Government of India, Ministry of Human Resources Development, Department of Higher Education, New Delhi has launched a scheme under the name “Central Scheme to provide Interest Subsidy (CSIS)” for the moratorium period of educational loans availed by students from EWS under IBA educational loan scheme, to pursue Technical/ Professional courses in India. The scheme is effective from the academic year 2009-10.
Objective
of the Scheme |
The
Governemt of India has approved a scheme to provide full
interest subsidy during the period
of moratorium i.e. Course Period
plus one year or six months after
getting job, whichever is earlier, on loans taken by
students belonging to Economically Weaker Sections from scheduled banks under
the Educational Loan scheme of the Indian Banks’Association, for pursuing any
of the approved courses of studies in technical and professional streams,
from recognised institutions in India. |
Applicability
of the Scheme |
The
Scheme would be applicable only
for studies recognised Technical/Professional
Courses in India. The
interest subsidy shall be linked with the existing Educational Loan Scheme of
IBA and restricted to students enrolled in recognised Technical/Professional
Courses (after Class XII) in India in Educational Institutions
established by Acts of Parliament, other Institutions recognised by the
concerned Statutory Bodies, Indian
Institutes
of Management (IIMS) and other institutions set up by the Central/State
Government. |
Interest
Rates |
The
interest rates charged on the educational loan shall be as per the BPLR/Base
Rate of the Individual Banks. |
Moratorium
Period |
Under
the scheme, the interest payable by the student belonging to EWS for availing
of the Educational Loan for Technical/Professional Courses in India for the
period of moratorium i.e. Course Period plus one year or six months after
getting job, whichever is earlier. After the period of moratorium is
over, the interest on the outstanding loan amount shall be paid by the
student, in accordance with the provisions of the existing Educational Loan
Scheme of Banks and as may be amended from time to time, whichever is
earlier. |
Income
Limit/Proof |
The
benefits of the Scheme would be applicable to those students belonging to
economically weaker sections(EWS), with an annual gross parental/family
income upper limit of Rs.4.50 lakhs per year (from all sources). The
scheme is intended to cater to the needs of students belonging to EWS with
prescribed upper parental gross income limit of the family from all sources,
which is based on economic index and not on social background. The scheme
is independent of any other schemes which may cater to Economically Weaker
Sections. |
Competent
Authority |
The
Ministry of HRD, Government of India shall issue an Advisory to all the State
Governments requesting them to designate appropriate authority or authorities
who are competent to issue income certificates, based on economic index and
not social background, for the purpose of this scheme.
The
Banks shall implement the Scheme based on the notification of the
certification authority by State Governments communicated through District
Level Consultative Committees (DLCCs). |
Eligibility
for Interest Subsidy |
The
interest subsidy under the Scheme shall be available to the eligible students
only once, either for the first undergraduate degree course or the post
graduate degrees/diplomas in India.
Interest
Subsidy shall, however, be admissable for integrated courses (graduate+post
graduate).
Interest
subsidy shall not be available for the following student borrowers,
Those
students once they discontinue the course midstream, or who are expelled from
the Institutions on disciplinary or academic grounds.
However,
the interest subsidy will be available only if the discontinuation was due to
medical grounds for which necessay documentation to the satisfaction of the
Head of educational institution will have to be given. |
Nodal
Bank |
The
Scheme shall be implemented through
Canara Bank, which is the Nodal
Bank for the scheme. However, the
student can apply under the scheme
only through branch where educational
loan is availed. |
Applicable
Academic Year |
The
Scheme shall be applicable from the academic year 2009-10 starting 1st April, 2009. The loan amount taken starting from the Academic Year 2009-10
(irrespective of the date of sanction) shall only be covered under the scheme
of interest subsidy. Interest on any amount disbursed for courses starting
before the academic year 2009-10 would not be considered for subsidy. |
List of Technical/
Professional
courses |
Students
enrolled in recognised Technical/Professional Courses (after Class XII)
in India in Educational Institutions established by Acts of Parliament, other
Institutions recognised by UGC/AICTE and other Statutory Bodies, Indian Institutes
of Management (IIMS) and other institutions set up by the Central/State
Government. |
Indicative List of
Eligible Courses |
Under
Graduate Courses and Post Graduate Courses in Engineering (B.E/ M.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, Veterinary, Law, Dental (BDS/MDS),
Management, Computer (MCA) etc.,
Post
Graduate diploma courses duly approved by AICTE/UGC and conducted
byrecognized institutions. |
Indicative List of
Non Eligible
courses |
For
studies in institutions abroad,
courses pursued without completing
class XII, Non Professional and
Non Technical under Graduate and
Post Graduate courses in Arts,
Science, Commerce, Sociology, Music
etc., Diploma Courses, Teacher
Training Courses, Skill Development,
Vocational Training courses etc., |
