Clarification regarding Central Scheme of Interest Subsidy(CSIS) on Education Loan
Dear Mr. Selvam,
My questions are related to Interest Subsidy Scheme on Education Loan. Please provide the answers accordingly :-
1. Please provide a copy of this policy where all the guidelines and rules are outlined clearly.
2. Does it matter as to whether a student is enrolled in 4-yr course or 5-yr course for giving subsidy ? Is there different set of rules, for students studying in 4-yr course and those studying in 5-yr course ? If yes, then please provide in detail as to what the policy is for these two courses.
3. I am providing a real life situation. Please provide an answer to whether in this situation, student is eligible for subsidy or not. And, please cite valid reasons for it.
” Lets say a student joins an IIT in a 5-yr course in 2008. He applies for an education loan before joining college and the loan gets approved. Now, this policy of interest subsidy was made public. He goes to his bank and was guided to fulfill certain requirements. He submits the required documents. But, in 2013 when he passes out he notices that the interest rate for his education loan account was never subsidized. So, he visits the bank branch and asks why isn’t the subsidy was given to him. Now many vague answers came.Here are some of them:-
One of them was, that the central government automatically provides subsidy to eligible candidates and if you have not been given then you are not eligible.Another one, the subsidy was for 2008-2013 batch but yours is 5 year course and including moratorium period will be 6 yr, i.e. 2008-2014 and so, you are not eligible. “
Now, I want to know for the above case,
3.a) According to the policy, should this student be given subsidy or not ?
3.b) If not, then why was the student rejected from having subsidy ?Please explain.
3.c) The two reasons mentioned above, are they valid or not ? Please give a clear explanation ,with references to policy, justifying your logic.
Thanks.
