PM Vidyalaxmi Scheme Apply Online:- The PM Vidyalaxmi Scheme is a government initiative aimed at providing financial support to deserving students pursuing higher education in India. Approved by the Union Cabinet, the scheme will offer education loans to over 22 lakh students each year who are admitted to the top 860 prestigious higher education institutions (HEIs). The loans provided under this scheme are collateral-free and do not require a guarantor, making it easier for students to access funds for tuition and other course expenses.
The scheme uses a fully digital platform to make the application process easy, transparent, and accessible. Students from families with an annual income of up to Rs. 4.5 lakh can avail of full interest subsidies, while those with an income up to Rs. 8 lakh can get a 3% interest subsidy on loans up to Rs. 10 lakh. Over Rs. 3,600 crore has been allocated for the scheme between 2024–2031, benefiting an estimated 7 lakh new students.
Main Objective of PM Vidyalaxmi Scheme
The main objectives of the PM Vidyalaxmi Scheme are as follows:
- The primary objective of the scheme is to ensure that deserving students can pursue higher education without financial barriers.
- Another objective of the scheme is to provide loans for students accepted into top-ranked Higher Education Institutions (HEIs) based on NIRF rankings.
- The aim of the scheme is to offer collateral and guarantor free loans to cover full tuition and related educational expenses.
- The scheme aims to simplify loan and subsidy applications through a unified “PM-Vidyalaxmi” portal for all banks.
- The objective is to prioritize students from government institutions and those enrolled in technical/professional programs.
Key Highlights of PM Vidyalaxmi Scheme
| Name of the Scheme | PM Vidyalaxmi Scheme |
| Approved | The Union Cabinet, chaired by Prime Minister Shri Narendra Modi |
| Launch Date | Announced on November 6, 2024 |
| Objective | To provide financial assistance to students for higher education, eliminating financial barriers |
| Target Beneficiaries | Students accepted into top-ranked Higher Education Institutions (HEIs) in India based on NIRF rankings |
| Eligible Institutions | HEIs in top 100 of NIRF rankings (overall, category, or domain-specific)State government HEIs in 101-200 of NIRF rankingsAll central government institutions |
| Loan Features | Collateral- and guarantor-free loansCovers full tuition fees and course-related expenses |
| Loan Limit with Credit Guarantee | Up to Rs. 7.5 lakh |
| Credit Guarantee | 75% credit guarantee on outstanding defaults for loans up to Rs. 7.5 lakh |
| Income Eligibility | Annual family income up to Rs. 8 lakh |
| Interest Subvention | 3% interest subvention on loans up to Rs. 10 lakhApplicable during the moratorium period |
| Subvention Beneficiaries | One lakh students each year, with preference for students from government institutions in technical/professional courses |
| Budget Allocation | Rs. 3,600 crore from 2024-25 to 2030-31 |
| Expected Beneficiaries | Include over 22 lakh students annually from top 860 HEIs |
| Application Portal | “PM-Vidyalaxmi” portal for streamlined application of loans and interest subvention |
| Payment Method | Interest subvention paid via E-vouchers and Central Bank Digital Currency (CBDC) wallets |
| Official Website | https://www.vidyalakshmi.co.in/ |
Budget for PM Vidyalaxmi Scheme
- The PM Vidyalaxmi Scheme has an allocated budget of Rs. 3,600 Crore for the period from 2024-25 to 2030-31.
Eligibility Criteria
To get financial assistance from the Government under Vidyalaxmi Scheme, candidates should fulfill these eligibility criteria:
- Applicants must be permanent resident of India.
- Applicant should be a student.
- Students from families with an annual income of up to Rs. 4.5 lakhs.
- Must be enrolled in technical or professional courses.
- Must attend institutions approved under the PM-USP CSIS program.
- Eligible for education loans up to Rs. 10 lakhs.
- Complete interest subsidy provided during the moratorium period.
- Together with PM Vidyalaxmi, the program provides extensive financial support to eligible students pursuing higher education in top institutions and technical/professional courses in approved HEIs.
Benefits of PM Vidyalaxmi Scheme
Here are some benefits of PM Vidyalaxmi Scheme, which are as follows:
- Under this scheme students can get loans without needing collateral or a guarantor, covering full tuition and course-related expenses.
- The scheme applies to students in top-ranked Higher Education Institutions (HEIs) in India.
- For loans up to Rs. 7.5 lakh, the government offers a 75% credit guarantee, making it easier for banks to approve loans.
