The Central government of India has decided to reimburse the interest for education loan of students belonging to Scheduled Caste/Scheduled Tribe (SC/ST) categories, according to the circular made public by the Indian Banks’ Association (IBA).
Banks have been asked to submit their interest subsidy claims for the period April 1, 2009, till financial year 2013-14 by December 31, 2014 to the nodal agency of Canara Bank.
As per the scheme, the government would reimburse the interest amount till the end of one year from the date of completion of the course or six months from the date on which the student lands a job after his/her course, whichever is earlier.
“The Centre would reimburse the interest to those students whose parental income is less than Rs.450,000 per annum, and on loans which are available only for professional and technical courses and not for arts/science, and students of diploma courses,” said, K. Srinivasan, convenor of Education Loan Task Force (ELTF) and a former banker.
SC and ST category students need to submit necessary papers related to interest subsidy claim to the bank manager where they have availed their education loan.
IBA has been informed by the government that the interest subsidy scheme is not available for catering to claims of general category students for the year 2013-14.