Pradhan Mantri Vidyalaxmi Scheme

✦Key Features

• Collateral-free loans up to ₹10 lakh at 860 QHEIs: IITs, NITs, central universities, NAAC A-grade
• 3% interest subvention for family income up to ₹8 lakh during moratorium period
• 75% credit guarantee by Government of India for loans up to ₹7.5 lakh
• Full interest subvention for income up to ₹4.5 lakh under existing PM-USP CSIS
• Digital portal: pmvidyalaxmi.co.in; operational from February 2025
• Budget: ₹3,600 crore to benefit 7 lakh students; 22 lakh eligible per year
• Covers 860 QHEIs: IITs, NITs, central universities, NAAC A+ and A grade institutions

✓Eligibility Criteria

• Students who have secured admission to one of the top 860 quality Higher Education Institutions (HEIs) in India.
• Applicants pursuing undergraduate or postgraduate professional and technical courses.
• Students with a family income of up to ₹8 lakhs per annum for interest subvention benefits.
• Indian nationals who have successfully completed their secondary or higher secondary education.

★Benefits

• Collateral-free and guarantor-free education loans of up to ₹10 lakhs for higher studies.
• Full interest subvention during the moratorium period for students with family income up to ₹4.5 lakhs.
• An additional 3% interest subvention for students with family income up to ₹8 lakhs.
• Seamless access to credit for education in premier institutions listed under NIRF rankings.

▶Application Process

• Students must register and apply through the dedicated PM-Vidyalaxmi unified web portal.
• Applicants fill out a single Common Union Loan Application Form (CELAF) to apply to multiple banks.
• The chosen bank processes the application and verifies the student's admission status and KYC.
• Loan disbursement is tracked online from application to the final credit to the institution or student.

₹ Budget Allocation

3600

Funding Ratio (Centre:State): Central Sector Scheme (100% Central Funding for Interest Subvention/Guarantees)

Historical Context

Approved by the Union Cabinet on November 6, 2024, to supplement the National Education Policy (NEP) 2020 goals of making higher education accessible.