The government is running several schemes to support students, and one of the most helpful is the PM Vidyalakshmi Yojana.
Recently, Punjab National Bank (PNB) has reduced the interest rate on education loans under this scheme by 0.2%, making it even more affordable for students.
What is PM Vidyalakshmi Yojana?
The PM Vidyalakshmi Yojana is a special education loan scheme launched by the government to help meritorious students get easy and affordable loans for higher education. The biggest benefit is that no collateral or property mortgage is required.
This scheme mainly supports students who have secured admission into well-known higher education institutions in India. It is especially helpful for those from financially weaker sections of society.
Loan Available from All Types of Banks
The scheme is available through all major banks including:
Regional Rural Banks
Scheduled Commercial Banks
Cooperative Banks
A total budget of ₹3,600 crore has been allocated for the PM Vidyalakshmi Scheme from 2024–25 to 2030–31.
Students who gain admission to any of the 860 Quality Higher Education Institutes (QHEIs) on the basis of merit are eligible.
Who Can Apply for the Scheme?
To apply for a loan under this scheme, the applicant must:
Be an Indian citizen
Also includes Non-Resident Indians (NRI) and Overseas Citizens of India (OCI)
Which Institutes Are Covered?
The 860 Quality Higher Education Institutes (QHEIs) have been grouped into:
AAA
AA
A
These include institutes that are:
Ranked in the top 100 in the NIRF rankings
Ranked between 101 and 200 under state government categories
Benefits of PM Vidyalakshmi Yojana
This scheme offers many benefits for students from economically weaker families:
Families with an annual income of up to ₹8 lakh can get:
3% interest subsidy on education loans up to ₹10 lakh during the moratorium period (study period + 1 year)
Credit guarantee cover of up to 75% of the outstanding loan default, for loans up to ₹7.5 lakh
Documents Required for Application
To apply for a loan under the PM Vidyalakshmi Yojana, you will need:
Aadhaar card
Bank account details
Admission details of the educational institute
Other identity proof documents
This scheme is a great opportunity for deserving students who want to pursue higher education without financial stress. If you meet the criteria, it’s worth applying.
