The Honorable Chief Minister of Odisha, Shri Naveen Patnaik, launched the Kalinga Sikhya Sathi Yojana (KSSY) on June 27, 2016, to provide a self-financing option for higher education to students residing in Odisha.
Under the KSSY scheme, eligible students have the opportunity to obtain an education loan of up to INR 10,00,000. The repayment period to avail of a loan of INR 10 lakh is 15 years, whereas a loan amount of up to INR 7,50,000 has a repayment period of 10 years. To make it easier for students to pursue professional courses in UGC/AICTE-recognized institutions, the Government of Odisha provides a subsidy for the remaining loan amount.
The primary objective of this scheme is to empower students by offering them the means to finance their higher education and achieve their educational goals.
In this article, students can learn about the moratorium period of the loan, who is eligible to apply, the documents they need to provide, and other important details about the scheme.
Kalinga Sikhya Sathi Yojana – Highlights
| Name of the Scheme | Kalinga Sikhya Sathi Yojana |
| Launched By | Government of Odisha |
| Official Website | dhe.odisha.gov.in |
| Beneficiaries | Students of Odisha |
| Benefits | Educational loans up to INR 10,00,000 at 1% interest |
| Application Mode | Online/Offline |
| Loan Repayment Period | 15 years if the loan is up to INR 10,00,000 and 10 years if the loan is up to INR 7,50,000 |
Kalinga Sikhya Sathi Yojana – List of Participating Banks
The Government of Odisha allows students to avail of educational loans from scheduled banks. While the specific list of participating banks may vary, here is a general list of banks that often participate in the KSSY scheme:
- Allahabad Bank
- Andhra Bank
- Bank of Baroda
- Bank of India
- Bank of Maharastra
- Bharatiya Mahila Bank
- Canara Bank
- Central Bank
- Central Bank of India
- Dena Bank
- IDBI Bank
- Indian Bank
- India Overseas Bank
- Oriental Bank of Commerce
- Punjab & Sind Bank
- Punjab National Bank
- State Bank of Bikaner & Jaipur
- State Bank of Hyderabad
- State Bank of India
- State Bank of Mysore
- State Bank of Travancore
- Syndicate Bank
- UCO Bank
- Union Bank of India
- United Bank of India
- Vijaya Bank
- Axis Bank Ltd.
- Bandhan Bank
- City Union Bank
- DCB
- Federal Bank
- HDFC Bank
- ICICI Bank
- Indus Ind Bank
- Karnataka Bank
- Karur Vysya Bank
- Kotak Mahindra Bank
- Laxmi Vilas Bank
- Standard Chartered Bank
- The South Indian Bank Ltd.
- Yes Bank
- Orissa State Co-operative Bank
Kalinga Sikhya Sathi Yojana – Eligibility Criteria
To be eligible for the scheme, students must meet the below-mentioned criteria:
- The student must be a resident of Odisha.
- The annual family income of the applicant should be less than INR 6,00,000.
- Students must not have already availed of similar benefits for the same purpose from any other government or institution.
- The course of study must be Management, Integrated Law, Engineering, or Medicine at an educational institution in India that is established by an Act of Parliament or a state legislature, or that is recognized by the relevant statutory body.
Kalinga Sikhya Sathi Yojana – Important Features
- The scheme applies only to students enrolled in UGC/AICTE-recognised technical/professional courses in India.
- The applicants are required to pay only 1% interest on the loan amount, while the remaining portion of the interest will be covered by the Higher Education Department, Government of Odisha.
- Education loans up to INR 7,50,000 can be repaid in 10 years, while loans up to INR 10,00,000 can be repaid in 15 years. This includes the moratorium period.
- For family income between INR 4,50,000 to INR 6,00,000, the moratorium period (the period when the student is not required to make loan repayments), the interest subsidy is provided by the Government of India.
- If students borrow INR 7,50,000 under the KSSY scheme, their total interest and principal liability over a 60-month repayment period will amount to INR 1,02,562. The EMI (Equated Monthly Installment) for each month would be INR 1,709. This typical calculation of repayment liability is based on per INR 1 lakh oan amount. Students can save up to Rs. 90,867 for every Rs. 1 lakh education loan by repaying it on time, assuming a 10% interest rate. The savings may vary depending on the actual interest rate.
- The repayment liability of a loan of INR 10 lakh can be calculated using the same calculation method.
For more information regarding the features of the scheme, please visit KSSY’s official information bulletin.
Kalinga Sikhya Sathi Yojana – Moratorium Period
The moratorium period is a period of time during which a student with an education loan does not have to make any repayments. The moratorium period for education loans is not fixed and varies from bank to bank.
