About Central Sector Interest Subsidy
Loanpao facilitates the Central Sector Interest Subsidy (CSIS) scheme, a Government of India initiative to support economically weaker section (EWS) students. It provides full interest subsidies during the moratorium period (course duration plus one year) for education loans taken for professional or technical courses in recognized institutions in India.
Why Choose Central Sector Interest Subsidy?
- Full interest subsidy during moratorium period
- Loan Amount: Up to ₹10,00,000
- Interest Rates: Tied to education loan rates (4% - 8%)
- Tenure: Up to 15 years (including moratorium)
- No collateral for loans up to ₹7.5 lakh
- Supports EWS students with family income < ₹4.5 lakh p.a.
- Disbursal within 7-15 days
Are You Eligible?
| Criteria | Requirement |
|---|---|
| Applicant Type | Students with education loans |
| Family Income | Less than ₹4.5 lakh per annum |
| Course Type | Professional/technical UG/PG courses in India |
| Admission | Confirmed admission in recognized institution |
| Credit History | Co-borrower with no defaults |
What Documents Do You Need?
- KYC: Aadhaar, PAN, or voter ID (student and co-borrower)
- Income Certificate: Issued by competent authority
- Education Loan Agreement: From bank
- Admission Letter: From recognized institution
- Academic Records: 10th, 12th, and degree mark sheets
- Bank Statement: Last 6 months of co-borrower
- Fee Structure: From institution
Competitive Interest Rates & Fees
| Bank/Lender | Interest Rate (p.a.) | Processing Fee |
|---|---|---|
| SBI | 4.5% - 7.5% | ₹500 - ₹1,500 |
| Bank of Baroda | 4.8% - 7.8% | ₹500 - ₹1,000 |
| Canara Bank | 4.5% - 7.7% | ₹500 - ₹1,200 |
| Punjab National Bank | 4.3% - 7.5% | ₹500 - ₹1,000 |
| HDFC Bank | 5.0% - 8.0% | ₹1,000 - ₹2,000 |
Extra Charges:
- Late Payment Charges: ₹200 + 1% on overdue amount
- Foreclosure Charges: Nil
- GST: Applicable on processing fees
Note: Rates and fees are indicative as of May 2025 and subject to change. Subsidy covers interest during moratorium period.
Calculate Your EMI
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How to Apply for Central Sector Interest Subsidy
- Secure an education loan from a scheduled bank.
- Obtain an income certificate verifying family income < ₹4.5 lakh p.a.
- Submit KYC, loan agreement, admission letter, and income certificate to the bank.
- Apply for CSIS through the loan-issuing bank or Vidya Lakshmi portal.
- Undergo verification by bank and government authorities.
- Receive subsidy approval, credited during moratorium period.
Common Questions About Central Sector Interest Subsidy
What is Central Sector Interest Subsidy?
A scheme providing full interest subsidy during the moratorium period for education loans for EWS students.
Who qualifies?
EWS students with family income < ₹4.5 lakh p.a. pursuing professional/technical courses.
What is the maximum loan amount?
Up to ₹10,00,000 for education loans.
What courses are eligible?
Professional/technical UG/PG courses in recognized Indian institutions.
How long does subsidy approval take?
Within 15-30 days after verification.
Is collateral required?
No for loans up to ₹7.5 lakh; depends on bank for higher amounts.
What is the repayment tenure?
Up to 15 years, including moratorium period.
Are there special offers?
Apply by 31st May for streamlined subsidy application and free eligibility check.
Can I apply directly?
No, apply through the loan-issuing bank or Vidya Lakshmi portal.
Can I prepay the loan?
Yes, with no foreclosure charges.