This article is related to PM Vidya Lakshmi Education Loan Scheme. The Government of India has launched the Pradhan Mantri Vidya Lakshmi Education Loan Scheme, a one-stop digital platform designed to simplify education loans for students across the country.Â
Announced under the Union Budget 2024–25, the scheme aims to make higher education more accessible by offering collateral free, guarantor free loans with flexible repayment options.
Focus on your studies—we will take care of the money part
What Is the Vidya Lakshmi Scheme?
The Vidya Lakshmi scheme provides a single online window where students can apply for education loans from multiple banks. Instead of approaching individual banks, applicants can use the dedicated Vidya Lakshmi portal to fill in details, upload documents and track the status of their applications.
According to the Education Ministry, the scheme is expected to benefit nearly 22 lakh students annually, covering both technical and non-technical higher education courses.
Who Can Apply for PM Vidya Lakshmi Education Loan Scheme?
All Indian students admitted to Quality Higher Education Institutions (QHEIs) are eligible. This includes:
Top 100 institutions under the National Institutional Ranking Framework (NIRF).
Central government-run institutions.
State institutions ranked between 101 and 200 in NIRF.
There is no income bar for eligibility, although subsidies are available for students from families with annual incomes below specific thresholds.
Key Benefits
The PM Vidya Lakshmi scheme offers multiple advantages for students:
No collateral or guarantor required for loans.
Full interest subsidy on loans up to ₹10 lakh for students from families with annual income up to ₹4.5 lakh, pursuing technical or professional courses.
3% subsidy for students from families with annual income up to ₹8 lakh, applicable for all courses.
Credit guarantee support of 75% on loans up to ₹7.5 lakh, reducing the risk for banks.
Flexible repayment tenure of up to 15 years, with a one-year moratorium after the completion of the course.
Detailed guidelines can be accessed on the Education Ministry’s official website.
Application Process
Students can apply through the official PM Vidya Lakshmi portal. The process involves:
Registering on the portal and filling out the common education loan application form.
Selecting up to three preferred banks.
Uploading necessary documents, including admission proof, ID, and income certificates.
Tracking loan status online, from submission to sanction and disbursement.
Latest Updates
Banks are beginning to adopt the scheme aggressively. Recently, Punjab National Bank (PNB) announced a 20 basis point cut in interest rates for loans disbursed under the Vidya Lakshmi scheme, making borrowing even more affordable for students.
Why It Matters
With rising education costs in India and abroad, the PM Vidya Lakshmi scheme is important in ensuring that deserving students are not denied higher education due to financial constraints.Â
By reducing paperwork, offering interest subsidies and ensuring government-backed credit guarantees, the scheme marks a significant step toward making education loans transparent and student-friendly.
