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PM-Vidyalaxmi

Collateral-free education loans for top institutions, with a 3% interest subvention

StudentsAll of India

Updated on 16 Oct 2026

What you get

The Ministry of Education's scheme gives collateral-free, guarantor-free education loans to students admitted on merit to one of the designated Quality Higher Educational Institutions - 1,425 public and private institutions at present. There is no upper limit on the loan: it can cover course and institute fees, hostel and mess, a reasonable laptop and living expenses. Interest is capped at the bank's external benchmark lending rate plus 0.5%, and repayment runs up to 15 years after a moratorium of the course period plus one year. The government guarantees 75% of loans up to Rs 7.5 lakh, and students whose family earns up to Rs 8 lakh a year can get a 3% interest subvention during the moratorium on up to Rs 10 lakh of the loan, for up to one lakh students a year. Students from families earning up to Rs 4.5 lakh on technical or professional courses get full interest subvention under the separate PM-USP CSIS scheme.

Who can apply

Students admitted on merit, through competitive exams, to a designated Quality Higher Educational Institution, for any degree or diploma course; management quota and NRI quota admissions do not qualify. The 3% interest subvention needs a family income up to Rs 8 lakh a year, and is not for a student who has another central or state scholarship, interest subvention or fee reimbursement. The benefits can be used only once, for one undergraduate, postgraduate or integrated course, and from the second year need satisfactory academic performance.

How to apply

Apply on the PM-Vidyalaxmi portal after registering with Aadhaar. The one portal lets you apply to participating scheduled, regional rural and cooperative banks, track your application, claim the interest subvention and raise grievances.

Documents you need

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