PM Vidyalaxmi: Get up to Rs 7.5 lakh for your education without collateral or guarantor

PM Vidyalaxmi scheme: Are you worried about securing an education loan? Say goodbye to the stress! You can now access loans up to ₹7.5 lakh without the need for collateral or a guarantor.The Union Cabinet, chaired by Prime Minister Shri Narendra Modi , has approved the PM Vidyalaxmi Scheme. The scheme is designed to make it easier for students to access educational loans and pursue higher education without financial stress.

What’s PM Vidyalaxmi?

This scheme provides financial support to students who are admitted to top-quality educational institutions across India. The key advantage of this scheme is that it simplifies the loan process, making it quick and easy for students to apply without worrying about collateral or a guarantor.

How does it work?

Under the scheme, students do not need to provide any collateral or guarantor to secure a loan, removing common barriers that often deter applicants. The entire loan application process is digital, allowing students to apply online from anywhere without the burden of paperwork. 

Additionally, the scheme provides financial relief through interest subvention: students from families with an annual income of up to Rs 8 lakh can benefit from a 3 per cent interest discount on loans up to Rs 10 lakh during the moratorium period, while those with a family income of up to Rs 4.5 lakh enjoy full interest coverage. 

The scheme allows students to apply for loans up to Rs 7.5 lakh to cover tuition and other expenses, with the government offering a 75 per cent credit guarantee to support banks in expanding loan access.

Who can apply?

The scheme is available to students who are admitted to one of the top-ranked institutions (both government and private) as per the NIRF rankings. It’s available to more than 22 lakh students annually who want to pursue higher education in technical, professional, or other courses.

If your family income is up to Rs 8 lakh, and you’re pursuing a loan for up to Rs 10 lakh, you can get the interest subvention. Additionally, students on technical or professional courses are given preference.

How to apply for the loan?

• Visit the Portal: Go to the official PM Vidyalaxmi portal.
• Fill in Your Details: Enter your personal details, course information, and family income.
• Submit Loan Application: Select the loan amount based on your requirements and submit your application.
• Process and Verification: After submission, your loan application is processed digitally, with updates provided online.
• Interest Subvention: If eligible, you will receive the interest subvention directly into your **E-voucher or CBDC wallet.

This scheme aims to ensure that deserving students can pursue higher education, regardless of financial constraints, opening doors to better career opportunities in the future.