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The 'Bidya Lakshmi' scheme provides much-needed education loans for the children of Assam State Government employees, offering Read More... substantial financial support for higher studies at a low interest rate. Read less

Details

Navigating the costs of higher education can be tough, especially for parents working in government jobs. Recognizing this, the Assam Government launched the 'Bidya Lakshmi' scheme to ease the burden. This initiative focuses on providing accessible education loans to the children of regular State Government employees.

What Is This Scheme?

'Bidya Lakshmi' is an education loan scheme designed specifically for the children of Assam's regular State Government employees. Launched in the 2016-17 financial year, it aims to support aspirations for higher studies by offering loans between ₹5,00,000/- and ₹10,00,000/- at a nominal 4% interest rate. The scheme is managed by the State Bank of India (SBI).

Who Can Benefit From This Scheme?

The primary beneficiaries are the children of regular, in-service State Government employees of Assam who wish to pursue recognized higher education courses. Both the parent (employee) and the child (student) must meet specific eligibility criteria, including the parent having a minimum of 5 years of residual pensionable service and the child being admitted to a recognized institution.

Why This Scheme Is Important

This scheme plays a crucial role in ensuring that financial constraints don't hinder the educational progress of children from government employee families. It makes quality education, including professional and technical courses in India and abroad, more attainable. The low interest rates and potential subsidies significantly reduce the repayment burden, making it a valuable support system for families.

Objective

The 'Bidya Lakshmi' scheme provides much-needed education loans for the children of Assam State Government employees, offering substantial financial support for higher studies at a low interest rate.

Benefits

1. Under this scheme, cash assistance of ₹1.00 lakh is to be given to the registered workers.

Sources and references

Website

Eligibility Criteria

To be eligible for the Bidya Lakshmi Loan, both the parent and the child must meet certain conditions:

For the Parent (Assam Govt. Employee)

Must be a regular, in-service State Government Employee of Assam.
Must have at least 5 years of remaining service before retirement (pensionable service).
If the annual income exceeds ₹4,50,000/-, they can avail loans up to ₹10,00,000/-.
If the annual income is up to ₹4,50,000/-, they are eligible for the CLSS subsidy.
Must have a salary account with a check-off facility for easy EMI deductions.
The parent must act as a co-borrower and be included in the loan application alongside the child.

For the Child (Student)

Must be admitted to a technical or higher educational institution that is recognized by UGC, AICTE, or is a Government-approved college/university in India or a premier institution abroad.
Courses covered include:
- In India: Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer Science, Chartered Accountancy (CA), Cost and Management Accountancy (ICWA), Chartered Financial Analyst (CFA), Master of Computer Applications (MCA), Master of Science (MS), Graduation in professional/technical courses, and Doctorate (PhD).
- Abroad: Courses from premier institutions like CIMA (London) or CPA (USA).
The child must also be a co-borrower and included in the loan application with the parent.

How To Apply

The application process involves several steps to ensure all requirements are met:

Obtain the loan application form from the designated State Bank of India (SBI) branches.
Fill out the application form completely, ensuring all details of both the parent (employee) and the child (student) are accurately provided.
Submit the application form along with all required documents to the bank.
The Drawing and Disbursing Officer (DDO) of the parent's department will forward the application and issue a check-off facility letter for salary deductions.
The loan amount will be disbursed directly to the educational institution, either in a lump sum or in installments as per the institution's fee structure.

Note: Loans are processed by designated SBI branches across all districts and civil sub-divisions of Assam. For specific branch details, you may need to check with your local SBI branch or refer to official government notifications.

Documents Required

Applicants need to submit a set of documents for both the student and the parent.

For the Student (Child)

3 Passport Size Photographs.
PAN Card copy (for identity proof).
Aadhar Card, Driving License, or Passport copy (for address proof).
Mark sheets and Pass Certificates from the last qualifying exams (starting from Matriculation).
Offer letter or Bonafide certificate from the educational institution.
Prospectus of the course and approval copy from AICTE/UGC or the Governing Body for the course.
Detailed Fee Structure of the course, printed on the institution's letterhead.
Score sheets of entrance tests (e.g., JEE, PMT) if applicable.
Any other documents as required by the bank.

