with the broad contours of the Educational loan Scheme of the Indian Banks' Association (IBA) for pursuing Technical/Professional Education studies in India.
(iv) The term of the loans sanctioned under this dispensation shall be 10 years.
(v) There shall be no collateral for sanction of the loan except the personal guarantee of the student (applicant) and the parent/guardian (co-applicant).
(vi) The subvention of interest (on equated basis) shall be applicable for a maximum period of 5 years (which may include a one year moratorium).
(vii) After the expiry of the above period, the interest on the outstanding loan amount shall be paid by the student, in accordance with the provisions of the existing educational loan scheme of the Banks and as may be amended from time to time.
(viii) This facility is applicable only to the loans taken by the students who secured admission into the undergraduate courses of IITs (including the integrated courses) starting from the academic year 2016-17.
(ix) The interest subvention is subject to the satisfactory performance of the student in the institution.
(x) Payment of the interest subvention shall be from the internal accruals of the IIT.

However a Central Sector Scheme to provide interest subsidy on educational loan (CSSIS) is presently operational which provides full interest subsidy during the period of moratorium (course period + one year) on loans taken by students belonging to EWS from Scheduled banks under the Model Educational loan Scheme of the IBA for pursuing any of the approved courses of studies in technical & professional streams, from recognized institutes in India.

Tags : LOANS   INTEREST FREE   IIT STUDENTS  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved