Dr Ambedkar Central Sector Scheme of Interest Subsidy on Educational Loans for Overseas Studies for Other Backward Classes (OBCs) and Economically Backward Classes (EBCs) is running for meritorious students who want to study abroad at Masters, M.Phil or PhD level. Under this scheme, the government pays the interest on your education loan for the study period, which takes away a big part of the money pressure on you and your family.
The scheme is carried out by Canara Bank, which works as the Nodal Bank for the Ministry of Social Justice. The interest subsidy covers a loan amount of up to ₹20 lakh, and both OBC and EBC students whose family income stays within ₹8 lakh a year can put in their request through their bank branch. The whole process is linked to the Indian Banks Association (IBA) education loan model.
Dr Ambedkar Scheme of Interest Subsidy for Overseas Education - Introduction
This scheme gives interest subsidy to students belonging to OBC and EBC groups for the interest payable during the moratorium period of education loans taken for approved courses abroad at Masters, M.Phil and PhD level. During the moratorium, which means the course period plus a grace time of up to one year or six months after getting a job (whichever is earlier), the government takes care of the interest that keeps adding up on your loan.
Dr Ambedkar Central Sector Scheme of Interest Subsidy on Educational Loans for Overseas Studies for OBCs and EBCs is a central scheme run by the Ministry of Social Justice (Department of Social Justice). It helps students who clear the income and category rules to reach their study goals abroad without carrying a heavy interest burden on top of the loan amount.
Implementing Agency
Canara Bank runs this scheme as the Nodal Bank following the Memorandum of Understanding (MoU) signed between the banks and the Ministry of Social Justice. Students can check the status of their claim on the official Canara Bank ACSIS portal at csis.canarabank.bank.in.
Objective
The main aim is to give interest subsidy to students from OBC and EBC backgrounds so they can get better access to higher education abroad and improve their career chances and job options later.
Key Information
| Key Parameter | Details |
|---|---|
| Scheme Name | Dr Ambedkar Central Sector Scheme of Interest Subsidy on Educational Loans for Overseas Studies for OBCs and EBCs |
| Level | Central |
| Nodal Bank | Canara Bank |
| Eligible Group | Students from OBC and EBC communities |
| Ministry | Ministry of Social Justice |
| Benefit | Interest subsidy on overseas education loans |
| Loan Limit | ₹20 lakh |
| Income Limit | ₹8 lakh per year for OBC and EBC |
Benefits
This scheme makes sure the government covers the interest part of your education loan during the moratorium period. This includes the course duration plus a grace period of up to one year or six months after securing a job, whichever is earlier.
For example, if a student named Ravi takes an education loan to study in the UK, the government pays the interest on the loan during his 2-year Master's degree and the six-month job search period that follows. This way the principal keeps growing only up to the original loan amount, not with the interest added on top.
The eligible loan amount for this interest subsidy benefit is capped at ₹20,00,000.
Note:
- After the moratorium ends, you must pay the interest on the outstanding loan amount yourself.
- You are responsible for paying the principal loan amount and any interest that accrues after the moratorium period.
Release of Funds
The authorities release funds on a first-come-first-served basis. The total payment depends on the yearly budget set aside for this scheme.
Eligibility
To qualify for this support, you should meet the following criteria:
- You must be a student enrolled in a recognized Master, M.Phil or PhD program abroad.
- You must have taken an education loan from a scheduled bank under the Indian Banks Association (IBA) guidelines.
- Your total family income from all sources must not cross ₹8,00,000 per year. This limit is the same for both OBC and EBC students.
Reservation and Priority
The government sets aside at least 50% of the yearly budget specifically for girl students, so they get priority access to these benefits.
Application Process
You need to follow the normal education loan process via your bank. The interest subsidy is built directly into the Indian Banks Association (IBA) loan framework. Since the scheme works under the broader SHREYAS umbrella, students can also find related details through the SHREYAS scheme page.
STEP 1 - Apply for an education loan at your bank under the standard IBA guidelines for overseas Masters, M.Phil or PhD studies.
STEP 2 - Tell your bank branch that you are interested in this scheme. Since Canara Bank is the Nodal Bank, the branch will guide you on how the subsidy claim gets raised on the official portal.
STEP 3 - Keep an eye on the claim status on the Canara Bank ACSIS portal at csis.canarabank.bank.in. A dedicated Recommendatory Committee checks applications every quarter so that eligible students get the subsidy fairly.
Documents
Make sure you have the following documents ready for your online request:
- Passport-sized photograph of the candidate.
- Aadhaar Card number.
- Proof of educational qualification.
- Bonafide certificate from the foreign university.
- OBC caste certificate (if applicable) as per the prescribed format.
- Valid income certificate (ITR, Form 16 or State Government issued document).
- Bank details including your Aadhaar-linked account number.
References
FAQ's
Is there a separate fund allocation for female students?
Yes, at least 50% of the budget is reserved for female students.
Can the subsidy be provided for courses partially in India and partially abroad?
Yes, provided the final degree is awarded by a recognized foreign university.
Can students extend the moratorium period?
Yes, you may request an extension for the moratorium period if you obtain approval from the competent authority.
Are students from State OBC lists eligible?
No, this scheme is specifically for students included in the Central List of OBCs.
How is the income criteria verified?
The income certificate submitted at the time of your loan request serves as the proof, and later changes to your financial status typically do not affect your subsidy eligibility for that loan account.