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SBI Loan Interest subsidy claim

Took a loan for your son/daughters higher education in 2009-10 from SBI? Now you can claim Interest subsidy from your loan branch if your total household income is less than Rs.4.5 lakhs per annum. This is a part of Union Government’s HR Department to lend education loans for lesser interest rate.

To claim your interest subsidy, you’ve to obtain an income certificate from Tahasildar (MRO) or appropriate authority and approach your loan branch with loan documents. Note that this only applies to loan taken for children’s higher education in technical or professional courses only.

Claims that are received before 15 March 2011 will get preference in processing (faster approval of interest subsidy).

Note: This scheme was introduced in 2009 by the Central Government and is still in force. Various subsidy claims have been processed in the academic years of 2009-10, 2010-11, 2011-12.

Things you will need

Original income certificate of family (this should not exceed Rs.4.5 lakhs per year)

Interest subsidy form

Bonafide letter issued by the College/Institution where the student is currently pursuing his/her education

And another form (issued by the bank) which asks about the course of study and your personal details.

This scheme can also be availed at most Public Sector banks and most top level Private banks (such as ICICI Bank, HDFC Bank and Axis Bank).

Few important points to note

  1. This is a one time subsidy which will be available in the first year of the course (either Bachelor’s or Masters). This is also applicable for students who enrolled for integrated courses (such as 5 year bachelors plus masters).
  2. The subsidy on interest rate will cease and normal education loan rates will be applicable after 1 year of the course completion, or 6 months after one gets a job (which ever occurs first).
  3. For loans that are sanctioned before 1 April 2009, subsidy will only be applicable for the amount which is released after 1 April 2009.

If you have any questions please ask below in the comments (but please don’t ask ‘what is the procedure?’, it is already explained).

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  1. I had taken an education loan of rupees 2.5 lakh in 2015 november, that time i was unaware of education loan subsidy, now i want to apply, since my family annual income is less than 4 lakh. Can i apply now for subsidy.

  2. I have taken loan from ‘ bank of india’ in 2010. so can i get this benefits also?



  4. Sir i want to ask you my father is retired clerk my sister got SBI education loan in year 2009_2013 in 3lakh 77thousands SBI locked my father SBI account all pension are blocked in purnea main branch my sister married is it legal to lock the pension account.

  5. Hi,

    My education loan was sanctioned by June 2008. and the period of course completion by 2008-2010. I have closed my education loan by march 2015. Is that possible to get back my amount paid so far as interest.

    I have get the amount as partial when each semester starts.


  6. Dear sir,
    I am taking loans from SBI from 2011 for bsc nursing course. I have taken 4lakhs loan. Due to my weaker financial conditions I was not able to pay the monthly interest. My total family income less than 1lakh . So I want to apply for subsidy scheme please give me information about subsidy scheme. l can get this subsidy benefits?
    I am very much thankful if you help me.

  7. sukanta Kumar pati

    I had took education loan from sbi pipli. and submitted intrest subsidy application alongwith income certificate from Tehsildar with a affidavit. But till date SBI Pipli not give subsidy to my loan account instead of repeated request.

  8. Vyankatesh Choulwar

    Sir, i have taken 1,70,000 Rs Loan in 2008 from State Bank of Hyderabad and i fullfill all criteria to avail subsidy.Bank is saying my education loan amount is around 4 lakhs now and they are not giving me any subsidy on interest till dec,2013 as said by government.What should i do? whom i have to contact? My whole salary will go to pay my loan .. Please help me sir, i am in trouble. Bank officials are harassing daily.

  9. Respected sir/ madam,
    I have completed my b.tech degree in may 2014 but i have taken loan in session 2010-2011 then will I get interest subsidy because of low family income.

  10. I brought education loan 2009 twelve lakh to study foreign study. Total 18 months course but ten months university closed and work and my parents give some money and i completed course till did not give work visa sir am apply interest subsidy its possible parent are agriculture wild animals problem.

  11. Sir, I have completed B.tech in 2012 and I had taken loan in 2008 from SBI. I am unable to pay. and I would like to know about interest subsidy. and which forms are required for it and how to apply it.

  12. I have taken education loan during 2010-11 (may 2010). Completed my course in june 2013. Got job from 1st of july 2013. Now kindly suggest me a/c to recent announcement by govt, Am I eligible for subsidy? If yes then of whom income certificate should i to submit to the branch and how much annual income need to mention in it? As per whatever I have generated till now or anything else? my annual income is 2.4 lacs but I have not generated this amount till now because first yr will be completed in july 2014
    What should i do now, kindly suggest me the best option to avail this scheme.

    • santosh kumar jena

      I santosh kumar jena. Complete b.tech 2014. I have taken educational loan during 2012 (March). Now kindly suggest me a/c to recent announcement by govt. My annual income 1.2 lack. Am eligible for subsidy.

