Bidya Lakshmi Education Loan for higher education is a scheme of the Assam government that facilitates loans for higher education to children of regular State Government Employees. The education loan applies to all categories for their studies in India and abroad under Uccha Shiksha Hitoishona Achani (USHA) for Karmachari. The scheme provides a loan of ₹5 lakh to ₹10 lakh at an interest rate of 4% with the help of grants from the State Government. It was announced in the budget speech of 2016-17 by the Government of Assam.
The education loan up to ₹10 lakh will not require any collateral security or third-party guarantee. Furthermore, to provide an additional layer of protection to students availing education loans, they will have the option to obtain a life insurance policy that covers the loan amount. For State Government employees availing the education loan, there will be a provision for tax rebate under Section 80(E) of the Indian Income Tax Act.
All State Government employees can avail education loans for their ward/children to study in India and abroad for professional technical courses. These include Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer, ICWA, CA, CFA, MCA, MS, Graduation in professional/technical courses, Doctorate Programs (Ph.D. Courses), and courses conducted by the CIMA (Chartered Institute of Management Accountant, London) and CPA (Certified Public Accountant in USA).
Bidya Lakshmi Education Loan – Overview
|Name of the Scheme||Bidya Lakshmi Education Loan|
|Launched by||Government of Assam|
|Facilitation and Sponsorship||Facilitated by Langpi Dehangi Rural Bank (LDRB) and sponsored by the State Bank of India (All SBI Branches of Assam)|
|Beneficiaries||Children of Regular Assam Government Employees|
|Eligible Courses||Professional Technical Courses, Graduation and Doctorate Programs, Course conducted by CIMA and CPA in India and abroad|
|Benefits||Education loan up to ₹10 lakh|
|Moratorium Period||Course period + 1 year|
|Mode of Application||Online|
Bidya Lakshmi Education Loan – Eligibility Criteria
To be eligible for the Bidya Lakshmi education loan scheme, applicants must meet some specific criteria. The required eligibility conditions are as under:
a) Eligibility Criteria:
Eligibility Criteria for Students
- A student must be a ward/children of a regular employee of the Government of Assam presently in service.
- He or she must have secured admission in one of the professional technical courses listed above.
- A student who has failed in the last qualifying examination including class XII will not be considered eligible.
Eligibility Criteria for Parents
- A parent must be an employee of the State Government of Assam with a *check-off facility.
- He or she should have at least 5 years of pensionable service left.
- He or she is ready to undertake to repay the loan amount even if his or her ward/children fails to secure a job after completion of the course.
- In case of retirement during the currency of loan, he or she will opt to draw pension through SBI until the loan is liquidated or paid.
|*Check-off facility is an arrangement where the borrower’s employer agrees to deduct equated monthly installment (EMI) of the loan amount directly from the borrower’s salary. This is done through a tri-party agreement between the bank, employer, and borrower, with the employer undertaking the responsibility of deducting the EMI from the salary.|
b) Courses/Studies in India and Abroad:
|Studies in India|
|Courses Conducted By||
● Institute of Costs and Works Accountants (ICWA)
● Chartered Accountancy (CA)
● Chartered Financial Analyst (CFA)
● Indian Institute of Management (IIM)
● Indian Institute of Technology (IIT)
● Indian Institute of Science (IISc.)
● Xavier School of Management (XLRI)
● National Institute of Fashion Technology (NIFT)
|Others||For studies at institutions identified under scholarship loan|
Also Read: Buddy4Study Education Loan Programme
|Graduation||For job oriented professional/technical courses offered by reputed universities|
● Master of Computer Application (MCA)
● Master of Business Administration (MBA)
● Master of Science (MS)
● Job oriented professional/technical post-graduation diploma courses offered by reputed universities
● Doctorate Programmes (Ph.D. Courses)
● Course conducted by CIMA (Chartered Institute of Management Accountant, London)
● Course conducted by CPA (Certified Public Accountant in USA)
c) List of Eligible Courses and Institutions
|Eligible Courses and Educational institutions||● Courses conducted by colleges/universities approved by UGC/AICTE in Assam.
● Courses conducted by colleges/universities approved by UGC/Government/AICTE anywhere in India.
