The Bidya Lakshmi Loan Scheme is a higher education loan initiative by the Government of Assam, aimed at providing affordable educational financing to the children of State Government employees. Introduced in the 2016–17 budget, this scheme offers loans of ₹5 lakh to ₹10 lakh at a subsidized interest rate of 4%, helping families tackle the financial burden of professional and technical education in India or abroad.

Objective of the Bidya Lakshmi Loan Scheme

The scheme is designed to support the higher education aspirations of the children of Assam government employees by offering low-interest education loans with no collateral requirement of up to ₹10 lakh. It promotes equitable access to quality education, even for students aiming to study overseas.

Key Features of the Scheme

• Loan Amount: ₹5 lakh to ₹10 lakh

• Applicable For: Children of in-service Assam State Government employees

• Interest Rate: Effective 4% (with Govt. of Assam interest subvention)

• Moratorium Period: Course duration + 1 year

• Repayment Tenure: Up to 15 years

• Subsidy: Interest subvention from both the Central Government (under CLSS) and the State Government of Assam

• Eligibility: For higher education in India and abroad

• Loan Type: Joint loan with parent (Govt. employee) as co-borrower

• Security: No collateral required up to ₹10 lakh

• Processing Fee: Nil

Benefits of Bidya Lakshmi Loan Scheme Assam

• 4% effective interest for eligible families with CLSS subsidy and state support.

• Students can apply for loans for studies in India or abroad.

• The loan covers course fees, books, laptops, equipment, and travel expenses (for international studies).

• No processing charges on loan applications.

• No collateral or third-party guarantee for loans up to ₹10 lakh.

• Additional loan beyond ₹10 lakh possible from SBI (without state subsidy).

• 1% interest rebate at closure if interest is regularly serviced during the moratorium.

• 0.5% interest concession for female students.

• Loan released directly to the institution, ensuring proper fund usage.

Eligibility Criteria

For Students:

• Must have secured admission to a recognized professional or technical course.

• Must not have failed in the last qualifying exam (including Class XII).

• Must be a child of an in-service Assam State Government employee.

For Parents (Govt. Employees):

• Must be an employee of the Government of Assam with a check-off facility.

• Should have at least 5 years of residual pensionable service.

• Must agree to repay the loan even if the student does not secure a job.

• Must agree to draw pension through SBI until the loan is fully repaid (if retired during the loan term).

Exclusions:

• Private sector employees are not eligible under this scheme.

Application Process (Online)

Here check the Step-by-Step Guide:

1. Visit the Official Portal – Access the application form from the designated government education loan website (or download it directly if available).

2. Register & Apply – Click on ‘Apply Now’ and register with valid details.

3. Fill Application Details – Log in and provide:

   • Basic and personal details

   • Banking information

   • Course and finance details

   • Upload required documents

4. Submit Application – Review and submit your application online for verification and processing.

Documents Required

For Students:

• 3 Passport-size photographs

• PAN Card (Mandatory)

• Aadhaar / Driving License / Passport / Utility Bill (Address Proof)

• Academic mark sheets and certificates (Matric onwards)

• Admission offer letter / Bonafide certificate

• AICTE/UGC approval for the course

• Course fee structure (on institute letterhead)

• Entrance exam scores (e.g., JEE/PMT)

• For abroad studies: Passport and unconditional offer letter

For Parents (Govt. Employees):

• 3 Passport-size photographs

• PAN Card (Mandatory)

• Aadhaar / Driving License / Passport / Utility Bill (Address Proof)

• Bank passbook / Statement

• Income proof (Form 16 / ITR / Certificate from authority)

Note: Both student and parent must have valid PAN Cards.

Loan Repayment & Moratorium

• Moratorium: Course period + 1 year

• Repayment Period: Up to 15 years

• Interest accrued during the moratorium will be paid monthly post-moratorium.

Interest Rate & Subsidy Details

• Base Rate: 1-year MCLR + 1%

• 0.5% concession for female students

• 1% rebate at loan closure for timely interest payment

• Govt. of Assam Subsidy keeps effective rate at 4%

• CLSS Subsidy (100%) applies during the moratorium for families with annual income ≤ ₹4.5 lakh

Frequently Asked Questions (FAQs)

Q: What are the benefits of the Bidya Lakshmi Loan?
Low-interest education loan up to ₹10 lakh, subsidy from State and Central Government, no collateral required, covers all education-related expenses.

Q: Can this loan be used for studying abroad?
Yes, it covers both domestic and international studies, including travel expenses.

Q: What is the loan limit under CLSS?
CLSS subsidy is available on loans up to ₹10 lakh for eligible income groups.

Q: Who can apply for this scheme?
Only in-service State Government employees of Assam and their children are eligible.

Q: What is the annual income limit to qualify under CLSS?
Families with annual income up to ₹4.5 lakh are eligible for a 100% CLSS interest subsidy.

Q: What kind of courses are eligible?
Recognized professional or technical courses approved by UGC, AICTE, or respective authorities.

Sources & References

• Government of Assam Official Guidelines – Bidya Lakshmi Loan Scheme

• Application Forms and Circulars from Assam Finance Department