Latest Update
- Implementation of Dr. Ambedkar Central Sector Scheme of Interest Subsidy on Educational Loans for OBCs & EBCs during 2023-24: The Ministry of Social Justice and Empowerment (MoSJE) will only consider claims from beneficiaries who were approved by March 31, 2022. New claims submitted for the first time in FY 2022-23 will not be processed until further notice from the Ministry.
- Implementation of Dr. Ambedkar Central Sector Scheme of Interest Subsidy (ACSIS) on Educational Loans for OBCs and EBCs (under SHREYAS) during 2023-24: The scheme will not accept any new applications until further orders.
- The scheme will offer interest subsidies to students from Other Backward Classes (OBC) and Economically Backward Classes (EBC) during their loan repayment period. This applies to overseas Master’s, M.Phil., and PhD courses under the IBA model Education loan scheme.
Dr. Ambedkar Central Sector Scheme of Interest Subsidy (ACSIS) – Objectives
The primary objectives of the Dr. Ambedkar Scheme are as follows:
- Facilitating Overseas Education: To assist OBC and EBC students in pursuing postgraduate, doctoral, and professional courses in foreign universities, especially those that are recognised as prestigious institutions.
- Interest Subsidy: To provide an interest subsidy on the educational loans availed by the eligible applicants for the duration of their studies, ensuring that the financial burden of loan repayment does not hinder their academic aspirations.
- Promoting Social Mobility: By offering interest subsidies, the scheme seeks to promote upward social mobility among economically and socially disadvantaged sections, equipping them with advanced educational qualifications that open doors to global opportunities.
- Equal Access to Quality Education: To ensure equal access to quality education for students from OBC and EBC backgrounds by offering financial aid to ensure equal learning opportunities.
(Note: OBC category applicants refer to students whose communities or castes are listed in the Central OBC list. This scheme does not consider the state or union territory lists. You can find the Central List (for each state and UT) on the National Commission for Backward Classes’ website at www.ncbc.nic.in.)
Dr. Ambedkar Central Sector Scheme of Interest Subsidy (ACSIS) – Scope
This is a central government scheme that offers interest subsidies to students from the OBC and EBC categories. It covers the interest on education loans during the moratorium period for students pursuing approved Master’s, M.Phil., and PhD courses abroad.
Dr. Ambedkar Central Sector Scheme of Interest Subsidy (ACSIS) – Implementing Agencies
The Nodal Bank will carry out implementation of this scheme as per the MoU between the bank and the Ministry of Social Justice & Empowerment.
Dr. Ambedkar Central Sector Scheme of Interest Subsidy (ACSIS) – Eligibility Criteria
1. Social Category:
- OBC (Other Backward Classes): The candidates belonging to OBC communities are eligible for this scheme. It should be backed by a valid OBC certificate issued by a competent authority.
- EBC (Economically Backward Classes): The candidates from economically weaker sections who do not belong to SC, ST, or OBC categories can apply under the EBC category.
2. Income Ceiling:
- For OBCs: The gross annual family income from all sources combined, whether it is the employed candidate or their parents/guardians (if the candidate is unemployed), must not exceed the current Creamy Layer criteria, which is ₹8 lakh. The income certificate must be issued by a competent authority in the applicant’s state or union territory.
- For EBCs: The gross annual family income should not exceed ₹5 lakh. The income certificate issued by a competent authority must be submitted to verify economic eligibility.
- In order to apply under this scheme, income certificate produced by the applicants for availing educational loan viz. ITR/Form 16/Audited Accounts/Income Certificate issued by the competent authority of State Governments/UTs Administration is acceptable for determining the income ceiling.
3. Educational Qualification:
- The applicants must have secured admission in the approved courses of a foreign university for postgraduate courses (Master’s degree), M.Phil., or PhD programs.
- The admission should be based on merit, and the candidate should have an unconditional offer from the institution.
4. Loan Criteria:
- The candidate must have obtained the educational loan from a scheduled bank under the Indian Banks’ Association (IBA) model education loan scheme.
- The loan should be meant for the purpose of pursuing overseas education in a recognised foreign institution.
- There is no specified upper age limit for availing the benefits available under the scheme, however, the applicants must fulfil the loan eligibility criteria as per the bank regulations.
6. Other Criteria
- The candidate must have taken a loan from a scheduled bank under the Education Loan Scheme of the Indian Banks Association (IBA).
- For the candidates applying under the OBC category, the bank must obtain an OBC caste certificate in the prescribed format (as per Annexure-I) issued by the competent authority.
