GUIDELINES – DR. AMBEDKAR CENTRAL SECTOR INTEREST SUBSIDY SCHEME ON EDUCATION LOANS FOR OVERSEAS STUDIES TO STUDENTS BELONGING TO OTHER BACKWARD CLASSES (OBCs) AND ECONOMICALLY BACKWARD CLASSES (EBCs)

The scheme promotes educational advancement of OBC and EBC students through interest subsidy for overseas higher education.

The objective is to provide better opportunities for higher education abroad and enhance employability.

The subsidy is restricted to approved overseas courses at Masters, M.Phil. and Ph.D. levels.

The subsidy is linked with the existing Educational Loan Scheme of the Indian Banks Association (IBA).

The scheme is specifically for higher studies abroad.

Interest subsidy is available only once, either for Masters or Ph.D. levels.

Students who discontinue the course mid-stream for any reason are not eligible for the subsidy.

Students expelled on disciplinary or academic grounds are excluded from interest subsidy.

Violation of any scheme condition results in immediate discontinuation of the subsidy.

The subsidy can be withdrawn/cancelled, recovered with penal interest, and criminal action may also be taken as per law.

The scheme does not provide interest subsidy if the student gives up Indian citizenship during the loan tenure.

Professional courses are to be considered first on a preferential basis.

Banks must obtain the prescribed OBC caste certificate issued by the competent authority.

The student must have availed an education loan from a scheduled bank under the IBA scheme.

The guidelines state that students who have availed subsidy under another scheme, including CSIS, can also be eligible under this scheme.

OBC communities are determined as specified under the National Commission for Backward Classes Act, 1993.

EBCs are communities/castes that are not included in SC, ST or OBC categories.

For OBC candidates, total income from all sources must not exceed the present Creamy Layer criterion of Rs. 8 lakh per annum.

For EBC candidates, the ceiling was Rs. 2.50 lakh for loans sanctioned on or before 30.06.2020.

For this sanction period, the EBC income ceiling was Rs. 8 lakh per annum.

From 01.04.2021 onward, the EBC family income ceiling is Rs. 5 lakh per annum.

The guidelines refer to total income from all sources of the employed candidate.

For an unemployed candidate, total income from all sources of the parents/guardians is considered.

The scheme accepts specified income documents including ITR, Form 16, audited accounts certificate and government-issued income certificate.

The guidelines state that the income certificate is required to be submitted only once.

The Government bears interest payable during the moratorium period, defined as course period plus one year.

After the moratorium, the student pays interest on the outstanding loan amount.

The candidate bears principal installments and interest beyond the moratorium period.

Canara Bank is specified as the Nodal Bank implementing the scheme.

The Ministry of Social Justice and Empowerment monitors the scheme‘s performance.

The Nodal Bank is required to furnish quarterly financial and physical progress reports.

The Nodal Bank will place relevant physical and financial details on its official website.

The Ministry may assign evaluation or impact studies to reputed institutions/agencies.

Engineering is included in the indicative list of covered subjects at Masters, M.Phil. and Ph.D. levels.

The list includes Automation Robotics including artificial intelligence.

MBA is expressly included in the indicative subjects/discipline list.

Nano-Technology is one of the disciplines listed under the scheme.

At least one of the four specified KYC details is mandatory from January 2017 for successful de-duplication.

The scheme states that professional courses should be considered on a preferential basis first.

Information Technology, including computer engineering, software, software quality assurance and networking/connectivity engineering, is included in the indicative list.