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Home » Empowering Education in India: A Deep Dive into Government Initiatives

Empowering Education in India: A Deep Dive into Government Initiatives

Education is the cornerstone of any progressive society, and in India, the government has implemented numerous initiatives to ensure its widespread accessibility and affordability. These endeavors aim to not only support students financially but also to propel the nation forward on the path of educational excellence. This blog post will delve into three key government schemes designed to foster educational growth in the country.

These are the Central Sector Interest Subsidy Scheme (CSIS), the Pradhan Mantri Uchchatar Shiksha Protsahan Yojana for students of Jammu & Kashmir and Ladakh, and the Dr. Ambedkar Central Sector Scheme of Interest Subsidy for Overseas Studies for Economically Disadvantaged Classes (EBCs) and Other Backward Classes (OBCs). We will explore these schemes in detail, discussing their benefits, eligibility requirements, application processes, and other critical aspects. By doing so, we aim to help potential beneficiaries understand and leverage these programs effectively. Stay tuned as we unravel the intricacies of these schemes and how they are reshaping India’s educational landscape.

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Overview of Government Schemes for Higher Education in India

In the quest to promote quality education and ease the financial burden on students and their families, the government of India has launched various scholarship and subsidy programs. Four such significant initiatives are the The Pradhan Mantri Uchchatar Shiksha Protsahan Yojana includes a special scholarship scheme specifically designed for students from Jammu & Kashmir and Ladakh.the Pradhan Mantri Uchchatar Shiksha Protsahan Yojana – Central Sector Interest Subsidy Scheme, Dr. Ambedkar Central Sector Scheme of Interest Subsidy and National Overseas Scholarship for Disabled.

The table below provides a comprehensive look at these schemes, highlighting the benefits, eligibility criteria, application process, and other key points. The aim is to aid potential beneficiaries in understanding and leveraging these beneficial programs.

Scheme NameBenefitsEligibilityHow to ApplyKey Points
Pradhan Mantri Uchchatar Shiksha Protsahan (PM-USP) Yojana – Central Sector Interest Subsidy (PM-USP CSIS)Full interest subsidy during the moratorium period on education loans for technical/professional coursesLoans under IBA Model Scheme, parental income up to Rs. 4.5 lakh p.a., enrollment in accredited institutions, not availing other govt. scholarships, no discontinuation/expulsion (except for medical reasons)Apply for loan under IBA Model Scheme through participating banks, provide income proofApplicable to loans up to Rs. 10 lakh, no collateral for loans up to Rs. 7.5 lakh, interest rates as per individual bank’s BPLR/Base Rate, moratorium period is course duration + 1 year, income limit is up to Rs. 4.5 lakh p.a., applicable from academic year 2022-23, banks may provide 1% interest concession if interest is serviced during study and moratorium periods
Pradhan Mantri Uchchatar Shiksha Protsahan Yojana – Special Scholarship Scheme for Students of Jammu & Kashmir and LadakhCovers academic fees and maintenance allowance. Varies for degree type. Paid directly to Institution and student’s bank account.Domicile of Jammu & Kashmir and Ladakh. Passed Class XII or equivalent. Family income ≤ Rs. 8 lakh p.a. Follows reservation norms.Apply online on the AICTE web-portal. Document verification at Facilitation Centres.Implemented by AICTE. Scholarship amounts, reservation and disbursement procedures vary. Renewal subject to conduct and attendance.
The Dr. Ambedkar Central Sector Scheme offers an interest subsidy on educational loans for students from Other Backward Classes (OBCs) and Economically Backward Classes (EBCs) who wish to pursue studies abroad.The scheme provides financial support in the form of interest subsidy on educational loans for students from Other Backward Classes (OBCs) and Economically Backward Classes (EBCs) who aspire to pursue higher studies abroad.Secured admission for Masters, M.Phil, or Ph.D. courses abroad, availed loan from a scheduled bank under the IBA Education Loan Scheme, meet income criteria.Apply for an educational loan via a scheduled bank under the IBA Education Loan Scheme, provide necessary documents.Applicable only for higher studies abroad, available only once, discontinued if course dropped or student expelled, subsidy withdrawn if obtained by false means, not for those giving up Indian citizenship, preference for professional courses, 50% funds for girls, ‘FUNDS-LIMITED’ nature, effective from 1st October 2017.
National Overseas Scholarship20 scholarships annually for Master’s and Ph.D. programs abroadAge below 35, minimum 55% marks in relevant degree, family income below Rs. 6,00,000 per annumApply to Department of Disability AffairsFields: Engineering, Sciences, Agriculture, Medicine, Commerce, Finance, Humanities, Social Science, Fine Arts; “Passage Grants” for 2 students; Financial assistance until course completion; Effective since April 1, 2014

