AI SummaryPradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme is running and students can claim the full interest subsidy on education loans for technical and professional courses in India. Students from families with total annual parental income up to ₹4.5 Lakhs get this subsidy during the moratorium period, and the whole process now runs through the PM-Vidyalaxmi portal.
Launched by the Ministry of Education in 2009, the scheme is still going strong in 2026. In FY 2025-26, Canara Bank received 4,14,844 claims of about ₹892.81 crore under this scheme, which shows how many students depend on this support every year.
Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme - Introduction
PM-USP CSIS makes sure that money problems do not stop deserving students from completing higher education. Students from families earning up to ₹4.5 Lakhs per year get a full interest subsidy during the moratorium period, which keeps the loan cost low. The government pays the interest that builds up while the student is studying and for one year after the course ends.
The benefit applies to professional and technical courses offered by NAAC-accredited institutions, NBA-accredited programs, or other centrally recognized institutes of national importance. Canara Bank is the nodal bank that manages the running of this scheme.
Students can check the list of accredited technical institutions and professional programs through official government sources such as the Ministry of Education website or the NBA official site. The lending bank has the final say on whether a particular course qualifies for the subsidy.
Scheme Update 2026
The scheme is still active and the government now runs it through the PM-Vidyalaxmi portal. The subsidy amount is credited to the PM Vidyalaxmi Digital Rupee App (CBDC Wallet) and then moved to the education loan account. As of 22 July 2026, 35,777 wallets are active and subsidies worth ₹57.66 crore have been paid through this system.
Along with CSIS, the government is also giving an extra 3% interest subvention under PM-Vidyalaxmi for students from families earning up to ₹8 Lakh per year, on loans up to ₹10 Lakh. This benefit is for students admitted on merit to 1,425 Quality Higher Educational Institutions (QHEIs), and up to 1 lakh fresh students can get this 3% subvention every year. The government has set aside ₹3,600 crore for PM-Vidyalaxmi from 2024-25 to 2030-31.
Key Information
| Detail | Information |
|---|---|
| Scheme Name | Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme |
| Level | Central |
| Scheme For | Individual |
| Beneficiary States | All |
| Category | Banking, Financial Services and Insurance, Education and Learning |
| Nodal Ministry | Ministry of Education |
| Implementing Agency | Department of Higher Education |
| Nodal Bank | Canara Bank |
| Open Date | 2009-01-01 |
Benefits
This scheme gives big relief during studies. Here is a breakdown of how the benefits work:
| Parameter | Benefit Detail |
|---|---|
| Subsidy Limit | Interest subsidy is provided for loan amounts up to ₹10 Lakhs. |
| Collateral | No collateral or third-party guarantee is required for loans up to ₹7.5 Lakhs. |
| Coverage | Professional and technical courses accredited by NAAC/NBA or recognized as Institutes of National Importance. |
| Repayment Period | Up to 15 years after the moratorium period (course duration plus one year). |
Moratorium Period: The interest-free period is the course duration plus one year. After this, regular repayment starts as per the bank agreement.
Interest Rates: The loan interest follows the standard rates set by the bank under the IBA Model Educational Loan Scheme.
Eligibility
To qualify for the interest subsidy, check the points given below:
1. The education loan must be taken under the IBA Model Education Loan Scheme from a scheduled commercial bank.
2. The total annual family/parental income should not exceed ₹4.5 Lakhs.
3. The student must be enrolled in a professional or technical course at a recognized institute (NAAC, NBA, or equivalent CFTIs).
4. The benefit covers one degree, either at the undergraduate or postgraduate level. Integrated courses are also eligible.
5. Students already getting other government scholarships, fee reimbursements, or another interest subvention scheme cannot claim this subsidy at the same time.
6. If the student discontinues studies mid-stream or is expelled for disciplinary reasons, the subsidy stops, unless the discontinuation is due to verified medical grounds.
Application Process
Offline: Visit the local bank branch where the education loan was taken. Inform the manager that the student wants to opt for the Central Sector Interest Subsidy. The branch will process the application and check the eligibility.
Online: The application now happens through the PM-Vidyalaxmi portal.
STEP 1 - Go to the official PM-Vidyalaxmi portal at pmvidyalaxmi.co.in and register using Aadhaar. For help with the portal, check the PM Vidya Lakshmi portal registration guide.
STEP 2 - Link the education loan account details on the portal. The bank files the subsidy claim on behalf of the student, and the amount is credited to the PM Vidyalaxmi Digital Rupee App (CBDC Wallet) and then moved to the loan account.
Documents
Keep the following documents ready for the application:
1. Aadhaar Card (primary identity proof)
2. PAN Card
3. Income Certificate (issued by a competent state authority)
4. Valid Educational Certificates and Marksheets
5. Official proof of admission to the course
6. Active Bank account details
References
PM-Vidyalaxmi Scheme Guidelines | Ministry of Education - Scholarships and Education Loan | PM-Vidyalaxmi Portal | CSIS Subsidy Enquiry Portal (Canara Bank)
FAQ's
Is the scheme still running in 2026?
Yes. The Central Sector Interest Subsidy Scheme is still active and the government now runs it through the PM-Vidyalaxmi portal. In FY 2025-26, Canara Bank received 4,14,844 claims of about ₹892.81 crore under the scheme.
What is the main objective of this scheme?
The scheme makes sure that no student is forced to give up higher education due to money problems. It supports students from poor families by covering the interest on education loans for professional and technical studies within India.
Who is eligible for this interest subsidy?
Students pursuing technical or professional courses at NAAC or NBA accredited institutions or recognized national institutes in India are eligible, provided the family income is within the ₹4.5 Lakhs limit.
Is it necessary to have an education loan?
Yes. The student must have an active education loan from a scheduled commercial bank under the IBA Model Education Loan Scheme to qualify for this subsidy.
How is the subsidy amount paid?
The subsidy is credited to the PM Vidyalaxmi Digital Rupee App (CBDC Wallet). Once it is redeemed on the app, the funds move directly into the education loan account.
Who is responsible for filing the subsidy claim?
The lending bank files the claim on behalf of the student. Students do not need to apply for the subsidy separately every year, but they should confirm with the branch that the details are updated on the portal.
Can I check my claim status online?
Yes. Claim status can be tracked on the dedicated Canara Bank CSIS portal at csis.canarabank.bank.in.