Additional Documents for Studies Abroad

Valid Passport copy.
Unconditional Offer Letter from the foreign institution.
Any other documents as may be specified.

For the Parent (Government Employee)

3 Passport Size Photographs.
PAN Card copy (for identity proof).
Aadhar Card, Driving License, or Passport copy (for address proof).
Copy of Bank Passbook or recent Bank account statement.
Proof of Income: Form 16, Income Tax Return (ITR), or an Income Certificate from the appropriate authority.
Any other documents as required by the bank.

FAQ’s

What are the income limits for parents applying for this loan?

Parents earning over ₹4,50,000/- annually can get loans up to ₹10,00,000/-. Those earning ₹4,50,000/- or less are eligible for special subsidies under the Credit Linked Subsidy Scheme.

Which types of courses are covered by the Bidya Lakshmi Loan?

The scheme supports professional and technical courses such as Engineering, Medical, Management, Law, Chartered Accountancy, and Doctorate programs. This includes studies in India and recognized programs abroad.

Do I need to provide collateral for a loan up to ₹10,00,000/-?

No, you do not need to provide any collateral security or a third-party guarantee for education loans up to ₹10,00,000/- under this scheme.

Can the loan amount be used for expenses beyond tuition fees?

Yes, the loan is flexible and can cover course fees, books, computers, necessary educational equipment, and even travel expenses if the student is studying abroad.

How is the loan amount given to the student or institution?

The loan funds are disbursed directly to the account of the educational institution where the student is enrolled. This can be done in one go or in installments, depending on the institution's fee schedule.

When does the loan repayment period start?

The repayment starts after a moratorium period, which includes the duration of the course plus one additional year. During this time, eligible students may receive subsidies.

How are the government's interest subsidies applied?

The interest subsidy is credited back to the borrower's account on a monthly basis after the government approves the claims for subsidy disbursement.

What happens if the loan payments are not made on time?

If a loan repayment is defaulted, the outstanding amount will be recovered from the employee's final retirement benefits, such as gratuity and leave encashment.

Are there any tax advantages for taking this education loan?

Yes, borrowers can claim a tax rebate on the interest paid towards the education loan under Section 80(E) of the Indian Income Tax Act.

Which bank is responsible for administering the Bidya Lakshmi Loan?

The State Bank of India (SBI) is the designated bank that manages and disburses loans under the Bidya Lakshmi scheme. They have branches across all districts and sub-divisions in Assam.

Are there any special benefits for low-income government employees?

Absolutely. Employees earning up to ₹4,50,000/- annually are eligible for 100% subsidy on interest during the moratorium period through the Credit Linked Subsidy Scheme.

How does the salary deduction (check-off) facility work?

Through the check-off facility, the bank automatically deducts the monthly loan installments (EMIs) directly from the employee's salary account. This requires a standing instruction from the employee.

Can I get a loan more than ₹10,00,000/- under this scheme?

While the scheme's direct benefits like interest subvention and concessions are capped at ₹10,00,000/-, it might be possible to avail higher amounts. However, interest rates beyond ₹10,00,000/- will be based on market rates.

What is the role of the Drawing and Disbursing Officer (DDO)?

The DDO is responsible for endorsing and forwarding the loan application from the employee's department. They also issue the necessary letter to enable the salary deduction facility for EMI payments.

What are the repayment terms after the moratorium period ends?

Once the moratorium period is over, the loan repayment begins. The monthly installments are typically deducted directly from the employee's salary account.

Are there any other costs involved for the employee apart from loan interest?

The employee may have to bear the cost of stamp duty for the loan processing, if applicable, as per government regulations.

For how long is the interest subsidy available under CLSS?

Under the Credit Linked Subsidy Scheme (CLSS), the interest subsidy is applicable for the entire moratorium period, which includes the duration of the course plus one year after its completion.