Was there any subsidy for education loan in the current budget?

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Was there any subsidy for education loan in the current budget?

Hi , I have taken a education loan of 4 Lakh for my graduate, now that I have completed my graduation compound interest started on the principal amount , which is alot for a graduate to pay(70 % of my salary Per month). So just wanted to know if there was any subsidy or deduction in the loan interest was there in the current budget? Any information will be helpful.

Many thanks in advance.

Profile photo of ved Asked By: ved 1 replies 1 helpful answers Last Updated: 7 months, 2 weeks ago
  • Profile photo of vedved
    Participant

    Hi , I have taken a education loan of 4 Lakh for my graduate, now that I have completed my graduation compound interest started on the principal amount , which is alot for a graduate to pay(70 % of my salary Per month). So just wanted to know if there was any subsidy or deduction in the loan interest was there in the current budget? Any information will be helpful.

    Many thanks in advance.

  • Profile photo of Chetan ChandakChetan Chandak
    Moderator

    There are two types of Interest Subsidy scheme for students pursuing education in India.

    1. First Scheme: For Loans granted / disbursed on or after 1st April 2009;
    2. Second Scheme: For Loans granted / disbursed prior to 1st April 2009;

    Eligibility: For both the Schemes, the eligibility is as follows:
    a) The Education Loan should have been sanctioned under IBA Scheme;
    b) The Loan should have been granted to pursue professional or technical courses in approved Institutions after 12th std. (Diploma students joining Engineering Courses through lateral entry are also eligible);
    c) The education should be within India;
    d) The gross parental income should be less than 4.50 lakhs.
    To know more you can visit below links
    http://mhrd.gov.in/scholarships-education-loan-4
    http://www.eltf.in/2015/09/clarifications-on-education-loan.html

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