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PM-USPY:CSISS

Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme

7.5/10

Under the Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme, students from economically weaker sections can benefit from a full interest subsidy during the moratorium period on education loans taken under the Model Education Loan Scheme of the Indian Banks’ Association (IBA). To qualify, students must have a parental income of up to ₹4.5 lakhs per annum from all sources and be enrolled in accredited professional or technical courses at institutions recognized by NAAC, NBA, or as Centrally Funded Technical Institutions (CFTIs). The scheme allows for loans up to ₹10 lakhs, with no collateral required for amounts up to ₹7.5 lakhs. The moratorium period includes the duration of the course plus one additional year, during which the government covers the interest. Students who discontinue their courses or are expelled for disciplinary reasons are not eligible for the subsidy. This initiative aims to ensure that financial constraints do not hinder access to higher education for deserving students across India.

Central In Kind

States / UT: All India

Ministry / nodal: Ministry of Education

Nodal department: Department Of Higher Education

Scheme for: Individual

Scheme profile

DBT (direct benefit transfer): No

Scheme open date: 2009-01-01

Categories: Banking,Financial Services and Insurance, Education & Learning

Sub-categories: Loan

Target beneficiaries: Individual

Tags: Interest Subsidy, Student, Economically Weaker Sections, Education Loan, IBA, Professional Programmes, Technical Programmes

Details

The “Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme” was launched by the Ministry of Education (Erstwhile Ministry of Human Resource Development), Government of India in the year 2009. The scheme provides full interest subsidy during the moratorium period on loans availed under the Model Education Loan Scheme of the Indian Banks’ Association (IBA) to students belonging to economically weaker sections whose annual parental income is up to ₹4.5 Lakhs 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) in India. Canara Bank has been appointed as Nodal Bank for the implementation of the scheme.

List of Technical/Professional Courses:

A list of Centrally Funded Technical Institutions and Institutions of National Importance is available on the Ministry of Education website URLs https://www.education.gov.in/technical-education-1 and https://www.education.gov.in/institutions-national-importance. - The list of NAAC accredited universities/institutions is available at the NAAC website URL http://naac.gov.in/index.php/en/2-uncategorised/32-accreditation-status and NBA recognized professional courses are available at the NBA website URL https://www.nbaind.org/accreditationprogram/Accredited Program. - In case of doubt, related to eligibility of course under the scheme, etc., banks may approach the University Grants Commission (UGC)/ All India Council for Technical Education (AICTE) and other councils for clarification, for which UGC/AICTE and other councils would be requested to create Cells and identify Nodal Officers, whom banks can approach for relevant information.
It shall be the responsibility of the loan disbursing bank to ensure that only technical/professional courses are covered by them under the scheme.

Eligible Bank:

The Scheme is adopted by all Scheduled Banks/Regional Rural Banks (RRBs)/Cooperative Banks and is linked with the existing Model Educational Loan Scheme of the Indian Banks’ Association.

Nodal Bank:

The Scheme shall continue to be implemented through Canara Bank, which is the Nodal Bank for the Ministry of Education. Modalities for implementation and monitoring shall be finalized in consultation with the Canara Bank.

Benefits

1. Under the scheme, interest subsidy on education loans is provided for a maximum amount of ₹10 lakhs (Even sanctioned loan amount in excess of ₹10 lakhs would qualify for interest subsidy up to ₹10 lakhs only). 1. In the scheme, no collateral security or third-party guarantee is required for Education Loans sanctioned upto ₹7.5 lakhs. The lonee bank is to ensure that this part of the loan is covered for guarantee under Credit Guarantee Fund Scheme for Education Loan (CGFSEL). 1. The interest 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) in India. Interest Rates: The interest rates charged on the educational loan shall be as per the Benchmark Prime Lending Rate (BPLR)/Base Rate of the individual banks and as per the provisions for interest rates under the IBA Model Educational Loan Scheme. Moratorium Period:
Under the Scheme, the moratorium period is defined as a Course Period plus one year. Interest for only the moratorium period, at a simple rate of interest, will be borne by the Government of India, subject to the condition that the student completes the course of study successfully
After the period of moratorium, the interest on the outstanding loan amount shall be paid by the student, in accordance with the provisions of the existing Model Educational Loan Scheme of Banks and as may be amended from time to time. Interest Concession: Under the IBA Scheme, 2021, Banks at its discretion may provide a 1% interest concession if interest is serviced during the study period and subsequent moratorium period prior to commencement of repayment. However, the subvention provided by the Government should not be a cause for providing a 1% concession in the rate of interest

