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Central Sector Interest Subsidy Scheme (CSIS) and Credit Guarantee Fund Scheme for Education Loan (CGFSEL)

Department of Higher Education, Ministry of Education has been implementing the Central Sector Interest Subsidy (CSIS) Scheme since 2009. Under this Scheme Interest Subsidy is given during the moratorium period i.e., Course period plus one year on Education Loan taken from the Scheduled Banks under the Model Education Loan Scheme of Indian Banks Association to students belonging to economically weaker sections whose annual parental income is up to Rs. 4.5 Lakh from all sources. The subsidy is allowed for pursuing higher education in professional/ technical courses only from NAAC accredited Institutions or professional/ technical programmes accredited by NBA or Institutions of National Importance or Centrally Funded Technical Institutions (CFTIs). Canara Bank has been appointed as Nodal Bank for the implementation of the scheme.

Central Sector Interest Subsidy Scheme on Model Education Loan Scheme of IBA-CSIS Dashboard and subsidy enquiry

Students may note that the bank which is sanctioning the education loan needs to upload the claim of interest subsidy in the portal maintained by the Canara bank for this purpose. The interest subsidy is credited directly to the loan account of the student by DBT mode using PFMS gateway. One can visit for more information.

The ceiling with respect to educational loans has been increased to a loan amount of Rs. 10 lakhs from the year 2022-23. One can visit the following portals for more information.

Vidya Lakshmi Portal

Vidya Lakshmi Portal is an education Loan Portal managed by NSDL e-Governance Infrastructure Limited, Mumbai. Under this, any student can have access to Education Loans. The Portal is linked with Scheduled Banks. The Portal is a gateway to the Banks through which the student can proceed further. The portal has the facility of tracking the Education Loan right from the inception of loan application to the sanction of loan or otherwise.

For grievances related to the CSIS, one can write to the Canara Bank email hogps[at]canarabank[dot]com

The "Credit Guarantee Fund Scheme for Education Loans (CGFSEL)" was notified on 16.09.2015. Under the CGFSEL, Central Government gives guarantee for the education loans availed by students without any collateral security and third-party guarantee for a maximum loan limit of Rs. 7.5 Lakh. The Fund provides guarantee cover to the extent of 75% of the amount in default through the National Credit Guarantee Trustee Company Ltd. (NCGTC), the Trustee of the Department for this purpose. For more information related to CGFSEL, please visit The necessary paperwork for availing of the credit guarantee by the student is to be done by the bank who is sanctioning the education loan to the student.

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