Evaluation of Central Sector Interest Subsidy (CSIS) to cover more students from economically weaker sections
Credit Guarantee Fund for Education Loans (CGFEL) Scheme and Central Sector Interest Subsidy (CSIS) Scheme are functioning under one head as ‘Interest Subsidy and Contribution for Guarantee Fund’. Under the CSIS Scheme, eligible students are provided full interest subsidy during the moratorium period (course duration + 1 year) on the education loan taken under the Model Education Loan Scheme of Indian Banks' Association. Under CGFEL Scheme, guarantee is provided on the education loan for a maximum amount of Rs. 7.5 lakh.
A third party evaluation was undertaken for the Central Sector Interest Subsidy (CSIS) Scheme, which suggested that the scheme should be rationalized in order to cover more students from economically weaker sections. Subsequent to the evaluation, the following changes have been made in the Central Sector Interest Subsidy (CSIS) Scheme:
i. Interest subsidy to be provided on Education Loan up to Rs. 7.5 lakh.
ii. Moratorium period rationalized to course period + 1 year
iii. To promote quality education, the interest subsidy to be provided to those students who have enrolled in professional/ technical courses from NAAC accredited Institutions or professional/ technical programmes accredited by NBA or Institutions of National Importance or Central Funded Technical Institutions (CFTIs) in India. Those professional institutions/ programmes, which do not come under the ambit of NAAC or NBA, would require approval of the respective regulatory body viz, approval of Medical Council of India for Medical courses, Nursing Council of India for Nursing courses, Bar Council of India for Law etc.
This information was given by the Minister of State (HRD), Dr. Satya Pal Singh today in a written reply to a Rajya Sabha question.
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NB/AKJ/YP/AK/RS-1831