What the scheme offers
PM Vidyalaxmi was approved by the Union Cabinet and launched on 6 November 2024. Students who get admission on merit to a covered Quality Higher Education Institution (QHEI) can take a bank education loan for tuition and other course costs:
- No collateral and no guarantor
- A 75% credit guarantee from the government on loans up to ₹7.5 lakh, so banks are more willing to lend
- 3% interest subvention during the moratorium on loans up to ₹10 lakh, for families with annual income up to ₹8 lakh
- Students from families earning up to ₹4.5 lakh a year continue to get full interest subvention under the existing scheme
Which institutions are covered
Institutions in the top ranks of the National Institutional Ranking Framework (NIRF), public and private, as listed on the portal. Over 1,400 institutions were covered at our last check. Admissions through management or NRI quota do not get the benefit.
Who cannot get it
- Students already getting another government scholarship or interest subvention
- Students who leave the course for disciplinary or academic reasons (leaving for medical reasons, with proof, is allowed)
How to apply
- Register on the PM-Vidyalaxmi portal and fill in one common application.
- Choose up to three banks; the portal shows their loan products.
- Track the application on the portal. Interest subvention is also claimed through it.
Interest rates
The rate is set by each bank, not by the scheme, so compare the banks' offers on the portal before you choose.
Beyond PM Vidyalaxmi
If your institute is not covered or you need more, banks' own education loans are the next option. For short-term needs such as a laptop or a deposit, a personal loan is another route, with its own costs.
Oxon Fintech is not a government agency and does not take applications for this scheme. Apply on the official portal or at a bank branch, and be careful of anyone who asks for money to get a scheme loan approved. Scheme rules change; check the official site before you apply.