● Courses conducted by premier institutions in Assam and anywhere else in India
Note:- There are a total of 112 approved and listed premiere institutions under this education loan scheme. List of these institutions are available on hyperlink provided below.
|List of Institutes Approved Under the Bidya Lakshmi Education Loan|
Bidya Lakshmi Loan – Proposed Scheme
The details of the proposed loan scheme are listed below:
Type of Loan
|The loan scheme will be sanctioned as a term loan which is given for a fixed duration of time and must be repaid in regular installments commonly referred to as Equated Monthly Installment (EMI).|
● 3 copies of passport-size photographs
● 1 copy of the PAN card
● Address proof (Electricity bill/Aadhaar card/Driving license/Passport/Landline telephone bill)
● Marksheets and certificates (For Applicants Only)
● Prospectus of the course (For Applicants Only)
● Score sheet of entrance tests like JEE/PMT (For Applicants Only)
● Detailed structure of the course on the letterhead of the institution (For Applicants Only)
● Photocopy of the bank passbook or bank account statement (For Parents Only)
● Income Proof (Form 16/Income Tax Return/Income Certificate from Appropriate Authority) (For Parents Only)
● Students applying to study abroad must carry their passport and unconditional offer letter in addition to the documents listed above to apply for the scheme.
● Both students and parents are required to provide their PAN card mandatorily.
● Fee payable to college/school/hostel.
● Fees for payment seats approved by the State Government/Regulatory Body for courses offered under the management quota seats.
● Fees for examination, library, and laboratory.
● Travel expenses/passage money for studies abroad.
● For purchase of books/equipments/instruments/uniforms/computer at reasonable cost for course completion subject to 20% of the full amount of total tuition fee for those who do not receive any concessions/remissions.
● Caution deposit/building fund/refundable deposit subject to 10% of the tuition fees for the entire course.
● Fee or quantum of finance payable for Doctorate Programmes (Ph.D.) courses in India/Abroad is subject to Scholarship/Fellowship/Honorarium.
● The amount of insurance premium would be part of the loan amount if borrowers opt for it.
|Quantum of Finance and Margin||It is need based and subject to repaying capacity of the parents/students with margin and following ceilings:
● Margin NIL for loan up to ₹10 lakh
● Studies in India – Maximum Ceiling of ₹10 lakh
● Studies Abroad – Maximum Ceiling of ₹10 lakh
|Rate of Interest||
● For loans up to ₹10 lakh, the interest rate is 1% for the duration of the 1-year marginal cost of fund-based lending rate (MCLR)*.
● A concession of 0.50% will be provided to girl students.
● It will also provide a 1% rebate at the time of the closure of the loan if the interest is paid during the course and moratorium period.
|Moratorium||The moratorium of Assam education on the loan scheme is the course period plus one additional year.|
● The repayment period has been set up to 15 years after the commencement of repayment.
● The accumulated interest during the moratorium or repayment holiday period for loans up to ₹10 lakh will be recovered on a monthly basis.
● No processing or upfront charges will be collected on educational loans.
● For students applying to abroad courses –
○ Students applying for a loan of more than ₹4 lakh in loans are required to deposit ₹5,000.
○ This amount will be maintained in the form of a banker’s cheque payable to the bank in the name of the borrower.
○ If the applicant avails of the loan, then the amount of ₹5,000 will be adjusted against the contribution of the *margin money provided by the borrower. In case, payment of margin money is not required then the amount will be adjusted against the payable interest on the loan.
*Margin money, also called a down payment, is the money a borrower pays upfront from their own savings when purchasing something or taking a loan.
● To reduce the risk associated with education loans, students who avail the education loan and borrow from the bank will be provided with suitable coverage under the Rinraksha SBI Life Insurance Policy. This will help to protect both the students and the bank.
● For students eligible for interest subsidy, a life insurance policy will be obtained for the loan amount specifically.
|Subsidy and Grants from the Govt. of Assam||
● The Government of Assam will offer a subsidy based on the financial needs of individuals, ensuring that the effective interest rate remains at 4%.
● The subsidy provided by the Government of Assam is applicable for loans up to ₹10 lakh. For loans exceeding this amount, interest subsidies will be granted on the loan amount of up to ₹10 lakh.
