Dr Ambedkar Overseas Study Loan Interest Subsidy 2026: 100% Moratorium Interest Waiver up to ₹20 Lakh

At a glance

About the scheme

Administered by the Department of Social Justice and Empowerment under the Ministry of Social Justice and Empowerment, the Dr Ambedkar Central Sector Scheme provides vital financial relief to meritorious Other Backward Class (OBC) and Economically Backward Class (EBC) students aiming for higher education abroad. The Government of India pays the entire interest accumulated during the moratorium period (course duration plus one year, or six months after securing employment) on educational loans taken from scheduled banks. This initiative aims to broaden global academic opportunities and enhance the future employability of students from backward communities.

Benefits

• Full interest payable during the moratorium period (course duration plus one year or six months after securing a job, whichever is earlier) is borne entirely by the Government of India.
• Interest subsidy applies to education loans up to a maximum ceiling of ₹20,00,000.
• A minimum of 50% of the total annual budget outlay is specifically reserved for female students.
• Subsidies are released on a first-come, first-served basis within the approved annual financial allocation.

Who can apply (eligibility)

• Applicant must be a student belonging to Other Backward Classes (OBC) included in the Central List, or Economically Backward Classes (EBC).
• Must have secured admission in an approved course at Masters, M.Phil., or PhD level in an overseas university or institution.
• Must have availed an education loan from a scheduled bank under the Indian Banks Association (IBA) Education Loan Scheme.
• Total annual family income of the applicant from all sources must not exceed ₹8,00,000.

Who cannot apply

• Candidates listed only under State or UT OBC lists and not included in the Central OBC List are not eligible.
• Loan amounts exceeding ₹20,00,000 are not covered under the interest subsidy claim.
• Principal instalments and interest accrued after the completion of the moratorium period must be borne by the student.

Documents required

• Passport-sized photograph
• Aadhaar card or Aadhaar number
• Proof of educational qualifications
• Bonafide certificate / proof of overseas admission
• OBC caste certificate in the prescribed format issued by a competent authority (for OBC applicants)
• Income certificate (ITR, Form 16, audited accounts, or certificate issued by the State Government/UT Administration)
• Details of Aadhaar-linked bank account

How to apply

1. 1Secure admission to an approved Master's, M.Phil., or PhD programme at a recognised institution abroad.
2. 2Apply for and obtain an education loan under the IBA scheme from any scheduled commercial bank.
3. 3Submit your overseas admission proof, Central OBC or EBC certificate, and income proof to your loan-issuing bank branch.
4. 4The lending bank forwards the interest subsidy proposal to the designated Nodal Bank under the scheme.
5. 5The Recommendatory Committee of the Ministry reviews and sanctions eligible subsidy claims on a quarterly basis.

Frequently asked questions