Subsidy scheme on educational loans by Banks for poor students has come into force. A letter to this effect has been written by the HRD Ministry to the Scheduled Banks.<br/><br/>Students pursuing higher studies with income less than 4.5 lakh a year are eligible for the subsidy. The HRD Ministry has asked the Banks to take necessary action in adopting and implementing the scheme so that its benefit accrue to eligible students. An amount of 500 crore rupees has been earmarked for the scheme in the current fiscal.<br/><br/>The scheme announced last year exempts students from weaker section from paying interest on education loan during the moratorium period. This period is defined as course period plus one year or six months after getting the job.