₹ 15 lakh Dr. Ambedkar Loan Scheme for Foreign Study

The Baba Saheb Dr. Ambedkar loan scheme is launched to promote academic advancement for scheduled caste/other backward classes/economically backward classes students who wish to continue their higher studies in foreign countries.

This article discusses the details of Dr. Ambedkar’s loan scheme covering loan amount, eligibility criteria, document requirements, application procedure, repayment, interest rate, etc.

Objective of Dr. Ambedkar Loan Scheme

The objective of the Baba Saheb Dr. Ambedkar loan scheme is to encourage students belonging to weaker classes to get higher education in foreign countries. The raising in skill set by getting higher education abroad will enhance employability and better opportunities for the students belonging to SC/OBC/EBC etc.

The other scholarships and loan schemes can be checked at Digital Gujarat Scholarship.

Eligibility Criteria

The students who meet the following criteria can apply for Dr. Ambedkar loan scheme:

• The student should belong to the scheduled caste category
• Secured (50%) in 12th class (for diploma or equivalent courses)
• Secured (50%) in graduation (for post-graduation courses)
• Visa is obtained
• Application for this loan should be submitted before leaving abroad
• No income limit

Document Requirement

The following document may be required to be submitted with the application for Baba Saheb loan scheme:

• Photograph of applicant
• Aadhaar No.
• Marksheets of matric and onwards
• School/College Bonafide Certificate
• Caste Certificate
• Income Certificate (Form-16 for Government Servants)
• Aadhaar linked bank account details
• Proof of residence
• Affidavit
• Passport and Visa
• Surety bond on stamp of ₹100
• Property valuation report
• Canceled cheque/1st page of bank passbook
• Any other documents, if required by the authorities

Loan Amount

Interest Rate

The interest rate is 4% for Baba Saheb loan scheme in equal monthly/quarterly installments

• The interest shall be paid by the students availing this loan for the course period plus a year after getting the job.
• The interest on the outstanding loan amount shall be paid after the course period, by the students.
• The installments i.e. monthly/quarterly and the interest over the loan after the course period shall be paid by the students.

Conditions for Interest Subsidy

• The eligible student can benefit from this scheme, and those who are either expelled from institute or discontinued the course due to any reason are not eligible.
• The interest subsidy shall be linked for higher education abroad with the existing loan scheme of the Indian Banks Association (IBA).
• If the rules/terms and conditions of the loan scheme are violated by the recipient, the subsidy will be discontinued.
• At any stage if it is found that any forged document or misleading information is submitted by the student. The loan scheme will be cancelled and the amount paid will be recovered as per prevailing rule.
• The student will not be admissible for interest subsidy if he/she surrenders Indian citizenship for any reason.
• The Ministry and C&AG are responsible for the audit of the funds allocated for this loan scheme to the nodal banks.
• The nodal bank will maintain a record of the funds received from the Ministry of Social Justice and Empowerment and shall upload details of financial and physical achievements on its websites.
• The nodal banks will implement the loan scheme, as per MoU between the bank and the Ministry of Social Justice and Empowerment. The nodal bank shall display the details and procedure for processing and sanctioning interest subsidies to interested students and upload the same on its website.
• For improvements and better results, the terms and conditions of the scheme can be changed at any time by the concerned Ministry without any financial implications.
• The priority-wise professional courses will be considered for the interest subsidy.

Application Process

The applicant is required to visit the nearest Scheduled Caste Welfare Office and collect an application form for the Baba Saheb Dr. Ambedkar loan scheme. The application along with the documents mentioned above should be submitted to the officer concerned at the SCW office or nodal bank.

Implementing Agencies

The Nodal Bank as per MoU between the banks and the Ministry of Social Justice and Empowerment.

Committee

The Joint Secretary in-charge of the backward classes division with representatives of the Finance Division will head the recommendatory committee. The representative of the nodal bank and concerned Director/Deputy Secretary will evaluate and recommend the loan applications by eligible students for sanction of interest subsidy quarterly.

References

Circular No. 1 | 12013/03/2020-BC-1 | Dated 17-07-2020