What is the main goal of the CSIS Scheme?

It aims to support EWS students by covering interest on educational loans during the moratorium period.

Who is eligible for the govt scheme?

Students with a family income below ₹4.5 lakh per annum pursuing technical or professional courses.

Which bank oversees the scheme?

Canara Bank serves as the nodal bank for CSIS.

What types of loans are covered under CSIS?

Loans up to ₹10 lakhs under the IBA Model Education Loan Scheme.

How can one apply for CSIS benefits?

Eligible students apply through their bank, JanSamarth, or Vidya Lakshmi portals.

What is the main goal of the CSIS Scheme?

It aims to support EWS students by covering interest on educational loans during the moratorium period.

Who is eligible for the govt scheme?

Students with a family income below ₹4.5 lakh per annum pursuing technical or professional courses.

Which bank oversees the scheme?

Canara Bank serves as the nodal bank for CSIS.

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Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme (CSIS)

Komal Bajpai

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Updated: 28-01-2025 at 7:07 AM

Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme (CSIS)

The Central Sector Interest Subsidy Scheme (CSIS) was initiated in 2009 by the Ministry of Education, Govt of India. CSIS aims at paying fees and other related expenses from interest subsidy that is directly credited to the student’s account to enable EWS students to complete their higher education. Where the loan taken under the Indian Banks’ Association Model Education Loan Scheme remains unpaid during the specified moratorium period for educational loans, the govt scheme offers a 100% interest subsidy. This means that students do not have to worry about paying interest charges until he or she is through with their studies.

Overview

The table showcases the key highlights of the CSIS Subsidy:-

Scheme Name	Central Sector Interest Subsidy Scheme (CSIS)
Launched by	Ministry of Education (formerly Ministry of Human Resource Development)
Year	2009
Target Group	Economically weaker students (parental income up to ₹4.5 lakhs annually)
Nodal Bank	Canara Bank
Eligible Banks	All Scheduled Banks, Regional Rural Banks (RRBs), Cooperative Banks
Course Eligibility	Professional/Technical courses from NAAC/NBA accredited institutions or Centrally Funded Institutions
Loan Coverage	Loans up to ₹10 lakhs (interest subsidy during moratorium)

What Is The Central Sector Interest Subsidy Scheme?

Central Sector Interest Subsidy Scheme is a government of India’s student loan scheme which offers interest subsidies to students belonging to Economically weaker sections. They are educational loans borrowed to finance higher education in India under the IBA Model Education Loan Scheme. The scheme entails the interest of the loan during the period of moratorium so that every student can afford education.

Objective

The principal objective of the scholarship scheme is to make certain that no qualified candidate is excluded from attending college due to their inability to pay their fees. It aims at enhancing the Gross Enrolment Ratio (GER) with student financial aid to those who belong to the economically weaker section of society.

Features

The Central Sector Interest Subsidy (CSIS) Scheme provides interest subsidies on educational loans for professional and technical courses. It aims to support Economically Weaker Sections (EWS) by covering the interest accrued during the moratorium period of the loan.

Interest subsidies play a significant role in the students. Key features include:

Absolute coverage of interest during a moratorium period which is equal to the course period plus an additional year or period of employment.
Under this scheme, students can receive interest subsidies on educational loans of up to ₹10 lakhs.
One can only use it once in his/her lifetime whether it is for undergraduate or postgraduate studies.
Loans up to ₹7.5 lakhs and do not come with collateral needed.

List Of Technical/Professional Courses

Courses covered under the loan subsidy scheme include Engineering, Medicine, Law, Management, and other approved technical or professional courses offered by recognised institutions in India. Professional and technical courses from:

National importance or Centrally Funded Technical Institutions (CFTIs).
NAAC-accredited institutions.
NBA-approved professional programmes.

Nodal Bank

The Ministry of Education has therefore designated Canara Bank as its Nodal Bank to implement and oversee the working of the subsidy scheme.

Eligible Bank

A loan under this government education scheme can only be availed from any of the following institutions: All Scheduled Banks, Regional Rural Banks (RRBs), and Cooperative Banks which is a member of IBA.

Benefits

The following are the main benefits of the Centrally Sponsored Interest Subsidy Scheme:-

Subsidy for Interest for Education loan up to ₹ 10 lakhs.
Credit up to ₹ 7.5 lakhs does not require any form of collateral or third-party guarantee.
Out of this loan interest in professional and technical courses in higher education is subsidised in accredited institutions.

Rate Of Interest

The interest rates payable, concerning the educational loans, are as per the IBA Model Education Loan Scheme and are notified under the Benchmark Prime Lending Rate (BPLR) or Base Rate of the lending bank.

Moratorium Period

The moratorium period is equal to the duration of the course plus one year or six months after getting a job whichever is earlier. This interest during this period is financed by the government.

Interest Concession

Under the IBA Scheme 2021, banks may offer a 1% interest concession at their discretion if the interest is paid during the study period and the subsequent moratorium period before repayment begins. However, this concession should not be influenced by the government's interest subsidy provided under the education scheme.

Eligibility Criteria

Students from economically weaker sections with a family income of less than ₹4.5 lakh per annum are eligible. The loan must be taken from a scheduled bank for professional or technical courses after Class 12. The following are the points which showcase the CSIS Scheme Eligibility:

The student has to have taken the education loan under the IBA Model Education Loan Scheme only.
The parents’ income should not be more than ₹ 4.5 lakh per annum.
The student must be enrolled in any professional or technical course in any accredited institution.
It is tenable only once, and during one level of study, either undergraduate or postgraduate.
Scholarships or other fee reimbursements paid from government sources for other purposes are excluded.

Application Process

Applicants need to approach their bank and apply for the subsidy scheme when taking out an educational loan. The interest subsidy is applied automatically if the student meets the eligibility criteria. The following are the ways by which one can apply for the CSIS Subsidy Scheme:-

Offline Process:

The following steps need to be completed by the applicants for the CSIS offline application:-

Step 1: All the students who are eligible for creating this overdraft facility must go to the branch of the bank where the education loan was taken.

Step 2: The application will be managed by the bank and the subsidy will be delivered in the Direct Benefit Transfer (DBT) modality.

Online Process:

Eligible students can also apply through the JanSamarth portal

Can be registered through the Vidya Lakshmi Portal.

Documents Required

Documents required include income proof, a Class 12 mark sheet, an admission letter from the recognized institution, a loan sanction letter, and identification documents such as a UID(Aadhaar card) and PAN card.

The following documents are needed:

Address proof
Identity proof: Aadhaar Card.
PAN Card.
An Income certificate by any competent authority.
Educational certificates.
Admission records to the course.
Bank account details.
Any other document as may be required from the bank.

Conclusion

To focus on Educational Sectors and to provide lower-interest loans to students from weaker economic backgrounds. Through interest subsidies during the moratorium period, this CSIS scheme cuts across the problem of hardships preventing students from attaining their education dreams.

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