PM-Vidyalaxmi Scheme

The Government of India has approved PM-Vidyalaxmi scheme to provide financial support to meritorious students so that financial constraints do not prevent any youth of India from pursuing quality higher education. A special loan product has been introduced to enable for collateral free, guarantor free education loans to meritorious students who get admission in the top 860 quality higher educational institutions of the nation; made accessible through a simple, transparent, student-friendly and entirely digital application process. Furthermore, for students with up to Rs. 8 lakhs annual family income, the scheme will also provide for 3% interest subvention on loans up to Rs 10 lakh.

The list of 860 quality higher education institutions is at: https://dashboard.aishe.gov.in

The detailed guidelines of the Scheme may be seen at: View

Central Sector Interest Subsidy Scheme (CSIS)

Department of Higher Education, Ministry of Education has been implementing the Central Sector Interest Subsidy (CSIS) Scheme since 2009. Under this Scheme Interest Subsidy is given during the moratorium period i.e., Course period plus one year on Education Loan taken from the Scheduled Banks under the Model Education Loan Scheme of Indian Banks Association to students belonging to economically weaker sections whose annual parental income is up to Rs. 4.5 Lakh from all sources. The 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). Canara Bank has been appointed as Nodal Bank for the implementation of the scheme.

Credit Guarantee Fund Scheme for Education Loan (CGFSEL)

The "Credit Guarantee Fund Scheme for Education Loans (CGFSEL)" was notified on 16.09.2015. Under the CGFSEL, Central Government gives guarantee for the education loans availed by students without any collateral security and third-party guarantee for a maximum loan limit of Rs. 7.5 Lakh. The Fund provides guarantee cover to the extent of 75% of the amount in default through the National Credit Guarantee Trustee Company Ltd. (NCGTC), the Trustee of the Department for this purpose. For more information related to CGFSEL, please visit https://www.ncgtc.in/en/product-details/CGFEL/Credit-Guarantee-Fund-Scheme-for-Education-Loans-(CGFEL). The necessary paperwork for availing of the credit guarantee by the student is to be done by the bank who is sanctioning the education loan to the student.

• FAQs of CGFSEL

Application Process

Step 1: To apply for education loan and avail the interest subvention benefits, eligible students to visit the official unified portal of DoHE https://pmvidyalaxmi.co.in

Step 2: Student to register through AADHAAR for availing interest subsidy under the schemes.

Disbursement Process

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.

What is PM VIDYALAXMI DIGITAL RUPEE APP

• 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.

Sources and resources

• Pradhan Mantri Uchchatar Shiksha Protsahan Yojana - Guidelines for the component scheme - "Central Sector Interest Subsidy" (PM-USP CSIS) – 2022 (revised)
• Revised guidelines on Central Sector Interest Subsidy Scheme – 2018
• IBA Model Education, Guidelines – 2022 / Public Notice
• Gazette notification for approved lending institutions under CGFSEL - 2022 (1.58 MB)
• FAQs under CSIS Scheme
• Click here for Nodal Bank Information about the Scheme
• Click here for Old Subsidy Enquiry of Loan Applicant at Nodal Bank up to 2014-15
• Click here for Subsidy Enquiry of Loan Applicant at Nodal Bank after 2014-15
• PM-Vidyalaxmi Guidelines 2024; the list of 860 quality higher education institutions is at: https://dashboard.aishe.gov.in
• For information on CGFSEL please visit - CGFEL

Students can apply online for education loan and interest subvention under PM-Vidyalaxmi and CSIS Scheme at https://pmvidyalaxmi.co.in

For grievances related to the CSIS & PM-Vidyalaxmi, one can write to the Canara Bank at

Toll free No. 1800 1031 and Tele: 080- 22533876
Email: hoel[at]canarabank[dot]com & hogps[at]canarabank[dot]com

In case of any grievances/complaint regarding the above schemes the same may be registered to the following link http://pgportal.gov.in/grievancenew.aspx.

Email: moe-elis[at]gov[dot]in