Under the scheme, interest subsidy on education loans is provided for a maximum amount of ₹10 lakhs (Even sanctioned loan amount in excess of ₹10 lakhs would qualify for interest subsidy up to ₹10 lakhs only).
In the scheme, no collateral security or third-party guarantee is required for Education Loans sanctioned upto ₹7.5 lakhs. The lonee bank is to ensure that this part of the loan is covered for guarantee under Credit Guarantee Fund Scheme for Education Loan (CGFSEL).
The interest 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) in India.

Interest Rates:

The interest rates charged on the educational loan shall be as per the Benchmark Prime Lending Rate (BPLR)/Base Rate of the individual banks and as per the provisions for interest rates under the IBA Model Educational Loan Scheme.

Moratorium Period:

Under the Scheme, the moratorium period is defined as a Course Period plus one year. Interest for only the moratorium period, at a simple rate of interest, will be borne by the Government of India, subject to the condition that the student completes the course of study successfully.
After the period of moratorium, the interest on the outstanding loan amount shall be paid by the student, in accordance with the provisions of the existing Model Educational Loan Scheme of Banks and as may be amended from time to time.

Interest Concession:

Under the IBA Scheme, 2021, Banks at its discretion may provide a 1% interest concession if interest is serviced during the study period and subsequent moratorium period prior to commencement of repayment. However, the subvention provided by the Government should not be a cause for providing a 1% concession in the rate of interest.

Eligibility

Education Loans taken under the IBA Model Education Loan Scheme.
The benefit of the Scheme is applicable to students belonging to economically weaker sections having gross parental/ family income up to ₹4.5 lakhs per annum from all sources.
Students enrolled in professional/technical courses only from NAAC accredited Institutions or professional/technical programmes accredited by NBA or Institutions of National Importance or Central Funded Technical Institutions (CFTIs). Those Professional Institutions/programmes, which do not come under the ambit of NAAC or NBA, would require approval of the respective regulatory body.
Admissible only once either for Undergraduate or Post Graduate degree courses. This is also admissible for Integrated Courses (Graduate + Post Graduate).
Students availing any other Central /State Government Scholarship or Fee reimbursement shall not be eligible for availing benefits under the CSIS Scheme.
Interest Subsidy under this Scheme shall not be available to those students who discontinue their course midstream, or who are expelled from the Institution on disciplinary or academic grounds. However, the interest subsidy would be available only if discontinuation is due to medical grounds for which necessary documentation to the satisfaction of the Head of an educational institution needs to be provided.

How useful is this scheme?

Public benefit analysis

A practical look at this scheme for citizens

AI-generated insights showing how useful, accessible, and practical this scheme may be — combining deterministic scoring rules with a public-policy LLM analyst.

7.5

/ 10

Public Benefit Score

Accessibility 7.0/10 Good

Rural usefulness 6.0/10 Moderate

Application complexity 4.5/10 Moderate

Financial impact 9.5/10 Good

Literacy barrier 4.0/10 Moderate

Women inclusivity 7.0/10 Good

Awareness 8.5/10 Good

Implementation reliability 8.0/10 Good

Bigger shape means a better fit for citizens

Accessibility7.0
Financial impact9.5
Rural utility6.0
Awareness8.5
Simplicity5.5
Inclusivity7.0

What problem does this scheme solve?

The scheme provides significant support for students from economically weaker sections, facilitating access to higher education through interest subsidies on education loans.

