PM Uchchatar Shiksha Protsahan Yojana

The Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme was launched by the Ministry of Education (formerly the Ministry of Human Resource Development), Government of India in 2009. This scheme provides full interest subsidy during the moratorium period on education loans availed by students from economically weaker sections whose parental income is up to ₹4.5 lakhs per annum from all sources. The subsidy is available for pursuing higher education in professional/technical courses only from institutions accredited by the National Board of Accreditation (NBA), NAAC, or institutions of National Importance or Centrally Funded Technical Institutions (CFTIs).

Key Features of the Pradhan Mantri Uchchatar Shiksha Protsahan Yojana

The Central Sector Interest Subsidy Scheme aims to provide interest subsidies on loans availed for professional and technical education from eligible institutions.

List of Eligible Courses

1. Professional/Technical Courses: The subsidy applies to students pursuing professional/technical courses from NAAC accredited institutions, NBA accredited programs, or institutions of National Importance or CFTIs.
   • A detailed list of NAAC accredited institutions is available at the NAAC website: NAAC Accredited Institutions.
   • The list of NBA accredited courses can be found at the NBA website: [NBA Accredited Programs](https://www.nbaind.org/accreditationprogram/Accredited Program).
   • The list of CFTIs and Institutions of National Importance is available on the Ministry of Education website: CFTIs and Institutions of National Importance.
2. Eligible Banks:
   • The scheme is adopted by all Scheduled Banks, Regional Rural Banks (RRBs), and Cooperative Banks, linked with the existing Model Educational Loan Scheme of the Indian Banks’ Association (IBA).
   • Canara Bank is the Nodal Bank for the implementation of this scheme.

Benefits of the Scheme

1. Interest Subsidy:
   • The scheme provides a full interest subsidy during the moratorium period (the course duration plus one year).
   • The interest for the moratorium period will be paid by the Government of India, provided the student completes the course successfully.
2. Maximum Loan Coverage:
   • The interest subsidy is applicable for loans up to ₹10 lakhs. If the sanctioned loan amount exceeds ₹10 lakhs, the subsidy is provided only up to ₹10 lakhs.
3. Collateral-Free Loans:
   • No collateral security or third-party guarantee is required for loans up to ₹7.5 lakhs. The loan will be covered by the Credit Guarantee Fund Scheme for Education Loans (CGFSEL).
4. Interest Rate:
   • The interest rates charged on the education loan will be based on the Benchmark Prime Lending Rate (BPLR) or Base Rate of the individual banks under the IBA Model Educational Loan Scheme.
5. Interest Concession:
   • Banks may offer a 1% interest concession if the interest is serviced during the study period and subsequent moratorium period before the commencement of loan repayment. However, the interest subsidy under this scheme will not be affected by this concession.
6. Moratorium Period:
   • The moratorium period is defined as the course duration plus one year. During this period, the government covers the interest charges.
   • After the moratorium period, the student must start repaying the loan according to the provisions of the existing Model Educational Loan Scheme.

Eligibility Criteria

1. Income Criteria:
   • The benefit of the scheme is available to students whose parental/family income does not exceed ₹4.5 lakhs per annum from all sources.
2. Eligible Institutions:
   • The applicant must be enrolled in professional/technical courses from institutions that are accredited by NAAC, NBA, or are CFTIs or Institutions of National Importance.
   • The scheme covers undergraduate, postgraduate, and integrated courses (graduate + postgraduate).
3. One-time Benefit:
   • The subsidy is admissible only once for either an Undergraduate or Postgraduate course. It is also applicable for Integrated Courses (Graduate + Post Graduate).
4. Exclusion:
   • Students already availing Central/State Government scholarships or fee reimbursements are not eligible for the benefits under this scheme.
   • The interest subsidy will not be available if the student discontinues the course midstream or is expelled from the institution due to disciplinary or academic reasons. However, if the student discontinues the course due to medical reasons, with proper documentation, they will still be eligible for the subsidy.

Application Process

Offline Application

1. Visit the Bank:
   • To apply for the interest subsidy, the eligible student must visit the nearest bank branch where they have availed the Education Loan for studying at a recognized institute.
2. Submit Documents:
   • Students should provide the necessary documents (listed below) to the bank.

Online Application

Students can also apply online for the scheme through the following platforms:

1. JanSamarth Portal:
   • Visit the JanSamarth Portal: https://www.jansamarth.in/.
2. Vidya Lakshmi Portal:
   • Visit the Vidya Lakshmi Portal: https://www.vidyalakshmi.co.in/.
3. Registration and Application:
   • Register on the portal and apply for the loan under the scheme.
4. Submission of Documents:
   • The students should upload the required documents online for verification and processing.

Documents Required

To apply for the Central Sector Interest Subsidy Scheme, students need to submit the following documents:

1. Identity Proof:
   • Aadhaar Card
2. Income Proof:
   • Income Certificate issued by the competent authority.
3. Educational Certificates:
   • Certificates related to the educational qualification of the student.
4. Proof of Admission:
   • Admission confirmation or offer letter from the accredited institution for the course.
5. Bank Account Details:
   • Bank account details for disbursal of the subsidy under DBT mode through the PFMS Portal.
6. PAN Card:
   • A valid PAN Card of the student.
7. Any Other Documents:
   • Documents as may be required by the bank or the authorities for processing the application.

Conclusion

The Pradhan Mantri Uchchatar Shiksha Protsahan Yojana: Central Sector Interest Subsidy Scheme is a great initiative for students from economically weaker sections, providing them the financial support they need to pursue higher education in professional and technical fields. The scheme eases the burden of interest payments during the moratorium period, making higher education more accessible to deserving students.

By applying through the JanSamarth or Vidya Lakshmi portals and ensuring all eligibility criteria and documents are met, students can benefit from the interest subsidy and gain a quality education from accredited institutions without financial strain.