Higher education costs are rising, but financial constraints shouldn’t stop students from achieving their dreams. To make education more affordable, the Government of India offers subsidized student loan schemes that reduce interest burden and provide flexible repayment options. Here’s a breakdown of the key schemes every student should know about.
1. Central Sector Interest Subsidy (CSIS) Scheme
For students from families with an annual income of up to ₹4.5 lakh.
Provides full interest subsidy during the moratorium period (course duration + 1 year).
Applicable for loans taken from scheduled banks under the IBA model.
2. Padho Pardesh Scheme (for Minority Students)
Supports students from minority communities pursuing higher studies abroad.
Offers interest subsidy during the moratorium period.
Applicable for loans under IBA guidelines. (Note: Recently merged into broader schemes, but benefits continue for existing students.)
3. Dr. Ambedkar Central Sector Scheme
For students from OBC and EBC categories pursuing higher studies abroad.
Provides interest subsidy during moratorium period.
Aimed at promoting access to international education.
4. State-Specific Subsidy Schemes
Several states like Kerala, Tamil Nadu, and Bihar offer additional education loan subsidies for local students.
Example: Kerala’s Education Loan Repayment Support Scheme helps families repay interest.
Check with state governments for eligibility and benefits.
5. Vidya Lakshmi Portal
A single-window digital platform to apply for multiple education loans.
Linked with the CSIS subsidy scheme for smooth processing.
Helps students compare loan offers from banks.
Benefits of Subsidized Loan Schemes
✅ Reduced financial burden during studies
✅ No interest payment until moratorium ends
✅ Access to quality education in India and abroad
✅ Support for economically weaker and minority sections
Conclusion:
Government-subsidized student loan schemes are designed to make higher education affordable and accessible for all. By availing these benefits, students can focus on academics without the constant stress of rising costs. If you’re planning higher studies, explore these schemes before applying for a loan.
FAQ :
Q1: Do I need to repay during my course?
No, under most schemes, you only start repayment after the moratorium period.
Q2: Can I apply for subsidies if I study abroad?
Yes, certain schemes like Padho Pardesh and Dr. Ambedkar Scheme support overseas studies.
Q3: Where can I apply for these schemes?
Applications are usually processed via the Vidya Lakshmi Portal or directly through banks.
Q4: Are these schemes only for economically weaker sections?
Yes, subsidies are primarily targeted at students from EWS, OBC, EBC, and minority communities.
Q5: What is the maximum loan amount covered?
It depends on the scheme and bank—loans may cover ₹7.5 lakh for India and up to ₹20–30 lakh for abroad studies.
Published on : 4th September
Published by : SMITA
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