Key challenges addressed

Financial barriers to higher education
Access to professional and technical courses

Most beneficial for

Students from economically weaker sections
First-time applicants for education loans

Likely challenges

Awareness of the scheme among eligible students
Complexity in the application process for some

Practical insights for citizens

Practical for those aware and able to navigate the banking system

Rural challenges

Limited awareness in rural areas
Access to banking facilities

Digital challenges

Need for online registration and application
Dependence on digital literacy

Implementation bottlenecks

Bank's responsibility to claim subsidy may lead to delays

Awareness challenges

Low awareness among eligible students about the scheme

Application analysis

Application mode: Hybrid
Documents burden: Minimal, primarily income certificate and loan documents
Verification complexity: Moderate, requires bank verification
Office dependency: Dependent on bank branch for loan processing
DBT dependency: Yes, subsidy disbursed through DBT
CSC support: Limited, primarily through banks
Estimated citizen effort: Moderate, requires multiple steps

Estimated beneficiary reach

Rural / urban reach Moderate
Gender reach Equal
Target income group Annual parental income up to ₹4.5 Lakhs
Occupation reach Students in professional and technical fields

Benefit analysis

Benefit type: In Kind
Benefit frequency: One-time subsidy during the moratorium period
Benefit practicality: High, as it reduces financial burden during education
Financial meaningfulness: High, as it covers substantial loan amounts
Long-term impact: Positive, enabling better access to higher education

Plain-language guidance

This scheme helps students from low-income families by providing interest subsidies on education loans. It aims to make higher education affordable for those who need it most.

Who should apply: Students from economically weaker sections pursuing professional or technical courses.
Who may struggle: Students unfamiliar with banking processes or those lacking digital access.
Best application route: Apply via local bank branch or online through the official portal.

This intelligence section is generated by an AI policy analyst combined with rule-based scoring. Scores and narrative are estimates derived from the publicly available scheme information shown on this page; actual experience may vary by state, district, and department. Always confirm details on the official portal before you apply.

Application Process

Offline

To apply under the scheme, the eligible student has to visit the nearest Bank branch office from where he/she has availed the facility of Education Loan for studying from a recognized institute in India.
Note: Nodal Bank shall disburse the subsidy in the Education Loan account of the beneficiaries in DBT mode through PFMS Portal. It is the sole responsibility of the lending bank to claim interest subsidy on behalf of eligible beneficiaries on a yearly basis.

Online

Step 1: To apply for education loan and avail the interest subvention benefits, eligible students to visit the official unified portal of DoHE: https://pmvidyalaxmi.co.in/
Step 2: Student to register through AADHAAR for availing interest subsidy under PM-USP CSIS Scheme.

Clarifications

Additional points from the scheme information published on myScheme (not legal advice).