The moratorium period for the KSSY scheme is calculated as the course period (the length of the student’s educational program) plus one year. If the student finds a job before they finish their course, the moratorium period will end either 6 months after they start working or when they finish their course, whichever comes first.
Under the scheme, students can receive financial aid in the form of interest subvention* during the repayment period, which includes the moratorium period after completing the course.
*Interest Subvention – Interest subvention refers to a financial assistance program where a portion of the interest on a loan is subsidised by a third party. Here, the interest percentage incurred by the student borrower is covered by the government.
Kalinga Sikhya Sathi Yojana – Documents Required
While applying for the Kalinga Sikhya Sathi Yojana scheme, certain documents are required to complete the application process. These documents include:
- 2 passport size photograph of the applicant
- Proof of Identity: Valid identification documents issued by the government such as Aadhaar card, PAN card, voter ID, ration card, or passport.
- Proof of Residence: Documents that establish the candidate’s residency in Odisha such as residential certificate, domicile certificate, or utility bills.
- Income Certificate: Certificates indicating the annual family income, issued by a competent authority.
- Educational Documents: Marksheets of previous qualifying examinations.
- Admission Letter: Admission letter/proof of enrollment/studentship/identity card, etc. from the educational institution.
- Fee Structure: A document detailing the course fees, including tuition fees, hostel charges, and other academic-related expenses.
- Bank Account Details: Information regarding the student’s bank account including the account number and IFSC code for loan disbursement purposes.
Note – The specific document requirements may vary depending on the implementing authority. Therefore, it is advisable to refer to the official scheme documentation or contact the relevant authorities for the most accurate and up-to-date information regarding the required documents for the KSSY scheme.
Kalinga Sikhya Sathi Yojana – Application Process
Interested and eligible students can apply for the scheme by following the below-mentioned application process:
Step 1) Visit the official website – dhe.odisha.gov.in of the Department of Higher Education, Government of Odisha.
Step 2) Navigate to the “Kalinga Sikhya Sathi Yojana” or click on the search bar and type “Kalinga Sikhya Sathi Yojana”.
Step 3) Click on “Click here to apply” and the candidates will be redirected to the Vidya Lakshmi portal.
Step 4) Click on the “Register” tab and fill out the required details to create an account.
Step 5) After submitting the details, click the “Student Login” tab and enter the registered email ID, password and captcha code.
Step 6) Navigate to the “Login” tab and fill out the application form which includes name, email ID, phone number, and other important documents.
Step 7) After submitting, download the application form for future reference.
Application Process to Apply Offline
The offline application process for the scheme is an alternative method for students who prefer or have limited access to online facilities. Here is a detailed explanation of the offline application process:
- Obtain the Application Form: To initiate the offline application process, applicants need to obtain the application form. These forms are typically available at designated government offices, educational institutions, or specified centres authorized by the implementing authority.
- Fill in the Application Form: Applicants should carefully read the instructions provided with the application form and fill it out accurately. The form will require information such as personal details, educational qualifications, family income, choice of course, and other relevant information.
- Along with the completed application form, gather the necessary supporting documents as specified in the application guidelines. These may include proof of identity, proof of residence, income certificate, educational documents, admission letter, fee structure, and any other documents as required.
- Document Verification: Once the application form and supporting documents are prepared, applicants must visit the participating bank and officials at the centre will verify the documents for authenticity and ensure that all required information is provided.
- Loan Disbursement: If the application is approved, the loan amount will be disbursed to the applicant’s designated bank account.
For more details, please visit the official notice released by the Higher Education Department, Government of Odisha.
Kalinga Sikhya Sathi Yojana – FAQs
What is the maximum loan amount under KSSY Scheme?
As per the scheme guidelines, there is no specified minimum loan amount, while the maximum loan amount available to students under this educational scheme is INR 10,00,000.
Which courses are covered under KSSY Scheme?
The eligible fields of study for this scheme include management, integrated law, engineering, or medicine, and the chosen course must be pursued at an Indian educational institution.
What is the interest rate of the Kalinga Sikhya Sathi Yojana?
Under the scheme, the students will have to pay only 1% annual interest rate on the loan amount.
When will the repayment of the loan amount begin?
The loan repayment under the KSSY scheme will begin once the moratorium period ends.
Does the KSSY scheme offer special benefits for students belonging to reserved categories?
KSSY scheme offers special opportunities for students from Scheduled Tribes (ST), Scheduled Castes (SC), and girls to benefit from interest subvention. However, there is no variation in the interest rate provided under the scheme.