CSIS Education Loan

Making sure that all Economic Weaker Section (EWS) students, regardless of their financial situation, have access to higher education is a crucial goal for the government. In order to do this, the Central Sector Interest Subsidy Scheme (CSIS) was introduced in 2009 by the Ministry of Human Resource Development (MHRD). 

The CSIS offers full interest subsidies of up to 10 lakhs for contemporary education loans availed under the Model Education Loan Scheme of the Indian Banks’ Association (IBA) during the moratorium period, enabling students to complete technical and professional courses in India. Students can avail of this benefit without pledging any collateral security or third-party guarantee

The CSIS Scheme is intended for students from the Economically Weaker Section (EWS) whose parents or families earn up to Rs. 4.5 lakhs in annual gross income. On January 19th  2022, the Cabinet authorised changes to the current Scheme, reiterating the government's commitment to making education accessible and affordable for everyone. 

All Scheduled Banks, Regional Rural Banks (RRBs), and Cooperative Banks in India have implemented the Central Sector Interest Subsidy Scheme (CSIS).  

The Programme aims to encourage students to start at the basic level and enhance the number of trained technicians and professionals in the country. CSIS seeks to address the current geographic disparity in higher education institution's Gross Enrollment Ratios (GER).

It is rather difficult to grasp all the terms connected with the education loan schemes, and if you add up the various prerequisites and procedures that come with them, it can be rather confusing. The language used is very financial and sometimes very technical, causing most people to be confused with the meaning of certain terms and how they are used to influence the approval or otherwise of loans or how loans should be repaid. To put it more clearly in this section, we will attempt to explain these terms less technically to make you understand the rationale behind them.

Moratorium Period

• The CSIS provides support to students who face difficulties paying for their education.
• The scheme includes a moratorium period that lasts for the course length plus an additional year.
• During the moratorium period, the government pays the interest incurred at the simple rate of interest on the student loan.
• To receive this subsidy, the student must complete the course.
• Once the moratorium period is over, the interest on the outstanding loan amount will have to be paid by the student.
• Payment of interest must be made in accordance with the current Model Educational Loan Scheme of Banks, which is subject to periodic amendment.

Interest Rate 

• The interest rates on student loans must follow the Benchmark Prime Lending Rate (BPLR) or the Base Rate of the respective banks, according to the CSIS.
• The scheme aims to promote consistency and fairness in interest rates.
• The interest rates are based on the provisions of the Model Educational Loan Scheme of the Indian Banks' Association (IBA).
• The CSIS helps students reduce their financial burden by standardising interest rates.

Income Eligibility Criteria

• The CSIS Education Loan Scheme is designed to support students from the Economically Weaker Section (EWS) in pursuing higher education without financial worries.
• To be eligible, the gross parental/family income, including all sources, of the student must not exceed Rs. 4.5 lakh per year, as certified by the authorised Public Authority of the State Government.
• Eligibility is determined based on economic status, rather than social background, to ensure equal access to higher education for all students.
• The Scheme operates independently of other programs that assist economically underprivileged groups.
• The primary goal of the Scheme is to ensure that all students have equal access to higher education.

Certified organization for Issuing Income Certificate

• The Ministry of Education, Government of India issued an Advisory to the State Governments to designate a competent authority for issuing income certificates based on the economic index for the CSIS Education Loan Scheme.
• List of income certificate issuing authority- Village Tehsildar, District Magistrate, collector, Revenue Circle Officer, Sub-Divisional Magistrate, or other relevant district authorities 
• This certification is not based on social background but solely on the economic status of the student's family.
• The Banks must implement the scheme based on the certification authority notified by the State Government.
• The notification is communicated through District Level Consultative Committees (DLCCs).

Nodal Bank

The Central Sector Interest Subsidy Scheme will be administered through Canara Bank, which has been designated as the Nodal Bank for the Ministry of Education. The specific details and procedures for the implementation and monitoring of the scheme will be established in consultation with Canara Bank.

You just have to follow these simple steps to apply for the CSIS scheme:-

Step 1- Go to the jansamarth.in, you will find all the loan schemes available for the students
Step 2- Click on option ‘Scheme’ there would be many options, choose ‘Education Loan’
Step 3- You will see 3 different schemes, Click on ‘Central Sector Interest Subsidy (CSIS)’
Step 4- There you can read the description of eligibility or you can refer to this article also for detailed information
Step 5- At the end of that page, you will find the ‘Check Eligibility’ option- click on it.
Step 6- Fill in all the details required to fill in like- Location of study, Gross family annual income, Social category, Course length, Course Type, Course fees, and amount you suppose to invest by yourself, and click on ‘Check Eligibility
Step 7- After submitting all the details, it will provide you Eligible Subsidy Amount, Monthly EMI, and Loan Tenure
Step 8- Click on the ‘Apply Now option 
Step 9- You can check the updates regarding your application by clicking on the option ‘Track Your Application'

To qualify for the CSIS subsidy scheme, it is necessary to meet certain fundamental eligibility requirements established by the Indian Government, here is the list of key eligibility criteria:- 

