The Union Cabinet approved the PM Vidyalaxmi Scheme under the chairmanship of PM Narendra Modi. The initiative seeks to offer education loans to meritorious students in the country. With this scheme, loan support will be provided for receiving education in top higher education institutions in India. The scheme will help young, talented individuals enrol in quality education without financial constraint. This is a moving step toward achieving the goals of the New Education Policy 2020. The scheme will support about 22 lakh students annually and sponsor loans to receive higher education in the top 860 quality higher educational institutions of India. Read below to check more details about the scheme.
Objectives of PM Vidyalaxmi Scheme 2024
The central government approved the PM Vidyalaxmi education loan scheme in a cabinet meeting held on 6th of November 2024. The scheme aims to support young individuals with education loans. This scheme will offer collateral-free, guarantor-free education loans to eligible students. The scheme will enable lakhs of students to have access to quality higher education without financial hurdles. The scheme will assist about 22 lakh students per year. PM Vidyalaxmi will maximise enrolment and improve the performance of quality higher education in India.
PM Vidyalaxmi Scheme Details in Summary
| Name of Scheme | PM Vidyalaxmi Scheme |
|---|---|
| Concerned Government | Central Government of India |
| Concerned Ministry | Ministry of Education |
| Concerned Department | The department of Higher Education |
| Objective | To offer education loans to meritorious students |
| Beneficiaries | Students get enrolled in the top 860 quality higher educational institutions |
| Loan availability | Up to INR 7.5 lakhs to INR 10.00 lakhs |
| Application Process | Online |
| Official Website | Coming Soon |
Salient Features
- PM Vidyalaxmi Scheme is a central sector scheme supported and sponsored by the central government of India.
- The scheme will be run under the department of higher education under the Ministry of Education, government of India.
- PM Vidyalakshmi will supplement the Central Sector Interest Subsidy (CSIS) and Credit Guarantee Fund Scheme for Education Loans (CGFSEL).
- The scheme will cover students getting admitted to about 860 quality higher education institutions in India.
- The central government has allocated a budget of INR 3600 crores for the scheme. The amount will be utilised for interest subvention facilitated under PM Vidyalaxmi education loans.
- More than 22 lakh students will be able to potentially avail benefits of the PM Vidyalaxmi Loan scheme.
- One of its main features is to offer loans without collateral and without a guarantor.
See Also: Prime Minister Internship Scheme (PMIS)
Loan Facility
- PM Vidyalaxmi is designed to offer education loans to bright students in India.
- Loan support ranging from INR 7.5 lakhs to INR 10.00 lakhs will be accorded to deserving candidates for quality higher education.
- No collateral or guarantor will be required for Vidyalaxmi Education loans.
- Students with an annual family income up to INR 4.5 lakhs would enjoy the full interest subvention on education loans availed of under Vidyalaxmi.
- Furthermore, students with an annual family income up to ₹ 8 lakhs would be supported with a 3% interest subvention on loans up to INR 10 lakhs. This subvention will be available during the moratorium period only.
- More than 22 lakh students can potentially gain loan benefits from the scheme.
- Interest subvention will benefit one lakh students annually, which will encompass 7 lakh freshmen students during 2024-25 to 2030-31.
Interest Subvention and Credit Guarantee
- PM Vidyalaxmi Scheme will offer interest subvention on education loans.
- Candidates with annual family income up to INR 4.5 lakhs would be able to avail of the full interest subvention.
- Whereas students having an annual family income up to INR 8.00 lakhs would have interest subvention support of 3% during the moratorium period.
- Loan amounts up to ₹ 7.5 lakh will be supported with a 75% credit guarantee by the Government of India.
Budget Allocation
The central government has sidelined a sum of INR 3600 crores for the PM Vidyalaxmi Scheme. This much amount will be exhausted during the scheme duration of 6 years, from FY 2024-25 to 2030-31. Most part of the budget allocation would be expensed for interest subvention applicable to loans taken under the Vidyalaxmi. The budget amount will potentially benefit more than 1.25 crore students with the full interest subvention. Whereas, more than 7 lakh students will be assisted with a 3% interest subvention during the loan moratorium period.
Eligibility Criteria
- The candidate should have permanent residency in India.
- The candidate should have taken admission to one of the 860 top-ranked quality higher education institutions (QHEIs) in India.
- Candidates having secured admission in government institutions and undertaken technical/professional courses will be given preference.
- Students with an annual family income not more than INR 4.5 lakhs will be eligible to avail of loans up to INR 7.5 lakh with full interest subvention.
- Students with up to INR 8.00 lakhs of annual family income will also be eligible to avail of loans up to INR 10.00 lakhs with 3% interest subvention during the moratorium period.