Dr. Ambedkar Central Sector Scheme of Interest Subsidy (ACSIS) – Benefits
The Dr. Ambedkar Scheme offers substantial financial benefits that make overseas education accessible for students hailing from OBC and EBC communities. The main benefit is in the form of interest subsidy provided on the educational loan, which significantly reduces the cost of borrowing.
1. Interest Subsidy (During the Moratorium Period):
- The scheme offers a 100% subsidy on the interest accrued during the moratorium period of the loan. The moratorium period includes the course duration plus an additional one year or six months after having secured a job, whichever is earlier, according to the Indian Banks’ Association (IBA) Education Loan Scheme.
- The subsidy only covers the interest part, not the main loan amount (principal). The borrowers need to repay the principal amount as agreed with the bank.
2. Loan Repayment (After the Moratorium Period):
- After the moratorium period, the candidate is required to repay the principal amount and any remaining interest as per the loan agreement terms. The scheme does not extend beyond the moratorium period and therefore the applicants must plan their finances accordingly.
Dr. Ambedkar Central Sector Scheme of Interest Subsidy (ACSIS) – Rate of Interest Subsidy
- Under this scheme, the Government of India will pay the interest on education loans taken by students under the Indian Banks’ Association (IBA) during the moratorium period (which includes the course duration and up to one year or six months after getting a job, whichever comes first).
- Once the moratorium period ends, the student will have to pay the interest on the remaining loan amount according to the rules of the Education Loan Scheme, which may change over time.
- After the end of the moratorium period, the borrower will be responsible for repaying the loan’s principal amount and interest.
Administrative Expenses
- Up to 3% of the annual budget for the scheme will be set aside to cover administrative and related costs, such as office equipment (including computers and accessories), advertisements, hiring staff, and third-party evaluations.
- This money will also be used for evaluating and monitoring the scheme by respective external institutions or agencies hired by the Ministry of Social Justice and Empowerment, Government of India.
- The administrative costs for the banks will be shared according to the prescribed terms in the MoU.
Dr. Ambedkar Central Sector Scheme of Interest Subsidy (ACSIS) – Conditions for Interest Subsidy
- This scheme is exclusively applicable for students pursuing higher education abroad. The interest subsidy is connected to the existing Educational Loan Scheme of the Indian Banks Association (IBA) and is limited to students enrolled in Master’s, M.Phil., or PhD programs.
- The subsidy will be given to eligible students only once, either for a Master’s or PhD program. Those who drop out of their course or are expelled for disciplinary or academic reasons will not be eligible for the subsidy.
- If any rule of the scheme is violated, the subsidy will be stopped immediately. If a student is found to have provided false information to obtain the subsidy, it will be cancelled, and the amount paid will be recovered with penalty interest. Legal action may also be taken.
- The students benefiting under this scheme will not receive the subsidy if they renounce Indian citizenship during the loan period.
- The nodal bank will keep a separate account of funds received from the Ministry of Social Justice and Empowerment, and these records will be inspected or audited by the Ministry or an agency appointed by the Ministry and the C&AG.
- The scheme must have a complete database of all beneficiaries, along with a dashboard to monitor the regular disbursement of interest. Regular checks should be made to ensure that interest is being paid into the students’ loan accounts.
- The nodal bank will post details of its financial and physical achievements on its website and implement the scheme as per the Memorandum of Understanding (MoU) between the banks and the Ministry of Social Justice and Empowerment. While the number of beneficiaries can be adjusted based on available funds, it must be ensured that interest payments are not delayed.
- The nodal bank, in consultation with the Ministry, will outline the detailed procedure for processing and approving interest subsidies for eligible students.
- The scheme will be evaluated regularly by the Ministry or an appointed agency, and the cost of these evaluations will be covered by the Ministry.
- The Ministry of Social Justice and Empowerment may change the scheme’s terms and conditions at any time to improve the process and implementation, but these changes should not have any financial impact.
- Preference for this scheme will be given to students enrolled in professional courses.
Dr. Ambedkar Central Sector Scheme of Interest Subsidy (ACSIS) – Application Process
The application process for the Dr. Ambedkar Scheme of Interest Subsidy is done online through the UMANG app. Here’s a step-by-step guide for eligible candidates to apply for the scheme:
- Download the UMANG app or visit the official website of UMANG.
- Click on ‘Login/Register’ and sign up with your mobile number.
- After registering, go to the ‘Schemes’ section in the app and find the ‘Dr. Ambedkar Central Sector Scheme (ACSIS)’.
- Once you find it, start your loan application by filling in the required details and uploading the required documents.
