**Executive Summary**
This document is a response to Lok Sabha Unstarred Question No. 308, answered on February 2, 2026, concerning difficulties faced by economically weaker sections in processing scholarships. The Minister of State in the Ministry of Education outlines existing scholarship schemes and introduces a new education loan scheme (PM Vidyalaxmi) launched on November 6, 2024, to address financial constraints in higher education. The document also mentions interest subvention schemes and credit guarantee schemes.
**Key Points / Main Content**
* **Existing Scholarship Schemes:**
* The Department of Higher Education (DHE) implements the Pradhan Mantri Uchchatar Shiksha Protsahan (PM-USP) Yojana.
* This Yojana includes the Central Sector Scheme of Scholarship for College and University Students (CSSS).
* It also includes the Special Scholarship scheme for Jammu & Kashmir and Ladakh.
* These are means-cum-merit scholarships for higher education, available on the National Scholarship Portal (NSP).
* In the last two years, about 3.8 lakh students from all communities have been awarded scholarships under the PM-USP CSSS and PM-USP SSS for JKL.
* **New Education Loan Scheme (PM Vidyalaxmi):**
* The Pradhan Mantri Vidyalaxmi (PM Vidyalaxmi) scheme was launched on November 6, 2024.
* It aims to ensure no student is denied higher education due to financial constraints.
* It provides collateral-free and guarantor-free education loans to students admitted to top Quality Higher Education Institutions (QHEIs).
* There is no upper limit on the loan amount.
* Students with family income up to ₹8 lakh receive a 3% interest subvention on loans up to ₹10 lakh.
* Up to one lakh new students not getting any other financial support on education loan will get this interest subvention.
* The PM Vidyalaxmi portal (https://pmvidyalaxmi.co.in) facilitates loan and interest subvention applications.
* **Interest Subsidy Schemes:**
* The PM-USP Central Sector Interest Subsidy Scheme (PM USP-CSIS) provides full interest subvention for technical/professional courses from approved NAAC accredited HEIs/NBA accredited courses.
* This is for students with annual family income up to ₹4.5 lakhs and loans up to ₹10 lakhs during the moratorium period.
* There is no limit on the number of student beneficiaries.
* **Credit Guarantee Scheme:**
* The Pradhan Mantri Uchchatar Shiksha Protsahan Credit Guarantee Fund Scheme for Education Loans (PM-USP CGFSEL) provides credit guarantee for loans up to ₹7.5 lakhs.
* The guarantee cover is up to 75% of outstanding default.
* **Other Loan Terms:**
* Under the Indian Banks' Association model education loan scheme, the repayment period is up to 15 years after the moratorium period.
* **Impact on Gross Enrollment Ratio (GER):**
* The Gross Enrollment Ratio (GER) in Higher Education has increased from 27.3 in 2020-21 to 29.5 in 2022-23 (provisional).
**Impact Analysis**
**Students from Economically Weaker Sections and Minority Communities**
* **Impact:** Increased access to higher education through scholarships and education loans, reduced financial burden.
* **Action Required:** Apply for relevant scholarships and education loans through the National Scholarship Portal and PM Vidyalaxmi portal.
**Higher Education Institutions (HEIs)**
* **Impact:** Potential increase in enrollment due to increased financial aid availability.
* **Action Required:** Ensure accreditation by NAAC or NBA to facilitate student access to interest subsidy schemes.
**Banks**
* **Impact:** Participate in the PM Vidyalaxmi scheme by providing education loans through the simplified application process.
* **Action Required:** Process education loan applications received through the PM Vidyalaxmi portal.
Key Entities Referenced
Department of Higher Education (DHE): The department within the Ministry of Education responsible for implementing the scholarship schemes discussed in the document.
Pradhan Mantri Uchchatar Shiksha Protsahan (PM-USP) Yojana: A comprehensive scheme comprising of several scholarship schemes, intended to promote higher education.
National Scholarship Portal (NSP): The online portal used for applying for Central Government scholarships.
Pradhan Mantri Vidyalaxmi: A central sector scheme launched to provide collateral-free and guarantor-free education loans to students for higher education.
