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by System Administrator - Friday, 11 September 2015, 1:26 AM

By: M.S.Yatnatti: Editor and Video Journalist Bengaluru: Students and Banks have last option to claim subsidy for old  cases under CSIS .The Government of India has launched a scheme to provide full interest subsidy during the period of moratorium i.e., Course Period plus one year or six months after getting job, whichever is earlier, on loans taken by students belonging to Economically Weaker Sections from scheduled banks under the Educational Loan scheme of the Indian Banks' Association, for pursuing any of the approved courses of studies in technical and professional streams, from recognised institutions in India. For more details, click here - (1.30 MB).

A student belonging to economically weaker sections is required to repay only the principal loan amount to the bank concerned and the interest accrued during the moratorium on repayment was fully paid by the government under the interest subsidy scheme launched by the previous United Progressive Alliance regime in 2009. The period of moratorium includes the duration of the academic programme a student has undertaken and up to one year or six months after getting a job, whichever is earlier.

Objective of education loan:To provide the much needed financial support to deserving students for pursuing higher professional or technical education in India and abroad. The education loan would be provided to those students who have obtained admission to career-oriented courses e.g. medicine, engineering, management etc., either at the graduate or post-graduate level.Right support at right time ensures success for students. No deserving students should be stopped to pursue their dreams due to lack of money.

Nodal Bank Canara Bank has issuede a letter that (7th Sep 2015) opened the portal for claiming, unclaimed Education Loan interest subsidy for the loans disbursed during 2009-10 to 2013-14.  This is an one time opportunity for all Banks to claim the left out interest subsidy claims.  The portal will remain open for 30 days from 07-09-2015. 

Eligibility: Government of India, Ministry of HRD is implementing Educational Loan Interest Subsidy Scheme from 2009-10.  Economically weaker section students whose parental income is less than Rs.4.50 lakhs, pursuing professional and technical courses in India are eligible for 100% interest subsidy during the moratorium period, when they avail education loan under IBA model scheme.   Moratorium period is the study period plus one year or six months after getting employment whichever is earlier. We have written in detail about the eligibility in the following link. .Claim for old cases (2009-10 to 2013-14):The students who are eligible for interest subsidy and who have not received the subsidy earlier may contact the Branch Manager and submit a letter requesting him to submit the claim.  If the Branches says that they have not received any communication from their Head Office, the students can politely ask them to check up with their head office.  Still if the Branches do not respond, the students can complain directly to the Regional Manager and Chairman of the Bank.   If the claim is not submitted by the Banks for old cases before 10th October 2015, the eligible students cannot claim the interest subsidy later. 

In a letter to The Chief Executives of Member Banks the IBA letter No.RB/CIR/CSIS/26 9th September, 2015 states that "Web Portal Open from 7.9.2015 to 10.10.2015 - Last option to claim subsidy for old  cases under CSIS and the invited kind attention to circular No.RB/CIR/CSIS/15 dated 26th  August, 2015  regarding old pending claims in respect of ALL THE ELIGIBLE unclaimed cases [including SC/ST and General Category] for the period from the year 01.04.2009 to 31.03.2014 as a onetime measure.  This will be the final chance . In this connection, it is informed that, the Nodal Bank viz. Canara Bank would keep the web portal open for the period from 7.9.2015 to 10.10.2015 (both days inclusive) for uploading of leftover CSIS claims by the member banks for the year viz. 2009-10, 2010-11, 2011-12, 2012-13 and 2013-14. And , requested all member banks to upload all eligible left over claims at an early date, as there will not be any further opportunity for the same as per the instructions of MHRD, Government of India.It is also noted that the CSIS Scheme is also applicable to RRBs, and requested all sponsoring Public Sector Banks to inform their respective RRBs to take necessary action in the matter.

Claim for 2014-15 :The portal for claiming interest subsidy for 2014-15 is already open and will be closed on 25th Sep 2015.  The eligible students can also confirm with their Branches that their eligible interest subsidy for 2014-15, I repeat for 2014-15 has been submitted to the nodal bank.  If not submitted, they have to submit before 25th Sep 2015.  Banks should claim 100% of the interest charged by them, as subsidy for eligible students. Ref: both the cases (old and current), if the claims are not submitted the branches within the due date, the students will not get the interest subsidy.  In their own interest, students are advised to check with their Branches.  If they need further help or clarification, they have to approach only the higher officials of the Bank. There are two types of Interest Subsidy scheme for students pursuing education in India.  1. First Scheme:  For Loans granted / disbursed on or after 1st April 2009; 2. Second Scheme:  For Loans granted / disbursed prior to 1st April 2009;

Eligibility:For both the Schemes, the eligibility is as follows: a)   The Education Loan should have been sanctioned under IBA Scheme; b)  The Loan should have been granted to pursue professional or technical courses in approved Institutions; c)    The education should be within India; d)   The gross parental income should be less than 4.50 lakhs.