SBI Dr. Ambedkar Interest Subsidy Scheme

Education is one of the most significant investments for a brighter future, but financial challenges can hinder aspirations. The SBI Dr. Ambedkar Interest Subsidy Scheme is designed to support students from economically weaker sections, ensuring they can pursue their academic dreams without financial stress. This scheme offers interest subsidies on education loans during the moratorium period, enabling students to focus on their studies.

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Disclaimer: #The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. *Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.

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 â‚ą2.50 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 â‚ą2.50 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.

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Invest â‚ą8K/Month YOU GET â‚ą80 Lakhs* For Your Child View Plans
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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.

Unique Triple Benefit
  • Future premiums paid by insurer on parent's death
  • Monthly income to fund child's education on parent's death
  • Lumpsum payout to family on parent's death
Returns
  • Return as of Apr 2024
  • 12%-15%
  • 8.2%
  • 7.1%
Availability
  • Availability
  • Girl Child or Boy Child
  • Girl child only
  • Girl Child or Boy Child
  • Max Entry Age
  • Upto 18 years
  • Upto 10 years
  • No Age Limit
Flexibility
  • Invested Amount can be Withdrawn after
  • 5 years
  • 21 years
  • 15 years
  • Conditions for Premature closure
  • Anytime after 5years
  • Extreme Compassionate Grounds
  • Serious Ailments or for education
  • Penalty on Premature Closure
  • No Penalty after 5 years
  • Returns reduced to Post Office Savings rate
  • 1% reduction in interest rate
  • Max deposit amount in an year
  • No Limit
  • 1.5 Lacs
  • 1.5 Lacs
Documentation
  • Documentation Required for Withdrawal
  • Low
  • High
  • Low
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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.

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FAQs

  • Who is eligible for the SBI Dr. Ambedkar Interest Subsidy Scheme?

    Students from OBC and EBC categories with annual family incomes up to â‚ą2.50 lakh.
  • Does the scheme support international education?

    Yes, it covers professional and technical courses abroad.
  • Can I claim tax benefits under this scheme?

    Yes, interest payments are eligible for tax deductions under Section 80E of the Income Tax Act.
  • Is collateral required for the education loan?

    Collateral requirements depend on the loan amount and the bank’s policy.
  • Are diploma courses included under this scheme?

    No, the scheme is applicable only for professional and technical degree courses.
    By leveraging tools like the SBI Dr. Ambedkar Interest Subsidy Scheme, students can pursue quality education with ease. For additional funding options, explore Education Loan services tailored to your needs.

Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
*All savings are provided by the insurer as per the IRDAI approved insurance plan.
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CARG 8%; ₹50,45,591 @ CAGR 4%
+Returns Since Inception of LIC Growth Fund
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.

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