Odisha Kalinga Sikhya Sathi Yojana

Scheme Introduction: A Brief Overview

The Odisha Kalinga Sikhya Sathi Yojana (KSSY) is an interest subvention scheme launched by the Government of Odisha to help students pursue higher education without the burden of education loan interest. The scheme is implemented by the Higher Education Department and provides interest subsidy on eligible education loans sanctioned by Scheduled Banks for higher studies in India as well as abroad. The revised guidelines came into effect from the financial year 2023-24 for fresh education loans availed on or after 1 April 2023, while loans taken before that date continue under the earlier scheme's terms.

Under the latest guidelines, eligible students can receive 100% interest subsidy on education loans up to ₹15 lakh. If the sanctioned loan amount exceeds ₹15 lakh, the interest subsidy is restricted to the first ₹15 lakh only. The scheme covers undergraduate, postgraduate, and integrated courses, and the benefit can be availed only once during higher education. The repayment period eligible under the scheme is up to 15 years, subject to the prescribed conditions.

To avail the benefit, students must first obtain an education loan from a Scheduled Bank under the Central Sector Interest Subsidy (CSIS) Scheme or the Indian Banks' Association's (IBA) Education Loan Scheme. After the loan is sanctioned, they are required to apply online for the interest subsidy through the Odisha State Scholarship Portal. The application is verified by the lending bank, the Nodal Bank (State Bank of India), and the Higher Education Department before the interest subsidy is credited directly to the student's education loan account through Direct Benefit Transfer (DBT).

The scheme is available to permanent residents of Odisha with an annual parental income of up to ₹8 lakh who have secured admission to eligible higher education institutions in India or abroad. Students with parental income up to ₹4.5 lakh receive interest subsidy in accordance with the Central Sector Interest Subsidy Scheme (CSIS) during the moratorium period and under KSSY thereafter, while those with parental income above ₹4.5 lakh and up to ₹8 lakh receive the interest subsidy under the Kalinga Sikhya Sathi Yojana, subject to fulfilling all eligibility conditions.

Scheme Benefits

• Provides 100% interest subsidy on eligible education loans sanctioned under the Kalinga Sikhya Sathi Yojana.
• Interest subsidy is available on education loans up to ₹15 lakh.
• Supports higher education in India as well as abroad through education loans obtained from Scheduled Banks.
• The moratorium period covers the course duration plus one year, or six months after securing employment, whichever is earlier, as applicable under the education loan norms.
• Interest subsidy can be availed only once during higher education for an eligible undergraduate, postgraduate, or integrated course.
• The repayment period eligible under the scheme is up to 15 years, subject to the applicable education loan terms.

Eligibility Requirements

• The applicant must be a permanent resident of Odisha.
• The applicant must have obtained an education loan from a Scheduled Bank for pursuing eligible higher education in India or abroad.
• The annual parental income should be up to ₹8 lakh as specified under the scheme guidelines.
• The applicant must have secured admission to an eligible higher education course recognised for education loan assistance.
• The applicant must not have availed a similar interest subsidy benefit for the same course under any other Government scheme.
• The interest subsidy under the Kalinga Sikhya Sathi Yojana can be availed only once during higher education for an undergraduate, postgraduate, or integrated course.
• The borrower must comply with the repayment terms of the education loan after the moratorium period to continue receiving the interest subsidy, wherever applicable.
• Students who discontinue the course midway, are expelled on disciplinary or academic grounds, or give up Indian citizenship during the tenure are not eligible for the interest subsidy.

Required Documents

• Aadhaar Card of the student.
• Permanent Residence Certificate (Domicile Certificate) of Odisha.
• Recent passport-size photographs.
• Admission Letter issued by the educational institution.
• Fee Structure or Fee Demand Letter of the institution.
• Marksheets and Certificates of the qualifying examination.
• Income Certificate of the parent(s) or guardian.
• PAN Card (if required by the concerned bank).
• Bank Account Details of the student/applicant.
• Education Loan Application Form.
• Education Loan Sanction Letter.
• Any other documents required by the concerned Scheduled Bank.

Note: The exact list of required documents may vary depending on the Scheduled Bank processing the education loan under the Kalinga Sikhya Sathi Yojana.

Steps to Apply

Under the revised Kalinga Sikhya Sathi Yojana, effective for education loans availed on or after 01.04.2023, the applicant must first take the education loan from a bank and then apply separately for the interest subsidy through the State Scholarship Portal.

Step 1: Avail the Education Loan from a Bank

1. Visit any RBI-scheduled bank offering loans under the CSIS Scheme or the IBA's Education Loan Scheme.
2. Submit the bank's education loan application form.
3. Attach proof of admission to the eligible course.
4. Submit the residential certificate (issued by an Additional Tahsildar or above).
5. Submit the income certificate showing family income within Rs 8 lakh.
6. Complete the bank's KYC, security, and guarantor formalities.
7. Avail the sanctioned loan (subsidy applies only up to Rs 15 lakh).

Step 2: Apply for Interest Subsidy on the State Scholarship Portal

1. Visit scholarship.odisha.gov.in and log in or register.
2. Open the Kalinga Sikhya Sathi Yojana module.
3. Enter the loan account and bank details.
4. Upload the admission proof, residential certificate, and income certificate.
5. Submit the application to claim the interest subsidy.
6. Track the status through bank, Nodal Bank, and Department verification.
7. Receive the subsidy directly in the loan account via DBT.

Note: The lending bank must submit the yearly subsidy claim by 30th September (extendable to 31st December in exceptional cases). Stay in touch with your bank to ensure this claim is filed on time.

Relevant Links

• Higher Education Department, Government of Odisha
• Odisha State Scholarship Portal.
• Odisha Kalinga Sikhya Sathi Yojana Notification.

Contact Information

• Odisha State Scholarship Portal Contact Details.
• DHE Odisha Contact Details.