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Banglar Uchchashiksha

~ Loans ~

PM-Vidyalaxmi Scheme

i) Scheme Type
  • Central Sector Education Loan Scheme of the Government of India.
  • Approved by the Union Cabinet in November 2024 and implemented by the Department of Higher Education, Ministry of Education.
  • Provides collateral-free and guarantor-free education loans through a unified digital platform.
ii) Objectives

The PM-Vidyalaxmi Scheme aims to:

  • Ensure that no meritorious student is deprived of quality higher education due to financial constraints.
  • Provide easy access to education loans through a transparent, student-friendly digital platform.
  • Support students admitted to Quality Higher Educational Institutions (QHEIs) across India.
  • Reduce the financial burden on students and families through interest subvention support.
iii) Eligibility Criteria

A student must satisfy the following conditions:

  • Must have secured admission on merit to a notified Quality Higher Educational Institution (QHEI).
  • Eligible institutions include:
    1. NIRF Top 100 institutions.
    2. State Government HEIs ranked 101–200 in NIRF.
    3. Other institutions notified by the Department of Higher Education.
  • The student must be pursuing a recognized degree or diploma programme.
  • For 3% interest subvention, annual family income should be up to ₹8 lakh.
  • Students from families with annual income up to ₹4.5 lakh may additionally be eligible for full interest subvention under the PM-USP/CSIS provisions, where applicable.
iv) Terms & Conditions
  • Education loans are available through Scheduled Commercial Banks, Regional Rural Banks and Cooperative Banks participating in the scheme.
  • Loan applications are processed through the PM-Vidyalaxmi Portal.
  • A 75% Government Credit Guarantee is available for loans up to ₹7.5 lakh.
  • A 3% interest subvention is provided on education loans up to ₹10 lakh during the moratorium period (course duration plus one year).
  • The loan covers tuition fees, hostel fees, examination fees, books, equipment, laptops and other approved academic expenses.
  • Repayment generally starts after completion of the moratorium period.
v) Documents Required

Applicants generally need:

  • Aadhaar Card.
  • PAN Card (if available).
  • Recent Passport-size Photograph.
  • Admission Letter from the eligible institution.
  • Fee Structure issued by the institution.
  • Class X, XII and qualifying examination mark sheets.
  • Income Certificate of parents/guardians.
  • Address Proof.
  • Bank Account Details.
  • Any additional documents required by the lending bank.
vi) How to Apply
  1. Visit the PM-Vidyalaxmi Portal: PM-Vidyalaxmi Portal.
  2. Register using basic personal details.
  3. Complete the online application form.
  4. Select the institution and desired bank.
  5. Upload required documents.
  6. Submit the application electronically.
  7. Track application status online.
  8. Loan sanction and disbursement are processed by the concerned bank.
vii) Government of India / Sponsoring Department
Nodal Ministry
Ministry of Education, Government of India
Implementing Agency
Department of Higher Education
Official Scheme Information
Department of Higher Education – PM-VidyalaxmiScheme
Official Portal:
PM-Vidyalaxmi Portal
viii) Entitlement / Financial Benefits
Benefit Details
Education Loan Based on actual educational expenses
Collateral Requirement Not required under the scheme provisions for eligible students
Guarantor Requirement Not required
Interest Subvention 3% on loans up to ₹10 lakh during moratorium period
Income Ceiling for Interest Subvention Up to ₹8 lakh annual family income
Credit Guarantee 75% Government guarantee for loans up to ₹7.5 lakh
Coverage Tuition fees, hostel charges, books, equipment, computer/laptop and other approved academic expenses

Central Sector Interest Subsidy (CSIS) Scheme on Education Loans

i) Scheme Type
  • Central Sector Scheme of the Government of India.
  • Implemented by the Department of Higher Education, Ministry of Education (MoE).
  • Provides 100% interest subsidy during the moratorium period on eligible education loans taken under the Indian Banks' Association (IBA) Model Education Loan Scheme.
ii) Objectives

The scheme aims to:

  • Ensure that students from Economically Weaker Sections (EWS) are not deprived of higher education due to financial constraints.
  • Reduce the burden of interest accumulation during the study period.
  • Promote enrolment in professional and technical education.
  • Support access to quality higher education institutions across India.
iii) Eligibility Criteria

A student must satisfy the following conditions:

  • Must belong to the Economically Weaker Section (EWS).
  • Annual parental/family income from all sources must not exceed ₹4.5 lakh per annum.
  • Must have obtained an education loan under the IBA Model Education Loan Scheme from a Scheduled Bank, Regional Rural Bank, or Cooperative Bank.
  • Must be pursuing a recognized professional or technical course in India.
  • The institution/course should be:
    1. NAAC accredited; or
    2. NBA accredited; or
    3. An Institution of National Importance; or
    4. A Centrally Funded Technical Institution (CFTI); or
    5. Approved by the relevant statutory/regulatory body.
iv) Terms & Conditions
  • Interest subsidy is available only once during either:
    1. First Undergraduate Degree; or
    2. Postgraduate Degree/Diploma; or
    3. Integrated Course.
  • The Government pays the entire interest during the moratorium period.
  • Moratorium period = Course Duration + 1 Year. After this period, repayment responsibility shifts to the student.
  • Subsidy is available on education loans up to ₹10 lakh.
  • Students receiving other major Government scholarship/fee reimbursement benefits may not be eligible.
  • Students discontinuing courses are generally not eligible, except in documented medical cases.
v) Documents Required
  • Aadhaar Card.
  • Income Certificate issued by the competent authority designated by the State Government.
  • Admission Letter from the institution.
  • Fee Structure issued by the institution.
  • Educational Qualification Certificates/Mark Sheets.
  • Education Loan Sanction Letter.
  • Bank Account Details.
  • Identity and Address Proof.
  • Passport-size Photograph.
  • Any additional documents required by the lending bank.
vi) How to Apply
  • Apply for an education loan through a participating bank under the IBA Model Education Loan Scheme.
  • Submit income certificate and supporting documents to the bank.
  • The lending bank verifies eligibility and submits subsidy claims.
  • Students may also apply through the PM-Vidyalaxmi/JanSamarth platform where applicable.
  • The subsidy amount is credited directly to the education loan account through the lending bank.
vii) Government of India / Sponsoring Department
Nodal Ministry
Ministry of Education, Government of India
Department
Department of Higher Education
Official Scheme Page
csis-educational-loans
Nodal Implementing Bank
Canara Bank (designated nodal bank for implementation of CSIS).
viii) Entitlement / Financial Benefits
Benefit Details
Interest Subsidy 100% interest subsidy
Eligible Loan Amount Up to ₹10 lakh
Coverage Period Course duration + 1-year moratorium
Beneficiary Category EWS students
Applicable Courses Professional and Technical Courses
Mode of Benefit Interest credited to loan account by Government through banks

The Government bears the entire interest liability during the moratorium period, substantially reducing the student's repayment burden.


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