Dr. Ambedkar Interest Subsidy Scheme: Incentivising Overseas Studies for OBC/EBC Students

Dr. Ambedkar Central Sector Scheme of Interest Subsidy (ACSIS) so far has been an important initiative undertaken by the Government of India to empower students hailing from Other Backward Classes (OBCs) and Economically Backward Classes (EBCs) to pursue higher education abroad. 

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The Ministry of Social Justice and Empowerment, Govt. of India approved the ACSIS scheme intended to provide interest subsidy to meritorious students on education loan availed by the students from Other Backward Classes (OBCs) and Economically Backward Classes (EBCs). This is meant to provide them better opportunities for pursuing higher education abroad and enhance their employability. 

The ACSIS scheme has been implemented by the designated Banks as per MoU reached between the Banks and the NBCFDC (National Backward Classes Finance & Development Corporation) on behalf of the Ministry of Social Justice & Empowerment, Govt. of India. The Ministry of Social Justice and Empowerment has issued the guidelines and revised income criteria to the banks to implement the scheme.

Scope: The ACSIS is a Central Sector Scheme (CSS) that provides interest subsidy to the student hailing from the OBCs and EBCs on the interest payable for the period of moratorium on the availed education loans for pursuing overseas studies in approved courses of studies abroad at Masters, M.Phil. and PhD level. Out of the total outlay in a particular year, a minimum of 50% amount will be earmarked for interest subsidy to the girl candidates.

Dr. Ambedkar Central Sector Scheme of Interest Subsidy (ACSIS) – Objectives 

The ACSIS scheme seeks to serve the objective of providing interest subsidy to the students belonging to the Other Backward Classes (OBCs)/Economically Backward Classes (EBCs) during the study period /repayment holiday.  The students pursuing their studies in approved courses of studies abroad at Masters, M.Phil and PhD level can avail the benefits of subsidy on their education loan. 

The scheme aims to remove financial barriers and enhance employability of the students by providing financial support in the form of interest subsidies on already availed educational loans.

The primary objectives of the Dr. Ambedkar Central Sector Scheme of Interest Subsidy (ACSIS) scheme are as follows:

  • To award interest subsidies to meritorious students from the Other Backward Classes (OBCs) and Economically Backward Classes (EBCs). 

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(Note:- Applicants belonging to OBC category implies those students whose communities/castes are included in the Central list of OBCs. Hence, respective state lists/UT lists will not be followed for this scheme. The Central List (State-wise/UT-wise) is available on the website www.ncbc.nic.in of the National Commission for Backward Classes.)

  • To alleviate financial burden exerted on the students and their families due to availed education loans for pursuing higher education abroad.
  • To enhance employability prospects of beneficiaries seeking advanced qualifications abroad.

Dr. Ambedkar Central Sector Scheme of Interest Subsidy (ACSIS) – Implementation 

The ACSIS scheme is being implemented with the support of participating banks, empanelled by the Ministry of Social Justice and Empowerment. It is mainly targeted at those loan accounts that have been sanctioned from 01.04.2021. 

(Note:- Under the revised guidelines education loans sanctioned on or after 01.07.2020 till 31.03.2021 shall have the annual income criteria of ₹8 lakh for students both OBC & EBC Category.) 

Dr. Ambedkar Central Sector Scheme of Interest Subsidy (ACSIS) – Eligibility Criteria

  • First and the foremost criteria relates to availing of education loan from a scheduled bank under the Education Loan Scheme of the Indian Banks Association (*IBA). 
  • The candidate applying under the OBC category, should be able to produce an OBC Caste certificate in the prescribed format issued by the competent authority as revealed in the following screenshot.

Produce an OBC Caste certificate in the prescribed format issued by the competent authority

  • The students should have secured admission in the approved courses at Masters, M.Phil or Ph.D levels abroad in the following courses/subjects/disciplines listed as follows:
    • Arts/Humanities/Social Sciences
    • Commerce
    • Pure Sciences
    • Engineering
    • Biotechnology/Genetic Engineering
    • Industrial Environmental Engineering
    • Nanotechnology
    • Marine Engineering
    • Petro-chemical Engineering
    • Plastic Technology
    • Cryogenic Engineering
    • Mechatronics
    • Automation 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 (for Solar Heat) System, Energy Storage Engineering, Energy Conservation, Energy Efficient Habitat.
    • Packaging Engineering/Technology
    • Nuclear Engineering
    • Information Technology including Computer Engineering, Software, Software Quality Assurance, Networking/Connectivity Engineering, Communication Systems under Hazardous or PostDisaster Conditions, and Multimedia Communication.
    • Industrial Safety Engineering
    • Agriculture & Agro Technology
    • Agronomy
    • Medical
    • Floriculture & Landscaping
    • Food Sciences & Technology
    • Forestry & Natural Resources
    • Horticulture
    • Plant Pathology
    • Energy Studies
    • Farm Power & Machinery
    • Veterinary Sciences
    • Soils & Water Management
    • Plant Breeding & Genetics
    • Small-scale Rural Technology
    • Ocean & Atmospheric Sciences
    • Master of Business Administration (MBA)
    • Master of Computer Applications (MCA) and any other subject 

(Note:- Subjects may be deleted or added by the Ministry from time to time as circumstances dictate.)