- After submitting, you can track your loan application status through the UMANG app or on the official website.
Important Notes:
- Interest subsidy is available to students who have availed education loans under the Indian Banks’ Association (IBA) scheme and those pursuing Master’s, M.Phil., and PhD programs.
- The Nodal Bank will set up a process to handle and approve these subsidies with the Ministry’s help.
- A Review Committee, led by the Joint Secretary for Backward Classes, with members from Finance, the Nodal Bank, and other officials, will review and recommend applications for subsidies every quarter.
Dr. Ambedkar Central Sector Scheme of Interest Subsidy (ACSIS) – Documents Required
To apply under the ACSIS scheme, the applicant need to have following documents:
- Aadhaar card or any other valid ID proof
- Caste certificate for OBC candidates
- Income certificate for both OBC and EBC candidates
- Admission offer letter from a foreign institution
- Loan sanction letter from a scheduled bank
- Passport-size photographs
- Educational certificates (marksheets, degree certificates, etc.)
- Bank account details (for interest subsidy disbursement)
- Income certification (ITR/Form 16/Audited Accounts)
- Income certificate issued by the competent authority of State Government/UT Administration
- Other relevant documents as specified by the bank
Dr. Ambedkar Central Sector Scheme of Interest Subsidy (ACSIS) – Subjects Covered for Master’s, M.Phil, and PhD Courses
You can get an interest subsidy for courses in the following areas:
- Arts, Humanities, and Social Sciences
- Commerce
- Pure Sciences
- Engineering
- Biotechnology and Genetic Engineering
- Industrial Environmental Engineering
- Nanotechnology
- Marine Engineering
- Petrochemical Engineering
- Plastic Technology
- Cryogenic Engineering
- Mechatronics
- Automation and Robotics, including Artificial Intelligence
- Laser Technology
- Low-Temperature Thermal Dynamics
- Optometry
- Art Restoration Technology
- Dock and Harbour Engineering
- Imaging System Technology
- Composite Materials Engineering, including Decentralized Power Distribution (Solar Heat), Energy Storage, Energy Conservation, and Energy Efficient Habitats
- Packaging Engineering/Technology
- Nuclear Engineering
- Information Technology, including Computer Engineering, Software, Software Quality Assurance, Networking, Communication Systems in Hazardous or Post-Disaster Conditions, and Multimedia Communication
- Industrial Safety Engineering
- Agriculture and Agro Technology
- Agronomy
- Medical
- Floriculture and Landscaping
- Food Sciences and Technology
- Forestry and Natural Resources
- Horticulture
- Plant Pathology
- Energy Studies
- Farm Power and Machinery
- Veterinary Sciences
- Soils and Water Management
- Plant Breeding and Genetics
- Small Scale Rural Technology
- Ocean and Atmospheric Sciences
- MBA
- MCA
- Any Other Subjects
(Note: The Ministry may add or remove subjects as needed.)
Dr. Ambedkar Central Sector Scheme of Interest Subsidy (ACSIS) – Challenges and Improvements
While the Dr. Ambedkar Scheme has opened doors for many students, there are still a few challenges that remain:
Challenges
- Limited Awareness: Many eligible students may not be aware of the scheme or may have difficulty accessing information about it. This could be due to a lack of outreach or complicated application procedures.
- Complex Application Process: The application might seem too difficult or time-consuming, which could discourage students from applying.
- Bureaucratic Delays: Delay in getting interest subsidies can cause financial problems for students, affecting their studies.
- Limited Number of Participating Banks: If the scheme is restricted to a limited number of banks, it may limit the accessibility of loans for students in certain regions.
- Insufficient Funds: The allocated funds for the scheme may not be sufficient to meet the growing demand for higher education abroad among OBCs and EBCs. This can result in a limited number of students being able to avail themselves of the subsidy.
- Lack of Guidance and Counseling: Many students may require guidance and support throughout the application and loan disbursement process. The absence of adequate counselling services can hinder their ability to effectively utilize the scheme.
How to Improve?
- Enhanced Awareness Campaigns: The government should launch comprehensive awareness campaigns to inform eligible students about the scheme’s benefits and eligibility criteria. This can be done through various channels, including social media, educational institutions, and community outreach programs.
- Simplified Application Process: The application process should be streamlined to minimize paperwork and reduce the time taken to process applications. Online portals and mobile apps can be utilized to make the process more efficient.
- Faster Disbursement: Implement measures to expedite the disbursement of interest subsidies, ensuring timely financial support for students.
