Central Sector Interest Subsidy Scheme (CSIS) on Education Loans
Full interest subsidy on education loans during the course and moratorium period for economically weaker students (family income ≤ ₹4.5 lakh).
About this scheme
The Central Sector Interest Subsidy Scheme (CSIS) provides full interest subsidy on education loans sanctioned under the IBA Model Education Loan Scheme for students from economically weaker sections (annual family income up to ₹4,50,000). The subsidy covers the entire course period plus the moratorium period (course duration plus one year, or six months after employment, whichever is earlier), so no interest accumulates on the outstanding loan during this time. The scheme is administered by the Ministry of Education and channelled through participating scheduled commercial banks. The subsidy is available once — for either the first undergraduate or the first postgraduate degree or diploma; integrated programmes are also covered. Eligible courses include professional and technical programmes (engineering, medical, dental, pharmacy, MBA, MCA, and similar) at NAAC A-accredited or NBA-accredited or National Importance / Centrally-funded Technical Institution-level colleges in India.
Eligibility
- Citizenship: Applicant must be an Indian citizen
- Annual family income: Must not exceed ₹4,50,000 per annum from all sources
- Course type: Must pursue a professional or technical course in India at a recognised institution
- Loan scheme: Education loan must be sanctioned under the IBA Model Education Loan Scheme
- Availment limit: Subsidy is available only once for either the first undergraduate degree or the first postgraduate degree/diploma; integrated courses are also eligible
Benefits
- Full interest subsidy during the course period
- Full interest subsidy during the moratorium period
- Covers the entire duration of the eligible course
Required documents
- Aadhaar Card
- Income Certificate issued by the competent authority
- Admission letter from the institution
- Educational loan sanction letter from the bank
- Fee structure or fee receipt
- Previous academic certificates / mark sheets
- Bank account details
- Passport-size photograph
- Identity and address proof as required by the bank
Frequently asked
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