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Income Ceiling 

  • For OBC applicants, the total income from all sources of the employed candidate or his/her family income in case of unemployed candidate shall not exceed present Creamy Layer criteria. 
  • For EBC candidates, total income from all sources of the employed candidate or his/her parents/guardians in case of unemployed candidate shall not exceed ₹5 lakh per annum. 
  • Under the Creamy Layer criteria, the annual income limit of the family from all sources for the EWS group of General category for availing the benefit of reservation is fixed at ₹8 lakh per annum. The annual parental income limit for the sections of Other Backward Classes, who do not fall within the other conditions prescribed for determination of Creamy Layer is also ₹8 lakh per annum.
*About Indian Banks’ Association (IBA): The IBA is an association of all Indian commercial banks, both in the public and private sectors, and it plays a crucial role in standardizing banking practices in India. The IBA Model Education Loan Scheme is a set of guidelines formulated by the IBA to provide a framework for banks to offer educational loans to students pursuing higher education in India and abroad.

Also Read: Education Funding Solutions for International Students to Study in India!

Dr. Ambedkar Central Sector Scheme of Interest Subsidy (ACSIS) – Interest Subsidy Coverage

  • Under the scheme, the Government of India shall bear the interest payable by students on IBA education loans during the moratorium period. This moratorium covers the course duration plus one year or six months after employment, whichever is earlier, as outlined in the Education Loan scheme of the IBA.
  • After the end of the moratorium period, the applicants shall be responsible for paying interest on the outstanding loan amount, under the IBA Education Loan Scheme’s provisions, as amended from time to time.
  • The candidate will be responsible for paying the principal installments and any interest accrued beyond the moratorium period.

Administrative Expenses: A provision not exceeding 3% of the annual budget allocation for the scheme will be made to cover administrative and allied costs, such as expenditure on office equipment including computers and accessories, advertisements, personnel, and third-party evaluation. The Ministry of Social Justice and Empowerment will oversee the implementation of the ACSIS scheme. To facilitate monitoring, the Nodal Bank will establish a web-based tracking system. 

Dr. Ambedkar Central Sector Scheme of Interest Subsidy (ACSIS) – Required Documents

Students who meet the eligibility criteria can apply for the interest subsidy under the Dr. Ambedkar Central Sector Scheme of Interest Subsidy (ACSIS) by submitting the required documents to the lending bank. The necessary documents typically include:

  • A valid passport
  • Admission letter from a foreign university
  • Loan sanction letter
  • Caste certificate
  • Disability certificate (if applicable)
  • Income certification viz. ITR/Form 16/Audited Accounts
  • Income certificate issued by the authority of State Government/UT Administration
  • Other relevant documents as specified by the bank

Dr. Ambedkar Central Sector Scheme of Interest Subsidy (ACSIS) – Application Process

Online Process:

Students can also apply for the Dr. Ambedkar Central Sector Scheme of Interest Subsidy by downloading the UMANG app and registering using their mobile number. To avail the benefits, follow the steps below:

Step 1: Download the UMANG app or visit the official website.

Step 2: Navigate to the ‘Login/Register’ button and complete the registration using a valid mobile number.

Dr. Ambedkar Central Sector Scheme of Interest Subsidy (ACSIS) - Application Process

Step 3: Once registered, students can access the ‘Schemes‘ section within the app and search for the ‘Dr. Ambedkar Central Sector Scheme (ACSIS)‘.

Step 4: Upon locating the ACSIS Scheme, students can initiate the loan application process by filling out the required details and uploading the necessary documents.

Step 5: After submitting the application, applicants can track the progress of their loan application directly through the UMANG app or the application status section on the official website.

Important Points

  • The interest subsidy will be linked to the existing Educational Loan Scheme of the Indian Banks’ Association (IBA) and restricted to students enrolled in Master’s, M.Phil, and PhD programs.
  • The Nodal Bank will establish a detailed procedure for processing and approving interest subsidies for eligible students in consultation with the Ministry.
  • A Recommendatory Committee, headed by the Joint Secretary in charge of the Backward Classes Division, with representatives from the Finance Division, the Nodal Bank, and the concerned Director/Deputy Secretary as convener, will review and recommend applications for interest subsidies every quarter.

Contact Details of the Participating Bank:

Govt. Portal Section, 

Govt. Services wing, Head Office, Canara Bank, 

New Delhi-110092

Email ID: hogps@canarabank.com | Phone Number: (011)-20825024

Dr. Ambedkar Central Sector Scheme (ACSIS) – Present Status and Conclusion!

