What expenses are covered under this govt scheme?

The scheme covers the interest payable on the educational loan during the moratorium period, which includes the course duration plus one year or six months after securing a job, whichever is earlier.

How can one apply for the interest subsidy?

Students can apply through the designated portal of the implementing bank, which is typically Canara Bank.

What happens after the moratorium period?

After the moratorium period, the student is responsible for repaying the principal amount and the interest accrued on the outstanding loan amount as per the existing terms of the educational loan scheme.

Are there any reservations or priorities under this government scheme?

Yes, the scheme ensures that at least 50% of the interest subsidy amount is earmarked for female candidates to promote gender equality and empowerment

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Dr. Ambedkar Scheme Of Interest Subsidy On Educational Loans For Overseas Studies: A Step Of Empowerment

Q: What is the Dr. Ambedkar Scheme of Interest Subsidy on Educational Loans for Overseas Studies?

The Dr. Ambedkar Scheme is a central sector initiative by the Ministry of Social Justice and Empowerment, Government of India. It provides interest subsidies on educational loans for students from Other Backward Classes (OBCs) and Economically Backward Classes (EBCs) who wish to pursue higher education

Tanisha

Author

Updated: 09-04-2025 at 12:30 PM

One of the things that contributes exceptionally to an individual’s growth and development is quality education. It not only shapes a person’s career but their personal life as well. Therefore, it is of utmost importance to deliver good quality education for a child’s wholesome development through government schemes for education.

However, we live in times where everything has a value attached to it including crucial components such as education, and families who aren’t financially well experience this as the biggest barrier in the path of learning. Therefore, to tackle this issue and provide monetary help to the students, the Ministry of Social Justice and Empowerment introduced the Dr. Ambedkar Scheme of Interest Subsidy on Educational Loans for Overseas Studies to support students from marginalised communities to pursue further education abroad.

Objectives Of Dr Ambedkar Scheme of Interest Subsidy on Educational Loans for Overseas Studies

The main objective behind the creation and launch of the Dr. Ambedkar Scheme of Interest Subsidy on Educational Loans for Overseas Studies is to empower students belonging to the Other Backward Classes (OBC) and Economically Backward Classes (EBC) financially to enable them to pursue higher education beyond the shores of India.

The government scheme is named after one of the architects of India’s constitution, Dr. B.R. Ambedkar whose vision was to make education knock on every door of the homes of Indian families.

The Sarkari Yojana offers considerable subsidies in educational loans so that the students can focus on what they are supposed to. i.e. learning what they are passionate about. It also promotes equality and ensures that every student gets equal opportunities to advance their careers.

Key Features Of The Dr Ambedkar Scheme of Interest Subsidy on Educational Loans for Overseas Studies

The significant features covered under this scheme include

The Dr. Ambedkar Scheme of Interest Subsidy on Educational Loans for Overseas Studies provides interest subsidies on educational loans.
The amount of the subsidy is dependent upon the release of funds each year for this subsidy scheme and the maximum amount is decided thereof on a first come-first serve basis.
The loans are given for the moratorium which includes the period of education plus a year or six months extra after getting a job which implies that the government pays off the entire interest on the loans as prescribed under the Educational loan scheme of the Indian Banks Association (IBA).

Benefits Of Dr Ambedkar Scheme

The primary features offered under the scheme are as follows

The scheme covers numerous disciplines such as social sciences, pure sciences, engineering, Nano-technology, MBA, veterinary services, and any other subject a student wishes to pursue further studies in from esteemed institutions abroad.
The scheme applies to educational loans applied for studying in numerous countries like the U.S.A, UK, Canada, New Zealand, and others. The loan covers a range of expenses like tuition fees, travel and living expenses, etc. The scheme lifts one of the heaviest burdens from students and aims to remove the financial obstacles from their path.

Dr Ambedkar Central Sector Scheme eligibility

To be eligible for this scheme, the following criteria must be met.

Candidates must belong to either OBC (with family’s annual income not exceeding 8 lakhs or EBC (with family’s annual income not exceeding 2.5 lakhs) categories and produce relevant documents like Income Certificate to prove the same.
Candidates should’ve availed loans from banks under the IBA.
The candidate must’ve secured admission in approved courses abroad for pursuing a Master’s, M.Phil, or Ph.D.

Conclusion

The Dr. Ambedkar Scheme of Interest Subsidy on Educational Loans for Overseas Studies is an exceptional initiative taken by the government to ensure that every student of India gets a chance to receive a world-class education of their choice in their chosen fields by lifting the worries concerned with finance. After all, everyone deserves the right to education.

If you’ve any queries, you can contact the Department of Social Justice & Empowerment through their official website.

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