Students who want to study at a top college but are worried about money can now get financial help through the PM Vidyalaxmi Education Loan Scheme.
The Central Government launched this scheme to make higher education more affordable for deserving students.
Under this scheme, eligible students can get an education loan without providing any collateral or guarantor. Every year, more than 22 lakh students are expected to benefit from this initiative.
Who Can Apply?
The scheme is available for students who get admission to one of India’s 860 top Quality Higher Education Institutions (QHEIs) listed under the National Institutional Ranking Framework (NIRF).
The government has approved the scheme to help students continue their education without financial stress.
Main Benefits of PM Vidyalaxmi Scheme
No collateral or guarantor required for eligible education loans.
Zero processing fee, so students do not have to pay extra charges while applying.
The Government provides a 75% credit guarantee to banks for loans up to ₹7.5 lakh.
Families with an annual income of up to ₹8 lakh can get a 3% interest subsidy on education loans up to ₹10 lakh during the moratorium period.
Loans are available through scheduled banks, Regional Rural Banks (RRBs), and cooperative banks across India.
Interest Rate and Repayment
The interest rate depends on the bank and the loan amount. At present, education loan interest rates can range from 8.1% to 18% per year.
Students also get enough time to repay the loan. The repayment period can be up to 15 years, excluding the course duration and moratorium period.
In some cases, banks may also provide life insurance coverage for higher loan amounts. If the student agrees, the insurance premium can be added to the total loan amount.
Government Budget for the Scheme
The PM Vidyalaxmi Scheme covers students studying in the country’s 860 top-ranked higher education institutions.
The government has allocated around ₹3,600 crore for the scheme for the period 2024-25 to 2030-31.
How to Apply for PM Vidyalaxmi Education Loan
The application process is completely online and simple.
Visit the official Vidyalaxmi Portal.
Register by entering your name, mobile number, email ID, Aadhaar details, and other required information.
Log in using your user ID and password.
Open the Loan Application section and choose the required education loan.
Fill in details such as your course, institute, fee structure, and personal information.
Review the form carefully and submit the application.
After submission, you can track your application status online and receive updates once the loan is approved.
