Executive Summary:
The Ministry of Education addressed concerns regarding scholarship access for economically weaker section (EWS) students, particularly those from minority communities, in Lok Sabha Starred Question No. 358 on August 18, 2025. The response detailed existing scholarship schemes and new financial assistance programs aimed at ensuring higher education accessibility for all deserving students, regardless of community. These initiatives include scholarships, education loan schemes, and interest subvention programs.
Key Points / Main Content:
Scholarship Programs:
* Pradhan Mantri Uchchatar Shiksha Protsahan (PMUSP) Central Sector Scheme of Scholarship for College and University Students (CSSS): Provides means-cum-merit scholarships to students with family income up to 4.5 lakhs per year, irrespective of minority status. Approximately 5.5 lakh students have benefited in the last three years.
Education Loan and Interest Subvention Schemes:
* Pradhan Mantri Vidyalaxmi (PM Vidyalaxmi): Launched on November 6, 2024, to provide collateral-free and guarantor-free education loans to students with merit-based admission in top Quality Higher Education Institutions (QHEIs). There is no upper limit for the loan amount.
* Interest Subvention under PM Vidyalaxmi: Students with family income up to 8 lakhs receive a 3% interest subvention on education loans up to 10 lakhs, benefiting up to one lakh fresh students not receiving other scholarships or subventions.
* PM Vidyalaxmi Portal: A dedicated online platform (https:pmvidyalaxmi.co.in) simplifies the application process for education loans and interest subventions.
* PMUSP Central Sector Interest Subsidy Scheme (CSIS): Offers full interest subvention to students pursuing technical/professional courses from approved NAAC-accredited HEIs/NBA-accredited courses with family income up to 4.5 lakhs for loans up to Rs. 10 lakhs during the moratorium period.
* Pradhan Mantri Uchchatar Shiksha Protsahan Credit Guarantee Fund Scheme for Education Loans (PMUSP CGFSEL): Provides credit guarantee for education loans sanctioned up to 7.5 lakhs, covering up to 75% of outstanding default.
* Indian Banks Association Model Education Loan Scheme: Offers a repayment period of up to 15 years after the moratorium period (course year plus one year).
Impact Analysis:
Students:
* Impact: Increased access to financial assistance for higher education through scholarships, education loans, and interest subvention schemes, irrespective of community. Reduced financial barriers to pursuing higher education in quality institutions.
* Action Required: Explore eligibility criteria for various schemes, apply through the National Scholarship Portal (NSP) and PM Vidyalaxmi portal, and utilize available resources for education loan applications.
Parents/Families:
* Impact: Reduced financial burden of supporting their children's higher education. Access to interest subvention on education loans based on income criteria.
* Action Required: Assist students in understanding and applying for relevant schemes. Ensure awareness of income eligibility criteria for interest subvention.
Higher Education Institutions (HEIs):
* Impact: Potential increase in student enrollment due to improved financial accessibility. Participation in the PM Vidyalaxmi scheme by providing merit-based admissions.
* Action Required: Promote awareness of available financial assistance programs among students. Facilitate the application process for education loans and scholarships.
Banks:
* Impact: Increased volume of education loan applications through the PM Vidyalaxmi portal. Adherence to simplified application processes for education loans.
* Action Required: Adopt the simplified application process outlined in the PM Vidyalaxmi scheme. Ensure efficient processing of education loan applications received through the portal.
Key Entities Referenced
Ministry of Education: The ministry responsible for education in the Government of India.
Department of Higher Education (DHE): A department within the Ministry of Education responsible for higher education.
National Scholarship Portal (NSP): A portal used by the Government of India for various scholarship schemes.
Pradhan Mantri Uchchatar Shiksha Protsahan (PMUSP): An umbrella initiative by the Government of India to promote higher education.
Central Sector Scheme of Scholarship for College and University Students (CSSS): A scholarship scheme implemented by the Department of Higher Education under the PMUSP initiative.
Pradhan Mantri Vidyalaxmi (PM Vidyalaxmi): A central sector scheme launched to ensure that no student is denied the opportunity to pursue higher education due to financial constraints.
PMUSP Central Sector Interest Subsidy Scheme (PM USPCSIS): A scheme providing interest subvention to students pursuing technical/professional courses.
Pradhan Mantri Uchchatar Shiksha Protsahan Credit Guarantee Fund Scheme for Education Loans (PMUSP CGFSEL): A scheme providing credit guarantee for education loans.
GOVERNMENT OF INDIA
MINISTRY OF EDUCATION
DEPARTMENT OF HIGHER EDUCATION
LOK SABHA
STARRED QUESTION NO. 358
ANSWERED ON- 18/08/2025
Scholarship to Students of EWS Category
†*358. Shri Imran Masood:
Will the Minister of EDUCATION be pleased to state:
(a) whether economically weaker students belonging to the minority communities are unable
to apply afresh/renew their scholarship being provided by the Government on the National
Scholarship Portal during the last three years;
(b) if so, the details thereof and the reasons therefor;
(c) whether a large number of students belonging to economically weaker sections of the minority
communities have to drop out of their studies midway due to non-receipt of scholarship; and
(d) whether the Government is providing any other financial assistance to the students who
have not been able to avail scholarship during the last three years?
ANSWER
MINISTER OF EDUCATION
(SHRI DHARMENDRA PRADHAN)
(a) to (d): A Statement is laid on the Table of the House
*****STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (d) OF LOK SABHA
STARRED QUESTION NO. 358 ANSWERED ON 18.08.2025 ASKED BY SHRI IMRAN
MASOOD, HON’BLE MEMBER OF PARLIAMENT REGARDING ‘SCHOLARSHIP TO
STUDENTS OF EWS CATEGORY’
(a) to (c): The Department of Higher Education (DHE) is implementing the Pradhan Mantri
Uchchatar Shiksha Protsahan (PM-USP) Central Sector Scheme of Scholarship for College and
University Students (CSSS), where means-cum-merit scholarships are provided to students with
annual family income up to ₹ 4.5 lakhs per year subject to scheme guidelines. There is no criterion
about minority status of the candidate. This scheme is onboarded on the National Scholarship
Portal (NSP). In last three years, the PM-USP CSSS scholarship has been provided to about 5.5
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
Rs. 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).
*****