The scheme to make education loan accessible for all has been finalized on Thursday. The face of education loans has finally changed. Students whose annual family income is less than Rs 4.5 lakh will now be provided full interest subsidy on education loans so that they can pursue technical and professional courses.

The scheme came into finalization for operation after a meeting between the Human Resource Development (HRD) ministry and the Indian Banks' Association (IBA).

"The scheme provides interest subvention to students for the period of their course. The interest for this period will be paid to the banks by the government," a ministry official said.

Canara Bank has been finalized as the nodal bank for claiming reimbursement on subsidy amount.

The scheme allows interest subsidy to students whose annual family income is less than Rs 4.5 lakh till the completion of the course.

"The scheme provides interest subvention to students for the period of their course. The interest for this period will be paid to the banks by the government," a ministry official said.

"All eligible students who wish to avail the benefits should approach the respective bank branch from where they availed of the education loan and complete the necessary formalities, including obtaining the certification in respect of annual family income from the competent authority at the local level," the official said.

The scheme would be applicable on all education loans approved by Indian Banks' Association.