Scheme to provide Interest Subsidy (CSIS) for the period of moratorium on Educational Loans taken by students from Economically Weaker Sections from scheduled banks under the Educational Loan Scheme of the Indian Banks’ Association to pursue Technical/Professional Education studies in India
The Government of India has launched a scheme to provide full interest subsidy during the period of moratorium i.e., Course Period plus one year or six months after getting job, whichever is earlier, on loans taken by students belonging to Economically Weaker Sections from scheduled banks under the Educational Loan scheme of the Indian Banks’ Association, for pursuing any of the approved courses of studies in technical and professional streams, from recognised institutions in India.
Applicability of the scheme
The scheme is applicable only for studies in recognized Technical / professional courses in India. The scheme shall be restricted to students enrolled in recognized Technical/ Professional courses (after classXII) in India in institutions established by Acts of Parliament and other statutory bodies like IIMs/ Institutions set up by Central / State Government.
Moratorium period
Interest payable by the student during the moratorium (course period plus one year or 6 months after getting employment whichever is earlier) shall be borne by the Government of India. After the period of moratorium, interest on the outstanding loan amount shall be paid by the student in accordance with the scheme
Income Limit
The benefits of the Scheme would be applicable to those students belonging to economically weaker sections (EWS), with an annual gross parental/family income upper limit of Rs.4.50 lakh per year (from all sources). The scheme is intended to cater to the needs of students belonging to EWS with prescribed upper parental gross income limit of the family from all sources, which is based on economic index and not on social background. The scheme is independent of any other schemes which may cater to Economically Weaker Sections.
Eligibility
The interest subsidy under this scheme shall be available to the eligible students only once, either for the first undergraduate degree course or the post graduate degree/ diplomas in India. Interest subsidy shall, however be admissible for integrated courses. Interest subsidy shall not be available for those students who discontinue the course midstream, or who are expelled from the institutions on disciplinary or academic grounds except on medical grounds which should be certified by the Head of the educational institution
Nodal Bank
Canara Bank has been appointed as the nodal bank and the scheme will be implemented through them
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