PM Vidyalaxmi Education Loan: Know More Details About Scheme

The central government has launched the Pradhan Mantri Vidyalaxmi (PM Vidyalaxmi) education loan scheme to provide financial assistance to meritorious students seeking higher education. 

Approved by the Union Cabinet in November last year, this initiative aims to remove financial barriers for students admitted to 860 top Higher Educational Institutions (HEIs) in India. The scheme is expected to benefit over 22 lakh students annually, ensuring access to quality education through collateral-free loans.

Key Features of PM Vidyalaxmi Scheme

1. Eligibility: Students admitted to Quality Higher Education Institutions (QHEIs) can apply.
2. Collateral-Free Loans: No guarantor or collateral is required to avail of the loan.
3. Loan Availability: Loans can be taken from Scheduled Banks, Regional Rural Banks, and Cooperative Banks.
4. Credit Guarantee: The Government of India provides a 75% credit guarantee on loan amounts up to ₹7.5 lakh.
5. Interest Subvention: Students with an annual family income of up to ₹8 lakh will receive a 3% interest subvention on loans up to ₹10 lakh during the moratorium period.
6. Interest Rates: Vary between 8.1% and 18%, depending on the lending institution and course fee.
7. Repayment Tenure: Loans can be repaid over 15 years, excluding the moratorium period.
8. Funding Allocation: The government has allocated ₹3,600 crore for the scheme from 2024–25 to 2030–31, benefitting 2.2 million students annually.

Application Process 

1. Visit the Official Vidyalaxmi Portal and apply for an education loan.
2. Register on the portal by providing details such as name, email, mobile number, Aadhaar number, and address.
3. Log in using the created credentials.
4. Access the ‘Loan Application’ section and select the type of loan.
5. Fill in the required details, including course name, institution, and loan amount.
6. Submit the application after verifying all details.
7. Track the loan application status through the Vidyalaxmi portal, which will notify applicants of their approval status.

Conclusion

The PM Vidyalaxmi education loan scheme is a significant step towards making higher education accessible to students across India. By offering collateral-free loans with flexible repayment options, the initiative aims to empower students financially, enabling them to pursue their academic aspirations without constraints.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.