Scholarship
Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme(PM-USPY:CSISS)
Eligibility
Education Loans taken under the IBA Model Education Loan Scheme.
Region
All India
Award
In Kind
By Expertie Editorial Team · Expertie editorial desk
Overview
About PM-USPY:CSISS
The Central Sector Interest Subsidy Scheme, part of the Pradhan Mantri Uchchatar Shiksha Protsahan Yojana, is run by the Department of Higher Education under the Union Ministry of Education. It was introduced in 2009 and is implemented through Canara Bank, the nodal bank for the scheme.
The benefit is an interest subsidy rather than a cash grant. It covers the interest on an education loan during the moratorium period, defined as the course duration plus one year. For students who qualify, the Government of India bears this interest, so nothing accrues to the borrower while the course is running and for the year that follows. The support applies to loans taken from scheduled banks under the Model Education Loan Scheme of the Indian Banks' Association.
It is meant for students from economically weaker sections who are studying recognised technical or professional courses in India, in fields such as engineering, medicine, law and management, at approved institutions. The subsidy can be claimed once per student, for either an undergraduate or a postgraduate course, and a family's income is checked against a certificate issued by the authority a state designates for that purpose.
Sources: myScheme - Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme · State Bank of India - CSIS Scheme · Jaagruk Bharat - Central Sector Interest Subsidy Scheme (CSIS)
Who runs it
Provider
Ministry of Education
Central Government
Department Of Higher Education · Department Of Higher Education, Ministry Of Education
At a glance
Key details
| Level | Central |
| Scheme type | Central Sector Scheme |
| Category | Banking,Financial Services and Insurance, Education & Learning |
| Beneficiaries | Individual |
| Benefit type | In Kind |
| Application mode | Offline, Online |
Calendar
Important dates
Across all open application cycles.
| Cycle | Stage | Date |
|---|---|---|
| Current | Applications open | 2009-01-01 |
Who can apply
Eligibility criteria
| 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. |
What you get
Award & benefits
- 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.
What to prepare
Documents required
1. Identity proof i.e Aadhaar Card
2. PAN Card
3. Income proof (Issued by Competent Authority)
4. Educational Certificates
5. Proof of admission to the course
6. Bank account details
7. Any other documents, as required
Step by step
How to apply
- 1Apply offline
See the official links below for the application portal.
- 2Apply online
See the official links below for the application portal.
Questions
PM-USPY:CSISS – FAQ
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.
• 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.
• 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.
Yes, the total Family annual income from all sources should not exceed ₹4.5 lakhs.
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.
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.
• 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.
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.
Appropriate authority designated by the respective State/UT Governments.
• 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.
• 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.
Canara Bank has created a dedicated web portal for this purpose: https://www.canarabankesis.in/SubsidyEnquiry/SubsidyEnquirV.aspx.
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.
• 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.
• 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.
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.
Disclaimer
Scheme details are compiled from myScheme, the Government of India’s official scheme-discovery platform, and are reproduced without alteration. Amounts, deadlines and eligibility change between cycles — always confirm on the official links above before applying. Expertie does not process applications or charge fees.
AICTE - Grant For Augmenting Infrastructure In North Eastern Region Access to Knowledge for Technology Development and Dissemination (A2K+) AlCTE - Distinguished Professional Scheme ASEAN-India Research Training Fellowship INAE Travel Grant Scheme for Engineering Students from IITs/NITs/Govt. Approved Engineering Colleges/Institutions other than AICTE AICTE - Scheme For Promoting Interests, Creativity And Ethics Among Students