Central Scheme to provide Interest Subsidy (CSIS) on Education Loans taken by students belonging to Economically Weaker Sections (EWS)

The Government of India, Ministry of HRD (MoHRD), has formulated an Interest Subsidy Scheme on Education Loan for the Economically Weaker Sections (EWS) for pursuing studies in technical/professional courses in India. The interest subsidy shall be linked to our existing Educational Loan for higher education in India & Abroad.

Eligibility:

1. Restricted to students enrolled in recognized technical and professional courses after class XII in India.
2. The benefits under the scheme would be applicable to the student who belongs to the EWS category and satisfy the income criteria stipulated in the Govt. Scheme, i.e., Gross parental income upper limit of Rs.4.50 Lakh p.a. (from all sources).
3. To submit income certificate issued by authorities mentioned below:
   The income certificate issuing authority in the States of Maharashtra, Gujarat & Karnataka would be as under:
   Maharashtra – Tahsildar
   Karnataka – Tahsildar
   Gujarat - District Collector/Deputy Collector/Assistant Collector, Prantha Officer/Mamlatdar
4. Interest payable by the student on the education loan would be reimbursed by the Government to the Bank for the period of moratorium (i.e. course period plus one year or 6 months after getting a job, whichever is earlier).
5. After the period of moratorium is over, the interest on the outstanding loan amount shall be paid by the student, in accordance with the provisions of the existing Educational Loan Scheme.
6. The interest subsidy shall be available to eligible students only once, either for the first undergraduate degree course or the postgraduate degrees/diplomas. Interest subsidy shall, however, be admissible for combined undergraduate and postgraduate courses.
7. Interest subsidy shall not be available for students who either discontinue the course midstream or in respect of those students who are expelled from the educational institution on disciplinary/academic grounds. However, interest subsidy will be available for the actual period of study only if discontinuation was due to medical grounds for which necessary documentation to the satisfaction of the head of the educational institution is submitted by the student.