HDFC CSIS Scheme

About the Scheme

The CSIS scheme is an initiative by the government that helps students pursue technical and professional courses by paying interest on their education loans during the course and for one year after. This initiative makes higher education more accessible to students from families with a low income. HDFC Bank partners with this scheme to offer loans with the government covering the interest payments.

For parents planning their child’s education, a child education allowance can be added to their savings and used in conjunction with this loan. This allowance will supplement funds needed for tuition and living expenses, enabling students to get quality education.

Rate of Interest

The scheme also ensures that while pursuing a degree and one year thereafter, no student has to worry about interest payments on loans so as to allow the student to concentrate on studies. Here's how:

• During the Study Period: The government covers the interest on the education loan, so you don't need to make any payments during your course.

• Post-Course (1-Year Moratorium Period): The government continues to cover the interest for one year after your course ends, allowing you to focus on finding employment without the burden of loan repayments.

• After the Moratorium: Once the moratorium period is over, HDFC Bank sets the interest rates based on their standard terms, which will depend on the loan amount and your financial profile.

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Features of the Scheme

With flexible repayment options and government subsidies, this scheme provides the following financial advantages for students pursuing higher education:

1. Government-Paid Interest

   The government covers the interest during your study period and for one year after, which eases the financial burden.

2. Loan Amount

   Students can borrow up to ₹10 lakh for studies within India, which can cover tuition fees and additional expenses such as books, hostel fees, and other living costs. In addition to this, parents can opt for a child education plan to build a savings cushion for future education expenses, offering additional financial support.

3. Flexible Repayment Options

   After the interest subsidy period, you can repay the loan according to HDFC Bank’s terms, with options to suit your financial situation.

4. Eligibility for Subsidy

   The scheme is available only to students from families with an annual income up to ₹4.5 lakh and enroled in government-approved technical or professional courses.

In addition to the loan benefits, a child investment plan can help parents build savings for their child's education, ensuring they have extra financial support when it's needed most.

Eligibility of the Scheme

To qualify for the CSIS scheme, the applicant must:

• Be enroled in a technical or professional course at a recognised institution.

• Have a family income of up to ₹4.5 lakh annually.

• Be applying for an education loan under HDFC Bank’s Model Education Loan Scheme.

Documents Required

Applicants need to provide these essential documentation to ensure eligibility and a smooth application process:

• Income Proof: A certificate confirming that the applicant’s family income issued by authorised officer of the State/Union Territory under the scheme.

• Admission Proof: A letter of confirmation from the educational institution where the student has been accepted.

• Identity Proof: Government-issued identification documents, such as an Aadhar card, passport, or voter ID.

• Education Loan Application: The official loan application form will also include the interest subsidy agreement.

Most Important Terms and Conditions

By keeping these key considerations in mind, you can ensure a smooth and hassle-free experience throughout the duration of your loan:

• Interest Subsidy Period: The government covers the interest during the study period and for one year after the course ends. This helps prevent the loan amount from increasing during the initial years.

• Loan Repayment: The borrower will begin repayment once the moratorium period ends. The loan repayment terms will follow HDFC Bank’s guidelines, and borrowers have flexible repayment options.