• Loans for education taken out under the IBA Model Education Loan Programme.
• Only for EWS applicants, whose parental/family income (from all sources) is less than 4.5 lakhs per annum.
• Applicable for Technical/ Professional courses by NAAC,NBA,CFTI accredited or regulatory approved institutes in India.
• Courses that do not fall under the list of NAAC or NBA require the endorsement of their respective regulatory bodies. Thus, programs such as medical, nursing, and law courses must secure approval from their relevant regulatory bodies, such as the Medical Council of India, Nursing Council of India, and the Bar Council of India, respectively.
• Under this scheme, the interest subsidy can be availed by eligible students pursuing their first undergraduate degree or postgraduate degree/diploma in India, but it's important to note that the subsidy is limited to a one-time benefit.
• However, the interest subsidy is applicable to integrated courses (combining both undergraduate and postgraduate studies) as well.
• To avail the interest subsidy under this scheme, students must complete their course without discontinuing or being expelled from the institution on disciplinary or academic grounds. However, if the discontinuation is due to medical reasons, the student may still be eligible for the subsidy by providing the necessary documentation to the Head of the educational institution.

The indicative list of eligible courses under CSIS Education Loan refers to a comprehensive compilation of educational programs and disciplines that qualify for financial assistance through the CSIS scheme:-

• UG and PG courses in Engineering (B.E. /B.Tech /M.Tech /B.Arch /M.Arch, etc.)
• Medical /Para Medical (MBBS /MD /B.sc /M.sc /Nursing /B.Pharmacy /M.Pharmacy /BPT /MPT /BOI /MOI /Siddha /Ayurveda /Homeopathy /Naturopathy, etc.)
• Agriculture (B.sc /M.sc)
• Veterinary
• Law 
• Dental (BDS /MDS)
• Management (BBA /MBA)
• Computer (BCA /MCA)

(For the complete list of courses eligible under the CSIS Education Loan, you can request a callback from our Financial Officer)

NOTE- Banks may seek clarification from UGC/AICTE or other relevant councils if they have any doubts about the scheme's guidelines. To make this process easier, UGC/AICTE and other councils are encouraged to create Cells and identify Nodal Officers that banks can contact for the required information. 

This list serves as a reference to identify courses or disciplines that fall outside the scope of the CSIS Education Loan, that are not eligible for financial support:-

• Any courses in Abroad 
• Courses pursued without completing class 12th
• Non- professional and non-technical UG and PG courses in Arts, Science, Commerce, Sociology, Music, etc.
• Diploma courses (except PG Diploma)
• Teacher Training courses 
• Skill Development courses 
• Vocational Training courses, etc.

CSIS Education Loan disbursement policies outline the steps involved in disbursing the loan amount to eligible students, ensuring transparency and adherence to the specified terms and conditions.

• The Nodal Bank will receive interest subsidy claims from eligible beneficiaries on a quarterly, half-yearly, or yearly basis, as decided by the Ministry of Education.
• The Nodal Bank will disburse the subsidy amount to the beneficiaries' Education Loan accounts through the PFMS Portal in DBT mode.
• Lending banks are solely responsible for claiming the interest subsidy on behalf of eligible beneficiaries every year.
• Failure to claim the subsidy for the current year will result in non-entertainment of backlog claims.
• The Department of Higher Education is not responsible for any delay or non-submission of the claim by the lending bank to Canara Bank, which may result in non-payment of interest subsidy.

Obtaining an Education Loan can be a difficult task due to the lengthy and confusing application process that requires considerable documentation and a long list of conditions. 

Nonetheless, WeMakeScholars, is an organisation funded by the Indian government's Ministry of Information Technology. We are empanelled with 14+ private and public banks and provide a stress-free option by providing a simpler and entirely online process, releasing you from the frustrating paperwork and allowing you to focus on achieving your academic goals.

• Streamlined Application Process: Our completely online and streamlined process allows you to skip the tedious paperwork and focus on achieving your educational goals.
• Professional Support: Our financial officers offer end-to-end assistance, reviewing your profile and recommending the best loan alternative that might be accessible to you. We also provide ongoing assistance to help you with any problems that could come up while you repay the loan, such as an unexpected hike in interest rates.
• Negotiation Support: Our team of financial officers is skilled and knowledgeable in dealing with lenders. In order to ensure that you receive the greatest terms and conditions for your education loan, they will negotiate with the lender on your behalf.
• Discounted Interest Rates: By partnering with over 14 commercial and public institutions, we are able to give you an interest rate discount of up to 2% on your student loans, which will enable you to save a lot of money over the course of time.
• Free of Cost: We do not charge any fee for our services, as we are supported by the Ministry of IT under the Digital India campaign. This means that you can take advantage of our expert guidance and support without worrying about any hidden costs or charges.
• Faster Loan Process: We understand how important speed is when applying for an education loan. We make sure the lending process is speedy and effective because of this. Your education loan application can be processed through state banks in about 21 days, while private banks and NBFCs just require 2–7 days for loan authorization.
• Tax Benefits: Our experts will educate you on all the tax exemption options available under sec 80C and 80E, helping you maximize your savings and minimize your tax liability.
• Cashback Offers: When your loan has been approved through us and you have received your disbursement, we will give you a cashback offer of up to Rs. 3000 as a token of our appreciation for selecting WeMakeScholars as your provider of student loans.