| Scheme Name | Central Sector Interest Subsidy Scheme (CSIS) |
| Launch Year | 2009 |
| Ministry | Ministry of Education, Government of India |
| Objective | To ensure that students from economically weaker families are not denied higher education due to lack of funds |
| Nature of Benefit | 100% interest subsidy during the moratorium period on eligible education loans |
| Applicable Education Loan | Loan taken under the IBA Model Education Loan Scheme |
| Study Location | India |
| Eligible Courses | Technical and professional courses |
| Eligible Institutions | NAAC-accredited institutions, NBA-accredited professional/technical programmes, Institutions of National Importance and Central Funded Technical Institutions (CFTIs) |
| Other Institutions | Professional institutions/programmes not covered by NAAC/NBA require approval from the respective regulatory body |
| Family Income Limit | Gross parental/family income up to ₹4.50 lakh per annum from all sources |
| Income Certificate | Required from an authorised Public Authority of the State Government |
| Income Certificate Submission | Required only once for the scheme |
| Maximum Loan Amount Eligible for Subsidy | ₹10 lakh |
| Loan Above ₹10 Lakh | If sanctioned loan exceeds ₹10 lakh, interest subsidy is available only on ₹10 lakh |
| Collateral Security | No collateral security required for education loan up to ₹7.50 lakh under CSIS |
| Third-Party Guarantee | No third-party guarantee required for education loan up to ₹7.50 lakh |
| Credit Guarantee | Loan up to ₹7.50 lakh is to be covered under Credit Guarantee Fund Scheme for Education Loan (CGFSEL) |
| Moratorium Period | Course Period + 1 year |
| Interest During Moratorium | Interest during the moratorium period is borne by the Government of India |
| Interest Subsidy | Subsidy is on the simple interest payable during the moratorium period |
| After Moratorium | Student has to pay interest on the outstanding loan amount |
| Course Completion Condition | Student must successfully complete the course to receive the interest subsidy |
| Eligibility – Course Level | Subsidy is available only once for either an undergraduate or postgraduate course |
| Integrated Course | Benefit is also available for Integrated Courses (Graduate + Post Graduate) |
| Other Government Scholarship | Student receiving another Central/State Government scholarship or fee reimbursement is not eligible for CSIS |
| Discontinuation of Course | Interest subsidy is not available if the student discontinues the course midstream |
| Expulsion | No subsidy if the student is expelled due to disciplinary or academic grounds |
| Medical Discontinuation | Subsidy can continue if discontinuation is due to medical reasons, subject to required documentation and satisfaction of the institution head |
| Interest Rate | Education-loan interest rate is as per the applicable BPLR/Base Rate/IBA Model Education Loan Scheme provisions |
| Change in Family Income | Any subsequent change in family income during the moratorium period does not affect eligibility |
| Nodal Bank | Canara Bank is the Nodal Bank for the Ministry of Education |
| Implementing Banks | Scheme is adopted by Scheduled Banks, Regional Rural Banks (RRBs) and Co-operative Banks |
| Applicable Academic Year | Modified CSIS applies from Academic Year 2022-23, starting 1 April 2022 |
| Other Similar Schemes | NMDFC, NSKFDC, NBCFDC, NSCFDC, NHFDC and NSTFDC also provide education loans to eligible target groups; eligible loans under these schemes can receive interest subsidy during the moratorium as per CSIS terms |
| Key Benefit | Government bears the full interest during the course period plus one year, subject to the scheme conditions |
| Important Limit | Interest subsidy is available on a maximum education loan amount of ₹10 lakh |
| Important Eligibility | Family income must be ₹4.5 lakh or less per year, and the student must pursue an eligible technical/professional course in an eligible institution |
