Dear Sir/Madam,

EDUCATION LOAN GOVT. INTEREST SUBSIDY SCHEME FOR ECONOMICALLY WEAKER SECTION (EWS)
LOAN ACCOUNT NO:

We are glad to inform that the Central Govt. has introduced a scheme for providing interest subsidy
on Education Loans during moratorium for technical and professional courses (after class XII) for
studies in India from recognized institutions in India under the IBA Model Education Loan Scheme for
students from Economically Weaker Sections (EWS) with annual gross parental/family income upto
Rs.4.50 lacs per annum from the academic year2009-10.2.

Applicability of the Scheme

The scheme would be applicable only for studies in recognized Technical/Professional courses in
India. The interest subsidy shall be linked with the existing Education Loan Scheme of IBA and
restricted to students enrolled in recognized Technical/Professional courses (after class XII) in India
in Educational institutions established by Acts of Parliament, other institutions recognized by the
concerned Statutory Bodies, Indian Institutes of Management (IIMs) and other institutions set up by
the Central/State Government.

The maximum loan limit under Education Loan Scheme of IBA for studies in India is Rs.10 lacs.

3. Moratorium Period

The subsidy is provided for the period of moratorium i.e. course period plus one year or six months
after getting job whichever is earlier or as prescribed under Education Loan Scheme. After the
moratorium period is over, the interest on the outstanding loan amount shall be paid by the student
in accordance with the provisions of the Education Loan Scheme.4.

Criteria for Economically Weaker Section

The benefit of the scheme would be applicable to those students belonging to economically weaker
sections with an annual gross parental/family income with

upper limit of Rs.4.5 lacs per year (from all sources)

. Income proof shall be required from the students from such public authorities which are authorized
by State Governments for certification of income status for this scheme, including Central and State
Government schemes. The present scheme is intended to cater to the needs of students belonging
to economically weaker sections with prescribed upper parental gross income limit of the family
from all sources, which is based on economic index and not on social background. The scheme is
independent of any other schemes which may cater to Economically WeakerSection.5.

Competent Authority to issue Certificate

The Ministry of HRD, Government of India has issued an Advisory to all the State Governments
requesting them to designate appropriate authority or authorities
...................................................... hereinafter referred to as "the Bank" of the other part. Borrowers
and State Bank of India shall be individually referred to herein as ‘Party” and collectively as
‘Parties”.WHEREAS1. The Borrowers availed/intend to avail Education Loan from the Bank and the
Bank sanctioned/agreed to sanction Rs._____________(Rupees___________________)for pursuing
technical/professional education in India. The Borrowers inconsideration of the said
sanction/promise has executed/shall execute the Educational Loan Agreement, besides such other
agreements/s or security/ies asper the Model Educational Loan Scheme.2. Integrated Finance
Division, Department of Higher Education, Ministry of Human Resources Development, Government
of India (MoHRD) has come out witha Central Sector Scheme of Interest Subsidy on Education Loan
for Technical/Professional Education in India (hereinafter called the Interest Subsidy Scheme) to
provide interest subsidy on the education loans availed by students having lower than a specified
parental income as decided by the MoHRD int he said Scheme for pursuing professional education in
India, during their tudy/repayment holiday, from the Academic Year 2009-10.3. The Borrowers
represented that they are eligible for interest subsidy under the said Interest Subsidy Scheme and
requested the Bank to grant such benefit to them.4. Based on the documents submitted by the
Borrowers, the Bank agreed to extend the benefit under the said Interest Subsidy Scheme to the
Borrowers andthe partieshereto desire to enter into an agreement setting out the terms
andconditions ashereinafter appearing in addition to the loan/security documentsexecuted/to
beexecuted by the Borrowers.IT IS HEREBY AGREED AND DECLARED BY AND BETWEEN THE
PARTIESAND THIS DEED WITHNESSETH AS FOLLOWS:1. The borrowers hereby covenant:a) That they
have read and understood the Interest Subsidy Scheme of theMoHRDwhich is enclosed as part of
this Agreement and declare and affirm thatthey are

eligible under the said Scheme and are eligible for the interest subsidy asper thesaid Scheme.b) That
they shall produce all proof and documents or any otherfurther/supportingdocuments as required
by the Bank/MoHRD.c) That all the clauses contained in the Education Loan Agreement or
anyotherdocuments executed by them shall be binding on them and this is inaddition to
thecovenants/clauses contained in the said Agreement/documents.d) That they shall return/refund
the amount received towards interestsubsidyunder the Scheme, with applicable rate of interest then
prevailing, forthwithon amere demand by the Bank or allow the Bank to appropriate the same as
thecasemay be under the following circumstances:i) if MoHRD rejects the interest subsidy claim in
respect of their EducationLoanAccount for whatever reason; orii) if it is found that the subsidy has
been claimed by misrepresentation/fraud; oriii) if Borrowers/s fail/s to furnish the
documents/information, which they arecalled upon to furnish; oriv) if Borrowers commit breach of
any of the covenants herein contained orof theterms and conditions of the Scheme as amended
from time to time or anyof thedeclarations made herein is found false/incorrect; orv) if Borrowers
commit breach of any of the covenants contained in theEducationLoan Agreement or any other
document/s executed by the Borrower/s; orvi) if the Borrower/s discontinue the said professional
education in India; orvii) Any other reason by which the Bank recalls the said Education Loan. The
repayment holiday/other eligibility as is available under the ModelEducationLoan Scheme shall not
be eligible for subsidy. The Bank shall also have the right to recall the loan, if the said refund is
notmadewithin the period stipulated by the Bank in its demand besides the right notto claimfurther
reimbursement from the MoHRD.e) That the Borrowers shall directly take up with MoHRD, in case of
rejectionof their interest subsidy claim submitted by the Bank and the Bank shall notbe made aparty
to the same. Borrowers shall on receipt of such intimation from theBank/MoHRD, submit further
clarification/documents, if any, required by the

MoHRD directly to MoHRD.f) That they shall comply with and faithfully observe all the terms
andconditions of the said Interest Subsidy Scheme and also all the subsequent
amendmentsandmodifications and additions thereto together with the conditions of thesanction of
the said Education Loan. That they shall bear all expenses required in connection with the
executionof theAgreement or enforcement of its terms and conditions.IN WITNESS WHEREOF
BORRROWERS and the BANK have hereunto set theirrespective hands on the day and place
mentioned above.BORROWERS FOR STATE BANK OF INDIA1._________________________
2._________________________ ___________________________

Annexure ‘D’

DFAFT FORMATSTANDARD FORMAT FOR PUBLICITY AT BRANCHES OF BANKS

EDUCATION LOANGOVT. INTEREST SUBSIDY SCHEMEFOR ECONOMICALLY WEAKER SECTONS

(EWS)COVERAGE

EWS with upper parental income of Rs.4.50 lakhs perannum.

or recognized Technical/Professional Courses in India afterClassXII as approved by Ministry of

Human Resources Department,Government of India.

Certification of income by Tahsildar in the prescribed format.

Applicable from academic year 2009-10.

Interest subsidy during moratorium period (Course period +6months/1 year).

For further details, contact Branch Manager.