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SBI Interest Subsidy on Education Loans

SBI Central Scheme for Interest Subsidy (CSIS) on Education Loans has been introduced by the HRD Ministry of India to provide interest on education loans during the repayment holiday or moratorium period for professional and technical courses for students belonging to the Economically Weaker Section of the society. Interest subsidy under CSIS started from the academic year 2009-2010.

Eligibility Criteria:

The Scheme is available to students whose parents or family’s gross income is a maximum of Rs.4.50 lakhs annually.

  • The Scheme is available to students who take education loan for studying a professional or technical course in India.
  • The subsidy is linked to IBA Model Education Loan Scheme and is available to students who have got admission in recognized professional or technical courses in India after completing class 12. The course should belong to any education institution that has been established by Acts of Parliament or to any institution that is recognized by the statutory bodies, to any IIM or to any institution that has been set up by the State or Central Government of India.
  • Students can avail a maximum loan amount of Rs.10 lakhs under this scheme.
  • The interest subsidy is available to students only once. They can take it for their first undergraduate or their first post-graduate diploma/degree course in India.
  • Interest subsidy is available for integrated courses also.
  • Interest subsidy is not available to students who have to discontinue their course before it gets over or to students who have been expelled from the course because of academic or disciplinary reasons.
  • Interest subsidy is available to students who have to discontinue their course because of medical reasons. In this case, proof will be required.

Moratorium Period:

Education Loan subsidy under this scheme is offered for moratorium period that is 12 months after the course has been completed or 6 months after the borrower gets a job (whichever is earlier as per the IBA Model Education Loan Scheme). Once the moratorium period is over, the student has to pay the interest on the pending loan amount as per the terms and conditions of the Education Loan Subsidy Scheme.

Authority Issuing Certificate:

To ensure that income certificates are issued based on the economic index, the Government of India had requested all State Governments to appoint efficient authority or authorities. These authority or authorities do not have to issue income certificates on the basis of the social background of the applicants.


The disbursement of subsidy claims to banks shall be made on a yearly or half-yearly basis.

Application Process:

Students who are eligible for SBI Central Scheme for Interest Subsidy (CSIS) can apply for it at any branch of State Bank of India. To apply, they will have to provide their income certificate from the certifying authority.

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