Ministry of Education: The central ministry responsible for education policies and schemes in India.
GOVERNMENT OF INDIA
MINISTRY OF EDUCATION
DEPARTMENT OF HIGHER EDUCATION
LOK SABHA
UNSTARRED QUESTION No. 308
ANSWERED ON 02/02/2026
Difficulties Faced by Economically Weaker Sections in Processing Scholarships
†308. Shri Lalji Verma:
Shri Neeraj Maurya:
Will the Minister of EDUCATION
be pleased to state:
(a) whether the students of economically weaker sections belonging to minority groups have
been unable to submit fresh applications and renewal applications on the National
Scholarship Portal for the Central Government scholarships during the last two years, if so,
the reasons therefor;
(b) whether the Government is aware that due to non-receipt of scholarship amounts, a large
number of economically weaker minority community students have been compelled to
discontinue their studies midway owing to their inability to pay fees;
(c) if so, the details thereof; and
(d) whether the Government proposes to provide any alternative financial assistance to
students who have not received scholarships during the last three years, if so, the details
thereof?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF EDUCATION
(DR. SUKANTA MAJUMDAR)
(a) to (c): The Department of Higher Education (DHE) is implementing the Pradhan Mantri
Uchchatar Shiksha Protsahan (PM-USP) Yojana, comprising of two scholarship schemes
namely, Central Sector Scheme of Scholarship for College and University Students (CSSS)
and Special Scholarship scheme for Jammu & Kashmir and Ladakh, wherein means-cum-
merit scholarships are provided to students pursuing higher education subject to extant
scheme guidelines. These schemes are onboarded on the National Scholarship Portal (NSP).In last two years, the scholarships under the PM-USP CSSS and PM-USP SSS for JKL, has
been provided to about 3.8 lakh students, belonging to all communities.
(d): The Pradhan Mantri Vidyalaxmi (PM Vidyalaxmi), a new central sector scheme has been
launched on 6th November 2024. The main objective of the scheme is to ensure that no
student is denied the opportunity to pursue higher education due to financial constraints.
Under the scheme, collateral-free and guarantor-free education loan is provided to all the
students, including students from minority communities who get merit-based admission in
top Quality Higher Education Institutions (QHEIs) and who desire to avail the education loan
and there is no upper limit for this. Further, for students with annual family income up to ₹ 8
lakh, the scheme provides 3% interest subvention on education loans up to ₹ 10 lakhs. Up to
one lakh fresh students not getting any other scholarship or interest subvention on education
loan will get this interest subvention. A dedicated online platform, the PM Vidyalaxmi portal
https://pmvidyalaxmi.co.in has been developed on which students can apply for the education
loan as well as interest subvention, through a simplified application process to be used by all
banks.
Further, the Department of Higher Education is implementing the PM-USP Central
Sector Interest Subsidy Scheme. Under the PM USP-CSIS Scheme, full interest subvention is
provided to all students who are pursuing technical/professional courses from approved
NAAC accredited HEIs/NBA accredited courses and whose annual family income is up to ₹
4.5 lakhs for loans up to ₹ 10 lakhs, during the moratorium period. There is no upper limit on
number of student beneficiaries for this Scheme.
Moreover, under the Pradhan Mantri Uchchatar Shiksha Protsahan Credit Guarantee
Fund Scheme for Education Loans (PM-USP CGFSEL) of the Central Government, credit
guarantee is provided for education loans sanctioned up to ₹ 7.5 lakhs. The guarantee cover is
up to 75% of outstanding default. Further, under the model education loan scheme of the
Indian Banks’ Association, the repayment period for education loan is up to 15 years after
moratorium period (course year plus one year).
Thus, PM Vidyalaxmi, PM-USP CSIS and PM USP CGFSEL schemes, along with
the various scholarships together provide holistic support to all deserving students to pursue
higher education in quality HEIs and technical/professional education in approved HEIs.
As a result of all the above initiatives, the Gross Enrollment Ratio (GER) of students
in Higher Education has increased from 27.3 in 2020-21 to 29.5 in 2022-23 (provisional).
*****