- Students already availing of interest subventions or other benefits from other schemes of government are not eligible.
Required Documents
The following documents will be required during the entire process of loan and interest subvention under the PM Vidyalaxmi Scheme.
- Aadhar Card of the applicant
- Residential proof
- Email ID
- Mobile number
- Proof of educational qualification
- Admission Proof
- Bank account details
- Passport-sized photographs
- Any other document as required
See Also: PM Internship Scheme Registration
Institutions Covered Under Vidyalaxmi
The PM Vidyalaxmi Scheme emphasises providing education loans to students getting enrolled in top-quality higher educational institutions in India. The scheme will facilitate loan support on the condition that the students admit themselves to the listed institutes. The scheme benefit will be applicable to the top-quality higher educational institutions in India. Eligibility of educational institutions would be determined by the NIRF rankings. The scheme will encompass all higher educational institutions mentioned below.
- All higher educational institutions (HEIs), be it either government or private, that are ranked within the top 100 in NIRF in overall, category-specific, and domain-specific rankings will be considered eligible under Vidyalaxmi.
- All state government HEIs ranked in 101-200 in NIRF.
- All central government-governed institutions.
- Initially, the list would consist of about 860 quality higher education institutions.
- The list of quality higher education institutions is subject to updates every year.
Scheme Implementation
The department of higher education would maintain a unified portal, “PM-Vidyalaxmi.” The portal will facilitate students with a simplified application process for education loans and interest subvention. This would be an integrated platform bringing all banks and students together. The department would also monitor scheme implementation, prepare reports, and share data with the government. The focus will be laid on providing preference to students who are from government institutions and have opted for technical/professional courses.
Selection of Students
Under PM Vidyalaxmi, there will be no specific criteria to select the eligible candidates for education loans. Students getting admitted to the listed institutes can apply for loans. In the process, they are required to produce some necessary documents to prove their eligibility. Once their application is accompanied with all necessary documents and gets approval, the loan amount will be disbursed.
See Also: pmsuryaghar.gov.in Registration
PM Vidyalaxmi Scheme Apply Online
As per the information provided by the government for the PM Vidyalaxmi Scheme, all procedures related to loan application and interest subvention will be done through an integrated portal. Students can proceed with the following steps to submit their loan application.
- Visit the official website of the PM Vidyalaxmi Scheme, i.e., https://www.vidyalakshmi.co.in/
- The home page of the website will appear on your screen.
- On the home page, click Register to proceed further.
- On the next page, provide some basic details like your name, mobile number, email ID, etc.
- Create a password and confirm it by re-entering, fill in the captcha code, and click Submit.
- Now return to the home page and click Login.
- Enter login credentials and click on the Login button.
- You will reach your profile dashboard on the Vidyalaxmi portal.
- Now you can proceed with application submission.
- Click on the button “Apply for Education Loan.”
- The online application form will appear on your screen.
- Fill in mandatory details and upload necessary documents.
- Fill in the captcha code, tick the declaration box, and proceed with the final submission.
- Your Vidyalaxmi Loan application will be submitted successfully.
Note: The official website of the PM Vidyalaxmi Scheme has not yet launched. Once it is launched, you will be updated about it on this page.
Links and References
Important FAQs
Which ministry has launched the PM Vidyalaxmi Scheme?
The PM Vidyalaxmi scheme has been launched by the Ministry of Education, Government of India.
What is the PM Vidyalaxmi Scheme?
This is an education loan scheme that aims to provide loans to young, talented students for higher education.
Which department will operate this scheme?
The scheme will be managed under the department of higher education, Ministry of Education, Govt. of India.
What benefit will be provided under PM Vidyalaxmi?
The scheme will provide education loans ranging from INR 7.5 lakhs to INR 10.00 lakhs. The loan will be provided without collateral, without a guarantor. The central government will assist with interest subvention.
Who can benefit from the scheme?
All students getting admission to listed quality educational institutions in India are eligible to avail of the education loan facility under PM Vidyalaxmi.
What is the eligibility criteria for students?
No specific eligibility is required. Having enrolled in approved quality higher educational institutions (QHEIs) will make students eligible. Having an annual family income not more than INR 4.5 lakh would enable students to avail of full interest subvention on loans up to INR 7.5 lakhs.
What is the eligibility criteria for educational institutions?
Eligibility criteria for educational institutions will be determined by the rankings declared by the NIRF. Initially, about 860 higher educational institutions will be selected for the scheme application.
What is the application process under PM Vidyalaxmi Scheme?
All processes related to loan application and interest subvention will be done through an integrated portal launched and managed by the Department of Higher Education, Government of India.
What is the official website of PM Vidyalaxmi Scheme?
The official website of the scheme is https://www.vidyalakshmi.co.in/