Dr. Ambedkar Central Sector Scheme of Interest Subsidy on Educational Loans for Overseas Studies for Other Backward Classes (OBCs) and Economically Backward Classes (EBCs)

About this scheme

This Central Sector Scheme provides an interest subsidy on education loans for approved overseas Master's, MPhil, and PhD courses taken by eligible OBC (Central List) and Economically Backward Class (EBC) students. The Government bears the loan interest during the moratorium period, covering the course duration plus one year, or six months after securing employment, whichever is earlier.

Eligibility

• Category: Must belong to the OBC (Central List) or Economically Backward Class (EBC) category
• Course: Secured admission to an approved overseas Master's, MPhil, or PhD course
• Loan requirement: Must have taken an education loan from a Scheduled Bank under the IBA Education Loan Scheme
• Annual family income (OBC): Within the Creamy Layer income limit
• Annual family income (EBC): Not exceeding ₹2,50,000
• Other conditions: Interest subsidy is available only once; ineligible on course discontinuation, expulsion, submission of fraudulent documents, or surrender of Indian citizenship

Benefits

• Full interest subsidy on the education loan during the moratorium period (course period + 1 year, or 6 months after employment, whichever is earlier)
• Applicable on eligible loan amounts up to ₹20,00,000

Required documents

• Proof of admission to the approved overseas course
• Education loan sanction documents
• OBC caste certificate(optional)If applying under the OBC category
• Income certificate / ITR / Form 16 / audited accounts
• Bank-required documentation

Frequently asked