Education Loan – Subsidy Schemes

EDUCATIONAL LOAN – SUBSIDY SCHEME

Central Scheme to provide Interest Subsidy to Educational Loan (CSIS)

The salient features of the Central Scheme to provide Interest Subsidy to Educational Loan      accounts:

• The scheme is applicable for “Study in India” only. Educational loans for studies abroad are not eligible. If a course is pursued partly in India and partly abroad, the same is not eligible for subsidy.
• The Scheme is linked to the IBA Model Educational Loan Scheme. The Scheme came into effect from the academic year 2009-10 and would cover loan amount disbursed by banks from 1^st April, 2009 onwards.
• The Scheme is applicable for pursuing any of the approved courses of studies in technical and professional streams from recognized Institutions in India.
• It is restricted to students enrolled in recognized professional courses after Class XII in India in educational institutions established by acts of Parliament, institutions recognized by statutory bodies, institutions set up by Central Government. Students who pursue Engineering course by Lateral entry are also eligible.
• As per the scheme, annual gross parental/ family income from all sources should not be above Rs.4.50 lakh. Income proof should be obtained from designated authorities approved by respective State Government/ U.T. for this purpose (e.g. for Tamil Nadu from Zonal Deputy Tahsildar) and to be submitted to the lending branch.
• The income of the family as on the date of educational loan application should be taken for arriving eligibility. Subsequent increase or decrease in income will have no effect on the eligibility.
• The interest subsidy is available up to the moratorium period.
• Interest Subsidy is available towards the amount of interest charged for educational loans for limit up to Rs. 10.00 Lac. If an educational loan is sanctioned for more than Rs.10.00 Lac, interest subsidy will be available for the interest charged for the limit up to Rs.10.00 Lac only
• The Interest subsidy is available only once either for the first undergraduate degree course or the post graduate degrees/ diplomas in India.
• Admissions for the courses secured under Management Quota are not eligible.
• Loans secured by third party guarantee or collateral security are not eligible.
• Canara Bank has been designated as the Nodal Bank to administer the interest subsidy claims on behalf of other banks.
• MoHRD, GOI has decided to settle the subsidy only to those accounts whose moratorium has ended or ending shortly. The repayment commencement date should be arrived with due care (Actual course period plus one year. Courses such MBBS, BDS, Veterinary etc., have internship period which should be included under course period).
• All subsidy data is being captured in In-house Vidyalakshmi portal and hence due care should be taken while filling up of data in In-house Vidyalakshmi portal.