Google

Feb 5, 2012

CSIS

CSIS Central Scheme of Interest Subsidy for Education Loans It is well known fact that education is one of the major concerns of the government and nobody should be denied of education only because he is poor. To help the economically weaker section students the central government has introduced an interest subsidy scheme. The Central Government has introduced a scheme to provide Interest Subsidy upto moratorium period of educational loans availed by economically weaker section of students for their technical/professional studies in India conducted by recognized institutions from scheduled banks. The period of moratorium means Course period plus one year OR six months after getting the job which ever is earlier. Economically Weaker Section students means students whose family/parental income from all sources is less than Rs.4.5 lakhs per anum. The income assessing authority will have to be notified by each state as per directives of Ministry of HRD, Government of India. Majority of states have declared Income certificate issued by Tahsildar is valid income proof. The student will get full interest subsidy on his loan amount till course period plus one year or six months of getting job whichever is earlier. The student will also be eligible for getting 1% interest subsidy that he is getting for prompt repayment of interest debited during the month on his education loan account within 30 days of debit. Applicability of student: 1. Economically weaker section students 2. Studies in India 3. Professional and Technical studies 4. From recognized institutions 5. Loans taken from Scheduled Banks 6. Only for students who have taken professional/technical courses after 10 + 2 Interest subsidy if available only once for a student either for graduation or postgraduation. But when the student undertakes integrated course then CSIS is applicable in that case. The subidy will not be available once the student discontinues the course OR expelled from the college or disciplinary grounds. But where the student discontinues the course due to medical reason and if he provides sufficient proof for the same the CSIS can be given. The marks card of the student who had availed CSIS scheme bears a Tag to the effect that the student is covered under CSIS scheme to check for the regular repayment and the employers can identify the loanee. Canara Bank will be the Nodal Bank for the scheme. The Government will request for claim in specified formats. All banks will forward their claims to Canara Bank in those formats which in turn will be claiming it from the Government and the received subsidy will be distributed to member banks as per their claims. Applicability of the Scheme: The scheme is implemented from 2009-10 i.e., from 1st April 2009. All loans taken wef 1st April 2009 which fulfills the conditions set out under the scheme will be covered under CSIS and also the loans sanctioned before 1st April 2009 where part disbursement is made on or after 1st April 2009 which fulfills the scheme guidelines will be covered under the scheme to the extent released after 1st April 2009. The role of Student: 1. If you have taken loan from any scheduled bank and you fulfill the conditions set out to get subsidy kindly visit the bank branch where you have taken education loan to get full scheme guidelines. 2. Provide income certificate to bank authorities as per the formats provided by bank and as per the income assessing authority for your state (mostly Tahsildar). 3. Sign agreement along with your parent and bank to get yourself covered under the scheme. 4. Now you are covered under the scheme. The role of Bank: 1. If any student approaches you kindly verify if he can be covered under the scheme by going through guidelines. 2. If he can be covered then get Income certificate from the student (income of parent/family) 3. Get the agreement as set out by Ministry of HRD, Government of India duly signed by student and his parent. 4. Send the claim (half yearly/ yearly) as called by Nodal Bank (Canara Bank) or your Controlling Office. 5. On receipt of the claim kindly credit to loan account of student.