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Central Sector Interest Subsidy (CSIS) Scheme

Central Sector Interest Subsidy (CSIS) Scheme

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Read about CSIS Subsidy scheme on education loans and learn about the eligibility criteria, and other features of the interest subsidy scheme on education loan.

GyanDhan
Rahul Srivastava
Updated on:  27 Feb 2024  | Reviewed By: 
Aman 
| 9.36K | 8  min read

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. 

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What is Central Sector Interest Subsidy scheme?

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


 

Check Your Education Loan Eligibility


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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Eligibility criteria for CSIS scheme

To avail full interest subsidy on education loans via CSIS schemes students have to fulfill the following eligibility criteria.

  • list items Education loans taken under IBA Model Education Loan Scheme.
  • list items Students having parental income up to INR 4.5 Lakh per annum.
  • list items Students enrolled in professional/ technical courses only from NAAC accredited institutions or professional/technical programs accredited by NBA or Institutions of National Importance or Central Funded Technical Institutions (CFTIs). 
  • list items Only UG, PG or integrated courses (graduate + post graduate) are eligible for CSIS subsidy scheme.
  • list items The CSIS subsidy scheme is implemented strictly on the basis of income, and no other criteria like social background can come into the picture for the purpose of this scheme. 


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.

Real more about: E-Samaj Kalyan Gujarat Education Loan

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Interest concession on CSIS subsidy scheme

The IBA scheme offers a concession of 1% on the interest rate under the CSIS subsidy 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. 

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Moratorium period for the CSIS scheme

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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Nodal Bank for the CSIS subsidy scheme

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. 

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Income limit and the income certificate

The income limit is very important as the guidelines of the 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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List of designated officials to get the income certificate for CSIS Subsidy Scheme  

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

  • list items Distt. Magistrate or Add. Dist. Magistrate- District Level
  • list items Sub-Divisional Officer of the Concerned Division- Sub-Divisional Level
  • list items Block Development Officer of the concerned Block- Block Level
  • list items The Collector, Kolkata: Kolkata Municipal Corp. Students residing within civil jurisdiction of Hon’ble High Court, Kolkata


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.

 

 

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Frequently asked questions

What is the full form CSIS?

CSIS stands for Central Sector Interest Subsidy Scheme.

Do I have to take an education loan in order to qualify for interest subsidy benefits?

Yes, interest subsidies are available to only those students who have secured education loans from scheduled banks. 

What is the duration of availing interest subsidy benefits on the CSIS scheme?

Students can enjoy subsidy benefits on the CSIS scheme during the moratorium period which is course period + 12 months.

Can a beneficiary claim Interest subsidy on an education loan from the government?

No, beneficiaries cannot directly claim interest subsidies from the government. Rather, it is the banks that claim these subsidies on behalf of the beneficiaries.

What is the maximum loan amount on which I can avail CSIS subsidy?

Interest charged on loans without collateral and third party guarantee are eligible for CSIS subsidy scheme. The maximum loan amount is INR 10 Lakh.

What is CSIS in education loan?

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.

Check Your Education Loan Eligibility


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