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 Federal 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 government initiative that provides interest subsidy on education loans taken by students from economically weaker sections (EWS) of the society. The scheme is applicable to students pursuing undergraduate and postgraduate courses in India and abroad.

Under this scheme, the government provides an interest subsidy of 2% during the moratorium period (i.e., the period during which the borrower is not required to make any repayment) to the eligible students who have availed an education loan from a scheduled bank. The subsidy is available for a maximum loan amount of Rs. 7.5 lakhs.

Federal Bank offers education loans under the CSIS scheme to eligible students. To avail of the scheme, the student needs to provide the necessary documents and meet the eligibility criteria. The bank will then process the loan application and provide the interest subsidy as per the scheme guidelines.