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The Ministry of Human Resource and Development took the decision to provide interest subvention for the students admitted for integrated UG courses in IITs. The scheme covers the academic period (five years) and one year of the moratorium. The plan comes under Vidyalaxmi scheme.
The interest-free loans provided to the students whose family income is less than Rs. 9 lakh per annum.
The loan covers only the tuition fee payable by the student as per his/her eligibility. However, the students have to pay the tuition fee at the time of admissions and reimbursed later by the ministry.
The term of the loan is ten years.
There is no collateral for sanction of loan except the personal guarantee of the student.
The repayment of interest is applicable for five years plus one year of the moratorium.
The candidates have to pay the interest after the expiry of the period mentioned above.
The scheme is applicable for the students who were admitted for the academic year 2016-17.
The subvention of interest given based on the satisfactory performance of the student in the institute.
Payment of interest depends on the accruals of the IIT.