● Grants offered by the Assam state government are applicable for the complete loan entire duration of the loan. This means that the subsidised interest rate will be applicable from the beginning until the loan is fully repaid.
● If the central government offers interest subsidy during the moratorium period, the government of Assam will provide its subsidy after the moratorium period ends, ensuring benefits for the borrowers from both subsidy programs.
● The loan scheme is not available to anyone other than the children of regular government employees of Assam.
● Students who have failed their last qualifying examination, including Class 12, are not eligible to apply.
● The scheme does not apply to non-technical/non-professional general studies.
|Did You Know?
The marginal cost of fund-based lending rate (MCLR)* is a benchmark rate utilised by Indian banks to determine the interest rates for different types of loans. This indicates the benchmark interest rate used by the bank for determining the interest rate (1%) on loans up to ₹10 lakh. The effective rate of interest (ROI) will not be below the 1-year MCLR at any point in time.
Relevant Information on Quantum of Finance
The bank will approve the loan considering the capacity of the student’s parents to repay it. Hence, the following margins have been set for students willing to study in India or abroad –
- Employees with an annual income of up to ₹5 lakh are eligible for the Credit-Linked Subsidy Scheme (CLSS)*. During the moratorium period (course period + one year), the Central Government provides a 100% subsidy. After the moratorium period, the effective rate of interest, with State Government interest subvention, is reduced to 4% for employees under the CLSS category.
- A maximum of ₹10 lakhs will be granted to students willing to study in India and abroad.
- Employees can take a loan above ₹10 lakh from LDRB, but State Government benefits apply only up to ₹10 lakh. Amounts exceeding this will follow market interest rates and collateral requirements as per LDRB guidelines.
|Credit-Linked Subsidy Scheme (CLSS)* is a government initiative offering interest subsidies on loans to eligible beneficiaries. It aims to promote the affordability of loans and ease the burden of interest payments for economically weaker sections.|
Note: – If the applicant is unable to avail the loan within a period of 4 months of sanction, then the amount will be credited to the commission account.
How to Apply for a Bidya Lakshmi Loan?
To apply for the Bidya Lakshmi loan scheme, applicants must follow the steps listed below:
1. Visit the official website – Government of Assam, Sivasagar.
2. Navigate to the ‘Scheme’ option at the top of the screen.
3. Click on the ‘Bidya Lakshmi’ option.
4. Navigate to the ‘Application form’ and click to open it.
5. A new window will open with the application form.
6. Read the given details related to the scheme carefully and download them.
7. Fill out the form with the required information and prepare all the necessary documents in the prescribed format.
8. Submit the application form along with the documents at the designated LDRB bank branches in the district of East Karbi Anglong, West Karbi Anglong and Dima Ilasao to complete the application.
Bidya Lakshmi Education Loan – List of Designated Bank Branches in Assam
The Assam government has approved the following 70 designated bank branches in Assam for sanctioning education loans.
|List of Designated Bank Branches in Assam to Sanction Bidya Lakshmi Education Loan|
|To verify how the processing of the loan scheme, click on the following hyperlink – Processing of the Education Loan Scheme|
Bidya Lakshmi Education Loan – FAQs
What is the applicable rate of interest for education loans in Assam?
The applicable rate of interest for education loans in Assam is approximately 4%.
How will the loan amount be disbursed?
The education loan will be jointly provided to both parents who are regular State Govt. employees and students through the Langpi Dehangi Rural Bank (LDRB). The loan amount will be disbursed directly to the educational institutions.
Can I get a 100% education loan in Assam?
Yes, the students can receive 100% education loans depending on the different loan schemes and eligibility criteria set by the loan providers.
Is an education loan free of interest?
The rate of interest differs depending on the different banks’ loan schemes for education. However, no education loan is free of interest charges.
Can I avail an education loan without having any co-applicant?
Full-time students must need a co-applicant, who can be a parent, guardian, spouse, or parent-in-law (if married) to avail an education loan. The co-applicant must have a reliable and stable source of income. Additionally, having good academic grades helps in getting the loan approved quickly.
What is the minimum salary of parents required to apply for an education loan?
To be eligible for applying for an education loan, it is recommended that parents have a minimum salary of ₹3.6 lakh per annum or a monthly income of at least ₹30,000.