The Government is implementing a Central Sector Scheme, namely, Central Sector Interest Subsidy Scheme (CSIS) for providing interest subsidy during the period of moratorium on educational loans which is study period plus one year or up to six months after getting a job, whichever is earlier,  to students belonging to economically weaker sections with an annual gross parental/family income upper limit of Rs. 4.5 lakh per year (from all sources) for undergoing professional/technical courses in higher educational institutions within the country.

The educational loans disbursed under the Indian Banks Association (IBA) Model Educational Loan Scheme and those granted by the National Scheduled Castes Finance and Development Corporation (NSCFDC), National Scheduled Tribes Finance and  Development Corporation (NSTFDC), National Backward Classes Finance and Development Corporation (NBCFDC), National Handicapped Finance and Development Corporation (NHFDC), National Minorities Development and Finance Corporation (NMDFC) and National Safai Karamcharis Finance and Development Corporation (NSKFDC) are   covered under CSIS. A copy of the Scheme is available in www.mhrd.gov.in.

The CSIS Scheme covers students belonging to economically weaker sections with an annual gross parental/family income upper limit of Rs. 4.5 lakh per year (from all sources).  Further, with a view to reduce the Non-Performing Assets on educational loan, allow more loans at reasonable rates and  in special cases without any collateral security in the form of third party guarantee, the Government has approved the Credit Guarantee Fund Scheme  for Educational Loans (CGFSEL).

This information was given by the Union Minister of HRD, Smt. Smriti Irani in a written reply to a Lok Sabha question today.

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MC/DS/RK- education loans