Higher education can be a costly affair, often leading students to delay their academic aspirations due to financial constraints. To bridge this gap and enable meritorious students to pursue higher studies, the central government has introduced the Pradhan Mantri Vidyalaxmi Education Loan Scheme.
This initiative aims to provide collateral-free education loans, making quality education accessible to all deserving students in India.
Key Features of PM Vidyalaxmi Education Loan Scheme
The PM Vidyalaxmi scheme was approved by the Union Cabinet in November last year, with an aim to benefit over 22 lakh students annually. The scheme is designed to financially support students who secure admission to the top 860 higher educational institutions across India.
Salient Features:
- Collateral-Free Loans: Students securing admission in Quality Higher Education Institutions (QHEIs) are eligible for collateral-free and guarantor-free loans.
- Digital Application Process: The scheme provides a simple, transparent, and student-friendly online portal for loan applications.
- Wide Availability: Loans can be availed from Scheduled Banks, Regional Rural Banks, and Cooperative Banks.
- Credit Guarantee: The Government of India provides 75% credit guarantee on loan amounts up to Rs. 7.5 lakh.
- Interest Subvention: Students from families with an annual income up to Rs. 8 lakh are eligible for a 3% interest subsidy on loans up to Rs. 10 lakh during the moratorium period.
- Government Investment: The government has allocated Rs. 3,600 crore for the period from 2024–25 to 2030–31 to support the scheme.
Eligibility Criteria
To avail of the PM Vidyalaxmi Education Loan Scheme, students must:
- Be Indian citizens.
- Secure admission in one of the 860 Quality Higher Education Institutions (QHEIs) identified by the National Institutional Ranking Framework (NIRF).
- Have an annual family income of up to Rs. 8 lakh (for interest subvention eligibility).
- Apply through the Vidyalaxmi portal.
How to Apply for PM Vidyalaxmi Education Loan?
The application process is straightforward and completely digital. Follow these steps:
- Visit the Official Vidyalaxmi Portal: Access the government’s education loan portal and begin your application.
- Register on the Portal: Create an account by providing basic details such as name, email, address, mobile number, Aadhaar number, etc.
- Log into Your Account: Use your registered credentials to sign in.
- Select Loan Type: Navigate to the ‘Loan Application’ section and choose the relevant education loan.
- Enter Course Details: Fill in details about your course, institution, and personal information.
- Submit Application: Review your details and submit your loan request.
- Track Application Status: After submission, monitor the progress of your application on the Vidyalaxmi portal.
Interest Rates Under PM Vidyalaxmi Scheme
The interest rates for loans under this scheme vary based on the lending bank and the course fee structure. Typically, interest rates range between 8.1% and 18% for a loan amount of Rs. 10 lakh. However, eligible students can benefit from the 3% interest subsidy during the moratorium period.
Loan Repayment Terms
- The repayment tenure is up to 15 years, excluding the moratorium period.
- Banks may require life insurance coverage for borrowers if the loan amount exceeds a certain threshold.
- The insurance premium, if required, can be included in the loan amount.
The PM Vidyalaxmi Education Loan Scheme is a game-changer for students aspiring to pursue higher education without financial stress. By offering collateral-free loans, interest subsidies, and a seamless online application process, the scheme ensures that meritorious students can achieve their academic dreams. With over 22 lakh students set to benefit annually, the initiative stands as a significant step toward making quality education accessible to all.
The Vidya Lakshmi portal (vidyalakshmi.co.in) is an Indian government initiative designed to help students apply for education loans from multiple banks through a single window. It is managed by NSDL e-Governance Infrastructure Ltd. under the guidance of the Department of Financial Services (DFS), the Department of Higher Education (DHE), and the Indian Banks Association (IBA).
Key Features of Vidya Lakshmi Portal
- Apply for Multiple Education Loans
- Students can fill out a Common Education Loan Application Form (CELAF) and submit it to multiple banks.
- Access to Multiple Banks & Schemes
- More than 30 banks, including SBI, PNB, Canara Bank, and Bank of Baroda, offer various education loan schemes through the portal.
- Track Loan Applications
- Students can track their loan application status online in real-time.
- Government Subsidy Schemes
- The portal provides information about education loan subsidy schemes such as the Central Sector Interest Subsidy Scheme (CSIS) for economically weaker sections (EWS).
- Direct Link to National Scholarship Portal
- Students can access government scholarships from the portal itself.
The Pradhan Mantri Vidyalaxmi (PM-Vidyalaxmi) Scheme is a central government initiative launched in November 2024 to provide financial support to meritorious students pursuing higher education in India. The scheme aims to ensure that financial constraints do not hinder any student’s educational aspirations.