Dr. Ambedkar Central Sector Scheme of Interest Subsidy on Educational Loans for Overseas Studies for OBCs & EBCs Students
Scholarship Amount
About This Scholarship
The Dr. Ambedkar Central Sector Scheme offers an interest subsidy on educational loans for eligible Other Backward Classes (OBCs) and Economically Backward Classes (EBCs) students pursuing overseas studies. This initiative aims to provide significant financial support to students undertaking higher education abroad.
The scheme covers the interest that accrues on educational loans during the moratorium period. This period typically spans the duration of the course, plus one year or six months after securing a job, whichever comes first, as defined by the Indian Banks' Association (IBA) Education Loan Scheme. This means the Government of India will bear the interest burden during this crucial initial phase.
Once the moratorium period concludes, students become responsible for paying the interest on the remaining loan amount, in addition to repaying the principal. The interest rate during this period will adhere to the prevailing terms and conditions of the IBA's Education Loan Scheme, which may be subject to change.
Essentially, the scheme provides vital financial relief during the early stages of a student's career by covering initial interest costs. This allows students to focus on their studies and career development without the immediate burden of interest payments. After the moratorium, students are then responsible for the full repayment of their loan.
Eligibility Criteria
Applicants must fulfill the following criteria to be eligible for applying for the scheme:
• Students must have secured admission in approved courses at Master's, M.Phil, or Ph.D. levels abroad for one of the following courses/disciplines:
• Arts/Humanities/Social Sciences/Commerce
• Pure Sciences
• Engineering
• Biotechnology/Genetic Engineering
• Industrial Environmental Engineering
• Nano-Technology
• Marine Engineering
• Petro-chemical Engineering
• Plastic Technology
• Cryogenic Engineering
• Mechatronics
• Automation Robotics including artificial intelligence
• Laser Technology
• Low Temperature Thermal Dynamics
• Optometry
• Art Restoration Technology
• Dock and Harbour Engineering
• Imaging System Technology
• Composite Materials Engineering including Decentralized Power Distribution (for Solar Heat) System, Energy Storage Engineering, Energy Conservation, Energy Efficient Habitat
• Packaging Engineering/Technology
• Nuclear Engineering
• Information Technology including Computer Engineering, Software, Software Quality Assurance, Networking/Connectivity Engineering, Communication system under Hazardous or Post-Disaster conditions, Multimedia Communication
• Industrial Safety Engineering
• Agriculture & Agro Technology
• Agronomy
• Medical
• Floriculture & Landscaping
• Food Sciences & Technology
• Forestry & Natural Resources
• Horticulture
• Plant Pathology
• Energy Studies
• Farm Power & Machinery
• Veterinary Sciences
• Soils & Water Management
• Plant Breeding & Genetics
• Small-scale Rural Technology
• Ocean & Atmospheric Sciences
• MBA
• MCA
• Applicants must have availed a loan from a scheduled bank under the Education Loan Scheme of the Indian Banks Association (IBA).
• Students must have an annual family income of ₹8,00,000. (For detailed income criteria, please refer to the official scheme guidelines.)
Important Notes:
• The scheme is applicable to students pursuing higher education outside of India. It provides an interest subsidy that works in conjunction with existing education loan schemes offered by the Indian Banks' Association (IBA). The subsidy is only available for students enrolled in Master's, M.Phil, or Ph.D. courses.
• The interest subsidy will be given only once to eligible students, either for their Master's or Ph.D. studies.
• Students who discontinue their course midway, for any reason, or are expelled due to disciplinary or academic reasons, will not be eligible for the interest subsidy.
• If a student is found to have obtained the subsidy through false statements or certificates, the subsidy will be withdrawn/cancelled forthwith, and the amount of the subsidy paid shall be recovered with penal interest. Criminal action may also be taken as per law.
• Students receiving benefits under this Scheme will not be eligible for the interest subsidy if they relinquish Indian citizenship during the loan tenure.
• The nodal bank will maintain separate accounts and records for funds received from the Ministry of Social Justice and Empowerment. These will be subject to inspection/audit by Ministry officials or any other designated agency and the Comptroller and Auditor General of India (C&AG).
• The Nodal Bank will publish all relevant financial and physical achievement details on its website and implement the scheme according to the Memorandum of Understanding signed between the designated Banks and the Ministry of Social Justice and Empowerment.
• The Nodal Bank will establish a detailed procedure for processing and sanctioning interest subsidies to eligible students in consultation with the Ministry.
For more details, please refer to the official scheme guidelines.
Required Documents
The following documents are typically required:
• A valid passport
• Admission letter from a foreign university
• Loan sanction letter
• Caste certificate
• Disability certificate (if applicable)
• Income certification viz. ITR/Form 16/Audited Accounts
• Income certificate issued by the authority of State Government/UT Administration
• Other relevant documents as specified by the bank
How to Apply
Eligible applicants can apply for the subsidy by following the steps below:
Online Process:
1. Visit the official application portal or UMANG app.
2. Register or Log In: If you are a new user, click on the 'Register' button and fill in the required details, using a valid mobile number to register. If you are already registered, log in using your registered email ID.
3. Locate the Scheme: Once registered and logged in, access the 'Schemes' section within the app/portal and search for the 'Dr. Ambedkar Central Sector Scheme (ACCSIS)'.
4. Initiate Application: Upon finding the ACCSIS Scheme, begin the loan application process by filling out all necessary details and uploading the required documents.
5. Track Progress: After submitting your application, you can track its progress directly through the UMANG app or the application status section on the official website.
Offline Process:
1. The interest subsidy is linked to the existing Educational Loan Scheme of the Indian Banks' Association (IBA) and is restricted to students enrolled in Master's, M.Phil, and Ph.D. programs.
2. The Nodal Bank will establish a detailed procedure for processing and approving interest subsidies for eligible students in consultation with the Ministry.
3. A Recommendatory Committee, headed by the Joint Secretary in charge of the Backward Classes Division, with representatives from the Finance Division, the Nodal Bank, and the concerned Director/Deputy Secretary as convener, will review and recommend applications for interest subsidies every quarter.