SBI Interest Subsidy on Education Loans
The SBI interest subsidy on education loans is the Central Sector Interest Subsidy Scheme (CSIS), under which the Government of India pays the interest on a student's education loan during the moratorium period. It is meant for students from economically weaker sections who pursue technical or professional courses in India.
SBI offers an interest subsidy on education loans for students from economically weaker sections, helping reduce the financial burden on borrowers pursuing higher education in India. Read more details below.
Eligibility Criteria for SBI Interest Subsidy Scheme
The following are the eligibility criteria to avail the SBI interest subsidy scheme on education loan:
- Available only once for undergraduate and postgraduate or diploma courses in India.
- Applicable for integrated courses.
- Applicable only for eligible students who discontinued course on medical grounds.
- Admissions to courses secured under the management quota are not eligible for the interest subsidy.
Features of SBI Interest Subsidy Scheme
The following are the significant features of Central Scheme for Interest Subsidy:
- Applicable for technical or professional courses in India.
- During the moratorium period, the Government of India will pay the interest on the student loan.
- The student is still required to pay interest on the remaining loan debt after the moratorium period.
- Scheme is available for students whose parents have an annual gross income up Rs.4.5 lakh.
- The State Government Income Certifying Authority's income certificates must be presented by students.
- Income certificates shall be issued by the competent authority or authorities designated by the state government, in accordance with the economic index.
- Scheme will be implemented through Canara Bank.
- Interest subsidy claims are settled once the moratorium period has ended.
- For education loans sanctioned from the 2022-23 academic year, the interest subsidy is available only on the loan amount up to Rs.10 lakh, even if the sanctioned loan is higher.
Moratorium Period under SBI Interest Subsidy Scheme
This program provides educational loan subsidies for a moratorium period of either 12 months after the course ends or 6 months after the borrower's employment, whichever comes first, in accordance with the IBA Model Education Loan Scheme.
In compliance with the Education Loan Subsidy Scheme, the student must pay interest on the remaining loan amount once the moratorium period has passed.
Issuing Authority for Income Certificate
The Indian government has made it mandatory to appoint an effective authority or bodies to ensure that income certificates are issued in accordance with the economic index.
These organisations might not be required to provide income certificates, depending on the applicants' socioeconomic circumstances.
How to Apply for SBI Education Loan Interest Subsidy
Students who qualify for the State Bank of India's Central Scheme for Interest Subsidy (CSIS) can submit an application at any branch. They must provide their income certificate from the certifying body in order to apply.
Existing education loan beneficiaries under CSIS are also being brought under the PM-Vidyalaxmi portal, where interest subvention is paid through Direct Benefit Transfer.
Summary
The SBI interest subsidy on education loans (CSIS) lets eligible students from economically weaker sections have the Government of India pay their loan interest during the moratorium period. The benefit is available once, for technical or professional courses in India, and the student pays the interest on the remaining loan after the moratorium ends. Eligible students can apply at any SBI branch with their income certificate.
FAQs on SBI Interest Subsidy
1.What is the SBI interest subsidy on education loans (CSIS)?
The SBI interest subsidy on education loans is the Central Sector Interest Subsidy Scheme (CSIS), under which the Government of India pays the interest on an eligible student's education loan during the moratorium period. It is meant for students from economically weaker sections who study technical or professional courses in India.
2.Who is eligible for the SBI interest subsidy on education loans?
Students from economically weaker sections who take an education loan for an approved technical or professional course in India are eligible for the SBI interest subsidy, subject to the parental income limit listed in the features section above. The subsidy is available only once, for either an undergraduate course or a postgraduate or diploma course.
3.Can a student get the SBI interest subsidy on education loans more than once?
No, the SBI interest subsidy on education loans is available only once, either for the first undergraduate course or for a postgraduate or diploma course in India. Integrated courses are covered, and students who discontinue a course on medical grounds are covered as listed in the eligibility criteria above.
4.Does the SBI interest subsidy on education loans cover interest after the moratorium period?
No, the Government of India pays only the interest that builds up during the moratorium period under the SBI interest subsidy scheme. Once the moratorium ends, the student pays the interest on the remaining loan amount, as explained in the moratorium section above.
5.Is there a loan limit for the SBI interest subsidy on education loans?
Yes, the SBI interest subsidy under CSIS applies only up to a loan limit set by the scheme, which is given in the features section above. If the sanctioned loan is higher, the subsidy covers only the interest on the portion within that limit.
6.What income limit applies to the SBI interest subsidy on education loans?
The SBI interest subsidy on education loans depends on the annual gross income of the student's parents or family from all sources, and the limit is given in the features section above. Students must present an income certificate to prove this income.
7. Who issues the income certificate for the SBI interest subsidy on education loans?
The income certificate for the SBI interest subsidy (CSIS) is issued by the competent authority designated by the state government, in line with the economic index. Students must present this certificate when they apply, as described in the income certificate section above.
8.Which bank administers the SBI interest subsidy scheme (CSIS) for education loans?
Canara Bank is the nodal bank that administers the interest subsidy claims under the Central Sector Interest Subsidy Scheme (CSIS) for SBI and other lenders. Students deal with their lending branch, while the nodal bank handles the subsidy claims.
9.Does the SBI interest subsidy on education loans cover a course studied partly abroad?
No, the SBI interest subsidy on education loans (CSIS) covers only technical or professional courses studied in India, so a course pursued partly abroad is not covered.
10.How do I apply for the SBI interest subsidy on education loans?
You can apply for the SBI interest subsidy on education loans (CSIS) at any SBI branch by submitting your income certificate from the certifying authority. The application process is explained in the how to apply section above.
Disclaimer
Credit Card:
Credit Score:
Personal Loan:
Home Loan:
Fixed Deposit:
Copyright © 2026 BankBazaar.com.