Schemes Explained

Understanding the Central Sector Interest Subsidy Scheme for Education Loans

The Central Sector Interest Subsidy Scheme (CSIS) and Credit Guarantee Fund Scheme for Education Loan (CGFSEL) are programs run by the Department of Higher Education, part of the Ministry of Education. They’ve been running CSIS since 2009.

Under CSIS, if your family doesn’t earn more than Rs. 4.5 lakh per year, and you take a student loan from a bank, the government will pay the interest for you during your study period plus one year. But this is only for those who wish to pursue professional or technical courses from certain accredited institutions or important national institutions.

Canara Bank is in charge of managing this scheme. It’s important that your bank, which gives you the student loan, informs Canara Bank about your loan details on their online portal. This is how the government will know to pay your loan interest. The money will be transferred directly to your loan account.

Note: You can find more information below. Also, starting from 2022-23, you can take a loan up to Rs. 10 lakhs under this scheme.

Name of the Subsidy/Scheme: Pradhan Mantri Uchchatar Shiksha Protsahan (PM-USP) Yojana – Central Sector Interest Subsidy (PM-USP CSIS)

Benefits: Full interest subsidy during the moratorium period (course duration + 1 year) on education loans taken for pursuing technical/professional courses in India under the IBA Model Education Loan Scheme.


  • Student loans secured under the Model Education Loan Scheme of the Indian Banks Association (IBA).
  • Gross parental/family income up to Rs. 4.5 lakh per annum.
  • Students enrolled in professional/technical courses from NAAC-accredited institutions or NBA-accredited programs or institutions of National Importance or Central Funded Technical Institutions (CFTIs).
  • Admissible only once for undergraduate, postgraduate, or integrated courses.
  • Students availing other Central/State Government scholarships or fee reimbursements are not eligible.
  • Subsidies on interest are not applicable for students who prematurely leave the course or get dismissed (unless due to health concerns).

How to Apply:

  • Apply for an education loan under the IBA Model Education Loan Scheme through participating banks.
  • Provide income proof from an authorized public authority of the State Government.
  • The scheme is implemented through Canara Bank as the Nodal Bank.

Key Points:

  1. The scheme is applicable to loans up to Rs. 10 lakh.
  2. For loans not exceeding Rs. 7.5 lakh, there’s no need for collateral or a third-party guarantee.
  3. Interest rates are as per the Benchmark Prime Lending Rate (BPLR)/Base Rate of the individual banks.
  4. The grace period includes the length of the course plus an additional year.
  5. The maximum eligible income is Rs. 4.5 lakh annually from all revenue streams.
  6. The modified scheme is applicable from the academic year 2022-23, starting 1st April 2022.
  7. A reduction of 1% in interest may be granted by banks if the interest is paid during the study and grace periods.

Subsidy/Scheme: Pradhan Mantri Uchchatar Shiksha Protsahan Yojana, specifically the component scheme “Special Scholarship Scheme for the Students of Union Territories of Jammu & Kashmir and Ladakh, 2022”.

Objective: The scheme’s aim is to provide academic fee (tuition and other eligible fees) and maintenance allowance to students from Jammu & Kashmir and Ladakh. This is for students who, after passing Class XII or equivalent examination, secure admission in government colleges/institutions and select institutions outside these union territories, through the AICTE’s counseling process. The scheme aims to empower the youth of J&K and Ladakh to compete nationally.