- Students from families with an annual income up to Rs. 8 lakh can get a 3% interest subsidy on loans up to Rs. 10 lakh during the moratorium period.
- A unified “PM-Vidyalaxmi” portal simplifies the application process for loans and interest subsidies.
- The scheme gives preference to students in technical or professional courses, especially those in government institutions.
- Interest subsidy payments are made through e-vouchers and digital wallets, ensuring timely and secure transactions.
No of Students
- The PM Vidyalaxmi Scheme is expected to benefit over 22 lakh students annually, offering financial aid for education at top 860 higher education institutions.
Educational institutions Covered
Educational Institutions Covered under PM Vidyalaxmi Scheme are as follows:
- Top 100 NIRF-Ranked HEIs
- State Government HEIs
- Central Government Institutions
- Approved Technical/Professional Institutions
Also Read: Vidya Lakshmi Education Loan
Loan Amount and Interest Subvention
- Loan Amount: Collateral-free loans up to Rs. 10 lakh for tuition and course-related expenses.
- Interest Subvention: 3% interest subsidy on loans up to Rs. 10 lakh for students with an annual family income up to Rs. 8 lakh during the moratorium period.
Salient Features
Salient Features of PM Vidyalaxmi Scheme are as follows:
- Students can avail of loans without needing a guarantor or collateral.
- Loans cover full tuition fees and other related expenses for higher education.
- Applies to top-ranked Higher Education Institutions (HEIs) and approved technical/professional institutions.
- Students from families with annual income up to Rs. 8 lakh receive a 3% interest subvention on loans up to Rs. 10 lakh.
- A 75% credit guarantee for loans up to Rs. 7.5 lakh, making it easier for students to secure loans.
- A single portal for applying for loans and interest subsidies, simplifying the process.
- Preference is given to students pursuing technical and professional courses, especially from government institutions.
- Interest subvention is paid via e-vouchers and CBDC wallets for easy and secure transactions.
Required Documents
To avail of the benefits of the Vidya Lakshmi Scheme, candidates should have the following documents:
- Admission Letter
- Proof of Income
- Identity Proof (Aadhaar/Passport/Other)
- Bank Account Details
- Course Fee Structure
- NIRF Ranking Proof (if applicable)
- Proof of Non-eligibility for Other Schemes (if applicable)
Selection Process
The Selection Process for PM Vidyalaxmi Scheme follows as:
- Students must meet the criteria, such as admission in eligible institutions and family income limit.
- Students should apply for the loan and interest subvention through the PM Vidyalaxmi portal.
- Required documents, including admission proof and income certificates, are verified.
- Banks and financial institutions review applications and approve loans based on eligibility.
- If eligible, interest subsidy is applied during the moratorium period.
- Loans are disbursed to cover tuition fees and related expenses directly to the institutions.
PM Vidyalaxmi Scheme Apply Online
To apply for PM Vidyalaxmi Scheme, follow the below-mentioned steps:
Step 1: Visit the Vidyalaxmi Portal i.e, https://www.vidyalakshmi.co.in/Students/
Step 2: On the homepage click on the “CLICK HERE” link after “To search and apply for a scholarship through National Scholarship Portal” option.
Step 3: Select “Search and Apply for Loan.”
Step 4: Choose the country where you wish to study (India or overseas).
Step 5: Decide the course and loan amount required for your education.
Step 6: Select three preferred banks and agree to the repayment terms.
Step 7: Upload the required documents and review your information.
Step 8: Click the “Submit” button to complete the application process.
FAQs
What is PM Vidyalaxmi Scheme?
The PM Vidyalaxmi Scheme provides collateral-free loans and interest subsidies for students pursuing higher education in top institutions.
Who is eligible to apply for the PM Vidyalaxmi Scheme?
Students admitted to top-ranked Higher Education Institutions (HEIs) or approved technical/professional institutions, with family income up to Rs. 8 lakh, are eligible.
What is the maximum loan amount I can get?
The loan covers up to Rs. 10 lakh for tuition fees and related course expenses.
Do I need a guarantor or collateral for the loan?
No, the scheme provides collateral-free, guarantor-free loans.
Is there any interest subsidy available?
Yes, students from families with income up to Rs. 8 lakh are eligible for a 3% interest subsidy during the moratorium period.
How can I apply for the loan?
Visit the PM Vidyalaxmi portal, choose your preferred banks, and submit your application with the required documents.