Central government Scheme for education Loan –
The Central Sector Interest Subsidy Scheme (CSIS) is a prominent education loan scheme offered by the government of india to support economically weaker students in pursuing higher education. Launched by the Ministry of education, this scheme provides interest subsidy on education loans during the moratorium period, which includes the course duration plus one year.
Key Features of the CSIS Scheme:
Eligibility: students must belong to families with an annual income of ₹4.5 lakh or less. A valid income certificate issued by the competent authority is required.
Courses Covered: Loans taken for professional or technical courses in india, recognized by bodies like AICTE, UGC, etc., are eligible.
Institutions Covered: Loans must be sanctioned under the Model education Loan Scheme of the indian Banks’ Association (IBA) from scheduled banks.
Subsidy Period: The scheme provides full interest subsidy during the moratorium period only. After this period, students must pay the interest and principal.
How to Apply:
Approach any scheduled bank offering education loans under the IBA model.
Submit the required documents, including proof of admission, income certificate, and KYC details.
Once the loan is sanctioned, the bank applies for the subsidy on behalf of the student.
In addition, the Vidya lakshmi Portal (www.vidyalakshmi.co.in) is a government initiative that helps students apply for education loans from multiple banks through a single platform.
This scheme ensures that deserving students from low-income families can access quality education without the immediate burden of interest repayment.
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