The PM Vidya Lakshmi Education Loan Yojana 2025 is a Central Sector Scheme launched by the Government of India to provide financial support to meritorious students pursuing higher education. Approved by the Union Cabinet on November 6, 2024, this initiative aims to ensure that financial constraints do not hinder access to quality higher education.
Overview
The PM Vidya Lakshmi Yojana is designed to offer collateral-free and guarantor-free education loans to students admitted to top-quality higher educational institutions (QHEIs) in India. It aligns with the National Education Policy 2020 and complements existing schemes like the Central Sector Interest Subsidy (CSIS) and the Credit Guarantee Fund Scheme for Education Loans (CGFSEL) under the PM-USP (Pradhan Mantri Uchchatar Shiksha Protsahan Yojana). The scheme targets over 2.2 million students annually and has an outlay of ₹3,600 crore from 2024-25 to 2030-31.
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| Features | Detail |
|---|---|
| Maximum loan amount | Up to ₹6.5 lakh |
| Is a guarantee necessary? | Not necessary up to ₹7.5 lakh |
| Application process | Completely online |
| Eligibility | Must be an Indian citizen, admitted to a recognized institution |
| Limitation period | 5 to 15 years (Payment as EMI) |
| Moratorium period | Study time + 1 year |
| Interest rate | Starting from 8% (may vary by bank) |
| Associated banks | 38+ Banks and NBFCs |
Key Features
- Loan Amount: No upper limit on the loan amount, covering tuition fees and other course-related expenses. Loans up to ₹7.5 lakh are supported with a 75% credit guarantee for banks.
- Interest Subvention:
- 3% interest subvention during the moratorium period (course duration plus one year or six months after employment, whichever is earlier) for students with a family income up to ₹8 lakh, on loans up to ₹10 lakh.
- Full interest subvention during the moratorium period for students with a family income up to ₹4.5 lakh, on loans up to ₹10 lakh (under CSIS integration).
- Collateral and Guarantor: Not required, making it accessible to students from economically weaker sections.
- Digital Process: A simple, transparent, and entirely digital application process via the PM Vidyalaxmi portal.
- Coverage: Applicable to the top 860 QHEIs, including institutions ranked in the top 100 (overall, category-specific, and domain-specific) by the National Institutional Ranking Framework (NIRF), state government HEIs ranked 101-200, and all central government institutions. The list is updated annually.
Eligibility Criteria
- Nationality: Must be an Indian citizen (OCI/PIO categories are eligible for studies in India).
- Admission: Admission to one of the 860 listed QHEIs through open competitive examinations or merit-based channels for graduate, postgraduate, diploma, or integrated courses.
- Educational Qualification: Minimum 12th-grade pass or equivalent, with successful completion of required entrance exams for the chosen institution.
- Income: No income ceiling for loan eligibility, but interest subvention benefits are tied to family income:
- Up to ₹4.5 lakh for full interest subvention.
- Up to ₹8 lakh for 3% interest subvention.
- Documents: Aadhaar card, 12th-grade marksheet, income certificate, recent photograph, and contact details.
Benefits
- Financial Inclusion: Ensures students from poor and middle-class families can pursue higher education without financial barriers.
- Credit Support: 75% credit guarantee for loans up to ₹7.5 lakh reduces bank risk, encouraging loan approvals.
- Interest Relief: Subsidized interest rates ease the repayment burden during the moratorium period.
- Wide Accessibility: Covers a broad range of institutions and courses, supporting over 22 lakh students annually.
Application Process
- Registration:
- Visit the official PM Vidyalaxmi portal (https://pmvidyalaxmi.co.inhttps://pmvidyalaxmi.co.in or https://www.vidyalakshmi.co.in).
- Click “New User?” and create an account using your email and mobile number. Verify via the activation link sent to your email.
- Fill the Common Education Loan Application Form (CELAF):
- Provide personal details, educational qualifications, and course information.
- Upload digitized documents (Aadhaar, marksheet, income proof, photo).
- Search and Apply for Loan:
- Select the country (India), loan amount, and choose up to three preferred banks (e.g., Bank of Baroda, Canara Bank, Bank of India) with suitable repayment terms.
- Submit and Track:
- Review details and click “Submit.”
- Track application status on the portal in real-time.
Repayment and Moratorium
- Moratorium Period: Course duration plus one year or six months after securing employment, whichever comes first.
- Repayment Tenure: Typically 10–15 years, depending on the bank and loan amount.
- Interest Subvention Disbursement: Provided via e-vouchers or Central Bank Digital Currency (CBDC) wallets during the moratorium period.
Participating Institutions
The scheme covers the top 860 QHEIs, including:
- NIRF-ranked top 100 institutions (overall, category-specific, domain-specific).
- State government HEIs ranked 101–200.
- All central government institutions.
- The list is available at https://dashboard.aishe.gov.in and updated annually.
Important Dates
- Launch: Approved on November 6, 2024.
- Portal Update: Expected to launch with new changes by January 2025.
- Application Period: Ongoing, with specific deadlines varying by bank (e.g., May 28–June 17, 2025, for some notifications).
Challenges and Sentiment
- Some posts found on X indicate concerns about delays, with 76% of 2,963 applications pending as of April 1, 2025, and banks raising issues about implementation. This suggests potential hurdles in processing, though it’s inconclusive without official confirmation.
- The scheme has been welcomed for its inclusivity, but its success depends on efficient bank coordination and portal functionality.
Additional Notes
- Grievance Redressal: Contact Canara Bank (toll-free: 1800 1031, email: hoel@canarabank.com) for issues related to CSIS and PM Vidyalaxmi.
- Complementary Schemes: Integrates with CGFSEL (75% guarantee for loans up to ₹7.5 lakh) and CSIS (full interest subsidy for income up to ₹4.5 lakh).
- Target: Aims to benefit 1 lakh students annually with interest subvention, selected based on application volume.
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Frequently Asked Questions (FAQ) on PM Vidya Lakshmi Education Loan Yojana 2025
It is a government scheme launched on November 6, 2024, to offer collateral-free and guarantor-free education loans to students admitted to top-quality higher educational institutions (QHEIs) in India, aiming to remove financial barriers to higher education.
There is no upper limit on the loan amount, covering tuition fees and other course expenses. Loans up to ₹7.5 lakh are supported with a 75% credit guarantee.
Aadhaar card, 12th-grade marksheet, income certificate, recent passport-sized photograph, and contact details.
The moratorium period is the course duration plus one year or six months after securing employment, whichever comes first, during which interest subvention is applicable.
A 75% credit guarantee is provided for loans up to ₹7.5 lakh, reducing the bank’s risk and encouraging loan approvals.
