Pradhan Mantri Uchchatar Shiksha Protsahan Yojana | CSIS | Education Loan.

The “Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme” was launched by the Ministry of Education, Government of India in the year 2009.

Central Sector Interest Subsidy Scheme (CSIS)

Central Scheme to provide Interest Subsidy (CSIC) for the period of moratorium of education loans taken by students from economically weaker sections (EWS) under the education loan scheme of Indian Banks Association (IBA), to pursue Technical/professional courses only from NAAC accredited Institutions or professional/technical programmes accredited by NBA or Institutions of National Importance of Centrally Funded Technical Institutions (CFTIs) in India.

The government of India, Ministry of Education, Department of Higher Education, New Delhi has launched a scheme under the name “Central Scheme to provide Internet Subsidy (CSIC)” for the moratorium period of education loans availed by students from EWS under IBA education loan scheme, to pursue Technical/Professional courses in India. Canara Bank has been appointed as a Nodal bank for the implementation of the scheme.

Benefits of CSIC Education Loan

1. CSIC is a unique scheme that pivots around the vision that no student desiring to pursue higher education is denied the opportunity based on their economic conditions.
2. Under the scheme, Interest Subsidy on education loans is provided for the maximum amount of Rs. 10 lakhs. (Even would qualify for interest subsidy up to Rs.10 lakhs only).
3. The interest subsidy is allowed for pursuing higher education in professional/technical courses only from NAAC accredited Institutions or Professional/technical programs accredited by NBA or Institutions of National Importance or Centrally Funded Technical Institutions (CFTIs) in India.
4. The interest subsidy is allowed for pursuing higher education in professional/technical courses from NAAC-accredited institutions or professional/technical programs accredited by the NBA or institutions of National Importance or Centrally Funded Technical Institutions (CFTIs) in India.

Eligibility Subsidy

1. The subsidy amount will be only Rs.10 Lakh irrespective of the sanctioned loan amount (within the parameters of the IBA model education loan scheme).
2. The benefit of the scheme applies to students belonging to economically weaker sections having gross parental/family income up to Rs. 4.5 lakhs per annum from all the sources.
3. Admissible only once either for Undergraduate or Post Graduate degree courses. This is also admissible for Integrated Courses (graduate + Undergraduate).
4. Interest subsidy under this scheme shall not be available for those students once who discontinue the course midstream, or who are expelled from the institutions on disciplinary or academic grounds. However, the subsidy will be available only if the discontinuation was due to medical grounds for which necessary documentation to the satisfaction of the Head of educational institutions will have to be given.
5. The disbursement of interest Subsidy Claims to the Banks shall be on a half-yearly or yearly basis which must be worked out in consultation with the Ministry of Education.
6. The interest subsidy under the scheme shall be available to the eligible students only once either for the first undergraduate degree courses or the postgraduate degree/diploma in India. Interest subsidy shall, however, be admissible for integrated courses (graduate plus postgraduate).
7. The subsidy is provided for the period of moratorium I.e. 12 months after completion of the course. After the moratorium period is over, the interest on the outstanding loan amount shall be paid by the students following the provisions of the Education loan scheme.

List of Technical/Professional Courses

Students enrolled in professional/technical courses only from NAAC accredited Institutions or professional/technical programs accredited by NBA or Institutions of National Importance of Central Funded Technical Institutions (CGTIs) to avail the benefits of CSIC Educational Loan.

• A list of Centrally Funded Technical Institutions and Institutions of National Importance is available on the Minsistry of Education website URLs.

Approved Education Institution under CSIC Education Loan:

1. Institute for Technical Education.
2. Institution of National Importance.
3. NAAC-accredited Universities/Institutions.
4. NBA-recognised professional courses.

• It shall be the responsibility of the bank to ensure that only technical/professional courses are covered by them under the scheme.

Furthermore Related to the CSIS Education Loan

Interest Rates:

The interest rates charged on the education loan shall be as per the Benchmark Prime Lending rate (BPLR)/Base Rate of the individual banks and as per the provisions for interest rates under the IBA Model Educational Loan Scheme.

Moratorium Period:

• Under the scheme, the moratorium period is defined as a Course Period plus one year. Interest for only the moratorium period, at a simple rate of interest, will be borne by the Government of India, subject to the condition that the student completes the course of study successfully.
• After the period of moratorium, the interest on the outstanding loan amount shall be paid by the student, following the provisions of the existing Model Educational Loan Scheme of Banks and as may be amended from time to time.

Interest Concession:

Under the IBA Scheme, 2021, Bans at its discretion may provide a 1% interest concession if interest is serviced during the study period and subsequent moratorium period before commencement of repayment. However, the subvention provided by the Government should not be a cause for providing a 1% concession in the rate of interest.

Also, read this: Stand-Up India: Apply Online For Business Loan | Government Scheme.

Eligible Bank

• The scheme is adopted by all scheduled Banks/Regional Rural banks 9RRBs) Cooperative Banks and is linked with the existing Model Educational Loan Scheme of the Indian Bank’s association.
• The Scheme shall continue to be implemented through Canara Bank, which is the nodal Bank for the Ministry of Education. Modalities for implementation and monitoring shall be finalized in consultation with the Canara Bank.

Required Document’s 

1. Aadhar Card.
2. PAN Card.
3. Income proof (Issued by Competent Authority).
4. Educational Certificates.
5. Proof of admission to the course.
6. Bank account details.
7. Any other documents, as required.

Application Process

Offline Application:

To apply for the CSIC Education Loan, the eligible student has to visit the nearest Bank branch office from where he/she has availed the facility of an Educational Loan for studying from a recognized institute in India.

Note: Nodal Bank shall disburse the subsidy in the Education Loan account of the beneficiaries in DBT mode through PFMS Portal. It is the sole responsibility on behalf of eligible beneficiaries every year.

Online:

To apply for the CSIS Education Loan, the eligible students visit the official portal of JanSamarth and Vidya Lakshmi Portal.

• JanSamarth.
• Vidya Lakshmi.

Register and apply for the Educational Loan under the CSIS.

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FAQs

References

https://www.jansamarth.in/education-loan-central-sector-interest-subsidy-scheme_pl

https://www.myscheme.gov.in/schemes/pm-uspycsiss

https://www.education.gov.in/scholarships-education-loan-4