PM-USPY CSISS 2026: Full Interest Subsidy on Education Loans up to ₹10 Lakh
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Quick answer
PM-USPY: CSISS provides complete interest subsidy during the moratorium period on education loans up to ₹10 lakh for professional and technical courses in India. It is available to economically weaker students with annual family income up to ₹4.5 lakh who take loans under the IBA scheme. Eligible students can apply through the PM Vidyalaxmi portal or directly via their lending bank branch.
At a glance
| Main benefit | Full interest subsidy on loans up to ₹10 lakh |
| Ministry / department | Ministry of Education |
| Level | Central Government |
| Income limit | ₹4.5 lakh |
| Application mode | Online & offline |
About the scheme
The Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme (PM-USPY: CSISS) was instituted by the Ministry of Education to ensure financial constraints do not stop ambitious students from completing higher education. Under this programme, the Government of India covers the entire simple interest during the study duration plus one year for professional or technical courses at approved institutions. Administered nationwide through Canara Bank as the nodal agency, the scheme lowers the cost of IBA model education loans for students from economically weaker sections.
Benefits
- Complete interest subsidy during the moratorium period (course duration plus one year) on education loans.
- Interest subsidy is provided on loan amounts up to a maximum ceiling of ₹10 lakhs.
- No collateral security or third-party guarantee is required for education loans sanctioned up to ₹7.5 lakhs under CGFSEL guidelines.
- Subsidy benefit is delivered directly via the PM Vidyalaxmi Digital Rupee App (CBDC wallet) into the education loan account.
- Banks may additionally offer a 1% interest concession at their discretion if interest is serviced during the study period under the IBA Scheme.
Who can apply (eligibility)
- The applicant must have taken an education loan under the IBA Model Education Loan Scheme from a scheduled commercial bank, RRB, or cooperative bank.
- The gross annual family income of the student from all sources must not exceed ₹4.5 lakhs.
- The applicant must be enrolled in professional or technical programmes in NAAC-accredited institutions, NBA-accredited courses, Centrally Funded Technical Institutions (CFTIs), Institutions of National Importance, or regulatory body approved institutions.
- The subsidy is admissible only once, either for undergraduate or postgraduate studies (also permissible for integrated courses).
- The student must complete the course successfully to retain the interest subsidy benefit.
Who cannot apply
- Students availing any other Central or State Government scholarship or fee reimbursement scheme.
- Students who discontinue their course midstream or are expelled on disciplinary or academic grounds (discontinuation on certified medical grounds is exempted).
- Non-technical or non-professional courses that lack required regulatory accreditations.
Documents required
- Aadhaar Card of the student
- Permanent Account Number (PAN) Card
- Income Certificate issued by the competent authority designated by the State or UT Government
- Educational certificates and mark sheets
- Proof of admission to the approved professional or technical course
- Bank account details and loan sanction letter
- Any other document requested by the lending bank
How to apply
- 1Visit the official unified portal of the Department of Higher Education at pmvidyalaxmi.co.in.
- 2Register on the portal using your Aadhaar credentials to apply for the loan and the PM-USP CSIS interest subvention.
- 3Alternatively, visit the bank branch that sanctioned your IBA model education loan to confirm your CSIS eligibility.
- 4Submit your family income certificate and course admission proof to the loan-disbursing branch.
- 5The lending bank will verify your details and file the yearly interest subsidy claim on your behalf through Canara Bank.
- 6Download the PM Vidyalaxmi Digital Rupee App using your registered mobile number and authenticate through Aadhaar OTP to redeem the subsidy into your loan account.
Frequently asked questions
What is the maximum loan limit for the CSIS interest subsidy?+
The interest subsidy is provided for a maximum loan amount of ₹10 lakhs. If the sanctioned loan exceeds ₹10 lakhs, the subsidy still applies only up to ₹10 lakhs.
What is the family income limit to qualify for PM-USPY CSISS?+
The gross annual family income from all sources must not exceed ₹4.5 lakhs.
What is the moratorium period covered under the scheme?+
The moratorium period is defined as the course duration plus one additional year. The Government of India pays the simple interest accrued during this entire period.
Do I need to submit an income certificate every year?+
No, the income certificate covering the family income needs to be submitted only once, at the time of loan sanction or disbursement of the first instalment.
How is the subsidy amount credited to the student?+
The subsidy is credited into the PM Vidyalaxmi Digital Rupee App (CBDC wallet) of the beneficiary. Once redeemed inside the app, the money is transferred into the student's education loan account.
Can I get this subsidy if I already receive another government scholarship?+
No, students who are already receiving any other Central or State Government scholarship or fee reimbursement are not eligible for CSIS.
Where can students check their interest subsidy claim status?+
Beneficiaries can check their claim status on Canara Bank's dedicated enquiry portal at canarabankcsis.in/SubsidyEnquiry/SubsidyEnquiry.aspx or inquire directly with their lending bank branch.
NaukriZila is not a government website. Apply only on the official portal; never pay anyone to apply for a government scheme. Source: myScheme (Government of India)