CSIS Scheme: Education Loan By Government, All About to know

Central Sector Interest Subsidy Scheme (CSIS) is a Government Education Loan Scheme which will provide upto 10 Lakh loan to the student who does not have enough money to pursue higher study. This article will be benefit to those student who want to pursue higher study but does not have enough money.

The Government aims that no student will denies on the chance to go to college just because they don’t have enough money. So, they launched a scheme called the “Central Sector Interest Subsidy Scheme” (CSIS) in 2009, which got a new name after the Ministry of Education took over from the Ministry of Human Resource Development. This scheme helps students by paying the interest on their education loans while they’re still studying.

It’s for those studying technical or professional courses in India and whose families earn up to Rs.4.5 lakh a year. The scheme got updated by the Union Cabinet’s approval on January 19, 2022.

Benefit of the Education Loan under CSIS Scheme

• The Scheme is available through all Scheduled Banks/Regional Rural Banks (RRBs)/Cooperative Banks and is connected to the existing Model Educational Loan Scheme of the Indian Banks’ Association.
• Students can receive interest subsidy under CSIS only once, whether it’s for an undergraduate, postgraduate, or integrated course. The maximum amount eligible for subsidy is Rs. 10.0 lakh, even if the sanctioned loan amount exceeds this limit.
• For education loans sanctioned up to Rs. 7.5 lakh under CSIS, no collateral security or third-party guarantee needed. The lending bank must ensure that this portion of the loan covered under the Credit Guarantee Fund Scheme for Education Loan (CGFSEL).
• During the moratorium period (course period plus one year), the Government of India covers the interest payable on the educational loan. After the moratorium period, students are responsible for paying the interest on the outstanding loan amount, as per the provisions of the existing Model Educational Loan Scheme of Banks and any subsequent amendments.

Eligibility Criteria Education Loan Under CSIS Scheme

• Students should be of India
• Education Loans taken under IBA Model Education Loan Scheme.
• Students having gross parental/ family income upto Rs. 4.5 lakh per annum.
• Students enrolled in professional/ technical courses only from NAAC accredited Institutions or professional/ technical programmes accredited by NBA or Institutions of National Importance or Central Funded Technical Institutions (CFTIs). Those Professional Institutions/programmes, which do not come under the ambit of NAAC or NBA, would require approval of the respective regulatory body.
• Admissible only once either for Undergraduate or for Post Graduate degree course. This is also admissible for Integrated Courses (Graduate + Post Graduate).
• Student availing any other Central /State Government Scholarship or Fee reimbursement shall not be eligible for availing benefits under CSIS Scheme.
• Interest Subsidy under this Scheme shall not available to those students who discontinue their course midstream, or who expelled from the Institution on disciplinary or academic grounds. However, the interest subsidy would be available only if discontinuation is due to medical grounds for which necessary documentation to the satisfaction of the Head of educational institution needs to be provided.

Also Read: Jan Samarth Loan Yojana 2024: Get Upto 10 Lakh loan without Guarantee

Interest Rate of the Scheme

The interest rates charged on the educational loan shall be as per the Benchmark Prime Lending Rate (BPLR)/Base Rate of the individual banks and as per the provisions for interest rates under the IBA Model Educational Loan Scheme.

How to apply for the CSIS Scheme fo Education Loan

To apply for, first of all you have to register yourself in Jana Samarth portal.

• · For this, first of all you have to go to the official website of JanSamarth Portal, there you have to register yourself through the registration option.
• · As you click on the registration option, a new page will open in front of you, here you will have to enter your mobile number, captcha code and OTP.
• · After verifying your mobile number through OTP, an application form will open in front of you in which you will have to enter all your personal information. After doing all this, you will get an ID password through which you can login
• · After this you have to click on the people option and login through your ID password.
• · After logging in, an application form will open in front of you in which all the information asked will be correct and carefully prepared.
• · After this you will be asked to scan and upload some documents, please scan them and upload them carefully.
• · After uploading all the documents, you will have to re-check your application form to see if there are any mistakes, after which you can submit it.
• · Within 15 days of submitting the application form, your form will be checked by the bank and as per your eligibility the loan will be transferred to your account which you can repay through installments.