Education Loan: PM-USP scholarships up 31.6% nationally, but J-K and Ladakh see 10.9% drop in 5 years

The number of scholarships disbursed under Pradhan Mantri Uchchatar Shiksha Protsahan (PM-USP) Central Sector Scheme of Scholarship for College and University Students rose 31.64% between 2020-21 and 2024-25, even as disbursements under the scheme’s Special Scholarship Scheme for Jammu and Kashmir and Ladakh fell 10.9%, minister of state for education Sukanta Majumdar said in Lok Sabha on Monday.

The data, shared in a written response, also revealed a 10.5% decrease in claims under the PM-USP Central Sector Interest Subsidy Scheme from 2020-21 to 2024-25. In contrast, the (PM-USP) Credit Guarantee Fund Scheme for Education Loans recorded a sharp 143.6% increase in the number of guarantees issued over the same five-year period.

PM-USP Central Sector Scheme of Scholarship for College and University Students, PM-USP Special Scholarship Scheme for Jammu and Kashmir and Ladakh, and PM-USP Central Sector Interest Subsidy Scheme and Credit Guarantee Fund Scheme come under the PM Vidyalaksmi scheme that provides loans at 3% interest rate to meritorious students with annual family income up to Rs 8 lakh.

The question was raised by Raja Ram Singh, CPI-M MP from Karakat constituency of Bihar.

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PM-USP Scholarships: Bihar gets highest disbursals

Bihar saw the highest number of scholarships disbursed – 55,255 worth Rs 66.979 crore– in 20240-25 under PM-USP Central Sector Scheme of scholarship for college and university students. Karnataka followed with 16,877 scholarships with Rs 20 lakh disbursed in 2024-25.

While Jammu and Kashmir and Ladakh saw a decline in the number of scholarships, the budget disbursed saw an increase by 12.42% between 2020-21 and 2024-25.

PM-USP: Scholarships, claims and guarantees over 5 years

Kerala saw the highest number of claims settled under the PM-USP Central Sector Interest Subsidy scheme with 72,248 followed by Karnataka and Tamil Nadu with over 67,259 and 57,275 claims settled in 2024-25.