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Discover the Central Interest Rate Subsidy Scheme for Education Loans. Learn about eligibility, application process, and benefits to make higher education more affordable.
The Central Sector Interest Subsidy (CSIS) Scheme, launched in 2009 by the Government of India, is designed to provide financial assistance to students from economically weaker sections to pursue higher education and professional courses in India.
The CSIS subsidy scheme is an interest subsidy scheme on education loans available for students who secure admission to a recognized university in India. The subsidy on interest rate is applicable during the moratorium period that is course duration plus 12 months after getting the job or post completion of the course whichever is early. Once the moratorium period is over, the student has to start repaying the loan as per the conditions of the loan scheme.
Feature Of CSIS Subsidy | Description Of CSIS Subsidy |
---|---|
Loan amount |
Up to INR 10 Lakh |
Moratorium period |
Course duration + 12 months |
The CSIS scheme is implemented through all the scheduled commercial banks. The scheme works with the Model Educational Loan Scheme of the Indian Banks' Association. The scheme will only focus on professional and technical courses accredited by the NBA or Institutions of National Importance or Central Funded Technical Institutions (CFTIs). Other professional courses that do not come under the ambit of technical courses will have to get approval from their respective regulatory bodies.
For instance, students pursuing law will have to get approval from the Bar Council of India, students in medical colleges will have to take permission from the Medical Council of India, and likewise for other professional courses.
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To avail full interest subsidy on education loans via CSIS schemes students have to fulfill the CSIS education loan eligibility criteria.
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Interest subsidy under CSIS shall not be available to those students who discontinue their course midstream, or who are expelled from the Institution on disciplinary or academic grounds. However, the interest subsidy would be available only if discontinuation is due to medical grounds for which necessary documentation to the satisfaction of the head of the educational institution needs to be provided.
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The IBA scheme offers a concession of 1% on the CSIS education loan interest rate if it is paid regularly during the moratorium period or the repayment holiday. The 1% interest concession will be offered to the borrowers even in the CSIS scheme wherein the government of India takes care of the interest payment during the moratorium period. However, it is subject to the interest payment by the government on a half-yearly or annual basis. It helps students in getting a concession on the interest payment plus no payment of interest during the moratorium period.
The moratorium period for most education loans by Scheduled Commercial Banks is 12 months post-completion of the studies or 6 months after getting the job. The interest rate during the moratorium period will be paid by the Government of India under the CSIS wherein the loan applicants will be exempted from any interest payment during the moratorium period. Once the moratorium period is over the student has to pay the interest on the outstanding loan amount as per the terms and conditions of the loan.
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The Government of India has decided to make Canara Bank the nodal agency for the CSIS scheme. It will be the nodal bank for MHRD through which the government will regulate the entire scheme. The implementation and other formalities with respect to loans will be regulated by the Government of India through Canara Bank.
The income limit is very important as the guidelines of the education loan interest subsidy scheme clearly state that the gross family income of the loan applicants shouldn’t exceed INR 4.5 Lakh from all the sources. The income certificate will be issued by the competent authority designated by the respective state governments. The income certificate must be obtained on the ground of financial condition, and there is no role of social background or for that matter any other criteria to avail the scheme.
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State/UT | Income Certificate Issuing Authority |
---|---|
Andaman and Nicobar |
Tehsildar |
Andhra Pradesh |
Tehsildar |
Arunachal Pradesh |
District Magistrate and Collector |
Assam |
Revenue Circle Officers |
Bihar |
Circle Officer of Circle Office |
Chandigarh |
Sub-Divisional Magistrate |
Chhattisgarh |
Naib Tehsildar |
Daman and Diu & Dadra Nagar Haveli |
Mamlatdar, Daman and Mamlatdar, Diu |
Delhi |
SDM Of Govt of NCT of Delhi |
Goa |
Mamlatdar of all Talukas |
Gujarat |
District Collector/ Deputy Collector/ Asstt. Collector/ Prant Officer/ Mamlatdar |
Haryana |
CRO (Tehsildar/ Naib Tehsildar concerned) |
Himachal Pradesh |
Tehsildar of Revenue Department |
Jammu and Kashmir |
Sub-Divisional Magistrate (not below the rank of Tehsildar) |
Jharkhand |
Sub-Divisional Officer in each District |
Karnataka |
Tehsildar |
Kerala |
Village Officer |
Lakshadweep |
Deputy Collectors in Agatti and Minicoy and SDOs in the remaining Islands |
Madhya Pradesh |
Tehsildar/ Naib Tehsildar |
Maharashtra |
Tehsildar |
Manipur |
District Authorities i/c DC/ ADC/ SDO (not below the rank of SDO/SDM) |
Meghalaya |
Employer in case of Govt. employee and by the MP/MLA/ DC/SDO Civil in case of others |
Mizoram |
District Magistrate or any other Officer authorized by District Magistrate |
Nagaland |
Dy. Commissioners, Addl. Dy. Commissioners and Sub- Divisional Officers (C) |
Odisha |
Revenue Officer |
Punjab |
CRO (Tehsildar/ Naib Tehsildar concerned) |
Pondicherry |
Tehsildar, Deputy Tehsildar |
Rajasthan |
Tehsildar |
Sikkim |
Special Executive Magistrate (Block Development Officers, Rural Management & Development Deptt.) |
Tamil Nadu |
Zonal Deputy Tahsildar |
Tripura |
Deputy Commissioner of respective Districts |
Uttar Pradesh |
Tehsildar |
Uttaranchal |
Tehsildar/SDM/City Magistrate |
West Bengal |
|
To apply for the CSIS subsidy scheme visit the JanSmart website and check your loan eligibility.
Please keep in mind that the CSIS subsidy scheme is exclusively intended for students who are studying in India. If you're planning to pursue education abroad, you won't qualify for the CSIS scheme. However, there are various alternatives such as education loans that you can explore. To help you select the most suitable loan from various lenders, GyanDhan is here to assist. GyanDhan is India’s first education financing marketplace. With partnerships with leading lenders such as State Bank of India, Bank of Baroda, ICICI Bank, Axis Bank, and HDFC-Credila we aim to provide the best loan option to aspiring students. To start your abroad education loan journey check education loan eligibility.
Read more about: A Complete Guide on JanSamarth Portal Education Loan
CSIS stands for Central Sector Interest Subsidy Scheme.
Yes, interest subsidies are available to only those students who have secured education loans from scheduled banks.
Students can enjoy subsidy benefits on the CSIS scheme during the moratorium period which is course period + 12 months.
No, beneficiaries cannot directly claim interest subsidies from the government. Rather, it is the banks that claim these subsidies on behalf of the beneficiaries.
Interest charged on loans without collateral and third party guarantee are eligible for CSIS subsidy scheme. The maximum loan amount is INR 10 Lakh.
In the context of education loans, CSIS refers to the "Central Sector Interest Subsidy Scheme," a program by the Government of India designed to support students from economically weaker sections to pursue higher education. Under CSIS, the government subsidizes the interest on the education loan during the course period plus one year or six months after getting a job, whichever is earlier. This subsidy is applicable only for the study period and relieves the borrower from the interest burden during this period.
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