Central Sector Interest Subsidy Scheme or CSIS Scheme is a centrally sponsored scheme by the Ministry of Education. It was launched in 2009 to ensure no student can refrain from pursuing higher education based on financial constraints. This scheme offers a full interest subsidy on education loans for technical or professional courses in India during the moratorium period. These loans require no collateral security or third-party guarantee. Students with an annual gross parental/family income of up to Rs. 4.5 lakhs are eligible for the scheme. The existing scheme was revised with Cabinet approval on March 28, 2018. Let’s talk about the scheme in detail.
What is CSIS Scheme 2024?
The Department of Higher Education and the Ministry of Education implemented the Central Sector Interest Subsidy (CSIS) Scheme in 2009. This scheme offers an interest subsidy during the moratorium period (the course duration plus one year) on education loans taken from Scheduled Banks as per the Model Education Loan Scheme of the Indian Banks Association. It is aimed at students from economically weaker sections with an annual parental income of up to Rs. 4.5 lakh from all sources. The subsidy supports higher education in professional or technical courses at institutions accredited by NAAC, programs accredited by NBA, Institutions of National Importance, or Centrally Funded Technical Institutions (CFTIs). Canara Bank serves as the Nodal Bank for the scheme’s implementation.
Under the scheme, the Government of India will cover the interest payable on the educational loan during the moratorium period, which includes the course duration plus one year. After this moratorium period, the student will be responsible for paying the interest on the outstanding loan amount, as per the provisions of the existing Model Educational Loan Scheme of Banks, subject to any amendments made over time.
| CSIS Scheme 2024 Key Highlights | |
| CSIS Scheme 2024 Launch Date | 2009, Updated March 28, 2018 |
| CSIS Scheme Official Website | CSIS Official Website |
| CSIS Scheme Objective | To ensure that no student with financial constraints is denied the opportunity to pursue higher education. |
| CSIS Scheme Loan Amount | Rs 7.5 Lakh |
| CSIS Scheme Subsidy Amount | Upto Rs 10 Lakh |
| CSIS Scheme Interest Rate | Base Rate 8.5% (Current Rate) |
| CSIS Scheme Annual Income Limit | Rs 4.5 Lakh |
| CSIS Scheme Helpline Number | +91 79690-76111 |
CSIS Scheme Objective 2024
- CSIS is designed to ensure that no student with financial constraints is denied the opportunity to pursue higher education.
- Benefits all economically weaker students pursuing professional/technical courses in India.
- Aims to provide affordable higher education to uplift students from the grassroots level.
- Seeks to increase the number of qualified technicians and professionals in the country.
- Aims to address and correct geographical imbalances in higher educational institutions’ Gross Enrolment Ratio (GER).
CSIS Scheme Features 2024
- Adopted by all Scheduled Banks and linked with the existing Model Educational Loan scheme of the Indian Banks’ Association.
- Restricted to students enrolled in:
- Professional/technical courses from NAAC-accredited institutions.
- Professional/technical programs accredited by the NBA.
- Institutions of National Importance or Centrally Funded Technical Institutions (CFTIs).
- For professional institutions/programs not covered by NAAC or NBA, approval is required from the respective regulatory body, e.g., the Medical Council of India for medical courses, Nursing Council of India for nursing courses, Bar Council of India for law courses.
- Applicable to students from Economically Weaker Sections with an annual gross parental income of up to Rs. 4.5 lakhs.
- Subsidy is available only once, either for undergraduate, postgraduate, or integrated courses.
- Education loans are provided without collateral security or third-party guarantee.
- Maximum loan amount under the scheme is Rs. 7.5 lakhs.
CSIS Scheme Benefits 2024
- Interest Subsidy
- Provided on education loans up to ₹10 lakhs.
- Loans sanctioned for amounts exceeding ₹10 lakhs will receive interest subsidy only up to ₹10 lakhs.
- Collateral and Guarantee
- No collateral security or third-party guarantee is required for education loans up to ₹7.5 lakhs.
- The loaning bank must ensure this part of the loan is covered under the Credit Guarantee Fund Scheme for Education Loan (CGFSEL).
- Eligible Courses and Institutions
- Subsidy applies to higher education in professional/technical courses from:
- NAAC-accredited institutions.
- Professional/technical programs accredited by the NBA.
- Institutions of National Importance.
- Centrally Funded Technical Institutions (CFTIs) in India.
- Subsidy applies to higher education in professional/technical courses from:
- Interest Rates
- Charged as per the Benchmark Prime Lending Rate (BPLR)/Base Rate of individual banks.
- Aligned with the provisions for interest rates under the IBA Model Educational Loan Scheme.
- Moratorium Period
- Defined as the course period plus one year.
- The Government of India bears the interest for this period at a simple rate, provided the student completes the course successfully.
- Post-moratorium, the student is responsible for paying the interest on the outstanding loan amount as per the existing Model Educational Loan Scheme of Banks, subject to amendments.
- Interest Concession
- Banks may provide a 1% interest concession if the interest is serviced during the study period and the subsequent moratorium period before repayment starts, according to the IBA Scheme, 2021.
- The government’s subvention should not influence the provision of this 1% interest concession.
CSIS Scheme Eligibility Criteria 2024
- Education loans must be taken under the IBA Model Education Loan Scheme.
- Students with parental income up to Rs. 4.5 lakhs per annum are eligible.
- Students must be enrolled in professional/technical courses at:
- NAAC-accredited institutions.
- Professional/technical programs accredited by the NBA.
- Institutions of National Importance.
- Centrally Funded Technical Institutions (CFTIs).
- For professional institutions/programs not covered by NAAC or NBA, approval is required from the respective regulatory body (e.g., the Medical Council of India for medical courses, the Nursing Council of India for nursing courses, Bar Council of India for law courses).
- The subsidy is available only once for undergraduate or postgraduate courses and applies to integrated courses (graduate + postgraduate).
- Interest subsidy is not available to students who discontinue their course midway or are expelled from the institution on disciplinary or academic grounds.
- Interest subsidy will be available if discontinuation is due to medical reasons, provided necessary documentation is submitted to the satisfaction of the head of the educational institution.
CSIS Scheme Documents Required
- Identity proof (e.g., Aadhaar Card)
- PAN Card
- Income proof (issued by a competent authority)
- Educational certificates
- Proof of admission to the course
- Bank account details
- Any other documents, as required
CSIS Scheme 2024 Apply Offline
To apply for the scheme, eligible students must visit the nearest bank branch where they secured their education loan for studying at a recognized institute in India.
Note: The Nodal Bank will disburse the subsidy directly into the education loan account of beneficiaries via DBT mode through the PFMS Portal. It is the lending bank’s responsibility to claim the interest subsidy on behalf of eligible beneficiaries annually.
CSIS Scheme 2024 Apply Online
To apply online, you have two options. One is the Jan Samart Portal and the Second is Vidya Lakshmi Portal. You can apply from either of the portals. Let’s look at the step-by-step process of applying for the CSIS Scheme through the Jan Samarth Portal.
- Visit the official website of Jan Samarth Portal
- Look for the “Education Loan”. Click on the “Check Eligibility”
- After filling in your details, you will be redirected to a page displaying the loan and subsidy amounts. Also, you will be informed about the EMI that you need to pay every month as well as the tenure of the loan.
- Click on the “Login to apply” button to proceed further
- You will be asked first to register yourself. After that, you can log in and apply for the CSIS or education loan.
- After providing all the personal details, click on the “Submit” button.
