Circular on Educational Loan

Students, who are availing themselves of educational loan facilities from any scheduled bank, and whose annual parental income is less than Rs.4.50 lakhs, are entitled to interest subsidy (No interest need be paid). Such students can claim the same from the banks where they avail themselves of the loan, on production of an income certificate issued by the Zonal Deputy Thasildar of that area. The interest subsidy is available only for the course period plus a moratorium period of six months or one year, or placement, whichever is earlier.

The interest subsidy is available from the year 2009-10, provided they availed the instalment of the loan from the year 2009-10 onwards, though the loan has been sanctioned prior to 2009-10. The subsidy is available only once in their career either at the time of graduation or post-graduation.

Students are advised to contact their respective banks immediately and avail the benefit from this interest subsidy scheme.