- Including More Nodal Banks: Encourage more banks to participate in the scheme to increase accessibility for students across the country.
- Increased Funding: The government should allocate sufficient funds to ensure that the scheme can support a larger number of students. This can be achieved through increased budgetary allocations or by exploring public-private partnerships.
- Provide Comprehensive Support: The counselling and support services should be provided to assist the students throughout the process of application, loan disbursement, and repayment. This can include guidance on choosing suitable courses, understanding loan terms, and managing finances effectively.
- Tie-ups with International Institutions: The government can explore partnerships with international institutions to offer scholarships and discounts to eligible students, further reducing the financial burden of studying abroad.
Dr. Ambedkar Central Sector Scheme of Interest Subsidy (ACSIS) – Contact Details
Canara Bank
Address: Govt. Portal Section, Govt. Services wing
Head Office, Canara Bank
New Delhi-110092
Email: hogps@canarabank.com
Phone number: 011-20825024
Umang
Address: Priority Credit Section, PC & FI Wing, HO, Canara Bank
Bengaluru – 560002
Phone number: 080-22236121
Email: hopcs@canarabank.com
Dr. Ambedkar Central Sector Scheme of Interest Subsidy (ACSIS) – FAQs
What is the duration of the interest subsidy?
The subsidy is provided for the period of the course duration and the initial moratorium period, which includes the time during which the student is not required to start repaying the loan.
How is the subsidy amount calculated?
The subsidy amount is calculated on the basis of interest paid on educational loans during the eligible duration period.
What should I do if I face issues with the subsidy application?
Contact the bank where the loan was sanctioned or the educational institution’s financial aid office for assistance with the application process.
What is the process if my loan application is rejected?
If your loan application is rejected, you should first understand the reason for rejection. You can appeal or reapply as per the bank’s or scheme guidelines.
How do I check the status of my subsidy application?
You can check the status of your application by contacting your bank or checking the online portal of the educational institution or scheme, if available.
What should I do if there is a discrepancy in the subsidy amount credited?
Report any discrepancies to your bank immediately. They will investigate and correct any errors as per the scheme’s guidelines.
If a student is pursuing a course which is partly in India and partly abroad, will they be eligible for interest subsidy?
If a course is being pursued by the student partly in India and partly abroad, the course will be eligible for interest subsidy, if the degree is awarded by the foreign university.
Does the subsidy cover any additional costs such as travel or accommodation?
The subsidy specifically covers the interest on the educational loan.
How does the scheme impact my credit score?
The subsidy itself does not directly impact your credit score. However, timely repayment of the loan and proper application for the subsidy can positively affect your credit profile.
Will State or UT OBC lists be used in the ACSIS scheme?
No, only the Central List (State/UT-wise) of OBCs available on the National Commission for Backward Classes (NCBC) website will be used.
If a student has received an Education Loan subsidy under the CSIS or New CSIS for undergraduate or graduate courses, can they get a subsidy under the ACSIS scheme?
No, the ACSIS scheme is applicable for pursuing higher studies abroad. The interest subsidy is linked with the existing Educational Loan Scheme of Indian Banks Association (IBA). It is restricted and available to students enrolled in courses for Masters, M.Phil and PhD level studies.
If a student’s moratorium period is extended for valid reasons, can they get a subsidy for this extra time?
Yes, if the extension is approved and fees are paid during this time, the subsidy can be provided.
What are the acceptable documents that can be used for income certification under the ACSIS scheme?
Under the ACSIS scheme, acceptable documents for certifying annual family income limit are as follows:
- Income Tax Returns (ITR)
- Form 16
- Audited Accounts
- Income Certificate from the State Government or UT Administration
Should the income level at the time of loan approval be the only factor, or will changes in parental income affect eligibility?
The annual family income mentioned in the document is only taken into account. Changes in income thereafter do not affect eligibility.
What is the annual family income limit for an applicant falling under the Creamy Layer criteria for EWS in the General category?
The limit is ₹8 lakh per year.
What is the maximum loan amount eligible for interest subsidy?
The maximum eligible loan amount for interest subsidy is ₹20,00,000.
What is the current mandate of the Ministry of Social Justice and Empowerment about the ACSIS Scheme?
The Ministry of Social Justice and Empowerment has instructed banks not to accept new applications for the ACSIS Scheme until further notice.
What percentage of the yearly interest subsidy is reserved for women candidates?
At least 50% of the yearly subsidy is reserved for women candidates.
How are interest subsidy claims processed, and who can apply?
The subsidy claims are processed through a web portal, and any student fulfilling the eligibility criteria can apply for the subsidy.