What is the objective of "Central Sector Interest Subsidy Scheme (CSIS)”?: CSIS is a unique scheme which pivots around the vision that no student desiring to pursue higher education is denied of the opportunity if he/ she is financially poor. This scheme benefits all categories of economically weaker students for pursuing professional/ technical courses in India only and intends to provide affordable higher education. The Scheme envisages uplifting the students from the grassroots level and increasing the number of qualified technicians/ professionals in the nation. CSIS aims to check the existing geographical imbalance with regard to the Gross Enrolment Ratio (GER) in Higher Educational institutions.
Who is eligible for the scheme?: • Students who want to pursue Technical/Professional higher education courses in recognized institutes in India. • Higher Education Institutions (HEI) should be NAAC, NBA, CFTI accredited or regulatory approved institutes in India.
Is it compulsory to avail education loan for getting interest subsidy benefit?: • Yes, students who availed of education loans from scheduled commercial banks under the Model Education Loan Scheme of IBA and • Who are studying in HEI which satisfies the above are eligible for the interest subsidy.
Is there any income criteria for claiming the subsidy?: Yes, the total Family annual income from all sources should not exceed ₹4.5 lakhs.
Where is interest Subsidy credited?: The subsidy amount will be credited to PM VIDYALAXMI DIGITAL RUPEE APP (CBDC WALLET) of the beneficiary and on redemption on the app by the beneficiary, the amount will be transferred to the beneficiary loan account.
Who applies for CSIS: Students can apply online for education loan and interest subvention under PM-USP CSIS Scheme at https://pmvidyalaxmi.co.in. - No additional application from student is necessary. - The bank branch which is disbursing the loan should check the eligibility of the student and file the subsidy claim when it is due, using the portal. - The portal is open throughout the year.
When bank can file its interest subsidy claim?: • The portal maintained by Canara Bank for CSIS claims is open throughout the year. • Bank branch which is disbursing the loan should file the claim when the interest subsidy for a year is due and the student has shown proof that she/he has successfully completed that year of study.
Is there any upper limit of loan for claiming the interest subsidy?: A) Interest subsidy is provided for a maximum loan amount of ₹10.00 Lakhs (Loans more than ₹10.00 lakhs will be eligible for interest subsidy up to ₹10 lakhs only). b) No collateral security or 3rd party guarantee is required for Education Loans sanctioned up to ₹7.50 lakhs. The Loaner Bank (registered under CGFSEL Scheme of NCGTC) is to ensure that the loans less than or equal to ₹7.50 Lacs should be covered under CGFSEL for covering the accounts under CSIS. c) Financial institutes which are not registered under the CGFSEL Scheme of NCGTC will cover their accounts under CSIS, 2022 (Education Loan Sanctioned as per IBA Model Education Loan Scheme) for the interest charged on loans sanctioned without collateral & 3rd party guarantee and for the maximum amount of ₹7.50 lakhs irrespective of CGFSEL coverage.
Who is the income certificate issuing authority?: Appropriate authority designated by the respective State/UT Governments.
Whether it is necessary to submit the income certificate every financial year?: • Income Certificate (covering annual income of entire family of the borrower) is to be submitted at the time of loan sanction/ disbursement of first instalment, as decided by loan disbursing bank. • Borrowers need not submit income certificate every year.
How Borrower can claim the subsidy to Government of India?: • Borrower cannot claim the subsidy directly from Gol. • lt is the prime responsibility of the financing Bank/Branch to claim the subsidy on behalf of the borrower. • If any lending Bank fails to claim interest subsidy for the current year, backlog/pending claims of interest Subsidy will not be entertained. • The Ministry of Education shall not be liable for any back-payments due to the failure of the bank to claim of the interest subsidy before the closure of the loan account of the student.
What is the procedure to check the CSIS subsidy claimed amount of individual education loan accounts?: Canara Bank has created a dedicated web portal for this purpose: https://www.canarabankesis.in/SubsidyEnquiry/SubsidyEnquirV.aspx.
What is the Payment Process of CSIS?: The subsidy amount will be credited to PM VIDYALAXMI DIGITAL RUPEE APP (CBDC WALLET) of the beneficiary and on redemption on the app by the beneficiary, the amount will be transferred to the beneficiary loan account. - It is the sole responsibility of the Loaner Bank to submit the correct Account details of the Beneficiaries for the purpose of crediting the subsidy amount through DBT mode. - Students to contact the Financing Bank in case of any delay in receiving of the subsidy amount.
Whom should I have to contact for subsidy amount disbursed by the government?: • The details of the amount credited may be obtained from the concerned financing bank Branch. • The head office of the concerned Bank may be contacted if the Branch reply is not satisfactory. • If any lending Bank fails to claim interest subsidy for the current year, backlog/pending claims of interest Subsidy will not be entertained. • The Ministry of Education shall not be liable for any back-payments due to the failure of the bank to claim of the interest subsidy before the closure of the loan account of the student.
What is the role of Canara Bank as a Nodal bank?: • Canara Bank has been nominated as Nodal Bank, for the purpose of administering the Interest Subsidy introduced by the Government of India, New Delhi. • The role of Canara Bank as a Nodal Bank is for the purpose of consolidate the subsidy claims of Member Banks and forward the same to the Concerned Ministry and pass on the subsidy to the Member Banks as and when it is received from the Ministry.
What is PM VIDYALAXMI DIGITAL RUPEE APP?: PM VIDYALAXMI DIGITAL RUPEE App is a Central Bank Digital Currency (CBDC) based dedicated mobile application for receiving education loan interest subvention benefits from Dept. Of Higher Education Ministry of Education GoI. - The application is available for download at Play store for android based mobiles and App store for i-phones - Mobile number of beneficiaries updated in PM-Vidyalaxmi portal by the financing Bank, against beneficiary claim should be used for downloading the application. - Beneficiaries can activate their PM VIDYALAXMI DIGITAL Rupee App through AADHAAR based authentication process via OTP received in their AADHAAR registered Mobile number. - PM VIDYALAXMI DIGITAL Rupee App is applicable for both PM VIDYALAXMI and CSIS interest subvention schemes of Dept. Of Higher Education, Ministry of Education, GoI.

