- 100% interest subsidy on education loans up to ₹15 lakh.
- Covers higher education in India and abroad.
- Apply through the Odisha State Scholarship Portal.
- Benefit available only once for eligible students.
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Summary of the Scheme
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|---|---|
| Name of Scheme | Odisha Kalinga Sikhya Sathi Yojana (KSSY) |
| Benefits | 100% interest subsidy on eligible education loans up to ₹15 lakh. |
| Beneficiary | Students pursuing higher education in India or abroad |
| Nodal Agency | Higher Education Department, Government of Odisha. |
| Subscription | Subscribe here to get Update Regarding Scheme |
| Mode of Apply | Online |
Odisha Kalinga Sikhya Sathi Yojana (KSSY): 100% Interest Subsidy on Education Loans up to ₹15 Lakh
Taking an education loan can open doors to higher studies, but the interest that piles up often becomes a heavy burden. The Odisha Kalinga Sikhya Sathi Yojana (KSSY) tackles exactly this problem by paying the interest on eligible education loans for Odisha students. This guide explains the benefits, eligibility, documents, the two-step application process and the current deadline.
Scheme at a Glance
| Detail | Information |
|---|---|
| Scheme name | Odisha Kalinga Sikhya Sathi Yojana (KSSY) |
| Benefit | 100% interest subsidy on eligible education loans up to ₹15 lakh |
| Beneficiaries | Students pursuing higher education in India or abroad |
| Nodal agency | Higher Education Department, Government of Odisha |
| Mode of application | Online, through the Odisha State Scholarship Portal |
Latest Update: Applications Open Until 15 November 2026
The online application for KSSY is open, and eligible applicants must submit their applications before 15 November 2026.
What Is KSSY?
KSSY is an interest subvention scheme of the Government of Odisha, implemented by the Higher Education Department. It provides an interest subsidy on education loans sanctioned by Scheduled Banks for higher studies in India as well as abroad.
The revised guidelines apply to fresh education loans availed on or after 1 April 2023. Loans taken before that date continue under the earlier scheme’s terms.
If your sanctioned loan is more than ₹15 lakh, the interest subsidy is limited to the first ₹15 lakh only.
Key Benefits
- 100% interest subsidy on eligible education loans.
- Loans up to ₹15 lakh are covered.
- India and abroad: Covers higher education both in India and overseas, with loans from Scheduled Banks.
- Moratorium period: The course duration plus one year, or six months after getting a job, whichever is earlier, as per education loan norms.
- Repayment period: Up to 15 years, subject to the loan terms.
- Courses covered: Undergraduate, postgraduate and integrated courses.
- One-time benefit: The subsidy can be availed only once during higher education.
How the Income Slabs Work
- Parental income up to ₹4.5 lakh: The subsidy follows the Central Sector Interest Subsidy (CSIS) Scheme during the moratorium period, and KSSY thereafter.
- Parental income above ₹4.5 lakh and up to ₹8 lakh: The interest subsidy is provided under KSSY, subject to meeting all eligibility conditions.
Who Is Eligible?
- The applicant must be a permanent resident of Odisha.
- The applicant must have taken an education loan from a Scheduled Bank for eligible higher education in India or abroad.
- Annual parental income must be up to ₹8 lakh.
- 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 for the same course under any other Government scheme.
- The benefit can be availed only once during higher education.
- The borrower must follow the loan’s repayment terms after the moratorium period to keep receiving the 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.
Documents Required
- Aadhaar card of the student
- Permanent Residence (Domicile) Certificate of Odisha
- Recent passport-size photographs
- Admission letter from the institution
- Fee structure or fee demand letter
- Marksheets and certificates of the qualifying examination
- Income certificate of the parent(s) or guardian
- PAN card, if required by the bank
- Bank account details of the student/applicant
- Education loan application form
- Education loan sanction letter
- Any other document required by the Scheduled Bank
The exact list can vary depending on the bank processing your loan.
How to Apply
Applying for KSSY is a two-step process: first take the loan from a bank, then apply separately for the interest subsidy on the State Scholarship Portal.
Step 1: Get the Education Loan from a Bank
- Visit an RBI-scheduled bank that offers loans under the CSIS Scheme or the Indian Banks’ Association (IBA) Education Loan Scheme.
- Submit the bank’s education loan application form.
- Attach proof of admission to the eligible course.
- Submit the residential certificate, issued by an Additional Tahsildar or above.
- Submit the income certificate showing family income within ₹8 lakh.
- Complete the bank’s KYC, security and guarantor formalities.
- Avail the sanctioned loan. The subsidy applies only up to ₹15 lakh.
Step 2: Apply for the Interest Subsidy Online
- Visit scholarship.odisha.gov.in and log in or register.
- Open the Kalinga Sikhya Sathi Yojana module.
- Enter your loan account and bank details.
- Upload the admission proof, residential certificate and income certificate.
- Submit the application.
- Track the status through the verification stages.
What Happens After You Apply
Your application is verified by the lending bank, the Nodal Bank (State Bank of India) and the Higher Education Department. Once approved, the interest subsidy is credited directly to your education loan account through Direct Benefit Transfer (DBT).
Important: The lending bank must submit the yearly subsidy claim by 30 September (extendable to 31 December in exceptional cases). Stay in touch with your bank to make sure the claim is filed on time.
Frequently Asked Questions
What happens if I miss my loan EMIs? To keep receiving the subsidy, the borrower must follow the repayment terms of the education loan after the moratorium period, wherever applicable. Missing payments can put the benefit at risk, so confirm the details with your bank.
Can I claim the subsidy separately for both my undergraduate and postgraduate courses? The scheme says the benefit can be availed only once during higher education. Check the official FAQ or ask the department if you are planning loans for more than one course.
Who can issue the residential certificate? An Additional Tahsildar or above.
Do I pay interest on the amount above ₹15 lakh? The subsidy covers only the first ₹15 lakh of the sanctioned loan, so it does not apply to the portion above that.
What if I discontinue my course or give up Indian citizenship? You become ineligible for the subsidy.
What is the maximum loan covered? ₹15 lakh.
Can I use it for studies abroad? Yes. The scheme covers higher education in India and abroad.
Is there an income limit? Yes. Annual parental income should be up to ₹8 lakh.
What is the last date to apply? 15 November 2026.
Contact and Resources
For help, use the contact details on the Odisha State Scholarship Portal and the Higher Education Department (DHE) Odisha website. The official KSSY notification and FAQ are also available there.
Final Thoughts
KSSY can take the pressure of loan interest off students and their families, whether they study in India or abroad. Secure your education loan first, keep your residence, income and admission documents ready, and submit the subsidy application on the State Scholarship Portal before 15 November 2026. Also stay in touch with your bank so the yearly claim is filed on time.