Introduction to PM Vidyalaxmi
The Union Cabinet approved the Central Sector Scheme called PM Vidyalaxmi on 6th November 2024. It was designed to provide financial assistance to deserving students so that financial constraints do not prevent any deserving young girl from getting quality education in India. This scheme is applicable to all the Scheduled Banks, Regional Rural Banks (RRBs) and Cooperative Banks. Students apply for education loans on a single portal, via a simple, transparent and fully online process. It has been developed in consultation with the Department of Financial Services, the Department of Higher Education and, the Indian Banks Association and is maintained by Canara Bank.
Objectives of the Scheme
Ensure that financial problems do not bar any young people of India from quality higher education.
Extend education loans to meritorious students who get admission in the nation's top quality Higher Educational Institutions (QHEIs).
Reach more than 22 lakh students every year.
Provide collateral-free, guarantor-free education loans via an easy-to-use student-friendly online application.
Facilitate banks in expanding education loan coverage by providing government guarantee.
Key Benefits of the PM Vidyalaxmi Scheme
The PM Vidyalaxmi Scheme offers the following key benefits:
Payday loans can be arranged without a collateral or a guarantor.
The Government of India backs loans with 75% guarantee on loans up to INR 7.5 lakh to boost banks' lending capabilities.
Annual family income less than INR 8 lakh will benefit from 3% interest subsidy on loans up to INR 10 lakh.
This will be continued to be availed by students whose family income is up to INR 4.5 lakh per annum under the existing scheme.
The application can be done on one platform which all the participating banks use.
Scheduled Banks, RRBs and Cooperative Banks can provide the loan.
Eligibility Criteria for PM Vidyalaxmi
Must be admitted in one of the best Higher Educational Institutions of the country covered by the scheme.
The scheme is designed for meritorious student.
The annual family income should not exceed INR 8 lakh for the benefit of 3% interest subvention.
The student's annual family income should not exceed INR 4.5 lakh for being eligible for full interest subvention.
Students who are awarded any other central or state scholarship, interest subsidy/fee reimbursement are not eligible for the scheme.
Loan Amount and Interest Rate
Credit Guarantee | 75% by the Government of India, on loans up to INR 7.5 lakh |
Interest Subvention | 3% on loans up to INR 10 lakh, for family income up to INR 8 lakh |
Full Interest Subvention | For family income up to INR 4.5 lakh |
