The Central Sector Interest Subsidy Scheme (CSIS) is a Government of India initiative aimed at supporting students from the Economically Weaker Sections (EWS) to pursue technical and professional education in India. Key updates include a maximum subsidy on loans up to ₹10 lakh, a parental income ceiling of ₹4.5 lakh annually, and applications submitted via the Jansamarth Portal (Official Website: https://www.jansamarth.in/ )or the National Scholarships Portal ( Official Website: https://scholarships.gov.in/). Canara Bank is the nodal bank for implementation.
Key Objective
Under this scheme, the Government of India bears the interest on education loans availed by eligible EWS students during the moratorium period —defined as the course duration plus one year or six months after securing employment, whichever is earlier.
Loan amount and subsidy: The subsidy is for loans up to a maximum of ₹10 lakh. For loans sanctioned over ₹10 lakh, the subsidy is capped at the ₹10 lakh limit.
Collateral: No collateral or third-party guarantee is required for loans up to ₹7.5 lakh. The loan is covered under the Credit Guarantee Fund Scheme for Education Loan (CGFSEL).
Subsidy period: The subsidy is provided during the moratorium period, which includes the course duration plus one year.
After the moratorium period, the responsibility for repaying the interest rests with the student, as per the provisions of the Model Educational Loan Scheme formulated by the Indian Banks’ Association (IBA). The CSIS scheme has been effective since the academic year 2009–10.
Eligibility Criteria
Students must meet the following conditions to qualify for the interest subsidy:
1. Income Limit:
* The annual parental income from all sources must not exceed ₹4.50 lakh.
* Students must furnish income certificates issued by authorities authorized by the State Government for certification under this scheme (including those used for Central and State sector schemes).
2. Eligible Courses and Institutions
* The subsidy is for professional and technical courses in institutions that are NAAC accredited or NBA accredited, Institutions of National Importance, or Centrally Funded Technical Institutions (CFTIs).
* Eligible institutions include:
* Universities established by Acts of Parliament or State Legislatures
* Institutions recognized by statutory bodies
* Indian Institutes of Management (IIMs)
* Other Central/State Government-recognized educational institutions
* The student must be enrolled in recognized technical or professional courses (after Class XII) in India.
3. Course Level
* The subsidy is available only once—either for the first undergraduate or postgraduate degree/diploma in India.
* For integrated courses (graduate + postgraduate), the subsidy covers the entire duration.
Non-Eligibility
The following categories are not eligible for interest subsidy:
* Students who discontinue their studies midstream or are expelled for academic or disciplinary reasons.
*Exception:
* Subsidy may be granted if discontinuation is due to medical reasons, supported by documentation approved by the head of the institution.
* Students enrolled in non-professional and non-technical courses, such as:
* Arts, Science, Commerce, Sociology, Music, etc.
* Diploma, Teacher Training, Skill Development, and Vocational Training courses.
* Courses pursued abroad or without completion of Class XII.
Nodal Agency and Lenders
* The scheme is implemented through Canara Bank, designated as the Nodal Bank for CSIS.
* Students must apply for the subsidy through the bank branch from which they have availed their education loan.
Eligible Lenders:
*Scheduled banks and financial corporations such as:
* NMDFC – National Minorities Development and Finance Corporation
* NSKFDC – National Safai Karamcharis Finance and Development Corporation
* NBCFDC – National Backward Classes Finance and Development Corporation
* NSCFDC – National Scheduled Castes Finance and Development Corporation
* NHFDC– National Handicapped Finance and Development Corporation
The interest charged by these institutions is reimbursed directly by the Government of India to the respective corporation.
How to Apply for the CSIS Scheme
Students can apply for the Central Sector Interest Subsidy Scheme through their bank or via the Vidya Lakshmi Portal, which serves as the government’s single-window platform for education loans and related schemes.
Step-by-Step Application Process:
1. Visit the Vidya Lakshmi Portal
Go to [https://www.vidyalakshmi.co.in](https://www.vidyalakshmi.co.in).
2. Register as a Student
Create an account using a valid email ID and complete your profile with personal, academic, and loan details.
3. Search for Education Loan Schemes
Explore loan options offered by banks and select the one best suited to your course and institution.
4. Apply for an Education Loan
Submit your loan application online through the portal to up to three banks of your choice.
5. Bank Review and Processing
The selected bank(s) will review your application. Once sanctioned, the **bank branch handling your loan will process the interest subsidy eligibility under CSIS.
6. Verification and Disbursal
The bank will verify income proof and course details. Upon confirmation, the **interest accrued during the moratorium is borne by the Government of India directly.
Note: Students who already have an education loan from a scheduled bank can also approach their bank branch to check and register for CSIS benefits, if eligible.
Key Benefits at a Glance
* 100% interest subsidy during moratorium for eligible EWS students.
* Applicable to recognized professional and technical courses in India.
* No need for separate repayment during study period.
* Implemented through a transparent and centralized process via banks and the Vidya Lakshmi portal.
Disclaimer
The information provided here is intended solely for educational and informational purposes. It should not be construed as financial, legal, or career advice. While efforts have been made to ensure accuracy, the content is subject to change due to policy amendments or judicial interpretations. Readers are advised to consult qualified professionals or official notifications for the most current and applicable guidance.
Sir kindly provide the list of courses not eligible for CSIS scheme under non technical and non professional categories..
It appears that you have not correctly read the post. 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. are not eligible under the above scheme. Studies in institutions abroad, courses pursued without completing class XII are also not eligible.
Nodal