PM-Vidyalaxmi Scheme

What is the PM-Vidyalaxmi Scheme?

PM-Vidyalaxmi Scheme provides collateral-free and guarantor-free education loans to students who secure merit-based admission to designated Quality Higher Education Institutions (QHEIs) in India. There is no fixed upper limit on the education-loan amount under the scheme; the amount depends on course fees and other eligible expenses. For students with annual family income up to ₹8 lakh, a 3% interest subvention is available during the moratorium period on the disbursed loan principal up to ₹10 lakh. As of July 2026, the scheme covers 1,425 QHEIs.

Key Features of PM-Vidyalaxmi Scheme

The table below sets out the scheme parameters.

Investment

Secure

Secure your child’s future with or without you

Start Investing

₹10,000/Month

& Get

₹1 Crore^*

VIEW PLANS

*Standard T & C Apply

Eligibility Criteria for PM-Vidyalaxmi Scheme

The eligibility conditions differ depending on whether the student is applying for the education loan alone or also claiming the 3% interest subvention. 

• The student must secure admission to a designated Quality Higher Education Institution covered under PM-Vidyalaxmi.
• Admission must be obtained through an open competitive examination or another merit-based admission process.
• Admissions through management quota, NRI quota or similar non-merit routes are not eligible.
• The student must be enrolled in an eligible degree or diploma programme at the QHEI.
• For the 3% interest subvention, annual family income must not exceed ₹8 lakh.
• Applicants claiming the income-linked interest benefit must submit the prescribed proof of family income issued by the competent authority.
• Students already receiving benefits under another applicable government interest-subsidy scheme cannot receive overlapping interest-subsidy benefits for the same loan and period.
• Participating banks may apply additional eligibility, documentation and credit-assessment requirements in accordance with the scheme and their lending policies.

For income assessment, applicants must provide the prescribed proof of family income issued by a public authority or other authority accepted under the scheme. 

Students must continue to meet the applicable scheme conditions to receive the relevant benefits. Interest-subvention and credit-guarantee benefits are available only once for eligible undergraduate, postgraduate or integrated courses, subject to the scheme conditions. 

Students with annual family income up to ₹4.5 lakh may qualify for the more generous PM-USP Central Sector Interest Subsidy Scheme for eligible technical and professional courses. However, the applicable benefit depends not only on income but also on the course and other CSIS eligibility conditions. Families often build a corpus through different investment instruments like a mutual fund child plan to reduce overall liability burden.

Institutions and Courses Covered

PM-Vidyalaxmi applies to designated Quality Higher Education Institutions in India. As of July 2026, the Government had identified 1,425 QHEIs under the scheme. The list is periodically updated using the latest applicable institutional rankings and government criteria.

Institutions can qualify under the scheme if they fall into the prescribed categories, including:

• Institutions ranked within the Top 100 under applicable NIRF overall, category-specific or domain-specific rankings
• State and Union Territory Government institutions falling within the prescribed Top 200 NIRF rankings
• Other eligible Higher Education Institutions governed by the Government of India

Eligible degree and diploma programmes offered by designated QHEIs can be financed under the scheme, subject to the participating lender's rules and the scheme guidelines.

PM-Vidyalaxmi scheme benefits apply to eligible institutions located in India. Foreign universities, foreign campuses of Indian institutions and Indian campuses of foreign universities are not covered under the PM-Vidyalaxmi scheme benefits.

Interest Subvention and Credit Guarantee

The scheme carries two distinct financial benefits, and they work independently of each other.

• Interest subvention of 3% is available during the moratorium period to eligible students with annual family income up to ₹8 lakh, on the disbursed loan principal up to ₹10 lakh. The benefit is available to a maximum of one lakh fresh students each year. 
• Credit guarantee of 75% applies to loans up to ₹7.5 lakh. For eligible education loans sanctioned up to ₹7.5 lakh, the Government provides credit-guarantee coverage for 75% of the outstanding amount in default. The guarantee supports participating banks in extending collateral-free and guarantor-free education loans.

A student can receive the collateral-free loan without qualifying for subvention. The loan itself depends on the institution, while the subvention depends on family income.

How to Apply for PM-Vidyalaxmi Scheme

The entire process runs through the PM-Vidyalaxmi portal.

• Register on the portal. Visit pmvidyalaxmi.co.in and register using an email address and mobile number.
• Complete the application. Fill in the required details on the portal. The form covers personal, academic and financial information.
• Select banks. Choose up to three preferred banks for the loan application. The application reaches all selected banks simultaneously.
• Upload documents. Submit the admission letter, fee structure, identity proof and income certificate.
• Application forwards to banks. The portal routes the application to the selected banks for processing.
• Bank examines eligibility. Each bank assesses the application against scheme guidelines and may request additional information or documents.
• Loan disburses to the institution. After sanction, the lender disburses the approved loan according to its disbursement rules and the nature of the eligible expense. Tuition and institutional fees are generally paid directly to the institution, while treatment of other approved expenses can vary by lender. 

Support is available from the Ministry of Education and Canara Bank as nodal bank, through phone, email and an online grievance system.

Documents Required

Applicants should gather their admission, academic, identity, financial and income-related documents before starting the application. 

• Admission letter from the QHEI
• Fee structure for the course
• Identity proof
• Income certificate issued by a state government authority
• Academic records
• Bank account details
• Co-applicant/co-borrower details and documentation

Proof of income issued by a public authority or other authority accepted under the scheme is required to establish eligibility for the 3% interest subvention. 

Conclusion

PM-Vidyalaxmi removes the collateral and guarantor barrier for students at 1,425 QHEIs as of July 2026. The 3% subvention reduces interest but does not eliminate it. Planning ahead through investments like child education plans, mutual funds and other conservative investments can also be helpful.