  13. My loan was sanctioned by SBI for pilot training course in India in FY 2010-2011 and I took the first disbursal instalment in May-2011, am I eligible for the interest subsidy?

  14. I took the loan from S.B.I. Bank in the year of 2009-10 in the month of September, i am also applied the subsidy but my branch manager said that it is for bank details purpose only, but now i came to know the use of it, but i don’t have any acknowledgement of that. So can i apply for it again. Please give me the information for that which i will be great full to you for ever.

    • I don’t think you can claim again since this is a one time claim. But it looks like the manager deceived you by telling it was just for bank details purpose. I’m not sure about this, but I think he may have taken the benefits you should have got.

  15. I have education loan in 2008-2009 in sbi kashel branch itarsi (M.P.) and but i didn’t applied for education loan subsidy scheme in 2011 (I completed my MCA in June 2011). Now can i get the benefit on the subsidy on interest. I also submitted all documents for subsidy but interest have not deduced from my account.

  16. I want to claim subsidy too. They should have announced it clearly since I only got to know about this very recently.


      Sir I have taken education loan in december 2006 and i have passed out from college in december 2010,after that i have started paying loan amount and in 2013 i have all my loan amount and closed loan account.few days before i come to know about this subsidiary,i asked with the bank but they are saying that you have not applied before so u will not get.but some of my friend got this subsidiary,even today one of my friend got subsidiary amount,he also was not knowing but he was saying that bank called me and says that this amount came in ur acount automatically,sir plz suggest me that now i can apply for that or not,or is there any procedure by which i can get that subsidiary.
      thanks and best regards,

  17. I have taken education loan from SBI in JULY 2008. Can you please inform me about the subsidy. The total loan was 3lacs. But they are taking 2000 rupees per month from the date of the loan has sanctioned. Please let me know the details.
    Thank you.

  18. I have completed MHA Degree in Aug 2010. I had taken education loan from S.B.I. bank in the year 2007-09 and now i want subsidy. What is the procedure to apply for interest subsidy.

  19. I am a student of MBA-Finance final year. I took education loan from SBI (Thamrassery, Calicut, Kerala). My total family income is less than Rs.4.5 lakhs. I contacted my branch manager for subsidy details but still i didn’t get subsidy form itself. How i can apply for the subsidy this year?

    • My daughter completed b.tech. course from academic year 2009-10 to 2012-13 and my total income below 4 lac’s. She has also taken the education loan from SBI mandsaur (m.p.). How to get subsidy on this loan.

  20. I had taken education loan from SBI in 2010. I submitted my subsidy form in oct 2010, but thERE is no response from them till date. What is the criteria for eligibility for subsidy given by HRD of india.

  21. Hi, I have taken educational loan for my MCA course on dec 2009. Once this interest subsidy scheme has been announced, i have applied for that. But after a quite period of time my application was sent back to me..Can I apply now again?

    If not, can I apply for 2010-11 and 2011-12..?
    Please help me friends..

  22. How can we apply interest subsidy through online, with out consulting branch manager?

  23. I’m studying B-TECH 3rd year, I took loan through SBI and I already met the field officer regarding this interest subsidy. Then he told to me that please don’t keep hopes on it. It wont work out. Is it correct? If not how can apply it through online.

  24. I have taken loan for pgdm from state bank of india And we know that government is providing subsidiary on education loan they have family income less than 4.5 lakhs and taken loan for 2010 to 2012 period but bank did not suggested in proper way to me. please suggest me what can i do.

  25. I had taken education loan for my BE course in 2008 from SBI bank. Is it possible to apply for interest subsidy now for the loan amount taken after 2009. In our bank they are not giving any information about this.

  26. I am a b.tech 1st year student and i want to take loan so please tell me how much subsidy i get, my father income is rs.35000

  27. I have taken my educational loan for overseas education at 2006 and i did not start to pay my loan after my studies as i had to do another course with different institute. I just started to pay from this July 2011 only when i received a letter from my bank. when i took loan it was INR 7.5lakh now it has rose to INR 13Lakh. Now they have sent me the notice that i’ll have to pay the full loan amount within 90 days from the day i received that notice. Also they are telling us that they would sale our land which was given as a Collateral security for that loan. but i knew that loan repaying time is 7 years from date of loan obtained.
    I can’t make the full payment with one or two shot.

    What should i do in this situation?

    Would i get any subsidiary if i request them?

    Kindly i request you to assist me in this situation.


    • Sorry, I won’t be of much help to you here.
      The loan repayment term is 7 years provided you paid your installments after your first course, only for which you were granted a loan. It looks like you delayed the payment so the bank might have cut-short the repayment time.
      Have a talk with the bank itself or see if any of your friends or family can help you.

      • Hi There,
        i have got education loan for post graduate course which is PGDBM in University of Wales London UK in jan 2010. my course was finish march 2013 i have starting paing my loan EMI on last 2012 currently i am paying my loan EMI regularly still date but thing is that i did not know about interest subsidy so can you please let us know about information regarding getting interest subsidy my family’s annual income is lower than 4 lacs…..so please reply me as soon as possible….