Official links

References

Guidelines-2022: https://www.education.gov.in/sites/upload_files/mhrd/files/upload_document/pmusp_csis.pdf
Official Website: https://www.education.gov.in/scholarships-education-loan-4
Guidelines-2018: https://www.education.gov.in/sites/upload_files/mhrd/files/upload_document/CSIS%20-%20NewGuidelines.pdf
Scheme Details: https://www.education.gov.in/sites/upload_files/mhrd/files/upload_document/IBAM.pdf
PM-Vidyalaxmi Portal: https://pmvidyalaxmi.co.in/

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Frequently asked questions

What is the purpose of Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme?: Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme is a government welfare initiative designed to support Individual, Individual through benefits related to Banking,Financial Services and Insurance, financial assistance, subsidies, social welfare, healthcare, education, or livelihood support.
Who can apply for Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme?: Eligibility for Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme may depend on factors such as income category, age, gender, occupation, state of residence, social category, and government-defined beneficiary criteria.
What benefits are offered under Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme?: Benefits under Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme may include financial assistance, subsidies, scholarships, insurance support, healthcare benefits, pension support, training assistance, or welfare services depending on the scheme guidelines.
Which department manages Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme?: Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme is managed by Department Of Higher Education and may be implemented through district offices, online portals, CSC centres, banks, or authorised government agencies.
Can users apply online for Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme?: Yes, eligible applicants may be able to apply online for Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme through official government portals, authorised service centres, or digital application systems depending on the implementation process.
Is Aadhaar mandatory for Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme?: Many government schemes may require Aadhaar verification, identity proof, or linked bank account details for beneficiary validation and direct benefit transfer processing.
Where can users apply for Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme?: Applications for Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme may be submitted through government departments, official scheme portals, CSC centres, district offices, welfare departments, or authorised service centres.
What documents may be required for Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme?: Applicants may need Aadhaar card, income certificate, residence proof, bank account details, caste certificate, photographs, educational records, or occupation-related documents depending on scheme eligibility requirements.
Is income certificate required for Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme?: Income certificate requirements may vary depending on beneficiary category, subsidy eligibility, and financial assistance criteria defined under Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme.
Is Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme a central government scheme?: Yes, Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme is a central government welfare initiative that may be implemented across multiple states through authorised departments and agencies.
Can students apply for Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme?: Eligible students studying in recognised institutions may apply for Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme depending on educational qualification, category, income limit, and academic eligibility.
Is scholarship amount provided under Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme?: Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme may provide scholarship assistance, tuition support, educational reimbursement, or financial aid for eligible students.
Does Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme provide healthcare or insurance support?: Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme may provide healthcare assistance, insurance coverage, cashless treatment support, medical reimbursement, or hospital-related benefits depending on the scheme structure.
Can beneficiaries use Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme at government hospitals?: Eligible beneficiaries may be able to access services at empanelled hospitals, government healthcare facilities, or authorised healthcare providers depending on scheme participation rules.
Can CSC centres help users apply for Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme?: Many government schemes may be accessible through nearby CSC centres, authorised digital service centres, or welfare facilitation offices.
How can users check the latest updates for Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme?: Users should verify official notifications, department announcements, application deadlines, and eligibility updates through authorised government portals or implementing agencies.
Are there deadlines for applying to Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme?: Some schemes may operate through fixed application windows, annual registration cycles, or department-specific deadlines depending on scheme implementation policies.
Can beneficiaries track application status for Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme?: Certain schemes may provide online application tracking, beneficiary verification systems, or status-check facilities through official portals.
Where can users get help for Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme in All India?: Users in All India may seek assistance through CSC centres, district welfare offices, government departments, agriculture offices, social welfare departments, or authorised facilitation centres.
Which nearby public services may help with Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme applications?: Depending on the scheme, users may require support from Aadhaar centres, CSC centres, banks, hospitals, post offices, or government welfare offices for document verification and application assistance.