Education and Career Forum

I have heard about Central Sector Scheme for Interest Subsidy. But I really don’t know what it is? Actually I am going to apply an education loan in Syndicate Bank for my BTech course. So, I got the paper regarding this subsidy scheme but don’t know about this. Please explain me what it is?

The Central Sector Interest Subsidy Scheme (CSIS) is a scheme launched by the Government of India to provide interest subsidy during the moratorium period (i.e., the period when the borrower is not required to repay the loan) on education loans taken by students from economically weaker sections (EWS) to pursue technical and professional courses in India and abroad.

Under this scheme, the interest payable by the student during the moratorium period is borne by the Government of India, and the interest subsidy is provided to the lending institutions, such as Syndicate Bank, who then pass on the benefit to the student borrower. The scheme is applicable for education loans taken from scheduled banks (including Syndicate Bank) for studies in India and abroad.

The benefit of interest subsidy under the scheme is available to the eligible student for a maximum period of moratorium i.e. the course period plus one year or six months after getting the job, whichever is earlier.

To avail the benefit of this scheme, the eligible student should submit the income certificate to the bank from the competent authority in the prescribed format. The bank would verify the income certificate and sanction the education loan along with the interest subsidy, if eligible, under the scheme.