Question : Interest on Education Loan

(a) whether the Government has taken any steps to waive the interest payable on education loans availed by students belonging to Scheduled Caste/Scheduled Tribe/Other Backward Caste (SC/ST/OBC) and minority community students pursuing higher studies in professional institutes;
(b) if so, the details thereof;
(c) whether the Government has taken any decision to grant interest-free education loan for SC/ST & OBC as well as minority community students up to Post graduate level; and
(d) if so, the details thereof and if not, the reasons therefor?

MINISTER OF STATE IN THE MINISTRY OF HUMAN RESOURCE DEVELOPMENT
(DR. SATYA PAL SINGH)
(a) to (d): There are several interest subsidy schemes on education loans for higher education for SC/ST/OBC students such as:- (i) Central Sector Interest Subsidy Scheme which provides full Interest Subsidy for a period of moratorium, course period plus one year on educational loans taken by students with only parental income less than Rs.4.5 lakhs per annum. Under the Scheme, in the year 2016-17, 317 students belonging to OBC category in respect of National Backward Classes Finance and Development Corporation with an Interest Subsidy of Rs. 0.03 Crore and 77 students belonging to ST category in respect of National Scheduled Tribes Finance and Development Corporation with Interest Subsidy of Rs. 0.11 Crore have been benefitted. Besides, MHRD is also releasing an amount of Rs. 214.54 Crores to General Category students and Rs. 71.83 Crores to SC category students and Rs. 17.04 Crores to ST Category students for the year 2016-17 as per the claims received from the Nodal Bank (at present Canara Bank ).
(ii) Dr. Ambedkar Scheme of Interest Subsidy for educational loan for overseas studies to meritorious OBC and EBC students (operated by Ministry of Social Justice and Empowerment). (iii) Padho Pardesh Scheme of interest subsidy on educational loan for overseas studies for students belonging to minority communities (operated by Ministry of Minority Affairs). *****