Lok Sabha Question No. 860 (UNSTARRED), answered on 2018-07-23
Subject: Interest Subsidy on Education Loans
Ministry: HUMAN RESOURCE DEVELOPMENT
Asked by: ANBUMANI RAMADOSS

## GOVERNMENT OF INDIA MINISTRY OF HUMAN RESOURCE DEVELOPMENT DEPARTMENT OF HIGHER EDUCATION

## LOK SABHA

UNSTARRED QUESTION NO.860 TO BE ANSWERED ON 23.07.2018

## Interest Subsidy on Education Loans

## 860. DR. ANBUMANI RAMADOSS:

Will the Minister of HUMAN RESOURCE DEVELOPMENT be pleased to state:

- (a) whether the Government is aware that the full interest subsidy on education loans is not being reimbursed to the eligible students instead only partial amount is being reimbursed to them;
- (b) if so, the details thereof and the reasons therefor;
- (c) the details of interest subsidy claimed by the banks on such loans and the amount reimbursed during the last five years; and
- (d) whether the Government proposes to reimburse the full interest subsidies to the students and if so, the details thereof?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF HUMAN RESOURCE DEVELOPMENT

## (DR. SATYA PAL SINGH)

- (a) to (d): Ministry  of  Human  Resource  Development  is  implementing  'Central  Sector  Interest Subsidy Scheme' (CSIS). Under the Scheme, full interest subsidy is provided for the moratorium period (course period plus one year) on the education loan up to Rs. 7.5 lakh taken from Scheduled Banks under the Model Education Loan Scheme. The benefits of the Scheme are applicable to students belonging to Economically Weaker Sections (EWS) having parental income up to Rs. 4.5 lakh per annum.

Under the Scheme, interest subsidy claims for all categories i.e. General, Scheduled Caste and Scheduled Tribe have been settled upto the financial year 2015-16. For the financial years 2016-17 and 2017-18,  interest  subsidy  claims  forthe  students  belonging  to  the  Scheduled  Castes  and  Scheduled Tribeshave been settled and General category students have been disbursed interest subsidy on pro rata basis. The details of the claims lodged and amount settled is as per the table below: -

(Amount Rs. in Crores)

|          | General        | General        | SC             | SC             | ST             | ST             | Total          | Total               |
|----------|----------------|----------------|----------------|----------------|----------------|----------------|----------------|---------------------|
|          | Amount Claimed | Amount Settled | Amount Claimed | Amount Settled | Amount Claimed | Amount Settled | Amount Claimed | Year Amount Settled |
| 1,511.38 | 1,511.38       | 81.59          | 81.59          | 88.92          | 88.92          | 1,681.89       | 1,681.89       | 2013-14             |
| 1,438.68 | 1,438.68       | 115.5          | 115.5          | 33.54          | 33.54          | 1,587.72       | 1,587.72       | 2014-15             |
| 2,065.79 | 2,065.79       | 173.74         | 173.74         | 32.18          | 32.18          | 2,271.71       | 2,271.71       | 2015-16             |
| 1,756.17 | 1,574.61       | 98.21          | 98.21          | 21.21          | 21.21          | 1,875.59       | 1,694.03       | 2016-17             |
| 1470.31  | 759.15         | 72.73          | 72.73          | 17.04          | 17.04          | 1,560.08       | 848.92         | 2017-18             |
| 10340.07 | 9,447.35       | 651.88         | 651.88         | 216.42         | 216.42         | 11,208.37      | 10,315.65      | Grand Total         |

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