Effective academic year 2009-10, Government of India, Ministry of Human Resource Development shall provide full interest subsidy to eligible students belonging to Economically Weaker Sections. The scheme highlights are:

• Irrespective of any caste, tribe, minority or any other consideration, the criterion for grant of interest subsidy is the economic status of the family of the student seeking this concession.
• The accruing interest on the loan amount would be paid by the government. The principal amount, however, would be the responsibility of the student / borrower.
• For example, for a B.Tech student, the interest payable over four years, being the course duration plus one year moratorium, would be paid in by the government directly to the bank granting the loan. The eligible students would only need to repay the principal amount. A typical benefit of Rs 4.50 lacs by way of interest subsidy would be available to a B.Tech student on a loan of Rs 7.50 lacs.
• The interest subsidy is available only once either for the undergraduate degree course or the post graduate degree/diplomas. It will also be available for combined undergraduate and post graduate courses of five [5] years duration.
• Students who discontinue the course midstream or are expelled from the institution of any reason, other than medical reasons, will not be entitled to any subsidy.

Eligibility for Interest subsidy

Students whose family’s total family income from all sources is less than Rs 4.50 lacs per annum are eligible for interest subsidy. A certificate of Income from the competent authority is essential. For ‘Competent Authority’, see table below.

Competent Authority

State/Union Territory	Name of Authority authorized to issue Income Certificate
Andaman & Nicobar Islands	Tehsildar
Andhra Pradesh	Tehsildar
Goa	Mamlatdar of Taluka
Gujarat	Mamlatdar/Prant Officer/Assistant Collector
Karnataka	Tehsildar
Kerala	Village Officer
Maharashtra	Tehsildar
Mizoram	District Magistrate of any office authorized by the DM
Pondicherry	Tehsildar/ Deputy Tehsildar
Tamil Nadu	Zonal Deputy Tehsildar
Uttar Pradesh	Tehsildar
Uttaranchal	Tehsildar/SDM/City Magistrate
Rajasthan	Tehsildar