Central Government Ambedkar Overseas Education Loan Interest Subsidy: Full Interest Support for OBC and EBC Students Studying Abroad

8 November 2026, 4:27 PM • Harish Sharma • Category: All India Schemes

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News: Central Government Ambedkar Overseas Education Loan Interest Subsidy: Full Interest Support for OBC and EBC Students Studying Abroad
Date: 8 November 2026, 4:27 PM
Author: Harish Sharma
Category: All India Schemes
Source: See the official portal for details — the link is inside the story.

The Central Government’s Dr Ambedkar Central Sector Scheme of Interest Subsidy on Educational Loans for Overseas Studies for OBCs and EBCs is for OBC and EBC students who take an education loan to study abroad. It is run by the Ministry of Social Justice and Empowerment, and Canara Bank is the nodal bank. Under the scheme, the Government of India pays the full eligible interest during the moratorium period on a qualifying education loan taken for a Master’s, MPhil or PhD abroad — so the student pays no interest while studying.

How much support the scheme gives

The Government bears 100 percent of the eligible interest during the moratorium period — the course period plus one year, or six months after getting a job, whichever is earlier. The maximum loan eligible for the subsidy is ₹20 lakh. The loan must be taken from a scheduled bank under the Indian Banks’ Association (IBA) model education loan framework. At least 50 percent of the financial assistance is earmarked for women candidates.

Who is eligible

The student must belong to the OBC or EBC category and must have secured admission to a full-time Master’s, MPhil or PhD course at a recognised institution abroad. An income ceiling also applies — the Ministry issued revised income criteria for 2020-21, and the limit differs for OBC and EBC applicants. Different sources quote different income figures, so no single figure is stated here — always check the current income limit on the Canara Bank ACSIS portal or the Ministry’s website before applying.

How to apply

Applications go through the Canara Bank ACSIS portal (canarabankcsis.in/ACSIS), since Canara Bank is the nodal bank for the scheme. The student first takes an education loan under the IBA model from their bank, and the interest subsidy is then claimed on it. Documents needed include the OBC/EBC certificate, income certificate, proof of admission, and loan papers. The full scheme guidelines (revised with effect from 01.10.2017) are available on the Ministry’s website.

One important distinction

Do not confuse this scheme with the older Padho Pardesh interest subsidy scheme for minority students — that scheme was discontinued from financial year 2022-23. The Dr Ambedkar scheme is the main central scheme for overseas study now. It covers only studies abroad; a separate scheme (CSIS) gives interest subsidy for studies within India. Never pay any agent for this application — take information only from the Ministry or Canara Bank’s official portal.

Frequently Asked Questions

Q1: What does the Ambedkar Interest Subsidy Scheme pay?
A: The Government pays the full eligible interest during the moratorium period on a qualifying education loan for a Master’s, MPhil or PhD abroad.

Q2: Who is eligible for this scheme?
A: OBC or EBC students admitted to a Master’s, MPhil or PhD course abroad, whose family income is within the prescribed limit.

Q3: What is the maximum loan eligible for the subsidy?
A: A loan of up to ₹20 lakh is eligible for the subsidy.

Q4: Where do I apply?
A: On the Canara Bank ACSIS portal (canarabankcsis.in/ACSIS) — Canara Bank is the nodal bank for the scheme. Check the current income limit there before applying.