Central Sector Interest Subsidy Scheme (CSIS) 2022


interest subsidy scheme

 Central Government's Interest Subsidy Scheme for Economically Weaker Sections

 The Ministry of Human Resource Development has taken loans under the IBA Model Education Loan Scheme for students from Economically Weaker Sections (EWS) with annual family income up to Rs.4.50 lakh for technical and vocational courses in India from the academic year 2009-10.  Announced the Central Scheme of Subsidy on Interest during the moratorium period of Rs.

 For more details all eligible students may approach the concerned branch of State Bank of India along with Income Certificate issued by the Authorized Certifying Authority.


 This scheme is applicable only for recognized technical/professional courses located in India.

 This subsidy is given for the moratorium period i.e. 12 months after completion of the course prescribed in the IBA Model Education Loan Scheme or six months after getting the job, whichever is earlier.  After the completion of the moratorium period, the interest on the outstanding loan amount will be paid by the student as per the provisions of the Education Loan Scheme.

 The benefit of this scheme, (from all sources) is Rs 4.5 lakh.  Students from economically weaker sections having family income up to Rs.  It should be attested in the form of “Income Certificate” by the Income Certifying Authority as prescribed by the State Government.

 The Ministry of Human Resource Development, Government of India has asked all the State Governments to designate suitable competent authority or authorities to issue Income Certificate on the basis of economic status and not social background for the purpose of this scheme.  Banks will implement the scheme based on the notification of the Certifying Authority issued by the State Governments received through District Level Consultative Committees (DLCCs).  The signature and list of the competent authorities will be provided for issuance of Income Certificate to DLCC.

 Eligibility for Interest Subsidybsidy

 The interest subsidy under the scheme will be available to eligible students only once in India for either first undergraduate degree course or post graduate degree/diploma course.  However, interest subsidy will also be available for integrated courses (undergraduate and postgraduate).

 This interest subsidy scheme will not be available to students who drop out in the middle of their studies, or who are expelled from the institute on grounds of disciplinary or academic performance.  However, the benefit of subsidy will be available to the students who drop out due to illness, provided they produce necessary documents to the satisfaction of the Head of the Institute.

 The scheme will be implemented through Canara Bank, Canara Bank is the nodal bank for the Ministry of Human Resource Development.

 The scheme will be applicable from the academic year 2009-10 starting from 1st April 2009.  The scheme will be applicable only to loans disbursed by banks on or after April 1, 2009, irrespective of the date of sanction, for the academic year 2009-10.  Interest subsidy will be available on the disbursement made after 1.4.2009 in case of courses commenced before the academic year 2009-10 and loan sanctioned before 1.4.2009.

 The interest subsidy claims of banks will be paid half-yearly or annually in consultation with the Ministry of Human Resource Development.

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