Government of India Education Loan

About The PM Vidyalaxmi Scheme

PM-Vidyalaxmi is a single online portal that helps students apply for education loans and interest subsidy benefits for higher education in India or abroad. The Pradhan Mantri Vidyalaxmi Scheme, approved on 6 November 2024, aims to ensure that talented students can pursue higher education without financial barriers by providing education loan support.

Under this scheme, more than 22 lakh students are expected to benefit every year. To encourage banks to provide more education loans, the Government of India offers a 75% credit guarantee for education loans up to ₹7.5 lakh. This reduces the risk for banks and helps more students receive loan approval.

The scheme also provides additional financial relief to students from middle-income families. Students whose annual family income is up to ₹8 lakh are eligible for a 3% interest subsidy on education loans up to ₹10 lakh. Students with an annual family income of up to ₹4.5 lakh will continue to receive the full interest subsidy already available under existing government provisions. The PM Vidyalaxmi Scheme is implemented through all Scheduled Banks, Regional Rural Banks (RRBs), and Cooperative Banks, ensuring that eligible students across the country can easily access education loans and pursue quality higher education without financial barriers.

Benifits & Eligibility of the Scheme

• Collateral-free & guarantor-free education loans for students admitted to QHEIs.
• The applicant must be an Indian citizen.
• No upper loan limit; covers tuition fees, hostel, mess, laptop, and living expenses.
• 75% Government credit guarantee for loans up to ₹7.5 lakh.
• 3% interest subsidy on loans up to ₹10 lakh for families earning up to ₹8 lakh annually during the moratorium period.
• Full interest subsidy available to eligible students with family income up to ₹4.5 lakh under PM-USP CSIS.
• Interest rate capped at EBLR + 0.5%, with up to 1% additional concession for timely interest payment.
• Repayment period up to 15 years, excluding the moratorium period.
• Applicant must be an Indian citizen.
• Must secure merit-based admission to one of the 860 designated QHEIs in India.Admission through management quota is not eligible.
• Family income must be up to ₹8 lakh per year for the 3% interest subsidy.
• Must not receive another Government scholarship, interest subsidy, or fee reimbursement.
• Must complete the course and maintain satisfactory academic performance.
• Benefits can be availed only once for UG, PG, or integrated courses.

Document Required

• Aadhaar Card
• PAN Card
• Address Proof
• Previous Qualifying Marksheets (Self-attested)
• Entrance Exam Result
• Offer Letter (from the Institution, along with the fee structure)
• Income Certificate (from the designated public authority of the state)

Application Process

Step 1: Create an Account

To apply for an education loan under the PM-Vidyalaxmi Scheme, students must first register on the PM-Vidyalaxmi portal by entering the required personal and academic details.

Step 2: Complete the Application Form

After registration, students need to fill out the Common Education Loan Application Form (CELAF) with accurate information. Once completed, they can explore available education loan options and choose the one that best matches their eligibility and requirements.

Step 3: Apply to the Preferred Bank

Finally, students can submit their loan application to the bank of their choice through the portal. The selected bank will review the application and process the education loan based on the student’s eligibility and the bank’s lending guidelines.

Application Link in Below