Jun 302016

Kalinga Sikshya Sathi Yojana | Educational Loan Odisha

The Odisha government has come up with a new loan scheme for the aspiring students who are willing to proceed for further higher studies. On Monday 27th June 2016, Chief Minister Mr. Naveen Patnaik has announced this new loan scheme namely Kalinga Sikshya Sathi Yojana for the students at only 1% interest. This scheme has launched to bring down the financial burden on the parents of the students who want to move forward with higher education. This is the first time when a loan will be granted at such lower rate of interest. Patnaik dedicated this scheme to the Biju Babu who was one of the young achievers in the field of science from Kalinga UNESCO.

Kalinga Sikshya Sathi Yojana

Kalinga Sikshya Sathi Yojana Key Features

  • Kalinga Sikshya Sathi Yojana is an educational loan for the poor students who want to pursuit higher education. The loan will be given on the basis of their merit and family income.
  • The interest rates for this loan will be 1%. This is the minimum interest for any educational loan till date. The reason for such lower rate of interest is to bring down the financial burden.
  • The budget is allotted for this scheme is nearly Rs. 500 crore. As per the state government, the scheme has launched to encourage more student to pursuit their higher studies and to make them successful the government will allocate whatever it takes.
  • The applicant or student will have to deposit a collateral or security with the bank to receive the loan. This rule will be followed as per the regulations of the banks.

Educational Loan Details under Kalinga Sikshya Sathi Scheme

The Kalinga Sikhya Sathi Scheme can be called a conventional educational loan for the students who are unable to pursuit higher education due to financial inability. The scheme will give them up to 10 lakh rupees to proceed for the higher courses.

  1. Maximum Loan: According to the rules of the scheme, a student can get maximum of 10 lakh rupees as an educational loan under this scheme.
  2. Minimum Loan: There is no minimum loan amount mentioned in the scheme. One can get any amount of loan up to Rs. 10 lakh.
  3. Period of Loan: The loan amount should be repaid by the student or the applicant by next 4-5 years of time. The time will be calculated from the date of the loan sanctioned.
  4. Rate of Interest: The rate of interest is as low as only 1%. The students or the applicants will have to pay only 1% interest on the loan amount.

Kalinga Sikshya Sathi Eligibility Criteria & Beneficiary 

  • As per the eligibility criteria, the annual income of the family of the applicant must be maximum 4.5 lakhs per annum. Having family income more than that does not allow the students to apply for the loan.
  • There is a need for security or collateral to be deposited to the bank from where the loan is being taken. This will be processed by the rules of the banks.
  • The poor students who are willing to continue with their studies can apply for the loan under this scheme. Before applying one must show the family income details to the banks.
  • The beneficiary will be the students who are economically weaker and can’t afford the higher education, especially the costly ones like medical, law, engineering etc.

How to Enrol and Required Documents for Kalinga Sikshya Sathi Yojana

Some of the major private banks and all the PSU banks are providing the loan under this scheme in Odisha. Applicant can ask for the application form from the nearest branches. Application forms are required to fill up with basic details like name, contact, course names, marks in boards, amount of laon, security details and so on.

The required documents in this scheme are:

  • Age and ID proof of the student
  • Mark sheet copy of previous board exams
  • Pay slip of the earning members of the family
  • Documents regarding the security
  • For business holders bank account statements.

Courses List under Kalinga Sikshya Sathi Yojana Loan

The scheme is for the higher studies only. Those courses which are costlier than regular course and special courses are listed under this scheme. The courses are:

  • Medical course (MBBS / MD)
  • Law courses (LLB / LLM)
  • Management courses (BBA / MBA / MBM)
  • Engineering courses (Mechanical / Electrical / Civil / Computer)
  • Other Vocational Courses


  • The scheme seems to be benefitted for the poor students of Odisha. The advantages of the scheme are:
  • The loan is easily available to the students who are poor, no such exam or certification needed to enrol under the scheme.
  • The interest rate is extremely low that is only 1% which lowers the financial burden of the parents or the students.
  • The maximum loan amount is 10 lakh.

Kalinga Sikshya Sathi Yojana – quick view

The scheme Things to know
About Educational loan to the poor students
Launched 27th June 2016
Loan amount Up to 10 lakh
Interest 1%
Repay 4-5 years
Courses Medical, law, engineering, management

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