For economically weaker sections (EWS), State Bank of India (SBI) is offering education loan facility under the Central Scheme for Interest Subsidy (CSIS) announced by Union Ministry of Human Resource Development (HRD). This will help EWS students with an annual gross parental/family income up to Rs 4.50 lakh per annum to avail education loans to pursue technical and professional studies in India under the IBA Model Education Loan Scheme. The CSIS scheme for EWS students is applicable since the academic year 2009-10.
Those students who want to pursue higher education can contact SBI branch for details along with their Income Certificate from the authorised certifying authority. According to SBI, the scheme is applicable only for studies in recognized technical/ professional courses in India. Under this scheme, interest subsidy is provided for the moratorium period, which is 12 months after completion of the course or six months after getting the job, whichever is earlier as prescribed under the IBA Model Education Loan Scheme, SBI added.
After the completion of the moratorium period, students would have to pay the interest on the outstanding loan in accordance with the provisions of the Education Loan Scheme.
The SBI stated that the eligible EWS students can avail this interest subsidy facility only once, either for the first undergraduate degree course or the post-graduate degree/diploma or integrated courses (graduate and postgraduate) in India, adding that the scheme shall be implemented through Canara Bank, which is the Nodal Bank for the Ministry of Human Resources Development.
Interested students should have income proof, stating an annual parental income of up to Rs 4.5 lakh per annum, certified by an ‘Income Certificate’ issued through an Income Certifying Authority designated by the state government. Notably, the disbursement of interest subsidy claims to the banks shall be on a half-yearly/yearly basis which has to be worked out in consultation with the HRD Ministry.
The student must know that they would not be able to avail of the benefit of interest subsidy under this scheme if they discontinue the course midstream. This would also be discontinued if a student is expelled from the institutions on disciplinary or academic grounds.
The interest subsidy, however, will be available only if the discontinuation occurs due to medical grounds for which requisite documentation to the satisfaction of the head of educational institution must be submitted, according to the SBI.