Centrally-Sponsored Scheme Of Pre-Matric Scholarship For Scheduled Caste Students Studying In Classes 9th & 10th 2026
This scheme helps students from low-income families by providing a full interest subsidy on education loans for Read More... professional and technical courses, easing the financial burden during studies. Read less
Details
Many bright young minds aspire to pursue higher education, especially in technical and professional fields. However, financial constraints can often be a major roadblock. To ensure that deserving students from economically weaker sections don't miss out on these opportunities, the Government of India introduced the Pradhan Mantri Uchchatar Shiksha Protsahan Yojana (PM-USHAY), formerly known as the Central Sector Interest Subsidy Scheme (CSIS).
What Is This Scheme?
Launched in 2009 by the Ministry of Education, this scheme aims to provide full interest subsidy on education loans. This subsidy is available during the study period and the subsequent moratorium period on loans taken under the Indian Banks' Association (IBA) Model Education Loan Scheme. It’s designed for students whose parental income from all sources is up to ₹4.5 Lakhs annually.
Who Can Benefit From This Scheme?
The primary beneficiaries are students from economically weaker sections of society who wish to pursue higher education in professional or technical courses in India. These courses must be from institutions that are either accredited by NAAC, recognized by NBA, or are Institutions of National Importance or Centrally Funded Technical Institutions (CFTIs).
Why This Scheme Is Important
The scheme plays a crucial role in making quality higher education accessible to all, regardless of a student's financial background. By covering the interest during the study period, it significantly reduces the financial burden on students and their families. This, in turn, helps increase the Gross Enrolment Ratio (GER) in higher education and fosters a pool of skilled professionals and technicians for the nation.
Objective
Benefits
Sources and references
Eligibility Criteria
- Loans must be taken under the Indian Banks’ Association (IBA) Model Education Loan Scheme.
- The student's parental or family income from all sources must not exceed ₹4.5 lakhs per annum.
- The student must be enrolled in professional or technical courses from institutions like NAAC accredited Institutions, NBA accredited programmes, Institutions of National Importance, or Centrally Funded Technical Institutions (CFTIs). If an institution or program isn't covered by NAAC or NBA, it needs approval from the relevant regulatory body.
- This benefit is available only once, either for undergraduate or postgraduate degree courses. It also covers integrated courses (combined graduate and postgraduate).
- Students receiving any other Central or State Government scholarship or fee reimbursement are not eligible for this scheme.
- The interest subsidy will not be available for students who discontinue their course midway or are expelled for disciplinary or academic reasons. However, discontinuation due to medical reasons, with proper documentation, will be considered for the subsidy.
How To Apply
Students can apply for an education loan and the interest subsidy through the portal: https://pmvidyalaxmi.co.in. No separate application is needed for the subsidy. The bank disbursing the loan will verify the student's eligibility and submit the subsidy claim through the portal, which is open year-round.
Documents Required
- Identity proof (e.g., Aadhaar Card)
- PAN Card
- Income proof (issued by a Competent Authority)
- Educational Certificates
- Proof of admission to the course
- Bank account details
- Any other documents as required by the bank
FAQ’s
What is the main goal of the Central Sector Interest Subsidy Scheme (CSIS)?
The CSIS scheme aims to ensure that no financially disadvantaged student is prevented from pursuing higher education. It provides support for professional and technical courses in India, helping uplift students from all backgrounds and increasing the number of qualified professionals.
Can I get the interest subsidy without taking an education loan?
No, you must have availed an education loan from a scheduled commercial bank under the Model Education Loan Scheme of the IBA to be eligible for the interest subsidy. You also need to be studying in a recognized Higher Education Institution (HEI).
Who is responsible for applying for the subsidy?
You, as the student, cannot claim the subsidy directly from the Government of India. It is the responsibility of the financing bank or branch to claim the subsidy on your behalf. If a bank fails to claim the subsidy on time, they will not be able to entertain backlogged claims.
How can I check how much subsidy has been claimed for my education loan?
Canara Bank has set up a dedicated web portal to help you check this. You can visit https://www.canarabankesis.in/SubsidyEnquiry/SubsidyEnquirV.aspx to inquire about the CSIS subsidy claimed for individual education loan accounts.
What is the PM VIDYALAXMI DIGITAL RUPEE APP and how is it used for this scheme?
The PM VIDYALAXMI DIGITAL RUPEE App is a Central Bank Digital Currency (CBDC) mobile application. It's used to receive education loan interest subvention benefits from the Ministry of Education. You can download it from your app store and activate it using Aadhaar-based authentication. This app works for both PM VIDYALAXMI and CSIS interest subvention schemes.
Which authority issues the income certificate required for the scheme?
The income certificate must be issued by the appropriate authority designated by the respective State or Union Territory Governments.
Do I need to submit my income certificate every year?
No, you typically only need to submit the income certificate covering your entire family's annual income at the time of loan sanction or disbursement of the first installment, as decided by the lending bank. You are not required to submit it every year.
What is the maximum loan amount eligible for interest subsidy?
Interest subsidy is provided for a maximum loan amount of ₹10.00 Lakhs. If your loan amount exceeds ₹10.00 lakhs, the subsidy will only apply to the first ₹10 lakhs.
Who is Canara Bank's role in this scheme?
Canara Bank has been appointed as the Nodal Bank for this scheme. Its main role is to consolidate the subsidy claims from all member banks, forward them to the Ministry of Education, and then disburse the subsidy to the member banks once received from the Ministry.
What is the maximum parental income allowed to apply?
The total annual family income from all sources for the applicant should not exceed ₹4.5 lakhs.
Is collateral or third-party guarantee needed for the education loan?
For education loans sanctioned up to ₹7.50 lakhs, no collateral security or third-party guarantee is required. Banks are expected to cover these loans under the Credit Guarantee Fund Scheme for Education Loan (CGFSEL).
When can banks submit their claims for interest subsidy?
The portal managed by Canara Bank is open all year. Banks can file their claims whenever the annual interest subsidy is due and the student has successfully completed that academic year, providing proof as required.
Where is the subsidy amount credited?
The subsidy amount will first be credited to the beneficiary's PM VIDYALAXMI DIGITAL RUPEE APP (CBDC WALLET). Once the beneficiary redeems it on the app, the amount will be transferred to their loan account.
What happens if a student has to discontinue their studies?
Generally, discontinuing a course mid-way means losing eligibility for the interest subsidy. However, if the discontinuation is due to documented medical reasons and verified by the educational institution's head, the subsidy might still be available.
Which types of courses are covered under this scheme?
The scheme covers only professional and technical higher education courses pursued in recognized institutions in India. These institutions must be accredited by NAAC, recognized by NBA, or be Institutions of National Importance or Centrally Funded Technical Institutions (CFTIs).
Click it and Unblock the Notifications
Sign in with Google