Sarkari Yojana
Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme
About Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme
Launched in 2009 by the Ministry of Education (formerly the Ministry of Human Resource Development), Government of India, the Central Sector Interest Subsidy Scheme under Pradhan Mantri Uchchatar Shiksha Protsahan Yojana pays the full interest due during the moratorium period on loans taken under the Indian Banks’ Association’s (IBA) Model Education Loan Scheme, for students from economically weaker sections whose parental income from all sources is up to ₹4.5 Lakhs a year. This subsidy applies only to higher education in professional/technical courses at NAAC-accredited Institutions, NBA-accredited professional/technical programmes, Institutions of National Importance, or Centrally Funded Technical Institutions (CFTIs) in India. Canara Bank serves as the Nodal Bank implementing the scheme. > List of Technical/Professional Courses:
- The list of Centrally Funded Technical Institutions and Institutions of National Importance can be found on the Ministry of Education website at https://www.education.gov.in/technical-education-1 and https://www.education.gov.in/institutions-national-importance.
NAAC-accredited universities/institutions are listed on the NAAC website at http://naac.gov.in/index.php/en/2-uncategorised/32-accreditation-status, and NBA-recognized professional courses appear on the NBA website at https://www.nbaind.org/accreditationprogram/Accredited Program.
Where a bank is unsure whether a course qualifies under the scheme, it may approach the University Grants Commission (UGC), the All India Council for Technical Education (AICTE), or other councils for clarification; these bodies are expected to set up Cells and Nodal Officers that banks can contact for such information. - The loan-disbursing bank bears responsibility for ensuring only technical/professional courses get covered under the scheme.
Eligible Bank:
- Every Scheduled Bank, Regional Rural Bank (RRB), and Cooperative Bank has adopted the Scheme, which ties into the existing Model Educational Loan Scheme of the Indian Banks’ Association.
Nodal Bank:
- Canara Bank, the Ministry of Education’s Nodal Bank, continues to implement the Scheme, with implementation and monitoring modalities finalised in consultation with it.
Scheme Overview
Central Government
Ministry of Education
Department Of Higher Education, Ministry Of Education
Individual
01 Jan 2009
Scheme Details
Eligibility Requirements
To qualify for Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme, applicants must satisfy the following conditions:
The Education Loan must have been taken under…
The Education Loan must have been taken under the IBA Model Education Loan Scheme.
The Scheme's benefit applies to students from economically…
The Scheme's benefit applies to students from economically weaker sections whose gross parental/family income from all sources is up to ₹4.5 lakhs per annum.
Students must be enrolled in professional/technical courses only…
Students must be enrolled in professional/technical courses only at NAAC-accredited Institutions, NBA-accredited professional/technical programmes, Institutions of National Importance, or Central Funded Technical Institutions (CFTIs); Professional Institutions/programmes falling outside NAAC's or NBA's ambit need approval from the relevant regulatory body.
The subsidy is admissible only once, for either…
The subsidy is admissible only once, for either an Undergraduate or Post Graduate degree course, and is also available for Integrated Courses (Graduate + Post Graduate).
Students already receiving any other Central/State Government Scholarship…
Students already receiving any other Central/State Government Scholarship or Fee reimbursement are not eligible for CSIS Scheme benefits.
Interest Subsidy is not available to students who…
Interest Subsidy is not available to students who discontinue their course midstream or are expelled on disciplinary or academic grounds; an exception applies where discontinuation is on medical grounds, provided documentation satisfying the Head of the educational institution is furnished.
Benefits Provided
Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme provides the following benefits to eligible applicants:
The scheme's interest subsidy on education loans is…
The scheme's interest subsidy on education loans is capped at ₹10 lakhs — even a sanctioned loan above ₹10 lakhs qualifies for subsidy only up to that limit.
Education Loans sanctioned up to ₹7.5 lakhs need…
Education Loans sanctioned up to ₹7.5 lakhs need no collateral security or third-party guarantee, and the lending bank must ensure this portion is covered under the Credit Guarantee Fund Scheme for Education Loan (CGFSEL).
The interest subsidy applies only to higher education…
The interest subsidy applies only to higher education in professional/technical courses at NAAC-accredited Institutions, NBA-accredited professional/technical programmes, Institutions of National Importance, or Centrally Funded Technical Institutions (CFTIs) in India.
Interest Rates:
Educational loan interest rates follow each bank's own Benchmark Prime Lending Rate (BPLR)/Base Rate, along with the interest-rate provisions of the IBA Model Educational Loan Scheme.
Moratorium Period:
The moratorium period runs for the Course Period plus one year, and the Government of India bears the simple-rate interest for just this moratorium period, provided the student completes the course successfully.
Once the moratorium ends, the student takes over paying interest on the outstanding loan, as per the terms of the Banks' existing Model Educational Loan Scheme, as amended from time to time.
Interest Concession:
Under the IBA Scheme, 2021, Banks may, at their discretion, offer a 1% interest concession where interest is serviced during the study period and the subsequent moratorium period, before repayment begins — though the Government's subvention should not itself be the reason for granting this 1% concession.
Documents Required
Applicants should keep the following documents ready before starting the application:
Proof of identity, such as the Aadhaar Card
Proof of identity, such as the Aadhaar Card.
The PAN Card
The PAN Card.
Proof of income, issued by the Competent Authority
Proof of income, issued by the Competent Authority.
Educational certificates
Educational certificates.
Proof confirming admission to the course
Proof confirming admission to the course.
Details of the bank account
Details of the bank account.
Any other documents that may be required
Any other documents that may be required.
2009-01-01
How to Apply
Offline Application
Applicants can apply for Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme through the offline application process outlined below.
Application Process
Eligible students apply by visiting the branch of the Bank where they took out their Education Loan for study at a recognized institute in India. Note: The Nodal Bank disburses the subsidy into beneficiaries' Education Loan accounts via DBT mode through the PFMS Portal, and it is solely the lending bank's responsibility to claim the interest subsidy for eligible beneficiaries each year.
Online Application
Applicants can apply for Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme through the online application process outlined below.
To apply for an education loan and claim…
To apply for an education loan and claim interest subvention benefits, eligible students should visit DoHE's official unified portal: https://pmvidyalaxmi.co.in/
The student registers via AADHAAR to avail the…
The student registers via AADHAAR to avail the interest subsidy under the PM-USP CSIS Scheme.
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.