Lok Sabha Question No. 1136 (UNSTARRED), answered on 2021-02-08
Subject: Interest Subsidy Scheme
Ministry: Education
Asked by: Chandeshwar Prasad

## GOVERNMENT OF INDIA MINISTRY OF EDUCATION DEPARTMENT OF HIGHER EDUCATION LOK SABHA UNSTARRED QUESTION NO.1136 TO BE ANSWERED ON 08.02.2021

## Interest Subsidy Scheme

## 1136. SHRI CHANDESHWAR PRASAD:

Will the Minister of EDUCATION be pleased to state:

- (a) the aims and objectives  including salient features of the Central Sector Interest Subsidy Scheme on educational loans;
- (b)  the  total  number  of  such  students  who  have  availed  benefits  of  the  scheme during the last three years and the current year and the percentage of such students out  of  the  said  number,  who  have  availed  benefits  of  the  scheme  for  higher education in the country particularly in Bihar; and
- (c)  whether  the  Government  has  been  achieving  the  aims  and  objectives  of  the scheme ever since its implementation and if so, the details thereof?

## ANSWER MINISTER OF EDUCATION (SHRI RAMESH POKHRIYAL 'NISHANK')

- (a) The  objective  of  the  scheme  is  to  ensure  that  no  student  is  denied  the opportunity to pursue higher education in professional courses only because he  or  she  is  poor  and  thereby  contributing  to  Gross  Enrolment  Ratio.  The scheme acts as a catalyst in the development of the human resource of the country, which goes a long way in strengthening the socio-economic fabric of the country.

The Scheme is adopted by all Scheduled Banks and is linked with the existing Model  Educational  Loan  scheme  of  the  Indian  Banks'  Association  and  for students  enrolled  in  professional/technical  courses  which  are  accredited  by respective statutory bodies. The scheme is applicable to students whose gross annual parental income is up to Rs.4.5 Lakhs. Subsidy is admissible only once either  for  undergraduate  or  postgraduate  or  integrated  course.  Under  the

Scheme, education loan is provided without any collateral security and thirdparty  guarantee  and  for  a  maximum  of  Rs.7.5  Lakhs.  Accrued  interest  for moratorium period (i.e. course period plus one year) can be claimed as interest subsidy under the Scheme. The details of the scheme available on www.education.gov.in/hi/scholarships-education-loan-4-hi

- (b) Total number of students who have availed benefits of the Scheme during the last 3 years and the current year and percentage of such students out of the said number,  who  have  availed  benefits  of  the  Scheme  for  Higher  Education  in  the country particularly in Bihar is tabulated below:-
- (c) Yes.  The  scheme  has  empowered  students  from  the  rural/semi-urban regions to access higher education.

| Financial Year                                             | Country as whole                                           | Bihar                                                      | %age of students in Bihar                                  |
|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|
|                                                            | Number students                                            | Number students                                            | %age                                                       |
| 2017-18                                                    | 132825                                                     | 10172                                                      | 5.12                                                       |
| 2018-19                                                    | 88825                                                      | 3502                                                       | 4.85                                                       |
| 2019-20                                                    | 75417                                                      | 2106                                                       | 4.43                                                       |
| 2020-21 - Claims will be submitted during next F.Y 2021-22 | 2020-21 - Claims will be submitted during next F.Y 2021-22 | 2020-21 - Claims will be submitted during next F.Y 2021-22 | 2020-21 - Claims will be submitted during next F.Y 2021-22 |

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