  1. The scheme covers academic fees and maintenance charges, including hostel & mess fee, cost of books, and other incidental charges.
  2. The scholarship amount varies based on the type of degree (General, Professional/Engineering, and Medical).
  3. The academic fee upper limit per annum is Rs. 30,000 for General Degree, Rs. 1.25 lakh for Professional/Engineering courses, and Rs. 3 lakh for Medical courses.
  4. The fixed maintenance allowance for all courses is Rs. 1 lakh per annum.
  5. The scholarship is paid directly to the institution and to the student’s bank account through DBT using PFMS gateway.


  1. Applicants must be residents of the Union Territories of Jammu & Kashmir and Ladakh.
  2. They should have successfully completed their 12th grade examinations from schools affiliated with JKBOSE or CBSE within these territories.
  3. Family income should be Rs. 8.00 lakh or less per annum.
  4. For lateral entry scheme, candidates must have passed Diploma in Engineering from recognized Polytechnic Institutes in J&K and Ladakh.
  5. Online application on the AICTE web-portal is mandatory.

How to Apply:

  1. Candidates must apply online on the AICTE web portal.
  2. After registration, they will be issued a username and password to fill out the online form.
  3. Original documents need to be verified at the nearest Facilitation Centre set-up by UTs of J&K and Ladakh.
  4. After verification, the choice filling window will be activated for the candidate to choose the preferred course and institution.
  5. The AICTE portal will display the merit list, which will be used for conducting online counseling and seat allotment.

Key Points:

  1. The scholarship is awarded to 5000 students every year, divided among General Degree, Professional/Engineering, and Medical courses.
  2. The scholarship is disbursed directly to the institution and the student’s bank account.
  3. The All India Council for Technical Education (AICTE) is responsible for the execution of this program.
  4. Reservation policy as per the UTs of J&K and Ladakh is applicable.
  5. Students pursuing courses through open universities, availing benefits of other scholarships, gaining admission through management quota, pursuing diploma courses or postgraduate studies, or having family income over Rs. 8 lakh per annum are not eligible.
  6. The scholarships are renewed in subsequent years based on good conduct and attendance. If a student fails to get promoted to the next class, the scholarship may not be renewed

The Interest Subsidy Program on Educational Loans for International Studies for Economically Disadvantaged Classes (EBCs) and Other Backward Classes (OBCs), also known as the Dr. Ambedkar Central Sector Scheme.

Name of the Subsidy/Scheme

The Interest Subsidy Program on Educational Loans for International Studies for Economically Disadvantaged Classes (EBCs) and Other Backward Classes (OBCs), also known as the Dr. Ambedkar Central Sector Scheme..


The scheme offers interest subsidy on educational loans for students belonging to the OBC and EBC categories who wish to pursue higher education abroad. The interest for the moratorium period (i.e., course duration plus one year or six months after securing a job, whichever comes first) is borne by the Government of India.


  1. To be eligible, the student must have secured admission to approved courses at the Masters, Ph.D., or M.Phil. levels abroad.
  2. The student needs to have secured an educational loan from a bank that’s included in the Indian Banks Association’s Education Loan Scheme.
  3. For candidates applying under the OBC category, a caste certificate in the prescribed format issued by the competent authority is required.
  4. For candidates from the Other Backward Classes (OBC), the total income from all sources, either of the employed candidate or of the parents/guardians for unemployed candidates, should not surpass the current Creamy Layer standards.
  5. If you’re applying as an EBC candidate, the combined annual income from all sources, either of you if you’re working, or of your parents or guardians if you’re not working, should not be more than Rs. 2.50 lakh.

How to Apply

To avail the benefits of this scheme, eligible students should apply for an educational loan through a scheduled bank under the IBA Education Loan Scheme. Furthermore, they should provide the necessary documents, such as admission confirmation from a foreign university, caste certificate (for OBC candidates), and income proof.

