- Education loans taken under IBA Model Education Loan Scheme.
- Students having parental income up to INR 4.5 Lakh per annum.
- 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).
- Only UG, PG or integrated courses (graduate + post graduate) are eligible for CSIS subsidy scheme.
- 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.
- Distt. Magistrate or Add. Dist. Magistrate- District Level
- Sub-Divisional Officer of the Concerned Division- Sub-Divisional Level
- Block Development Officer of the concerned Block- Block Level
- The Collector, Kolkata: Kolkata Municipal Corp. Students residing within civil jurisdiction of Hon’ble High Court, Kolkata
Updated on: 27 Oct 2023
9 min read
Table of Content 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 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. To avail full interest subsidy on education loans via CSIS schemes students have to fulfill the following eligibility criteria. 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. 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. 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 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. 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 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. Looking For An Abroad Education Loan? Read also:
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.
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 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.
What is Central Sector Interest Subsidy scheme?
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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. Eligibility criteria for CSIS 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.Interest concession on CSIS subsidy scheme
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Moratorium period for the CSIS scheme
Nodal Bank for the CSIS subsidy scheme
Income limit and the income certificate
List of designated officials to get the income certificate for CSIS Subsidy Scheme
To apply for the CSIS subsidy scheme visit the JanSmart website and check your loan eligibility.
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Frequently asked questions
What is the full form CSIS?
Do I have to take an education loan in order to qualify for interest subsidy benefits?
What is the duration of availing interest subsidy benefits on the CSIS scheme?
Can a beneficiary claim Interest subsidy on an education loan from the government?
What is the maximum loan amount on which I can avail CSIS subsidy?
Written by
Rahul
A vampire hunter, a renowned archaeologist, and an Oscar-winning filmmaker... Rahul is none of them. He is just a curious soul whose interest in education and finance sectors goes beyond his journalism degree and the monthly salary.
Reviewed by
Aman Jain
Aman Jain graduated from IIT Kanpur, and currently functions as the CMO at GyanDhan. He is deeply passionate about creating equality in higher education and has directly interacted with 2 Lakh students in his 8-year-long journey.
Specializes in:
Education loan ,
Study Abroad Admissions
GyanDhan is India's first education financing marketplace.
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