Bidya Lakshmi Loan

• The State Government provides a loan of ₹5,00,000/- to ₹10,00,000/- at an interest rate of 4%.
• Employees with an annual salary income exceeding ₹4,50,000/- can avail up to ₹10,00,000/- at 4% interest after State Government interest subvention.
• Employees with annual income up to ₹4,50,000/- are eligible under the Credit Linked Subsidy Scheme (CLSS), with 100% subsidy during the moratorium period (course period plus one year). Post-moratorium, the effective interest rate is 4%.
• Loans can be used for course fees, books, computers, educational equipment, and travel expenses (for studies abroad).
• No collateral security or third-party guarantee is required for loans up to ₹10,00,000/-.
• Life insurance policy option available to cover the loan amount.
• Tax rebate under Section 80(E) of the Indian Income Tax Act.

> Mode of Disbursement

The loan amount is transferred directly to the educational institution’s account (not to the parent/student). It covers Tuition fees, books, computers, equipment, and travel (for abroad studies). The amount is disbursed in lump sum or installments, as per the institution’s fee structure.

> Frequency of Disbursement

Interest is charged monthly, and subsidy amounts are credited back to the individual account upon claim clearance.

> Conditions for Disbursement

The utilization certificate must be submitted at the end of the financial year.

> For the Parent

• The parent should be a regular, in-service State Government Employee of Assam.
• The parent should have at least 5 years of residual pensionable service.
• The employees with annual income exceeding ₹4,50,000/- can avail up to ₹10,00,000/-.
• The employees with annual income up to ₹4,50,000/- are eligible under CLSS.
• The employee must have a salary account with check-off facility (for EMI deductions).
• The employee must be a co-borrower in the loan application. The employee’s name must be included in the loan application alongside the child (the student).

> For the Child

• The child must be admitted to a technical/higher educational institution recognized by UGC (University Grants Commission)/ AICTE (All India Council for Technical Education)/ Government-approved colleges/universities in Assam or anywhere in India/ Premier institutions (for studies abroad).

• The child must be pursuing one of the following approved courses:

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, Doctorate (PhD).

Abroad: Courses conducted by premier institutions like CIMA (Chartered Institute of Management Accountants, London) or CPA (Certified Public Accountant, USA).

• The child must be a co-borrower in the loan application. The child’s name must be included in the loan application alongside the parent (government employee).

Step 1: The eligible employee should take a print of the prescribed format of the application form.

Step 2: In the application form, fill in all the mandatory fields and attach copies of all the mandatory documents (self-attest them, if required).

Step 3: Submit the duly filled and signed application form along with the documents, within the prescribed period (if any), to the respective Drawing and Disbursing Officer (DDO). Furnish a written undertaking for EMI deduction from salary.

Step 4: The DDO sends the application package (form, documents, and check-off letter) to the designated SBI branch in the district or civil sub-division.

> Post-Application Processes

Step 1: The bank reviews the application, confirms eligibility, and approves the loan if all criteria are met. The loan amount is then disbursed directly to the educational institution.

Step 2: Once repayment begins, SBI automatically deducts the Equated Monthly Installments (EMIs) from the applicant’s salary account using the check-off facility.