Key Points

  1. The scheme is applicable only for higher studies abroad at Masters, M.Phil, and Ph.D. levels.
  2. Eligible students can avail the interest subsidy only once, either for Ph.D. levels or Masters.
  3. The scheme ceases to apply if a student either drops out of the course halfway or is dismissed due to disciplinary or academic misconduct.
  4. If a student violates any condition of the scheme or is found to have obtained the subsidy through false statements/certificates, the subsidy is withdrawn, and the amount paid is recovered with penal interest.
  5. Students who give up Indian citizenship during the tenure of the loan are not eligible for the interest subsidy under this scheme.
  6. The scheme is available on a preferential basis for professional courses.
  7. A minimum of 50% of the total outlay in a year is earmarked for girl candidates.
  8. The scheme has a ‘FUNDS-LIMITED’ nature, and the funds are released on a first-come, first-served basis.
  9. After the moratorium period, the student has to pay the interest on the outstanding loan amount.
  10. The scheme is effective from 1st October 2017.

Additional Information

  • Students who have previously availed the CSIS or New CSIS scheme for undergraduate or graduate courses can only avail the Dr. Ambedkar Central Sector Scheme of Interest Subsidy for studies abroad, postgraduate courses (including PG Diploma), M.Phil, and Ph.D. This benefit is available only once.

  • Only applicants belonging to the OBC category whose communities/castes are included in the Central list of OBCs are eligible for the interest subsidy scheme. State/UT lists are not considered.

  • Economically Backward Classes (EBCs) are those not included in the SC/ST/OBC categories, and whose annual income does not exceed Rs.2.50 lakh.

  • The moratorium period refers to the course duration plus one year, or course duration plus six months after getting a job, whichever is earlier.

  • If the moratorium period is extended due to genuine reasons, the subsidy can be provided during that period, provided that fees are paid during the extended moratorium period.

  • Parental income for eligibility is only considered when the student is unemployed or on sabbatical (not receiving salary).
  • For income certification, documents like ITR/Form 16/Audited Accounts/Income certificate issued by the authority of the State Government/UT Administration are acceptable.

  • Subsequent increase or decrease in parental income will not affect the student’s eligibility under the scheme. The income certificate submitted during the loan application is treated as proof of annual income.

  • A minimum of 50% of the total allocation under the scheme each year is reserved for female students. If there are not enough female applicants, this allocation can be used for male students.

  • The eligible loan component for interest subsidy claim is the actual loan taken, subject to a maximum of Rs.20.00 lakh.

  • Students who demonstrate academic excellence and have secured admission in recognized universities or institutions overseas are considered meritorious, given they meet other eligibility requirements. A preferential status is accorded to students who have concluded their prerequisite education at a public university or institution.

  • A student enrolled in a program that takes place both in India and abroad can qualify for an interest subsidy, provided that the degree they receive is issued by an overseas university.

Scheme Name: Central Sector Plan Scheme of National Overseas Scholarship for Students with Disabilities.

Benefits: The scheme provides financial aid for students with disabilities to pursue Master’s and Ph.D. programs abroad in specific fields of study. Each year, 20 scholarships are offered, with six reserved for women. Financial assistance includes an annual maintenance allowance, contingency allowance, equipment allowance, visa fees, airfare, local travel, and insurance. Scholars can also supplement their allowance by undertaking Research/Teaching Assistantship.


  • For a Ph.D., the student should have first class or 55% marks in the relevant Master’s Degree.
  • For a Master’s Degree, the student should have 55% marks in the relevant Bachelor’s Degree.
  • The maximum age limit for applicants is 35 years.
  • Total family income should not exceed Rs.6,00,000 per annum.
  • Not more than two disabled children from the same family are eligible.
  • The scheme doesn’t cover Bachelor level courses.

How to Apply: The scheme will be advertised in newspapers. Applicants should evaluate their suitability and eligibility before submitting their applications to the Department of Disability Affairs.. The last date for applications will be mentioned in the advertisement. Candidates who make the shortlist will be expected to participate in a personal interview.

