PM Vidyalaxmi Scheme

The Pradhan Mantri Vidyalaxmi Scheme is contributing to the objectives of Sustainable Development Goal 4 and the National Education Policy, 2020 by improving access to inclusive, equitable and quality higher education for meritorious students facing financial constraints.

About the Scheme

• Nodal Ministry: Ministry of Education
• Objective: To provide collateral-free and affordable education loans to deserving students admitted to recognised Quality Higher Education Institutions.

Student Eligibility

• Students must secure merit-based admission through competitive examinations in designated Quality Higher Education Institutions.
• Loans are available for all recognised degree and diploma programmes.
• Interest-subvention and credit-guarantee benefits can be availed only once for an undergraduate, postgraduate or integrated course..

Loan and Repayment Provisions

• The repayment period is up to 15 years, excluding the moratorium period.
• The moratorium includes the course duration plus one year.
• Loans are provided through Scheduled Banks, Regional Rural Banks and participating Cooperative Banks.
• Interest rates are capped at the bank’s EBLR plus 0.5%.

Interest Subvention

• Students with an annual family income of up to ₹8 lakh receive a 3% interest subvention on loans up to ₹10 lakh.
• Students with an annual family income of up to ₹4.5 lakh continue to receive full interest subvention under the existing provision.

Significance- The scheme reduces financial barriers to higher education, promotes merit-based access and supports the goals of educational equity, affordability and human-capital development under SDG 4 and NEP 2020.