The ACSIS scheme so far has had a far reaching positive impact on the lives of several students and their families. The state-wise details of the number of beneficiaries under the Dr. Ambedkar Scheme of Interest Subsidy on Educational Loans for Overseas Studies for OBCs & EBCs from 2020-21 to 2022-23 can be accessed in the following press release of the PIB. However, the Ministry of Social Justice and Empowerment (MoSJE), Government of India (Gol) have conveyed that the Banks should not consider/accept any fresh applications under the ACSIS Scheme till further guidelines. The students who have not been given any benefit till now (pending fresh cases) may also be kept on hold till further notice i.e., the records uploaded for the first-time during FY 2022-23 will not be processed for payments till further communication from the MoSJE. OBCs & EBCs applicants must hope for the best and await further guidelines. The Dr. Ambedkar Central Sector Scheme of Interest Subsidy has worked towards promoting social justice and educational equity. By providing financial support to meritorious students from OBC and EBC communities, the scheme empowers them to achieve their academic and career aspirations. With effective implementation and continuous improvement, the ACSIS can play a vital role in building a more inclusive and prosperous India.

Also Read: ED Loan Benefits: Understanding Key Aspects of Education Loan in 2024!

FAQs on Dr. Ambedkar Central Sector Scheme of Interest Subsidy (ACSIS)

Who will be considered as the applicants from the OBC categories for this scheme?

Applicants belonging to the OBC category for this scheme are those students whose communities/castes are included in the Central list of OBCs. 

Will the State or UT lists of OBCs be considered under the ACSIS scheme? 

No, State or UT lists of OBCs will not be considered under the ACSIS scheme. Only the Central List (State-wise/UT-wise) available on the National Commission for Backward Classes (NCBC) website will be considered.

How many beneficiaries under ACSIS for OBCs & EBCs got benefited in the FY 2022-2023?

As many as 4159 beneficiaries stood benefitted under the ACSIS scheme meant for OBCs & EBCs students.

If a student has availed Education Loan subsidy under the CSIS or New CSIS scheme for undergraduate or graduate courses, will they be eligible for subsidy under the proposed Dr. Ambedkar Central Sector Scheme of Interest Subsidy (ACSIS)?

The scheme offers benefits for pursuing studies abroad in approved courses of studies at Masters, M.Phil. and PhD level. This is one time only benefit. It is not allowed even if similar benefits have been availed under different schemes.

What is the meaning of a moratorium period?

As per scheme guidelines, the moratorium period is the course period plus 1 year, or the course period plus 6 months after obtaining employment, whichever is earlier.

If the moratorium period is increased at the student/borrower’s request due to genuine reasons, can a subsidy be provided for the extended period?

If the moratorium period is extended with the approval of the competent authority, the subsidy can be provided during that period, provided fees are paid during the extended moratorium period.

In the case of an employed candidate, should the income of the employed candidate and their parents/guardians be combined to determine eligibility for the proposed subsidy scheme?

Parental income will be considered for eligibility only if the student is unemployed or employed but on sabbatical (not receiving a salary).

What are the documents acceptable for income certification under the scheme?

For Income Certification, documents such as the Income Tax Return (ITR), Form 16, Audited Accounts, or an Income Certificate issued by the State Government or UT Administration, as produced by the student for availing an educational loan, are acceptable under the scheme.

Should the income level at the time of loan sanctioning be the only factor considered, or will subsequent increases/decreases in parental income level affect the student’s eligibility under the scheme?

The income certificate submitted during the loan application will be considered as proof of annual income. Subsequent increases or decreases will not affect eligibility.

What is the annual income limit for a family under the Creamy Layer criteria for the EWS group of the General category to avail the benefit of reservation?

The annual income limit for a family under the Creamy Layer criteria for the EWS group of the General category to avail the benefit of reservation is fixed at ₹8 lakh per annum. 

What is the annual parental income limit for sections of Other Backward Classes who do not fall within the other conditions prescribed for the determination of Creamy Layer?

The annual parental income limit for sections of Other Backward Classes who do not fall within the other conditions prescribed for the determination of Creamy Layer is also ₹8 lakh per annum. 

What is the eligible loan component for interest subsidy?

For a student, the eligible loan component for interest subsidy claims is the actual loan amount taken, subject to a maximum of ₹20,00,000.

What is the instruction shared by the Ministry of Social Justice and Empowerment (MoSJE) to the banks regarding the ACSIS Scheme?

The MoSJE has instructed banks not to consider or accept any fresh applications under the ACSIS Scheme until further guidelines are provided.

What should be done with the pending fresh cases under the ACSIS Scheme?

The pending fresh cases under the ACSIS Scheme should be kept on hold until further notice from the MoSJE.

Will the records uploaded for the first time during FY 2022-23 be processed for payments?

No, the records uploaded for the first time during FY 2022-23 will not be processed for payments until further communication from the MoSJE.

What is the annual income limit for the EWS group of the General category to avail the benefit of reservation?

The annual income limit for the EWS group of the General category to avail the benefit of reservation is ₹8 lakhs per annum.

What percentage of the total outlay in a year is earmarked for interest subsidy to women candidates as per the scheme guidelines? 

A minimum of 50% of the total outlay in a year is earmarked for interest subsidy to women candidates as per the scheme guidelines. 

How are the claims for the interest subsidy settled, and who can apply? 

The claims are settled through a web portal that is open to any student to apply and avail the benefit of the scheme.

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