The Central Sector Interest Subsidy Scheme (CSIS) under the Pradhan Mantri Uchchatar Shiksha Protsahan Yojana, launched by the Ministry of Education (formerly MHRD) in 2009, provides full interest subsidy on educational loans during the moratorium period to students from economically weaker sections (EWS). This financial relief covers students pursuing professional and technical courses from recognized institutions in India.
Highlights of PM Uchchatar Shiksha Protsahan Yojana
• Name of Scheme: Central Sector Interest Subsidy (CSIS) Scheme
• Launched by: Ministry of Education, Government of India
• Year of Launch: 2009
• Implemented by: Canara Bank (Nodal Bank)
• Target Group: EWS students with parental income ≤ ₹4.5 Lakhs/year
• Maximum Subsidy: Interest subsidy on loans up to ₹10 Lakhs
• Moratorium Period Covered: Course period + 1 year
• Applicable Courses: Technical/Professional UG/PG/Integrated courses only
• Eligible Institutions: NAAC/NBA accredited, CFTIs, Institutions of National Importance
Key Benefits
• 100% interest subsidy during moratorium (course period + 1 year)
• Applicable to loans up to ₹10 Lakhs taken under the IBA Model Education Loan Scheme
• No collateral or third-party guarantee required for loans up to ₹7.5 Lakhs (covered under CGFSEL)
• Subsidy disbursed directly to the education loan account via DBT mode through PFMS
• A 1% interest concession may be offered by banks (if interest is serviced during the study and moratorium period)
Eligibility Criteria
• Student must belong to EWS (annual family income ≤ ₹4.5 Lakhs)
• Must have taken an education loan under the IBA Model Scheme from a Scheduled Bank/RRB/Cooperative Bank
• Enrolled in professional/technical courses from:
– NAAC-accredited institutions
– NBA accredited programmes
– Institutions of National Importance
– Centrally Funded Technical Institutions (CFTIs)
• Eligible for subsidy only once, for UG, PG, or Integrated programs
• Students availing other Central/State fee reimbursement/scholarships are not eligible
• Not applicable to students discontinued or expelled, unless due to medical reasons with valid documents
• Courses must be pursued within India
Application Process
Mode: Offline / Online
Steps to Apply:
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Visit the bank branch where your education loan was sanctioned
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Submit the required documents along with a request for subsidy under CSIS
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Bank verifies eligibility and submits claims to Canara Bank (Nodal Bank) annually
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Subsidy amount is credited into the loan account via DBT through PFMS
NOTE: To apply online under the scheme, interested and eligible students visit the official portal of JanSamarth i.e. https://www.jansamarth.in/ and Vidya Lakshmi Portal at www.vidyalakshmi.co.in.
Necessary Documents
• Aadhaar Card (Identity Proof)
• PAN Card
• Parental Income Certificate (Issued by Competent Authority)
• Admission Proof from a recognized institution
• Educational Certificates
• Bank Loan Sanction Letter
• Bank Account Details
• Any additional documents required by the lending bank
Frequently Asked Questions (FAQs)
Q: What is the objective of the CSIS scheme?
To provide full interest subsidy during the moratorium period on education loans taken by EWS students for professional/technical education.
Q: Who is eligible?
Students from EWS with annual family income up to ₹4.5 Lakhs and enrolled in recognized technical/professional courses.
Q: Is it mandatory to take an education loan?
Yes, the subsidy applies only to loans under the IBA Model Education Loan Scheme.
Q: What is the maximum subsidy amount?
Interest on loans up to ₹10 Lakhs is covered.
Q: Where is the subsidy credited?
Directly to the borrower’s education loan account via DBT.
Q: How often is an income certificate required?
Annually, unless otherwise specified by the bank.
Q: Who claims the subsidy – the student or the bank?
The bank is responsible for claiming the subsidy on behalf of the student.
Q: Can I avail CSIS and another scholarship together?
No, students receiving any other government fee reimbursement/scholarship are ineligible.
Q: What happens if the course is discontinued?
Subsidy is not available unless the discontinuation is due to medical reasons, properly documented.
Q: What is Canara Bank’s role?
Acts as the Nodal Bank for implementing and monitoring CSIS.
Sources and References
• Ministry of Education – Official Website
• Guidelines – CSIS Scheme (2018)
• Jan Samarth Portal
• Vidya Lakshmi Portal
