IDBI Dr. Ambedkar Central Sector Scheme of Interest Subsidy

About the IDBI Dr. Ambedkar Central Sector Scheme

The IDBI Dr. Ambedkar Central Sector Scheme assists socially and economically backwards class students undertaking higher education outside India. It offers a 100% interest subsidy on education loan availed under the Indian Banks' Association (IBA) model during the moratorium period, which includes the course duration and up to one year after course completion or six months after getting a job, whichever is earlier.

IDBI Dr. Ambedkar Central Sector Scheme - Rate of Interest

After the moratorium, students begin repaying both the interest and the principal at the applicable rates:

• Up to ₹7.5 lakhs: 10.45% per annum

• Above ₹7.5 lakhs: 10.20% per annum

While planning financial needs for higher studies abroad, it is advisable to understand your repayment obligations. Students may also benefit by using the income tax calculator to estimate their future income and manage EMIs accordingly.

Note: The rates are updated per IDBI Bank's latest terms as of 19 June 2025. These may change based on the RBI Repo Rate monetary lending policy updates.

Features of the IDBI Dr. Ambedkar Central Sector Scheme

Here are some key features of the IDBI Dr. Ambedkar Central Sector Scheme:

• One-Time Interest Subsidy: Students are eligible for an interest subsidy only once throughout their academic career, ensuring focused financial support.

• Special Allocation for Female Students: At least 50% of the annual interest subsidy budget is reserved for eligible female students, promoting gender equity in higher education.

• First-Come, First-Served Basis: Due to limited funds, applications are processed based on submission order and completeness. 

• Early Financial Planning: Families are encouraged to consider child education plan early on to build a financial corpus, reducing long-term dependence on loans.

Investment

Secure

Secure your child’s future with or without you

Start Investing

₹10,000/Month

& Get

₹1 Crore^*

VIEW PLANS

*Standard T & C Apply

Eligibility of the IDBI Dr. Ambedkar Central Sector Scheme

To benefit from IDBI Dr. Ambedkar Central Sector Scheme, students must meet the following criterias:

• Applicable for OBC and EBC Students: Candidates must belong to the Central list of OBC or fall under the EBC category with income criteria.

• Income Restrictions Apply: Annual income must not exceed ₹2.5 lakh for EBC candidates and must meet non-creamy layer norms for OBCs.

• Loan from Scheduled Bank: Under the IBA model, students must have taken an education loan from a scheduled bank, such as IDBI.

• Confirmed Admission Abroad: Must have secured admission in eligible Master’s, M.Phil., or PhD-level programmes in accredited foreign institutions.

• No Prior Similar Subsidy Availed: Students must not have received similar support under any other education loan subsidy scheme.

Early planning with a child investment plan may also help meet eligibility without depending solely on loans.

Documents Required for IDBI Dr. Ambedkar Central Sector Scheme

Applicants must provide the following documents for the IDBI Dr. Ambedkar Central Sector Scheme processing:

• Admission proof from a foreign university

• Education loan sanction letter from a scheduled bank

• Valid income certificate (ITR/Form 16/State certificate)

• OBC certificate (if applicable) in the prescribed format

• Aadhar card and photographs

• A declaration that no other interest subsidy was availed

In some cases, students may also provide documentation supporting child education allowance if it applies to their funding scenario.

Most Important Terms and Conditions

Keep these essential conditions in mind to ensure your IDBI Dr. Ambedkar Central Sector Scheme application remains valid and compliant:

• Fund Availability Clause: The program has a limited budget, and qualified students are chosen on a first-come, first-served basis.

• False Declaration Clause: Any misrepresentation can forfeit the grant and the chance of being taken to legal action.

• Course Completion Requirement: Students must finish the course. Withdrawing or expulsion in the middle makes them ineligible.

• No Dual Subsidy: No dual grant means that applicants who have already received any other type of government aid for studying abroad are not qualified.

• Citizenship Clause: Students who give up their Indian citizenship during their tenure are automatically rejected.