PM Vidyalaxmi Education Loan Scheme
PM Vidyalaxmi helps students who get admission in India's top colleges take an education loan with no collateral and no guarantor. If your family earns up to ₹8 lakh a year, the government also pays 3% of the interest on loans up to ₹10 lakh while you study.
What is PM Vidyalaxmi?
PM Vidyalaxmi is a central scheme approved by the Union Cabinet on 6 November 2024. It makes banks give education loans to students who get a seat in a quality higher education institution (QHEI), covering the full tuition fee and other course costs, without asking for property or a guarantor.
Benefits
- Collateral-free, guarantor-free loan from banks and financial institutions for the full course cost.
- For loans up to ₹7.5 lakh, the Government of India gives the bank a 75% credit guarantee. This makes banks more willing to lend.
- If your family income is up to ₹8 lakh a year and you don't get any other government scholarship or interest scheme, the government pays 3% interest subvention on loans up to ₹10 lakh during the moratorium period (course period plus the grace period). This is given to 1 lakh students a year, with preference for students in government institutions and technical or professional courses.
- Families earning up to ₹4.5 lakh a year in technical or professional courses already get full interest paid during the moratorium under the older CSIS scheme (PM-USP).
Which colleges are covered?
- All government and private institutions ranked in the top 100 of NIRF (overall, category or subject rankings).
- State government institutions ranked 101–200 in NIRF.
- All institutions run by the central government (IITs, NITs, IIMs, central universities and others).
The list started with 860 institutions and is updated every year with the latest NIRF ranking. Check whether your college is in the list on the PM-Vidyalaxmi portal.
How to apply
- Get admission in an eligible institution.
- Register on the PM-Vidyalaxmi portal (pmvidyalaxmi.co.in) and fill one common education loan application.
- Choose up to three banks, upload admission letter, fee details, Aadhaar, PAN and income certificate.
- Apply for the interest subvention on the same portal if your family income is up to ₹8 lakh.
- Track your application on the portal. The interest help is paid through e-vouchers and CBDC (digital rupee) wallets.
Also see: Central Sector Scholarship, Pragati Scholarship for girls, and fee reimbursement in AP and Telangana.
Run by: Department of Higher Education, Ministry of Education
Frequently asked questions
Who can get a PM Vidyalaxmi loan?
Any student who gets admission in an eligible quality institution: NIRF top 100, state government institutions ranked 101–200, and all central government institutions.
Is any collateral or guarantor needed?
No. The scheme is for collateral-free, guarantor-free education loans. For loans up to ₹7.5 lakh the government gives banks a 75% guarantee.
Who gets the 3% interest subvention?
Students with family income up to ₹8 lakh a year who don't get another government scholarship or interest scheme, on loans up to ₹10 lakh, during the moratorium. It is given to 1 lakh students a year.
What if my family income is below ₹4.5 lakh?
Students in technical or professional courses with family income up to ₹4.5 lakh get full interest paid during the moratorium under the CSIS scheme.
Where do I apply?
On the PM-Vidyalaxmi portal, pmvidyalaxmi.co.in, with one common form for all banks.