The Star Educational Loan Scheme aims at providing financial support from the bank to deserving/ meritorious students for pursuing higher education in India and abroad. The main emphasis is that every meritorious student is provided with an opportunity to pursue education with the financial support on affordable terms and conditions.

To this purpose the Commission, besides encouraging colleges and universities to provide for liberal financial support to the meritorious but needy students, has also been instrumental in educational loan scheme. The Reserve Bank of India (RBI) has issued guidelines in this regard to all commercial banks. A large number ...

Central Sector Interest Subsidy Scheme, 2009 on Model Education Loan Scheme of IBA

Under this Scheme Interest Subsidy is given during the moratorium period i.e., Course period plus one year on Education Loan taken from the Scheduled Banks under the Model Education Loan Scheme of Indian Banks Association to students belonging to economically weaker sections whose annual parental income is up to Rs. 4.5 Lakh from all sources. The subsidy is allowed for undergoing recognised Professional/ Technical courses in recognised Institutions in India. This subsidy is allowed only once. The Nodal Bank is Canara Bank, Bengaluru.



1. Should be an Indian National;

2. Student should have secured admission to a higher education course in recognized institutions in India or Abroad through Entrance Test/Merit based selection process after completion of HSC (10 plus 2 or equivalent). Good academic career.

3. The student should not have outstanding education loan from any other Institution.

4. Father/Mother should be co-borrower.

5. Branch nearest to the permanent residence of student will consider the loan.


Studies in India (Indicative list) :

a. Approved Courses leading to graduate /post graduate degree and P.G. diplomas conducted by recognized colleges/ universities by UGC/Government/AICTE/AIBMS/ICMR Courses like ICWA,CA,CFA,etc.

b. Courses conducted by IIM, IIT, IISc, XLRI, NIFT, NID and other Institutes set up by Central/State Govt.

c. Regular Degree /Diploma courses like Aeronautical, Pilot Training Shipping, degree/diploma in nursing or any other discipline approved by Director General of Civil Aviation/Shipping/Indian Nursing Council

Note : Professional courses not approved by AICTE and conducted by Institutes not recognized by State Universities is outside the purview of the eligibility under the scheme.

Studies abroad :

Graduation: For job oriented professional/technical courses offered by reputed universities.

Post-Graduation: MCA, MBA, MS, etc.

Courses conducted by CIMA - London, CPA in USA, etc.


a. Fee payable to college/school/hostel*

b. Examination/Library/Laboratory fee.

c. Purchase of books/equipments/instruments/uniforms.

d. Caution deposit/building fund/refundable deposit supported by Institution bills/receipts.

e. Travel expenses/passage money for studies abroad.

f. Purchase of computers/Laptops - essential for completion of the course.

g. Life Insurance Premium for life cover of student/co-borrower

h. Any other expenses required to complete the course - like study tours, project work, thesis, etc.

* As per brochure/ demand letter from the institution.


Need based finance subject to earning potential of student upon completion of the course with and following ceilings :

Studies in India - Maximum Rs.10.00 lakh

Studies abroad - Maximum Rs.20.00 lakh.


Upto Rs.4 lakh : Nil

Above Rs.4 lakh - Studies in India : 5%

Studies Abroad : 15%·

Scholarship could be included in margin: Margin to be brought in on year to year basis as and when disbursements are made.


Upto Rs. 7.50 lakh : Parents or Guardian to be joint borrowers (No collateral security or Third Party Guarantee since covered under CGFSEL)

Above Rs.7.5 lakh : Co-obligation of Parents together with tangible Collateral security of suitable value along with the assignment of future income of the student for payment of installments.

Note : The security can be in the form of land/building/Govt. Securities/Public Sector Bonds/NSC/KVP/LIP/ Banks Term Deposit etc., in the name of Student/ Parent/ Guardian/Guarantor with suitable margin.