The Central Government’s Central Sector Interest Subsidy Scheme (CSIS) is for students from economically weaker families who take an education loan for their studies. It is run by the Ministry of Education and is now implemented under PM-USP (Pradhan Mantri Uchchatar Shiksha Protsahan). Under this scheme, the full interest on the student’s education loan is paid by the government during the course period plus one year (the moratorium period).
How much subsidy is given
Under this scheme, full interest subsidy is given on an education loan of up to ₹10 lakh. If the loan is larger than ₹10 lakh, the subsidy applies only to the first ₹10 lakh. The moratorium period is generally the course period plus one year. After this period, the student repays the principal and remaining interest over up to 15 years. Canara Bank is the nodal bank for this scheme, and claims are filed through the PM-Vidyalaxmi portal (pmvidyalaxmi.co.in).
Who is eligible
The family’s annual income must not exceed ₹4.5 lakh — counting income from all sources. The student must have taken admission in a technical or professional course — a course run in an institution accredited by NAAC or NBA or an institution of national importance (CFTI). The loan must be taken under the Indian Banks’ Association (IBA) Model Education Loan Scheme from a scheduled bank, a Regional Rural Bank or a co-operative bank. The Ministry of Education issued an updated list of eligible courses on 25 February 2026 — check that your course is on that list.
Different from PM-Vidyalaxmi
CSIS and PM-Vidyalaxmi are two different schemes, though claims for both are filed on the same portal. Under CSIS, the full interest is paid, but the income limit is ₹4.5 lakh and it is only for technical/professional courses. Under PM-Vidyalaxmi, a 3% interest subvention is given, the income limit is ₹8 lakh and it is for admission to Quality Higher Education Institutions (QHEIs). A student can take only one of the two benefits — and it cannot be combined with any other central or state scholarship, interest subvention or fee reimbursement either.
How to apply
First, the student has to take an education loan from a bank and tell the bank that he or she wants the CSIS benefit. After that, the subsidy claim is filed through the PM-Vidyalaxmi portal. The claim has to be filed in the prescribed window — check the current window and the list of documents on pmvidyalaxmi.co.in. Keep the income certificate, admission proof and loan sanction letter ready. Do not pay anyone for applying — this facility is free.
Frequently Asked Questions
Q1: How much interest subsidy does CSIS give?
A: Full interest on an education loan of up to ₹10 lakh during the moratorium period (course plus one year).
Q2: Who is eligible?
A: Family income up to ₹4.5 lakh, a technical or professional course in a NAAC/NBA-accredited institution, and a loan under the IBA model scheme from a bank.
Q3: Can it be taken with PM-Vidyalaxmi?
A: No — only one of the two benefits is available; it also cannot be combined with any other scholarship or interest subvention.
Q4: Where do I file the claim?
A: On the PM-Vidyalaxmi portal, pmvidyalaxmi.co.in — check the current claim window there too.
Useful links
- PM-Vidyalaxmi portal: https://pmvidyalaxmi.co.in/
- CSIS scheme on MyScheme: https://www.myscheme.gov.in/schemes/pm-uspycsiss
- Next Action: see all 726 Central Government schemes — https://www.viksitharyana.com/english/kendra-sarkar-ki-yojnayen-2/
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