PM-Vidyalaxmi Education Loan Scheme
Department of Higher Education, Ministry of Education, Government of India
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About This Scholarship
PM-Vidyalaxmi is an education loan scheme with interest subvention, not a grant. It is a Central Sector scheme of the Department of Higher Education, Ministry of Education, approved by the Union Cabinet (PIB release of 6 November 2024) as an outcome of the National Education Policy 2020. It lets meritorious students who get admission to a quality higher education institution (QHEI) take collateral-free, guarantor-free education loans from banks through a digital application. QHEIs are chosen from NIRF rankings: all institutions, government or private, ranked in the top 100 overall, by category or by domain; state government institutions ranked 101 to 200; and all centrally governed institutions. The list is updated every year from the latest NIRF ranking and began with 860 institutions, covering more than 22 lakh students. Loans up to Rs 7.5 lakh carry a 75 percent Government of India credit guarantee on outstanding default, which supports banks in lending. Students with annual family income up to Rs 8 lakh who are not eligible for any other government scholarship or interest subvention scheme also get 3 percent interest subvention on loans up to Rs 10 lakh during the moratorium, for one lakh students a year. This sits on top of the full interest subvention already offered to students with family income up to Rs 4.5 lakh. The Cabinet set an outlay of Rs 3,600 crore for 2024-25 to 2030-31.
At a glance
| Item | Details |
|---|---|
| Provider | Department of Higher Education, Ministry of Education |
| Type | Education loan with credit guarantee and interest subvention, not a grant |
| Who | Students admitted to a QHEI: NIRF top 100, state institutions ranked 101 to 200, all centrally governed institutions |
| Loan | Collateral-free and guarantor-free; 75 percent credit guarantee on loans up to Rs 7.5 lakh |
| Interest subvention | 3 percent during the moratorium on loans up to Rs 10 lakh, for family income up to Rs 8 lakh |
| Income limit | None stated for the loan; Rs 8 lakh for the 3 percent subvention |
| Applications 2026-27 | Not announced yet (no window in the Cabinet decision; the portal could not be opened) |
| Portal | PM-Vidyalaxmi portal (pmvidyalaxmi.co.in), Department of Higher Education |
The release says the Department of Higher Education will run a unified PM-Vidyalaxmi portal where students apply for the education loan and for interest subvention through one simplified application used by all banks, and that interest subvention is paid through e-vouchers and CBDC wallets. The portal could not be opened for this check, so the 2026-27 application status is not confirmed.
Sources: PIB Cabinet release of 6 November 2024 and the PM-Vidyalaxmi portal (not readable by script). Checked on 5 October 2026.
Provider
Department of Higher Education, Ministry of Education, Government of India
Type
Need-based
Level
Undergraduate
Duration
Interest subvention during the loan moratorium; loan tenure not stated in the Cabinet release
100000
Awards
Interest subvention during the loan moratorium; loan tenure not stated in the Cabinet release
Duration
Collateral-free, guarantor-free education loan from banks for students admitted to a quality higher education institution; 75 percent Government of India credit guarantee on outstanding default for loans up to Rs 7.5 lakh; 3 percent interest subvention during the moratorium on loans up to Rs 10 lakh for eligible students. This is a loan scheme, not a grant
Coverage
Eligibility Criteria
| Criterion | Requirement |
|---|---|
| Institution | Admission to a QHEI: any government or private institution ranked in the NIRF top 100 (overall, category-specific or domain-specific), state government institutions ranked 101 to 200, or any centrally governed institution; list updated every year |
| Loan | Collateral-free, guarantor-free education loan from a bank; 75 percent credit guarantee on outstanding default for loans up to Rs 7.5 lakh |
| 3 percent interest subvention | Annual family income up to Rs 8 lakh and not eligible for any other government scholarship or interest subvention scheme; loan up to Rs 10 lakh; one lakh students a year |
| Preference | Students from government institutions who have chosen technical or professional courses |
| Full interest subvention | Already given to students with annual family income up to Rs 4.5 lakh (CSIS under PM-USP) |
- The release states no income ceiling for the loan or the credit guarantee; the income limits apply to interest subvention.
- The QHEI list changes every year with the latest NIRF ranking.
Eligible Categories
Scholarship Benefits
Financial Support
Up to INR 10,00,000
Disbursement: The lending bank disburses the loan; the Government pays interest subvention through e-vouchers and CBDC wallets. Loan tenure and disbursement terms are not stated in the Cabinet release
What's Covered
| Component | Detail |
|---|---|
| Education loan | Collateral-free and guarantor-free, through a digital application, for students admitted to a QHEI |
| Credit guarantee | 75 percent of outstanding default on loans up to Rs 7.5 lakh, given by the Government of India to support banks |
| Interest subvention | 3 percent on loans up to Rs 10 lakh during the moratorium, for students with family income up to Rs 8 lakh who get no other government scholarship or subvention; one lakh students every year |
| Full interest subvention | Already available to students with annual family income up to Rs 4.5 lakh |
| Payment | Interest subvention is paid through e-vouchers and CBDC wallets |
The Cabinet approved an outlay of Rs 3,600 crore for 2024-25 to 2030-31, and the release expects 7 lakh fresh students to benefit. Loan amounts, interest rates and tenure beyond these limits are not stated in the release.
How to Apply
Application Guide
- Check that the institution is on the current list of quality higher education institutions (QHEIs), which is updated every year from the latest NIRF ranking.
- Open the PM-Vidyalaxmi portal (pmvidyalaxmi.co.in) run by the Department of Higher Education.
- Apply for the education loan, and for interest subvention if eligible, through the single application that all banks use.
- The bank sanctions the loan; the Government pays any interest subvention through e-vouchers and CBDC wallets.
- The portal could not be opened for this check, so its registration screens, document list and any application window are not listed here.
Selection Process
The Cabinet release describes no merit ranking for the loan itself: any student admitted to a QHEI is eligible to apply, and the release does not describe the banks' sanction process. The 3 percent interest subvention is limited to one lakh students every year, with preference for students from government institutions who have chosen technical or professional courses. How applicants are ranked beyond that preference is not described.
Important Dates
Important dates will be announced soon. Check back later for updates.