To,

The Branch Manager

SBI, Lailunga Branch-496113
Date- 20 September 2015
Respected Sir,
I had taken a scholar loan in 2011 for pursuing PGDM (Human Resource Course 2011-13) in
XLRI, Jamshedpur. We belong to Economically weaker section as defined by Department of
higher Studies (as my fathers annual income is less than 4.5 Lacs Rupees).
I had applied for Education loan subsidy earlier by providing all the required documents to your
bank (Income Certificate, Letter of application etc.) . I have received the subsidy only for year
2011-12 and 2012-13.
Subsidy for the last year of the course (2013-14) has not yet been credited to my account. The
amount would be around Rs. 106,637
According to the Government scheme, the period of moratorium would be till 5th February
2014 in my case. ( i.e. Course Period plus one year or six months after getting job, whichever is
earlier). My course got over on 23rd February 2013 and subsequently I joined the job on 5th
August 2013.
Hence, request you to please forward my application to the concerned government authority to
process the credit of my education loan interest subsidy for the year 2013-14.
Enclosed are:
1. Details of the interest charged during the moratorium period and Interest subsidy
received till date.
2. MHRDs notice of Interest subsidy scheme on Education Loan
Regards
Yogesh Singhania
C/O Narayan Singhania
Kotba Road
P.O. Lailunga, Dist. Raigarh
Chhattisgarh 496113
Phone 9740200251
Account Number - 31768374064

Details of the interest charged during the

moratorium period and Interest subsidy received
Interest Charged during Moratorium

Date

2011-12

31-May-12
31-Aug-12
30-Nov-12
28-Feb-13
31-May-13
31-Aug-13
30-Nov-13
Till 05-Feb-14
TOTAL

Date
27-Jul-13
18-Jul-14
TOTAL

Interest charged
in Rs.
119
11583
16236
20126
20,347.00
26,111.00
30,845.00
34,507.00
34,943.00
33,606.00
29,161.00
21,000.00
278,584

Subsidy Received
in Rs.
54,947.00
1,17,000.00
171,947

Pending Subsidy to be received

278584 171947 = Rs. 106,637

Central Scheme To Provide Interest Subsidy

(CSIS) On Education Loan
Objective of the Scheme

Applicability of the Scheme

Interest Rates
Moratorium Period

Income Limit/Proof

Competent Authority

The Governemt of India has approved a scheme to provide full interest

subsidy during the period of moratorium i.e. Course Period plus
one year or six months after getting job, whichever is earlier, on
loans taken by students belonging to Economically Weaker Sections
from scheduled banks under the Educational Loan scheme of the Indian
BanksAssociation, for pursuing any of the approved courses of studies
in technical and professional streams, from recognised institutions in
India.
The Scheme would be applicable only for studies recognised
Technical/Professional Courses in India. The interest subsidy shall
be linked with the existing Educational Loan Scheme of IBA and
restricted to students enrolled in recognised Technical/Professional
Courses (after Class XII) in India in Educational Institutions established
by Acts of Parliament, other Institutions recognised by the concerned
Statutory Bodies, Indian
Institutes of Management (IIMS) and other institutions set up by the
Central/State Government.
The interest rates charged on the educational loan shall be as per the
BPLR/Base Rate of the Individual Banks.
Under the scheme, the interest payable by the student belonging to EWS
for availing of the Educational Loan for Technical/Professional Courses
in India for the period of moratorium i.e. Course Period plus one year
or six months after getting job, whichever is earlier. After the period
of moratorium is over, the interest on the outstanding loan amount shall
be paid by the student, in accordance with the provisions of the existing
Educational Loan Scheme of Banks and as may be amended from time to
time, whichever is earlier.
The benefits of the Scheme would be applicable to those students
belonging to economically weaker sections(EWS), with an annual gross
parental/family income upper limit of Rs.4.50 lakhs per year (from
all sources). The scheme is intended to cater to the needs of students
belonging to EWS with prescribed upper parental gross income limit of
the family from all sources, which is based on economic index and not
on social background. The scheme is independent of any other
schemes which may cater to Economically Weaker Sections.
The Ministry of HRD, Government of India shall issue an Advisory to all
the State Governments requesting them to designate appropriate
authority or authorities who are competent to issue income certificates,
based on economic index and not social background, for the purpose of
this scheme.
The Banks shall implement the Scheme based on the notification of
the certification authority by State Governments communicated
through District Level Consultative Committees (DLCCs).

Eligibility for Interest

Subsidy

The interest subsidy under the Scheme shall be available to the

eligible students only once, either for the first undergraduate
degree course or the post graduate degrees/diplomas in India.
Interest Subsidy shall, however, be admissable for integrated courses
(graduate+post graduate).
Interest subsidy shall not be available for the following student
borrowers,
Those students once they discontinue the course midstream, or who are
expelled from the Institutions on disciplinary or academic grounds.

Nodal Bank
Applicable Academic Year

List of Technical/
Professional courses
Indicative List of Eligible
Courses

Indicative List of
Non Eligible courses

However, the interest subsidy will be available only if the

discontinuation was due to medical grounds for which necessay
documentation to the satisfaction of the Head of educational institution
will have to be given.
The Scheme shall be implemented through Canara Bank, which is the
Nodal Bank for the scheme. However, the student can apply under the
scheme only through branch where educational loan is availed.
The Scheme shall be applicable from the academic year 2009-10
starting 1stApril, 2009. The loan amount taken starting from the
Academic Year 2009-10 (irrespective of the date of sanction) shall
only be covered under the scheme of interest subsidy. Interest on
any amount disbursed for courses starting before the academic
year 2009-10 would not be considered for subsidy.
Students enrolled in recognised Technical/Professional Courses (after
Class XII) in India in Educational Institutions established by Acts of
Parliament, other Institutions recognised by UGC/AICTE and other
Statutory Bodies, Indian Institutes of Management (IIMS) and other
institutions set up by the Central/State Government.
Under Graduate Courses and Post Graduate Courses in Engineering
(B.E/ M.E, B.Tech/M.Tech,B.Arch/ M.Arch etc.) Medical/ Para Medical
(MBBS/MD, B.SC/ M.Sc.Nursing, B.Pharmacy/M.Pharmacy, BPT/MPT,
BOI/MOI,Siddha, Ayurveda, Homeopathy,Naturopathy etc.) Agriculture,
Veterinary, Law, Dental (BDS/MDS), Management, Computer (MCA) etc.,
Post Graduate diploma courses duly approved by AICTE/UGC and
conducted byrecognized institutions.
For studies in institutions abroad, courses pursued without completing
class XII, Non Professional and Non Technical under Graduate and Post
Graduate courses in Arts, Science, Commerce, Sociology, Music etc.,
Diploma Courses, Teacher Training Courses, Skill Development,
Vocational Training courses etc.,

Link
http://mhrd.gov.in/sites/upload_files/mhrd/files/upload_document/IBAM.pdf