Pradhan Mantri Uchchatar Shiksha Protsahan (PM-USP)

Central Sector Interrst Subsidy (CSN) Scheme on Education loans

Frequently Asked Questions (FAQs)

Sr. No. FAQ Answer

I Who is eligible for the scheme? Students who want to pursue Techdcal/Professional
higher education courses in recognized instirute in
India.

Higher Education Institution ([IEI) should be NAAC,

2 Is it compulsory to avail education
loan for getting interest subsidy
benefit?
3 Is there any income criteria for
claiming the subsidy?
NBA, CFTI accredited or regulalory approved
institutes in lndia"
Yes, students who availed education loan fiom
scheduled commercial banks under model education
loan scheme of IBA and
Who are studying in HEI which satisfies (l) above are
elisible for the interest subsidy.
Yes, the total Family annual income from all sources
should not exceed Rs.4.5 lakhs

4. Where is the interest subsidy credited? The interest subsidy is credited directly to the loan
account ofthe student.
Ministry of Education shall not be liable for any back-
payments due to failure ofthe bank in claiming ofthe
interest subsidy before closure of loan account ofthe
student.

5 Who applies for CSIS? The bank which is disbuning education loan should
apply in the portal of CSIS maintained by Canara
Bank. The link is

. No additional application from student is necessary.

6 When bank can file its interest
subsidy claim?
7 Is there any upper limit ofloan for
claiming the interest subsidy
o Bank branch which is disbursing the loan should check
eligibility of the student and file the subsidy claim
when it is due, using the portal.
o The portal is open throughout the year.
The ponal maintained by Canara bank for CSIS claims
is open throughout the year.
Bank branch which is disbuning the loan should file
the claim when the interest subsidy for a year is due
and the student has shown proof that she/he has
successfully completed that year of study.
CSIS Guidelines, 2009 (Loan Sanctiored from
? 01.04.2009 to 31.03.2018): Interest charged on loan
amount up to Rs. 10.00 lakhs

CSIS Guidelines, 2018 (Loan Sanclioned from

0f .04.2018 to 31.03.2022)t lnterest charged on loans
sanctioned without any collateral security & third
party gusrantee and for maximum amount of Rs 7.5
lakhs.
8 Who is the income certificate issuing
authority?
9 Whether il is necessary to submit the
income certificate every financial
year?
t0. How Borrower can claim the subsidy
to Govemment of India?
ll What is the procedure to check the
CSIS subsidy claimed amount of
individual education loan accounts?
12. What is the Payment Process of
CSIS?
13. Whom should I have to contact for
subsidy amount disbursed by the
Appropriate authority designated by the respective
StateruT Govemments.
lncome Certificale (covering annual income of entire
family of the borrower) is to be submined at the time ol
loan sanction/ disbursement of first instalment, as
decided by loan disbursing bank.
Borrowers need not submit income cerlificate every
year.
o Borrower cannot claim the subsidy directly from Gol.
o lt is the prime responsibility ofthe financing
Bank8ranch to claim the subsidy on behalfofthe
borrower.
. Ifany lending Bank fails to claim interest subsidy for
the curent year, backlog/pending claims of interesl
Subsidy will not be entertained.
o Ministry of Education shall not be liable for any back-
payments due to failure ofthe bank in claiming ofthe
interest subsidy before closure of lban account of the
student.
Canara Bank has created a dedicated web portal for this
purpose:
kcsis.in'Subsid En uiniSubsid Ln ulf
The subsidy amount will be directly credited through
PFMS system to the Beneficiary's educatio loan
accounts.
It is the sole respomibility of the Loaner Bank to
submit the correct Account details of the Beneficiaries
for the purpose of ffediting the subsidy amount through
DBT mode.
Students to contact the Financing Bank in case of any
delay in receiving ofthe subsidy amount.
The details ofthe amount crcdited may be obtained
from the concemed financing bank Branch.
govemment? Head office ofthe concemed Bank may be contacted if
the Branch reply is nol satisfactory.
Ifany lending Bank fails to claim interest subsidy for
the current year, backlog/pending claims ofinterest
Subsidy will not be entertained.
Ministry of Education shall not be liable for any back-
payments due to failure ofthe bank in claiming ofthe
interest subsidy before closure of loan account of the
student.
What is the role of Canara Bank as a Canara Bank
-
has been nominated as a
Nodal bank? Nodal Bank, for the of administering
purpose the
Interest Subsidy introduced by the
Govemment of India" New Delhi
Role of Canara bank as a Nodal Bank is for the purpose
of consolidating the subsidy claims of Member Banks
and forwarding the same to Concemed Ministry and to
pass on the subsidy to the Member Banks as and when
it is received from the Ministry.