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Introduction to Central Sector Interest Subsidy Scheme (CSIS)
The Central Sector Interest Subsidy Scheme (CSIS) is a flagship initiative by the Ministry of Education, Government of India, to provide financial relief to students from Economically Weaker Sections (EWS) pursuing higher education. Launched in 2009 and revised over time, CSIS offers full (100%) interest subsidy on education loans during the moratorium period (course duration + one year) for loans up to ₹10 lakh (subsidy capped on ₹10 lakh even if loan is higher). Pradhan Mantri Vidyalaxmi Scheme 2026: Free Education Loans with 3% Interest Subvention Up to ₹10 Lakh
In 2026, the scheme remains active and integrated with PM-Vidyalaxmi for seamless processing. It covers technical, professional, and general degree/diploma courses from recognized institutions. The subsidy is provided on loans under the Indian Banks’ Association (IBA) Model Education Loan Scheme. It benefits students with annual family income up to ₹4.5 lakh, ensuring they focus on studies without interest burden during moratorium. The scheme has supported lakhs of students, reducing dropout rates and promoting equity in higher education. Mahila Udyam Nidhi Yojana 2026: Empower Women Entrepreneurs with Soft Loans Up to ₹10 Lakh
Nodal agencies include Canara Bank (for PM-Vidyalaxmi integration) and banks. Subsidy is disbursed directly to banks. In 2026, the Digital Rupee App handles subvention for linked schemes.
Why Choose Central Sector Interest Subsidy Scheme?
CSIS eliminates interest costs during studies and one year after, making higher education affordable for low-income families. No additional burden on loans up to ₹10 lakh portion. In 2026, integration with PM-Vidyalaxmi offers digital apply, real-time tracking, and no collateral/guarantor for eligible loans.
The scheme suits students in technical/professional courses from approved institutions. It promotes access to quality education, especially for girls and rural youth. Combined with PM-Vidyalaxmi (3% subvention for ₹4.5-8 lakh income), it covers broader groups.
Benefits of CSIS Scheme
Full subsidy saves significant money. Focus on academics. High reach through banks.
Key Advantages Table
| Advantage | Description |
|---|---|
| Full Subsidy | 100% interest during moratorium. |
| Loan Coverage | Up to ₹10 lakh (subsidy cap). |
| No Extra Cost | Subsidy on IBA Model loans. |
| Income-Based | For EWS up to ₹4.5 lakh. |
| Digital Integration | With PM-Vidyalaxmi portal. |
Key Features of CSIS Scheme
Subsidy during moratorium only; principal and post-moratorium interest payable by the student.
Subsidy Details
- Full interest subsidy on loans up to ₹10 lakh.
- Moratorium: Course + 1 year.
- For income ≤ ₹4.5 lakh.
- Linked to IBA Model Education Loan.
Subsidy Structure Table
| Family Income | Subsidy | Coverage |
|---|---|---|
| Up to ₹4.5 Lakh | 100% | Moratorium period |
| Above ₹4.5 Lakh | None (use PM-Vidyalaxmi) | N/A |
Loan Features
- Amount: As per bank, subsidy on ₹10 lakh max.
- Interest: Bank rate (RLLR/EBLR).
- Repayment: Post-moratorium.
Eligibility for CSIS Scheme
Students from EWS pursuing approved courses.
Eligibility Criteria
- Annual family income ≤ ₹4.5 lakh.
- Admission to recognized institution (technical/professional/general degree).
- Loan under IBA Model Education Loan Scheme.
- No other subsidy/scholarship.
- Satisfactory academic performance.
- Indian citizen.
Interest Rates and Charges
Bank-determined (RLLR/EBLR). Subsidy covers interest during moratorium.
Interest Rate Table
| Aspect | Details |
|---|---|
| Bank Rate | RLLR/EBLR |
| Effective During Moratorium | 0% (full subsidy) |
| Post-Moratorium | Full bank rate |
How to Apply for CSIS Scheme
Apply through banks or portals.
Application Process
- Secure education loan from bank under IBA Model.
- Apply for subsidy via Vidya Lakshmi portal (vidyalakshmi.co.in) or JanSamarth.
- Submit income certificate, admission proof.
- Bank forwards to nodal agency (Canara Bank).
- Approval and subsidy disbursement to bank.
- For 2026: Use PM-Vidyalaxmi portal for integrated apply.
Grievance: Canara Bank helpline.
Required Documents
Essential proofs.
Documents Checklist Table
| Document | Purpose |
|---|---|
| Aadhaar/PAN | ID |
| Income Certificate | EWS proof |
| Admission Letter | Course details |
| Loan Sanction | Bank confirmation |
| Marksheets | Academic |
| Fee Structure | Course cost |
Link with Other Schemes
Integrated with PM-Vidyalaxmi (3% for higher income). Complements PM-USP CSIS.
Participating Banks
All scheduled banks offering IBA Model loans.
Benefits for Students
Debt-free moratorium period. Better focus on studies.
Challenges and Tips
Income proof strict. Tips: Apply early, use portal.
Risk Management
Maintain academics. Service post-moratorium.
Costs and Earnings
No direct cost; subsidy saves interest. Future earnings high.
Cost Breakdown Table
| Item | Coverage |
|---|---|
| Interest Save | 100% moratorium |
| Loan Limit Subsidy | ₹10 Lakh |
Success Stories
Students pursued engineering/medicine without interest burden.
Future in 2026
Continued integration with digital tools.
Conclusion
CSIS supports dreams. Apply via banks/portals.
FAQ Section
What is CSIS Scheme?
Interest subsidy for EWS education loans.
Subsidy Amount?
100% during moratorium.
Income Limit?
Up to ₹4.5 lakh.
Eligibility?
EWS students in approved courses.
How to Apply?
Banks/Vidya Lakshmi portal.
Documents?
Income cert, admission letter.
Loan Coverage?
Subsidy on ₹10 lakh.
Moratorium?
Course +1 year.
Integration?
With PM-Vidyalaxmi.
Benefits?
No interest during studies.
FAQ Table
| Question | Answer |
|---|---|
| Subsidy | 100% Moratorium |
| Income Limit | ₹4.5 Lakh |
| Eligibility | EWS Students |
| Apply | Banks/Portal |
| Documents | Income Cert |
| Coverage | ₹10 Lakh |
| Moratorium | Course +1 Year |
| Integration | PM-Vidyalaxmi |
| Benefits | Financial Relief |
| Status 2026 | Active |