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Looking For An Education Loan? All You Need To Know About PM Vidyalakshmi Scheme
Children from families with an income between Rs 4.5 lakh and Rs 8 lakh receive a 3% interest subsidy on education loans up to Rs 10 lakh through the PM Vidya Lakshmi Yojana.
Every year, countless promising students abandon their studies midway due to financial difficulties. To assist these children, the central government has initiated an education loan scheme. Under the Pradhan Mantri Vidya Lakshmi Yojana, meritorious children from economically weaker families will receive loans without needing a guarantor. Additionally, students with an annual family income of up to Rs 4.5 lakh are granted full interest subsidy (100% interest subvention).
Children from families with an income between Rs 4.5 lakh and Rs 8 lakh receive a 3% interest subsidy on education loans up to Rs 10 lakh through the PM Vidya Lakshmi Yojana. The government has allocated Rs 3,600 crore for this scheme, covering the financial years 2024-25 to 2030-31. Consequently, approximately 7 lakh new students will benefit from this scheme. A 75% credit guarantee is also provided on education loans up to Rs 7.5 lakh, reducing the risk for banks when offering these loans.
The primary aim of the PM Vidya Lakshmi Yojana is to ensure that no deserving student is deprived of higher education due to financial constraints. This scheme allows students who have secured admission in NIRF-ranked Quality Higher Education Institutions (QHEIs) to access education loans without collateral or a guarantor, promoting inclusivity and equal opportunity in the education sector.
Students with an annual family income of up to Rs 4.5 lakh get full interest subsidy (100%), a benefit associated with the PM-USP CSIS scheme. Those with an annual income between Rs 4.5 lakh and Rs 8 lakh receive a 3% interest subsidy on loans up to Rs 10 lakh. The government provides a 75% credit guarantee on loans up to Rs 7.5 lakh, enabling banking institutions to offer loans with reduced risk.
How To Apply?
Students wishing to apply for an education loan can do so directly through the PM Vidya Lakshmi portal, The scheme is integrated with all major banks, including government, private, regional rural banks, and cooperative banks. The interest subsidy amount is sent directly to the beneficiary via e-voucher or CBDC wallet, ensuring transaction transparency.
PM Vidya Lakshmi Yojana Eligibility Criteria:
– Merit-based admission in QHEIs.
– Annual family income should be up to Rs 8 lakh (full interest benefit to certain income groups).
– Should not be receiving benefits from any other government scholarship or interest subsidy scheme.
PM Vidya Lakshmi Yojana Ineligibility:
– Students who drop out of studies for academic or disciplinary reasons.
– Students already benefiting from any other Central/State Government Scholarship/Interest Subsidy scheme.
Documents Required For Application:
To apply for an education loan under the PM Vidya Lakshmi Yojana, the following documents are required:
– Identity Proof: Aadhar Card / PAN Card / Passport
– Address Proof: Aadhar Card / Ration Card / Electricity Bill / Passport
– Date of Birth Proof: 10th mark sheet or birth certificate
– Educational documents: 10th and 12th mark sheets, Graduation/Diploma mark sheets (if applicable), Admission letter (in a recognized Quality Higher Education Institution)
– Income Certificate: Issued by State Government or Competent Authority
– Passport size photo: recent one
– Bank passbook/account details: containing student's name and IFSC code
– Self-Declaration: stating non-availability of any other interest subsidy or education loan subsidy scheme.
– Fee Structure / Course Details: Issued by College / University
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First Published:
August 12, 2025, 17:53 IST
News education-career Looking For An Education Loan? All You Need To Know About PM Vidyalakshmi Scheme
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