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Introduction to Pradhan Mantri Vidyalaxmi Scheme
The Pradhan Mantri Vidyalaxmi (PM-Vidyalaxmi) Scheme is a central sector scheme launched by the Ministry of Education, Government of India, to ensure that meritorious students do not face financial barriers in pursuing higher education. Approved on November 6, 2024, the scheme provides collateral-free and guarantor-free education loans through a fully digital, transparent, and student-friendly process. It is implemented via the PM-Vidyalaxmi portal (pmvidyalaxmi.co.in), managed by Canara Bank as the nodal agency. Mahila Udyam Nidhi Yojana 2026: Empower Women Entrepreneurs with Soft Loans Up to ₹10 Lakh
The scheme targets students admitted on merit to 860 designated Quality Higher Educational Institutions (QHEIs) in India, covering top NIRF-ranked institutions. It offers loans with no upper limit (based on course fees and expenses), 3% interest subvention for eligible income groups during moratorium, and 75% credit guarantee up to ₹7.5 lakh. Animal Husbandry Infrastructure Development Fund AHIDF 2026: Secure 3% Interest Subvention & 90% Credit Guarantee for Dairy
In 2026, the scheme remains active, with ongoing disbursements, real-time tracking, and integration with Digital Rupee wallets for subvention. It complements existing schemes like PM-USP CSIS (full subvention for lower incomes) and CGFSEL, supporting over 22 lakh students annually in technical, professional, and other degree/diploma programs.
Why Choose Pradhan Mantri Vidyalaxmi Scheme?
PM-Vidyalaxmi removes financial hurdles for quality higher education. Collateral-free loans reduce risk, while digital applications eliminate branch visits. Interest subvention lowers costs significantly for middle-income families. In 2026, the scheme’s focus on merit-based admissions and top institutions ensures value. It promotes equity, especially for girls and rural students, with preferences in subvention allocation.
The portal allows applying to multiple banks simultaneously, comparing offers. Real-time tracking and grievance redressal add transparency. It’s ideal for undergraduate, postgraduate, or integrated courses in premier institutions.
Benefits of PM-Vidyalaxmi Scheme
No collateral/guarantor needed. Subvention saves on interest. High coverage for expenses.
Key Advantages Table
| Advantage | Description |
|---|---|
| Collateral-Free | No security or guarantor required. |
| Interest Subvention | 3% on up to ₹10 lakh for income ≤ ₹8 lakh. |
| No Upper Loan Limit | Covers full fees, hostel, laptop, living costs. |
| Digital Process | Single portal for multiple banks. |
| Credit Guarantee | 75% up to ₹7.5 lakh by government. |
Key Features of PM-Vidyalaxmi Scheme
Fully digital loans with concessional terms.
Loan Features
- Amount: No cap; based on fees + hostel/mess + laptop + living expenses.
- Interest: Capped at bank’s EBLR + 0.5%; lower than non-scheme rates.
- Moratorium: Course duration + 1 year.
- Repayment: Up to 15 years post-moratorium.
- Guarantee: 75% coverage up to ₹7.5 lakh.
Interest Subvention
- 3% during moratorium on up to ₹10 lakh for income ≤ ₹8 lakh.
- Full subvention for income ≤ ₹4.5 lakh under PM-USP CSIS.
- Extra 1% concession if interest serviced during moratorium.
- Subvention via Digital Rupee app; redeemable for loan account.
Subvention Details Table
| Family Income | Subvention | Coverage |
|---|---|---|
| Up to ₹4.5 Lakh | Full (CSIS) | Moratorium |
| ₹4.5-8 Lakh | 3% | Up to ₹10 Lakh |
| Above ₹8 Lakh | None | Loan only |
Quality Higher Educational Institutions (QHEIs)
860 institutions: Top 100 NIRF (overall/category/domain), top 200 state HEIs, all central HEIs.
Eligibility for PM-Vidyalaxmi Scheme
Merit-based admission to QHEIs.
Eligibility Criteria
- Indian citizen.
- Merit admission (no management quota).
- Admitted to QHEI for degree/diploma.
- Income ≤ ₹8 lakh for subvention.
- No other central/state scholarship/subvention.
- Satisfactory performance; no mid-course dropout (except medical).
- Benefits once per course level.
Interest Rates and Charges
Bank EBLR + 0.5% cap. No processing fees often.
Interest Rate Table
| Aspect | Details |
|---|---|
| Nominal Rate | EBLR + 0.5% |
| Effective | Reduced by subvention |
| Moratorium Interest | Simple; subvention covers part |
How to Apply for PM-Vidyalaxmi Scheme
Entirely online via pmvidyalaxmi.co.in.
Application Process
- Visit pmvidyalaxmi.co.in.
- Register with Aadhaar (OTP verification), email, mobile.
- Login, fill 2-page form.
- Upload docs, select bank/branch.
- Submit; bank verifies.
- Track status; apply for subvention post-sanction.
- Subvention via Digital Rupee app.
Grievance: Portal or Canara Bank helpline.
Required Documents
Minimal digital submission.
Documents Checklist Table
| Document | Purpose |
|---|---|
| Aadhaar | KYC |
| PAN | Tax |
| Address Proof | Residence |
| Marksheets | Academic |
| Entrance Result | Merit |
| Offer Letter | Admission + Fees |
| Income Certificate | Subvention |
Link with Other Schemes
Complements PM-USP CSIS (full subvention), CGFSEL (guarantee). Integrates existing beneficiaries.
Participating Banks
All scheduled banks, RRBs, cooperative banks. Canara Bank nodal.
Benefits for Students
Access to quality education. Financial freedom.
Challenges and Tips
Limited to QHEIs. Tips: Prepare docs early. Track portal.
Risk Management
Service interest for concessions. Maintain academics.
Costs and Earnings
No direct cost; loans cover expenses. Future earnings high from premier institutions.
Cost Breakdown Table
| Item | Coverage |
|---|---|
| Fees/Hostel | Full loan |
| Subvention Save | 3% on ₹10 lakh |
Success Stories
Students from modest backgrounds access top colleges without family burden.
Future in 2026
Ongoing; portal enhancements, more QHEIs.
Conclusion
PM-Vidyalaxmi opens doors. Apply via portal.
FAQ Section
What is PM-Vidyalaxmi Scheme?
Collateral-free education loan scheme.
Loan Limit?
No upper limit.
Subvention?
3% for income ≤ ₹8 lakh.
Eligibility?
Merit in QHEIs.
How to Apply?
pmvidyalaxmi.co.in.
Collateral?
No.
Repayment?
15 years post-moratorium.
Documents?
Aadhaar, offer letter.
Guarantee?
75% up to ₹7.5 lakh.
Portal?
pmvidyalaxmi.co.in.
FAQ Table
| Question | Answer |
|---|---|
| Loan Limit | No Upper |
| Subvention | 3% |
| Eligibility | QHEIs Merit |
| Apply | Online Portal |
| Collateral | No |
| Repayment | 15 Years |
| Documents | Aadhaar |
| Guarantee | 75% |
| Benefits | Financial Aid |
| Nodal Bank | Canara |