Subsidy Scheme- Central Scheme to provide Interest subsidy (CSIS):
1) The CSIS is an attempt by the Government of India to help students from the economically weaker sections of the society, by providing full subsidy on interest during the moratorium period (ideally, course duration plus one year/six months after getting job, whichever comes first).
2) This scheme applies to students whose familial annual gross income is not more than Rs.4.50 lakhs/year.
3) To confirm upon the income status of the applicant (his/her family’s gross annual income), income proof must be issued by public authorities who are authorized by the State Governments to do so.
4) The applicable subsidy is allowed ONLY once for either the first undergraduate degree or the post graduate degree/diploma attempted by the student in India. However, integrated courses, graduation plus post-graduation, have interest subsidy applicable at all times.
5) Interest subsidy is nullified if the student, a) quits the course, b) is expelled from the institution on disciplinary or academic grounds.
6) The subsidy claims are admissible on a yearly basis, as decided by the HRD Ministry, Government of India.
7) In terms of the Applicable Income Tax - Interest charged to the educational loan account and paid is exempted from income tax deductions.