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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:Download - (424 KB)
For grievances related to the CSIS & PM-Vidyalaxmi, one can write to the Canara Bank at
Tele: 080- 22533876
Email: hoel[at]canarabank[dot]com & hogps[at]canarabank[dot]com
Central Sector Interest Subsidy Scheme (CSIS) and Credit Guarantee Fund Scheme for Education Loan (CGFSEL)
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.
Students may note that the bank which is sanctioning the education loan needs to upload the claim of interest subsidy in the portal maintained by the Canara bank for this purpose. The interest subsidy is credited directly to the loan account of the student by DBT mode using PFMS gateway. One can visit https://canarabank.com/User_page.aspx?othlink=375 for more information.
The ceiling with respect to educational loans has been increased to a loan amount of Rs. 10 lakhs from the year 2022-23. One can visit the following portals for more information.
National Portal for Credit Linked Government Schemes - Jan Samarth
- Pradhan Mantri Uchchatar Shiksha Protsahan Yojana - Guidelines for the component scheme - "Central Sector Interest Subsidy" (PM-USP CSIS)
- Revised guidelines on Central Sector Interest Subsidy Scheme
- For more details, click here - (1.30 MB)
- Gazette notification for approved lending institutions under CGFSEL - (1.58 MB)
- FAQs under CSIS Scheme - (894 KB)
- 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
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/products-n-services/cgfsel. 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.
