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Pradhan Mantri Vidyalaxmi (PM-Vidyalaxmi) Scheme

The Pradhan Mantri Vidyalaxmi (PM-Vidyalaxmi) Scheme, launched by the Department of Higher Education, Ministry of Education, Government of India, is designed to ensure that no deserving student misses out on quality higher education due to financial issues.

The scheme offers collateral-free and guarantor-free education loans through a simple and fully digital application process. Students from families with an annual income of up to ₹8 lakh are eligible for 3% interest subvention, provided they secure admission on merit to one of the 860 approved Quality Higher Educational Institutions (QHEIs) across India.

The scheme is operated by the Department of Higher Education with Canara Bank as the nodal bank. Applications are accepted online only.

Key Benefits of PM-Vidyalaxmi Scheme

Collateral-free & Guarantor-free Education Loans

Students admitted to designated QHEIs can access special loan products without any collateral or third-party guarantee.

Loan Amount Based on Actual Expenses

There is no upper limit on the loan. The amount is determined by:

75% Credit Guarantee by Government of India

For loans up to ₹7.5 lakh, the Government provides a 75% credit guarantee-irrespective of family income.

3% Interest Subvention

Students from families earning up to ₹8 lakh per year get a 3% interest subsidy on loans up to ₹10 lakh during the moratorium (course duration + 1 year).

Additional Subsidy Already Available for Lower-Income Groups

Students with a family income up to ₹4.5 lakh already receive full interest subvention under the PM-USP CSIS scheme for technical/professional courses.

Interest Rate Capped

Banks can charge a maximum of: EBLR (Externally Benchmarked Lending Rate) + 0.5%

Extra 1% Concession

If students repay interest during the study period + moratorium period, they receive an additional 1% interest discount.

Long Repayment Tenure

Repayment period can extend up to 15 years, excluding the moratorium.

Subsidy Through Digital Rupee (CBDC Wallet)

The interest subvention amount is credited to the student's PM-Vidyalaxmi Digital Rupee App (CBDC Wallet). After redemption, the money is transferred into the student's loan account.

Eligibility Criteria

For Students

For Quality Higher Educational Institutions (QHEIs)

Institutions falling under these categories are eligible:

  1. Top 100 HEIs (overall/category/domain) as per the latest NIRF rankings.

  2. Top 200 state/UT government HEIs listed in NIRF.

  3. All HEIs under Government of India control.

Not included:

How to Apply Online - Step-by-Step Guide

Registration

  1. Visit the official PM-Vidyalaxmi website.

  2. Click Login → Student Login → Create an Account.

  3. Register using AADHAAR, mandatory for all scheme benefits.

  4. Enter Name, Mobile Number, Email ID → Verify with OTP.

  5. Create a strong password and complete registration.

  6. You will receive confirmation through SMS/Email/WhatsApp.

Submit Education Loan Application

  1. Log in using your registered Email (User ID) & Password.

  2. Enter Captcha → Accept Terms & Privacy → Login.

  3. On your dashboard, click Apply for Education Loan.

  4. Fill all required fields and upload mandatory documents.

  5. Select preferred bank & branch from the dropdown.

  6. Verify entered details carefully.

  7. Agree to terms and click Final Submit.

  8. Confirmation will be sent to your registered contact details.

Track Your Loan Application

  1. Log in → Go to Track Loan Application.

  2. Select your Application Number.

  3. View real-time status (Under Review / Approved / Disbursed).

  4. You can also download the application PDF.

Apply for Interest Subvention

  1. After your loan is sanctioned and disbursed, log in to the portal.

  2. Click Apply for Interest Subvention.

  3. Submit required details.

  4. Upload Income Certificate / Annexure 6 (from your institution).

  5. Submit and receive confirmation alerts.

Raise a Grievance

  1. Go to Initiate Grievance → Register New Complaint.

  2. Enter Loan Application Number → Select grievance type.

  3. Mention the issue and upload supporting documents (PDF/JPEG/PNG, max 200 KB).

  4. Submit to generate a Grievance ID.

  5. Track status under View Reply and re-raise if unresolved.

Grievance Redressal - Official Support

You can contact Canara Bank (Nodal Bank):

Documents Required

If the QHEI has already verified some documents, students can submit a certificate from the institution (Annexure 6). Only remaining documents must be uploaded.

Additional Resources