  28. Dear sir
    I have taken education loan for my M.Tech degree programme in aug2009 from state bank of india and we know that government is providing subsidiary on education loan those family have income less than 450000 ( loan period for 2009 to 2010) period when this plan has came that day on words am asking in bank about the interest subsidy sir but they told this plan has not yet come to our branch even they not given clear information also sir but now they are telling time its lapsed u r not eligible now like that sir please suggest me what shall i do now sir…

  29. I have taken loan for my graduation from state bank of india And we know that government is providing subsidiary on education loan they have family income less than 450000 and taken loan for 2009 to 2010 period but bank did not suggested in proper way form submission of application and documents there person told me any day before October 2011 you can submit but they are ignoring that time has lapse so what i can do please suggest me.

  30. I have took Education Loan from SBI during 2008-09. As per the terms and conditions of the Govt. Education Loan Subsidy, I am eligible for loan subsidy for the amount disbursed thro ‘ Education Loan from the year 2009-10. Accordingly I received letter from SBI office to submit necessary Income Certificate to claim interest subsidy. Accordingly I have submitted everything required. At the time of receiving this loan i.e.in 2008-09, I have given my SBI Saving a/c no. so that the monthly interest will be deducted from that a/c. The same was done by the bank also. After the subsidy scheme also every month the interest amount was deducted from my a/c. I have made in inquired about this in the local SBI branch. They have informed, that till date only an amount of Rs.8537/- has been received from Govt. as subsidy towards my interest education loan and the same has been deducted from the outstanding Education Loan Principal amount. However, I have to pay the necessary interest every month against the outstanding education loan amount. In this case I can not understand the SBI view on this. I request you to help me whether the SBI’s above view is correct or not.

    • It appears to be valid for me. It’s just a subsidy but not complete waiver, hence you’ll still be required to pay interest. Since some subsidy has come from the Government, that has been deducted from your outstanding loan amount.
      You can confirm this by seeing the amount being deducted from your savings account as interest. After claiming the subsidy, the amount being deducted from savings a/c must have been (some what) less than before, is that so?

  31. I got loan on may 2009 so what is the process to apply loan subsidy and when i can do this please inform me………..

  32. Sir,
    This year I am taking education loan from SBI around of 6.00 lacs and my father income is less than 4.50 lacs per annum. so, how i can get the benefit of interest Subsidy and from where i can get the form.
    Thanking You

    • Mr. Masood. I have also asked this question from the Disbursement Manager of my nearest SBI branch. He said me that after the completion of 1 year from the sanctioned of your loan, then after getting aforementioned income certificate, contact me.
      So, you are being requested to contact your branch after 1 year with all necessary documents. They will give you the details.
      All the best.

  33. sir i completed mba in 2010, i have got education loan from sbi in 2009 march, whether i have subsidiary interest or not please inform me.

  34. Dear sir,
    I have taken loan for pgdm from state bank of india And we know that government is providing subsidiary on education loan they have family income less than 450000 and taken loan for 2009 to 2010 period but bank did not suggested in proper way form submission of application and documents there person told me any day before October 2011 you can submit but they are ignoring that time has lapse so what i can do please suggest me.

    Vikash kumar

  35. Sir,
    I am a student of MBA-Finance final year. I took education loan from SBI (Uttarpara branch,West Bengal). I came to know about the interest subsidy on 15th March,2011.I got the letter from SBI bank on 15th march,2011. My total household income is less than Rs.4.5 lakhs per annum. Now I have done all the formalities,but the bank not accepting my paper.Now,what the suggestion for me&What should I do? Is there any extension for the interest subsidy?
    Please reply.
    Thank you.

  36. Sir , i hav taken education loan in dec. 2008 , i want to know whether i can claim for subsidy or not. i have finished my course of MBA just.

  37. sir , i am a student of B.tech second year.sir what’s the procedure for loan subsidy form. pls sir how can this may lead in faster way. please sir reply soon
    thank you so much

  38. Sir,
    I am residing in Kamarhati Municipality, Barrakpur Sub Division, Dist – North 24 Parganas and I took education loan from SBI, Kamarhati for studing B Tech in Adamas Institute of Technology. I want to know from where and how to get the income certificate of my father’s income whose monthly salaried income (private sector) is less than 2 lacs.

  39. sir , i m a student of BDS final year .i had taken education loan to PNB , how to apply for interest subsidy?

  40. Sir , i am a student of B.Tech second year . i had taken education loan to S.B.I. bank in july 2010 , what is the procedure for apply interest subsidy form

  41. umesh kumar pandey

    Sir , i am a student of B.Tech final year . i had taken education loan to S.B.I. bank , what is the procedure for apply interest subsidy form .
    please send me that information very quickly .
    Thank you .

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