Government to bring in interest subsidy scheme for students

This is for students belonging to economically weaker sections with an annual gross parental or family income with an upper limit of Rs 4,50,000 per year

The Government is implementing Central Sector Interest Subsidy Scheme (CSIS) for providing interest subsidy to students belonging to economically weaker sections with an annual gross parental or family income with an upper limit of Rs 4,50,000 per year for undergoing professional/technical courses in higher educational institutions within the country.

Period of moratorium on educational loans would be the study period plus one year or up to six months after getting a job, whichever is earlier, said the Ministry of Human Resource Development in a press statement.  

The educational loans disbursed under the Indian Banks Association (IBA) Model Educational Loan Scheme and those granted by the National Scheduled Castes Finance and Development Corporation (NSCFDC), National Scheduled Tribes Finance and Development Corporation (NSTFDC), National Backward Classes Finance and Development Corporation (NBCFDC), National Handicapped Finance and Development Corporation (NHFDC), National Minorities Development and Finance Corporation (NMDFC) and National Safai Karamcharis Finance and Development Corporation (NSKFDC) are  covered under CSIS.

Further, with a view to reduce the non-performing assets on educational loan, to allow more loans at reasonable rates and in special cases without any collateral security in the form of third party guarantee, the government has approved the Credit Guarantee Fund Scheme for Educational Loans (CGFSEL).