Education and Career Forum

Hello sir, I am studying B.Tech from private college and I have taken a loan of 2 Lakh at 12% interest. My family background is too bad. Can I get subsidy in loan interest if I belong to SC category?

No, you can't get any subsidy in education loan interest even if you belong to SC category.
The rate of interest on education loan is same for all category candidates whether you belong to OC/ BC/ SC/ ST category.

For girl candidates, some banks offer a concession of 0.50% on interest rate of education loan. So, if you are a girl candidate, you can get 0.50% concession or rate of interest on education loan else, you can't get any subsidy on interest rate of education loan.

Interest subsidy is provided to candidates of all category. It does not matter whether you belong to OBC category of SC/ST category or general category, central government has clearly mentioned and directed to all banks which sanction education loan that no interest will be charged from any student while pursuing bachelor's degree and one year after bachelor's degree.

Whatever interest will be there after bachelor's degree, it will be waived off by Central government of India. Interest rate will not be charged for one more year after bachelor's degree and after that you will have to pay interest on amount of loan sanctioned.

Interest subsidy scheme is applicable to candidates of all category.

Description of interest subsidy scheme:

Whatever will be interest for four years while pursuing your bachelor's degree will be waived off by Central government of India.

Other important thing is that banks will give you one more year after bachelor's degree in which no interest will taken, it is repaying period and after that banks will start to take interest.

Hi i have taken 1.6 lakhs of education loan as i saw the above statements which has reported that banks will not charge interest during education time but IOB bank is charging the interest from the opening of my loan account till now and added the interest for the year as well.
What is the solution for this can anyone suggest Please.
Thanks in advance..