What Is the PM-Vidyalaxmi Scheme?
PM-Vidyalaxmi is the central government's education loan scheme for students admitted on merit to India's top higher education institutions. Here's who qualifies, what you get, and how to apply.
Quick answer
- Collateral-free and guarantor-free education loans for merit admissions to 1,441 listed institutions in India.
- 75% government guarantee on loans up to ₹7.5 Lakh; no upper limit on the loan itself.
- 3% interest subsidy during the moratorium for family income up to ₹8 Lakh.
- Interest capped at the bank's EBLR + 0.5%; repay over up to 15 years.
PM-Vidyalaxmi in brief
The Union Cabinet approved PM-Vidyalaxmi on 6 November 2024 as a central sector scheme of the Department of Higher Education. Banks lend to students who win a merit seat at a listed institution — called a Quality Higher Education Institution (QHEI) — without asking for property, deposits or a third-party guarantor.
| Feature | Details |
|---|---|
| Who can apply | Students with merit-based admission to a listed institution in India |
| Institutions | 1,441 on the official list (5 October 2026) |
| Collateral / guarantor | Not required |
| Loan amount | No upper limit — tuition, hostel, mess, a laptop and reasonable living costs |
| Government guarantee | 75% on loans up to ₹7.5 Lakh |
| Interest rate | Capped at the bank's EBLR + 0.5% |
| Interest subsidy | 3% during the moratorium for family income up to ₹8 Lakh |
| Repayment | Up to 15 years after the moratorium (course + 1 year) |
| Lenders | Scheduled banks, regional rural banks and cooperative banks in the scheme |
Which institutions are covered
The list is drawn from the government's NIRF rankings and is refreshed when new rankings are published. It covers:
- The top 100 institutions in the overall, category and subject NIRF rankings;
- The top 200 institutions run by state and union territory governments;
- All other institutions run by the Government of India.
Indian campuses of foreign universities, foreign campuses of Indian institutions and universities abroad are not covered — for study abroad, see our study abroad education loan guide. Check whether your institution is listed on the official PM-Vidyalaxmi portal.
How to apply
- Register on the PM-Vidyalaxmi portal with your mobile number and email.
- Fill in the common education loan application form.
- Upload your documents (PDF or JPEG).
- Choose up to three banks. Only one application can be active at a time.
- Submit, then track the status on the portal. Once the loan is disbursed, apply for the interest subsidy there too.
Documents you'll need:
- Class 10 marksheet
- Class 12 (or last qualifying exam / diploma) marksheet
- Proof of admission to the course
- Schedule of expenses from the institution
- Family income proof from a competent authority
- Photographs of the student and parent
- Aadhaar — required to claim the interest subsidy
Related guides
- Benefits of the PM-Vidyalaxmi scheme — the guarantee, interest subsidy and how much you save.
- Education loan for study in India — every bank and scheme for IITs, IIMs, AIIMS and more.
- Education loan without collateral
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