SBI Dr. Ambedkar Interest Subsidy Scheme

About SBI Dr. Ambedkar Interest Subsidy Scheme

The SBI Dr. Ambedkar Interest Subsidy Scheme is a government initiative aimed at providing financial assistance to students from Other Backward Classes (OBC) and Economically Backward Classes (EBC). This scheme offers a 100% interest subsidy on education loans during the moratorium period, which includes the course duration and an additional year.

This initiative complements various education-focused financial tools like the Child Education Allowance and ensures financial barriers do not limit educational aspirations.

SBI Dr. Ambedkar Interest Subsidy Scheme - Rate of Interest

• Interest Subsidy: Full subsidy during the moratorium period.

• Post-Moratorium Interest: Standard SBI education loan rates apply.

• Tax Benefits: Students can claim tax deductions on interest payments under Section 80E of the Income Tax Act.

For a clear understanding of your tax savings, use this Income Tax Calculator.

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Features of SBI Dr. Ambedkar Interest Subsidy Scheme

The SBI Dr. Ambedkar Interest Subsidy Scheme offers several features that make education more accessible for students from economically weaker sections.

• Comprehensive Coverage: Applicable for professional and technical courses in India and abroad.

• Full Interest Subsidy: Provided during the moratorium period.

• Income Criteria: Available for students from families with annual incomes up to ₹2.50 lakh.

• Flexible Usage: Covers tuition fees, travel expenses, and other course-related costs.

This scheme aligns with broader financial solutions like the Child Education Plan, empowering parents to invest in their child’s future.

Eligibility of SBI Dr. Ambedkar Interest Subsidy Scheme

To avail of this scheme, students must meet the following criteria:

• Nationality: Indian citizens belonging to OBC or EBC categories.

• Income Limit: Annual family income up to ₹2.50 lakh.

• Admission: Secured enrollment in professional/technical courses at recognized institutions.

• Loan Eligibility: Must have a sanctioned education loan under the Indian Banks’ Association Model Scheme.

Documents Required

Applicants need to submit:

• Admission letter from the institution.

• Valid income certificate from a competent authority.

• Caste certificate (OBC/EBC).

• Education loan sanction letter.

• Identity and address proof of applicant and co-borrower.

Parents may also consider securing their child’s educational future through a Child Investment Plan.

Important Terms and Conditions

Before applying, it is crucial to understand the key terms and conditions of the scheme to ensure smooth processing and compliance.

• Interest Subsidy: Applicable only for the moratorium period.

• Income Proof: It is mandatory to provide a valid income certificate.

• Loan Type: Limited to professional and technical degree courses.

• Repayment Terms: Standard SBI terms apply after the moratorium period.