Overview
One of the prime objectives of the Government is to ensure that no student is deprived of the opportunity to pursue higher education on account of being poor. To achieve this objective, the Department of Higher Education (DHE) has introduced schemes to provide financial assistance to economically weaker sections of society in the form of scholarships, interest subsidy on education loans and credit guarantee for education loans for pursuing higher education. Students from all categories of the country (i.e., General, SC, ST, OBC and PWD) are eligible to receive financial assistance as per the scheme norms. The various schemes operated by the Department of Higher Education (DHE) are as follows:
PM-USP Central Sector Scholarship Scheme for College and University Students
It aims to provide financial assistance for pursuing higher education to successful meritorious students who score more than 80 percent marks in class 12th or equivalent examination and whose family’s annual income is up to Rs 4.5 lakh. The scholarship is given for a maximum period of 5 years, Rs 12,000 per year for the first three years and Rs 20,000 per year for the fourth and fifth year of study.
PM-USP Special Scholarship Scheme for Jammu-Kashmir and Ladakh
5000 new scholarships are awarded every year to students of Union Territories whose family income is upto Rs. 8.00 lakhs per annum for pursuing undergraduate and integrated degree courses in institutions outside the Union Territories of Jammu & Kashmir and Ladakh. The rate of scholarship for tuition fee is Rs. 30,000 per annum for general degree courses, Rs. 1.25 lakhs per annum for professional courses and Rs. 3.00 lakhs per annum for medical studies. A fixed maintenance allowance of Rs. 1.00 lakh per annum is provided to all students under this scheme.
PM-USP Central Sector Interest Subsidy Scheme (CSIS)
The scheme aims to provide full interest subsidy to eligible students during the moratorium period (course period plus one year) on education loan up to Rs. 10.00 lakh without any collateral security and third party guarantee. The family income limit is Rs. 4.50 lakh per annum. Interest subsidy is eligible only for professional/technical programmes in institutions accredited by NAACC or institutions accredited by NBA or Institutions of National Importance or Centrally Funded Technical Institutions (CFTIs).
Credit Guarantee Fund Scheme for Education Loans (CGFSEL)
The “Credit Guarantee Fund Scheme for Education Loans (CGFSEL)” was notified on 16.09.2015. Under CGFSEL, the Central Government guarantees education loans taken by students up to a maximum loan limit of Rs. 7.5 lakh without any collateral security and third-party guarantee. The Fund provides guarantee cover up to 75% of the default amount through the National Credit Guarantee Trustee Company Limited (NCGTC), the trustee of the Department for this purpose.
Prime Minister Vidya Lakshmi Scheme
Under the Pradhan Mantri Vidyalakshmi Yojana, any student admitted to Quality Higher Education Institutions (QHEIs) will be eligible to get a loan from banks and financial institutions without any security or guarantor to cover the entire tuition fees and other expenses related to the course. In addition, one lakh new students with annual family income up to Rs 8 lakh and not eligible for benefits under any other government scholarship or interest subsidy schemes will be provided 3% interest subvention every year during the loan moratorium period.
Foreign Scholarships
Ministry of Education, Department of Higher Education facilitates the process of scholarships/fellowships offered by foreign countries under cultural/educational exchange programmes.
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