CSIS Scheme - Personal Banking

Features

• The scheme is applicable only for studies in recognized Technical/ Professional courses in India.
• The subsidy is provided for the period of moratorium i.e. 12 months after completion of the course or six months after getting the job, whichever is earlier as prescribed under the IBA Model Education Loan Scheme. After the moratorium period is over, the interest on the outstanding loan amount shall be paid by the student in accordance with the provisions of the Education Loan Scheme.
• The benefit of the scheme would be applicable to those students belonging to economically weaker sections with an annual gross parental/family income with upper limit of Rs.4.5 lacs per annum (from all sources). This needs to be certified by an ‘Income Certificate' issued by the Income Certifying Authority designated by the State Government.
• The Ministry of HRD, Government of India has issued 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.  Banks shall implement the scheme based on the notification of the certification authority by State Governments communicated through District Level Consultative Committees (DLCCs). The DLCCs would be given the list and the signatures of the competent authority to issue the income certificate.
• 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 degree/diploma in India. Interest subsidy shall however, be admissible for integrated courses (graduate plus postgraduate).
  • Interest subsidy under this scheme shall not be available for 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 necessary documentation to the satisfaction of the Head of educational institution will have to be given.
• The scheme shall be implemented through Canara Bank, which is the Nodal Bank for the Ministry of Human Resources Development.
• The scheme is applicable from the academic year 2009-10 starting 1st April 2009. The scheme is applicable only in respect of disbursements made by the Banks on or after 1st April, 2009 for the academic year 2009-10, irrespective of date of sanctioning. In case of loans sanctioned prior to 1.4.2009, for the courses beginning prior to academic year 2009-10, the interest subsidy is available to the extent of disbursements made after 1.4.2009.
• The disbursement of Interest Subsidy Claims to the Banks shall be on half-yearly or yearly basis which has to be worked out in consultation with the Ministry of HRD.