Key Points:

  • The fields of study include Engineering & Management, Pure Sciences & Applied Sciences, Agricultural Science & Medicine, Commerce, Accounting & Finance, and Humanities, Social Science & Fine Arts.
  • The scheme is gender and category inclusive with a reservation for women and different categories of disabilities.
  • The scheme permits earning from Research/Teaching Assistantship.
  • The scheme also provides a provision of “Passage Grants” to two students with disabilities in a year.
  • The financial assistance is provided up to completion of the course/research or for a specified period, whichever is earlier: Four years for Ph.D. and three years for a Master’s Degree.
  • The scheme has been in effect since April 1st, 2014.

Additional Information on the National Overseas Scholarship for Students with Disabilities

  1. Disbursement of Scholarship Amount: The Department of Disability Affairs is responsible for the disbursement of the scholarship through a designated bank. The funds will be transferred directly to the candidates’ bank accounts using SWIFT or another electronic mode. The department also verifies the authenticity of the institute of study and the progress of the student through reports from the Indian Embassies/High Commissions abroad.
  2. Administrative Charges: Administrative charges, including bank charges, will not exceed 3% of the total budget. These charges are for implementing the scholarship scheme.
  3. The scheme’s jurisdiction is focused on providing financial assistance to chosen candidates pursuing higher education in specific subjects. It doesn’t guarantee employment or provide any employment assistance for the awardees.
  4. Default Under the Scheme: If a candidate breaches any terms and conditions of the scholarship, they will be declared a defaulter. Defaulters are liable to refund the entire scholarship amount plus interest at a rate of 12% per annum. If the amount is not paid within six months, penal interest will be charged at a rate 2.5% higher than the normal rate.
  5. Furnishing of False Information: Any candidate providing false information or documents will be barred from the award. If the candidate is availing or has availed the award, actions will be taken to recover the spent amount with a 15% compound interest. Such candidates will be blacklisted for future schemes.
  6. Litigations: Any legal issues arising from this scheme in India will be subject to the jurisdiction of the courts in the National Capital Territory of Delhi. For issues arising abroad, the Indian Missions abroad will attend to them.
  7. Flexibility in Decision-making: The Department of Disability Affairs has the authority to make essential modifications to the scheme’s provisions when deemed necessary, subject to approval from the Secretary (DA) and the relevant Financial Adviser.
  8. Review of the Scheme: The scheme can be reviewed by the Department of Disability Affairs as and when necessary.

In conclusion, the Central Sector Interest Subsidy Scheme (CSIS) and other related scholarship schemes play a vital role in supporting students’ higher education aspirations in India. These government initiatives aim to alleviate the financial burden on students and their families by providing interest subsidies and scholarships for pursuing professional and technical courses both in India and abroad.

Under the CSIS, students from economically disadvantaged backgrounds can benefit from full interest subsidies on their education loans during the moratorium period. The scheme is implemented through Canara Bank, and students must meet certain eligibility criteria and apply through participating banks to avail themselves of the scheme’s benefits.

Additionally, the government offers various scholarship schemes, such as the Pradhan Mantri Uchchatar Shiksha Protsahan (PM-USP) Yojana and the National Overseas Scholarship for Students with Disabilities. These schemes provide financial assistance for academic fees, maintenance allowances, and other related expenses to deserving students from specific regions or with disabilities.

It is crucial for students to stay informed about the eligibility criteria, application process, and other key details of these schemes to make the most of the available opportunities. These initiatives not only empower students to pursue their desired courses but also contribute to their personal and professional growth, thereby shaping a more inclusive and educated society.

Education is a powerful tool for socioeconomic development, and with the support of these government schemes, students can overcome financial barriers and fulfill their educational aspirations. These initiatives demonstrate the government’s commitment to promoting accessible and affordable higher education, ensuring that no deserving student is left behind.

By leveraging these schemes and opportunities, students can embark on their educational journeys with greater confidence, focusing on their academic pursuits rather than financial constraints. It is essential to spread awareness about these schemes among students, parents, and educational institutions to ensure maximum participation and utilization of the available benefits.

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