Lok Sabha Question No. 5958 (UNSTARRED), answered on 2017-04-10
Subject: Interest Subsidy on Loan for Education
Ministry: HUMAN RESOURCE DEVELOPMENT
Asked by: SATYA PAL SINGH, SANJAY SHAMRAO DHOTRE, ANTO  ANTONY, M. I. SHANAVAS

## GOVERNMENT OF INDIA MINISTRY OF HUMAN RESOURCE DEVELOPMENT DEPARTMENT OF HIGHER EDUCATION

## LOK SABHA

## UNSTARRED QUESTION NO. 5958 TO BE ANSWERED ON 10.04.2017

## Interest Subsidy on Loan for Education

5958. DR. SATYAPAL SINGH: SHRI SANJAY DHOTRE: SHRI ANTO ANTONY: SHRI M.I. SHANAVAS:

Will the Minister of HUMAN RESOURCE DEVELOPMENT be pleased to state:

- (a) the  salient  features  of  the  Central  Scheme  to  provide  full  interest  subsidy  on educational loans;
- (b) whether the Government has achieved the aims and objectives of implementing the said scheme;
- (c) if so, the details thereof and if not, the reasons therefor;
- (d) the  number  of  students  benefited  from  the  said  scheme  since  inception, State/UT-wise;
- (e) whether  the  Government  has  received  complaints  for  denial  of  subsidy  on education loans to the eligible students and other corrupt practices in the implementation  of  the  scheme  during  each  of  the  last  three  years  and  the  current year; and
- (f) if so, the details thereof, State/UT-wise?

## A N S W E R

## MINISTER OF STATE IN THE MINISTRY OF HUMAN RESOURCE DEVELOPMENT

## (DR. MAHENDRA NATH PANDEY)

- (a): Details are at Annexure-I.
- (b) & (c): Yes, Madam.  23,61,546 students have benefitted under the Scheme.
- (d): Details are at Annexure-II.
- (e) & (f): Canara  Bank i.e. the  Nodal Bank  for the  Scheme has mentioned that none of the complaints received at its end pertains to denial of subsidy on education loans to eligible students, or other corrupt practices in the implementation of the Scheme.

Annexure-I  referred  to  in  reply  to  part  (a)  of  Lok  Sabha  Unstarred  Question No.5958 for 10.04.2017 regarding Interest Subsidy on Loan for Education.

## Central Sector Interest Subsidy Scheme (CSISS)

The Scheme was launched with effect from 01.04.2009.

2. The  aims  and  objectives of the Scheme  are  to  enable students from economically weaker sections to access higher education in technical and professional streams, in recognized institutions in India.

3. Salient features of the CSISS are as follows:-
- CSISS  is  based  on  the  Model  Educational  Loan  Scheme  of  Indian  Banks' Association (IBA).
- Scheme  provides  for  full  interest  subsidy  during  the  period  of  moratorium (course  period  plus  one  year)  on  loans  taken  by  students  belonging  to Economically Weaker Sections (EWS) from Scheduled Banks of Reserve Bank of India under the Model Educational Loan Scheme of the IBA for pursuing any of  the  approved  courses  of  studies  in  technical  /  professional  streams,  from recognized institutes in India.
- Interest  Subsidy  is  linked  with  the  existing  Scheme  of  IBA  and  restricted  to students enrolled in professional/technical courses after 12 th Standard.
- Interest payable for the period of moratorium is to be borne by the Government and thereafter by the students.
- Upper limit of parental/family income for eligibility is Rs.4.5 lakh per annum.
- Subsidy is admissible only once either for undergraduate or for post-graduate or for integrated course.
- Subsidy is not admissible for those who discontinue the course or are expelled from  the  institution  for  any  reason  other  than  discontinuation  on  medical grounds.

| SL. NO.   | STATE NAME               |   STUDENTS BENEFITTED |
|-----------|--------------------------|-----------------------|
| 1         | ANDAMAN &NICOBAR ISLANDS |                  1812 |
| 2         | ANDHRA PRADESH           |                 91599 |
| 3         | ARUNACHAL PRADESH        |                   908 |
| 4         | ASSAM                    |                 10801 |
| 5         | BIHAR                    |                 93712 |
| 6         | CHANDIGARH               |                   902 |
| 7         | CHHATTISGARH             |                 11237 |
| 8         | DADRA AND NAGAR HAVELI   |                   112 |
| 9         | DAMAN&DIU                |                   103 |
| 10        | DELHI                    |                  4128 |
| 11        | GOA                      |                  1274 |
| 12        | GUJARAT                  |                 23137 |
| 13        | HARYANA                  |                 19822 |
| 14        | HIMACHAL PRADESH         |                  9038 |
| 15        | JAMMU &KASHMIR           |                  3429 |
| 16        | JHARKHAND                |                 32252 |
| 17        | KARNATAKA                |                158436 |
| 18        | KERALA                   |                384096 |
| 19        | LAKSHADWEEP              |                    58 |
| 20        | MADHYA PRADESH           |                 75063 |
| 21        | MAHARASHTRA              |                107478 |
| 22        | MANIPUR                  |                  1622 |
| 23        | MEGHALAYA                |                  4099 |
| 24        | MIZORAM                  |                  1615 |
| 25        | NAGALAND                 |                   342 |
| 26        | ODISHA                   |                 72287 |
| 27        | PUDUCHERRY               |                 18746 |
| 28        | PUNJAB                   |                  7704 |
| 29        | RAJASTHAN                |                 43823 |
| 30        | SIKKIM                   |                   156 |
| 31        | TAMIL NADU               |               1020377 |
| 32        | TELANGANA                |                  5670 |
| 33        | TRIPURA                  |                  3013 |
| 34        | UTTAR PRADESH            |                101792 |
| 35        | UTTARAKHAND              |                 17281 |
| 36        | WEST BENGAL              |                 33622 |
|           | TOTAL                    |               2361546 |

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