The PM Vidyalaxmi Scheme is a flagship initiative of the Government of India that enables meritorious students from economically weaker and underprivileged families to pursue higher education without financial barriers.
Approved by the Union Cabinet on 6 November 2024, the scheme offers education loans without requiring any collateral or guarantor for eligible students admitted to selected higher education institutions. Aligned with the National Education Policy (NEP) 2020, the scheme features a fully digital application process through the PM Vidyalaxmi Portal, making education loan applications simple, transparent, and accessible.
What is the PM Vidyalaxmi Scheme?
PM Vidyalaxmi is a government-backed education loan scheme that allows eligible students to apply for education loans from scheduled commercial banks, regional rural banks (RRBs), cooperative banks, and private banks for higher education in India and abroad through a single online portal.
How to Apply
Students can apply by following these three simple steps:
- Register on the PM Vidyalaxmi Portal.
- Complete the Common Education Loan Application Form with the required details.
- Submit the application to the preferred bank for processing and track the application status online.
Key Features
- Education loans are available without collateral or a guarantor.
- Applicable for students admitted to eligible Quality Higher Education Institutions (QHEIs) identified under the National Institutional Ranking Framework (NIRF).
- Education loans of up to ₹7.5 lakh are supported by a 75% credit guarantee from the Government of India.
- Families with an annual income of up to ₹8 lakh are eligible for a 3% interest subsidy on education loans up to ₹10 lakh.
- Students from families earning up to ₹4.5 lakh per year are eligible for full interest subsidy.
- The complete loan application and processing system is digital.
- Loan disbursement is made through the Digital Rupee Wallet.
Scheme Coverage
The PM Vidyalaxmi Scheme is expected to benefit more than 22 lakh students every year by helping deserving students secure education loans for admission to top-quality higher education institutions. The scheme complements existing initiatives such as the Central Sector Interest Subsidy (CSIS) and the Credit Guarantee Fund Scheme for Education Loans (CGFSEL).
Current Performance
According to the latest data available:
- 5,08,244 education loan applications have been sanctioned.
- Total sanctioned loan amount stands at ₹60,369.3 crore.
- 4,18,883 loan applications have been disbursed.
- Total loan disbursal has reached ₹17,099.03 crore.
- 35,686 Digital Rupee Wallets are active.
- ₹55.45 crore in subsidy has been disbursed through Digital Rupee Wallets.
- During FY 2024-25, 4,15,567 students received interest subsidy amounting to ₹892.94 crore.
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