About PM-Vidyalaxmi Scheme

The Union Cabinet on 6th November 2024 approved “Pradhan Mantri Vidyalaxmi” (PM-Vidyalaxmi), a Central Sector Scheme to financial support to meritorious students so that financial constraints do not prevent any youth of India from pursuing quality higher education. The broad contours of the scheme are:

• A mission mode mechanism will facilitate and drive the extension of education loans to meritorious students who get admission in the top quality Higher Educational Institutions (QHEIs) of the nation, translating to covering more than 22 lakh students every year.
• A special loan product will enable collateral free, guarantor free education loans; made accessible through a simple, transparent, student-friendly and entirely digital application process.
• Loan amounts up to ₹7.5 lakhs will be provided a 75% credit guarantee by the Government of India, to support banks to expand coverage.
• Furthermore, for students with up to Rs. 8 lakhs annual family income, the scheme will also provide for 3% interest subvention on loans up to Rs 10 lakh.
• This is in addition to the full interest subvention already offered to students with up to Rs. 4.5 lakhs annual family income.
• The Scheme is applicable for all Scheduled Banks/Regional Rural Banks (RRBs)/Cooperative Banks.

For more information refer to Scheme Page from Ministry of Education