CSIS Education Loan
Are you looking to avail the Central Sector Interest Subsidy scheme for your education loan? Read this blog to understand the CSIS subsidy, the documents required and mainly how to apply for CSIS scheme.
What is CSIS Education Loan, and How Does it Work?
The Central Sector Interest Subsidy Scheme (CSIS) is a government initiative that came into force in 2009 and offers financial aid to Indian students seeking higher education. The initiative aims to reduce the burden of interest rates on educational loans by mainly targeting members of the economically disadvantaged parts of society.
The basic idea behind the CSIS education loan subsidy program is to provide deserving and eligible students with an interest-only loan. This subsidy is available throughout the whole moratorium period, which consists of the course duration plus an extra year after the study ends or after finding work, whichever comes first.
Features of the Central Sector Interest Subsidy Scheme
One of the CSIS education loan’s primary strengths is its flexibility in terms of funding amount. Students who meet the requirements might receive up to Rs 10 Lakh in CSIS subsidy. This range provides individualised financial support for various educational endeavours, from undergraduate to graduate courses.
Here are some key terms or components of the CSIS education loan scheme:
1. Moratorium Time Frame
One of the critical features of the CSIS education loan, or the Central Sector Interest Subsidy Scheme, is its 12-month moratorium period, which extends for the duration of the course.
Students are not required to pay interest on the loan during this period. This unique feature offers graduates a financial safety net to launch their professions before starting the loan repayment process.
2. Execution via Scheduled Commercial Banks
CSIS education loan functions via scheduled commercial banks, guaranteeing extensive nationwide accessibility.
This partnership with the Indian Banks' Association's Model Educational Loan Scheme helps provide a smooth and uniform application procedure, facilitating the scheme's accessibility to qualified students.
3. Emphasis on Professional and Technical Courses
The Central Sector Interest Subsidy Scheme, or the CSIS education loan, has a focused strategy. It focuses on professional and technical courses approved by the Central Funded Technical Institutions (CFTIs), Institutions of National Importance, or the National Board of Accreditation (NBA).
This guarantees that the program offers educational pathways that correspond with the changing needs of the labour market.
Suggested Read: How do Education Loans Work in India?
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Are you Eligible for CSIS Education Loan?
Students must meet the requirements for the CSIS education loan to be eligible for the total interest subsidy on loans taken out through these programs. The eligibility criteria are:
Benefits from CSIS education loan apply to loans taken out under the IBA Model Education Loan Scheme. One of the most critical steps in getting the subsidy is making sure your loan fits within this model.
Suggested Read: Education Loan by Government: Eligibility and Application 2024
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How to Apply for CSIS Scheme for Education Loan
Here are the steps to apply for CSIS Education loan:
1. Check Eligibility:
- Ensure your family’s annual income is below ₹4.5 lakh from all sources. The loan is available for students from economically weaker sections (EWS) pursuing professional or technical courses in India.
- The subsidy covers the moratorium period (course duration + 1 year) during which the government pays the interest.
2. Apply for an Education Loan:
- Visit your bank (any scheduled bank under the Indian Banks’ Association’s Model Educational Loan Scheme). You must take out a loan before you apply for the CSIS subsidy.
- Banks such as SBI, Canara Bank, and others facilitate these loans.
3. Submit the Required Documents:
- Provide proof of admission, the course fee structure, and a family income certificate issued by a competent authority. This income certificate is critical to determining your eligibility for the subsidy
4. Subsidy Application:
- Once you’ve secured the loan, your bank will automatically link the loan to the CSIS scheme if you meet the eligibility requirements. No separate application for the subsidy is required from your side, but it’s recommended to follow up with your bank.
5. Track Your Subsidy:
- You can track the status of your subsidy on platforms like the Canara Bank portal, which serves as the nodal bank.
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Income Limit and Income Certificate in CSIS Education Loan
The CSIS Education loan targets people from economically weaker sections of society. Hence, the income certificate is an essential criterion for getting the Loan.
To get the income certificate, the family’s income has to be less than INR 4.5 lakhs per annum. If you fulfil this criterion, a competent authority from your state can authorise the income certificate. The list of officials who can validate your income certificate as per your state is given in the next section.
One important thing to note is that the CSIS education loan can not be offered to socially backward classes. It is based solely on the applicant's financial situation.
Designated Officials for CSIS Scheme Income Certificate
The following is a list of designated officials authorised to validate your CSIS education loan application according to the state.
Besides the CSIS subsidy, you can also apply to the Jansamarth Education loan or the Vidya Lakhmi Education loan.
CSIS education loan interest rate helps many students in India every year. But if you aren’t eligible for the Central Sector Interest Subsidy Scheme, don’t worry. Propelld offers student-friendly educational loans that are 100% digital and have a quick process.
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