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Assam Government Launches Abhinandan Education Loan Subsidy Scheme. Get to Know What's In-Store.

Updated On - September 26th 2019 By - Pranjal Singhal

Assam Government Launches Abhinandan Education Loan Subsidy Scheme. Get to Know What's In-Store.

The Assam government recently announced a new education loan subsidy scheme to support the permanent residents of the state. The scheme launched by the Finance Minister of the state, Himanta Biswa Sarma, aims to support students who wish to pursue higher education from good institutes or are already doing so.

The “Abhinandan Education Loan Subsidy Scheme” was launched along with the housing loan subsidy scheme “Aponar Apon Ghar”. Under this scheme, the Assam government will provide a one-time subsidy of INR 50,000 to students who have availed education loan for higher studies. The scheme covers all commercial banks like the Federal Bank of India and HDFC and also the regional rural banks like Assam Gramin Vikash Bank within Assam.

Eligibility Criteria for Abhinandan Education Loan Scheme

The government has established some eligibility criteria for students to be able to avail the benefits of this scheme.

  • The applicant student should be a permanent resident of the state of Assam.

  • The education loan should have been availed from a commercial or regional rural bank recognized by the Reserve Bank of India.

  • The education loan should be of a minimum of INR 1 lakh.

  • The loan should have been sanctioned before March 31, 2019.

The scheme also covers education loans sanctioned after March 31, 2019. However, in case of such loans, the subsidy will be provided only after 25% of the total sanctioned loan amount has been disbursed.

Also, the government has established no minimum income criterion for students to avail the benefits of this scheme.

How to Apply for Abhinandan Education Loan Scheme?

The procedure to apply for Abhinandan scheme is simple and hassle-free.

  • Visit the official website of the Assam government

  • Select the Abhinandan Education Loan Scheme

  • Fill out the application form

  • Upload the documents

  • Click on Submit

Once the application is approved, the subsidy amount will directly be deposited into your education loan account.

The direct link to access the Abhinandan Education Loan Scheme can be accessed by clicking here.

Exceptions to Abhinandan Education Loan Scheme

The minister, however, announced 2 exceptions to the scheme. Students won’t be able to enjoy the benefits of Abhinandan Education Loan Subsidy Scheme if:

  • Their education loan falls under the NPA status.

  • Their education loan is also benefitted by the “Bidya Lakshmi” scheme.

NPA or Non-Performing Assets refer to those loans which have been declared in default or are on the verge of being declared so. This happens when the repayment instalments of the loan are “past due” for a specific period of time. Generally, banks declare Education Loans as NPA after a period of 90 days.

The second exemption refers to education loans sanctioned under the “Bidya Lakshmi” scheme. The Bidya Lakshmi education loan for higher education scheme was launched by the government in 2017 to assist the state govt. employees. Some of the features of the scheme are:

  • State govt. employees can avail an education loan of INR 5-10 lakh.

  • The interest rate will be 4%.

  • Those who want an education loan above INR 10 lakh can do so from the State Bank of India. However, the government’s benefits will be limited only up to INR 10 lakh.

  • There will be no collateral or security charged up to INR 10 lakh.

Through the Abhinandan Education Loan Scheme, the Assam govt aims to bolster its education infrastructure and urge more students to pursue higher education.