Axis Bank Government of India Interest Subsidy Schemes for Education Loan

Government of India Interest Subsidy Schemes for Education Loans

Axis Bank Government of India Interest Subsidy Schemes allow its education loan applicants to apply for interest rate subsidies. The bank currently mentions one government scheme, viz.

  1. Central Sector Interest Subsidy Scheme

We look at it in some detail.

Features of Central Sector Scheme of Interest Subsidy for Education Loans

Why this Scheme?

Under this scheme, the Central Government takes care of any interest component that arises during the moratorium phase of an education loan taken by economically weaker students. The moratorium usually comprises of the duration of the course and an additional time of 12 months after completion of the programme or 6 months after landing a job, whichever is earlier.

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Loan Amount


  • The scheme is only available for economically weaker students who are pursuing technical or professional education studies in India. Economically weaker sections refer to families that earn a gross yearly income of Rs. 4.5 lakh or less
  • The students will have to show income proof from such public authorities as are authorised by the state governments for certification of income status for this scheme and other central and state sector schemes
  • The scheme will be available to eligible students only once, either for their first undergraduate or postgraduate degree or diploma courses in the country. The subsidy shall also be applicable to integrated graduate and post-graduate courses
  • The scheme will not apply to students who stop pursuing studies or are expelled from the institute

Eligible Courses

  • The subsidy scheme will apply to courses from all accredited universities, institutions and professional courses recognised by UGC, AICTE, etc.
  • The Interest Subsidy Scheme on Education Loans will also apply to courses in Central Institutes of Hotel Management and Catering Technology, State Institutes of Hotel Management and Catering Technology, Food Craft Institutes and Indian Institutes of Tourism and Travel Management that are administered by the Ministry of Tourism. Find the list of institutes on the Axis Bank website


  • The interest rates charged on the educational loan apply as per the type of education loan scheme chosen
  • Once the moratorium phase ends, the student will be liable to pay the interest on the outstanding loan amount in accordance with the provisions of the Educational Loan Scheme of Banks. The government of India will only bear the interest expenses arising during the moratorium period

Tags with Certificates

  • The certificates of students who have availed this scheme from the Axis Bank Government of India Interest Subsidy Schemes will have a tag or a marker that indicates their repayment liabilities to future employers

Other Features to Know

  • This is a comprehensive model educational loan scheme that was formulated by the Indian Banks’ Association (IBA) for adoption by all scheduled banks and aims at providing financial support from the banking system to deserving or meritorious students to pursue higher education in the country or abroad
  • The disbursement of interest subsidy claims to Axis Bank shall be on a semi-annual or annual basis, as decided by the Ministry of HRD, Govt. of India
  • The nodal bank for the scheme is Canara Bank

Note: If a borrower is found to have availed the interest subsidy by submitting false documents then the subsidy will be withdrawn. The subsidy already paid will be recovered with penal interest. Criminal action will also be taken against the borrower as per law.

Axis Bank Customer Care Numbers and Other Details

  • Axis Bank Website:
  • Customer Care:
    • Toll-Free Number (within India): 1800 103 5577
    • Non-Toll Free Numbers: 1860 419 5555, 1860 500 5555
    • Agri & Rural Banking Customer Care: 1800 419 5577
    • Corporate Banking Customer Care: 1860 500 4971
    • NRI Phone Banking Numbers:
      • Australia: 1800 153 861
      • Canada: 1855 436 0726
      • Qatar: 00 800 100 348
      • Saudi Arabia: 800 850 0000
      • Singapore: 800 1206 355
      • UAE: 8000 3570 3218
      • UK: 0808 178 5040
      • USA: 1855 205 5577
  • SMS from Registered Number:
    • SMS BAL to 56161600 or +91 9951 860 002 for Account Balance
    • SMS MINI to 56161600 or +91 9951 860 002 for Mini Statement
  • Headquarters: Mumbai, Maharashtra