What Is NPS: Meaning, Features and Benefits Explained

PM Vidyalaxmi Scheme: Check Eligibility, Documents Required, Application Process

01^st Dec 2025...

Published By : Team 811

Latest News:

On March 11 2025, the Lok Sabha was told that the PM Vidyalaxmi plan will cost Rs 3,600 crore from 2024-25 to 2030-31 to give 3 per cent interest subvention benefits to up to 7 lakh new students who want to get a high school education loan without a guarantor.

Key Takeaways:

PM-Vidyalaxmi offers education loans without collateral or a guarantor to deserving students who are accepted into certain Quality Higher Educational Institutions.

During the moratorium period, students from households with an annual income of up to ₹8 lakh get a 3% interest subsidy on loans of up to ₹10 lakh.

The government would back loans up to ₹7.5 lakh with a 75% credit guarantee. The PM-Vidyalaxmi Digital Rupee App will credit interest payments.

Empowering India’s Youth: PM Vidyalaxmi Scheme Opens Doors to Quality Higher Education for All

Get loans up to Rs 7.5 lakhs with a 75% government credit guarantee. Plus, 3% interest subvention on loans up to Rs 10 lakh

Thanks @narendramodi Ji

https://news18.com/education-care

er/empowering-indias-youth-pm-vidyalaxmi-scheme-opens-doors-to-quality-higher-education-for-all-9112145.html

@PMOIndia - @zahidpatka

https://x.com/zahidpatka/status/1854848743075684546?s=20

What is the PM Vidyalaxmi Scheme?

First, let us understand what the PM Vidyalaxmi scheme is. The Indian government's Department of Higher Education and Ministry of Education runs the "Pradhan Mantri Vidyalaxmi (PM-Vidyalaxmi)" program. Its goal is to help deserving students pay for their education so that money problems don't stop any young person in India from getting a good higher education.

The program offers school loans without collateral or a guarantor through a straightforward, open, student-friendly, and fully digital application procedure. Students from households with an annual income of up to ₹8,00,000 also get 3% interest rate off their loans. To be qualified, the applicant must be accepted to one of India's 860 approved Quality Higher Educational Institutions (QHEIs) based on their own merit.

Who Benefits from the PM Vijaylaxmi Scheme?

The scheme primarily benefits students from underprivileged backgrounds who might face some financial restrictions, and the scheme eliminates those. The list of beneficiaries includes:

Underprivileged students who want to seek higher education.
Girl students who want to pursue education further.

PM Vidyalaxmi Scheme Key Features and Benefits

Now, let’s take a look at the benefits of the Vidyalaxmi Scheme.

A customised loan product for students who have been accepted to QHEIs that doesn't require collateral or a guarantor.
There is no limit on the amount of the loan. It depends on the course tuition and other costs, such as the cost of living, the mess, the hostel charge, the refundable and non-refundable fees, and the laptop.
The Government of India will guarantee 75% of the loan amount, up to ₹7,50,000, no matter how much money the family makes.
During the moratorium period (the course period plus one year), students with a household income of up to ₹8,00,000 per year can get a 3% interest subsidy on loans up to ₹10,00,000.
Under PM-USP CSIS, students with a household income of up to ₹4,50,000 per year can already get full interest subvention for technical or professional courses.
The highest interest rate is the Externally Benchmarked Lending Rate (EBLR) of each bank plus 0.5%.
If you pay interest during the study period and the moratorium period, you can get up to 1% more interest off.
The repayment duration might be up to 15 years, not including the moratorium period.
The beneficiary's PM-VIDYALAXMI DIGITAL RUPEE APP will get the interest subvention amount. When the beneficiary redeems it on the app, the money will go to their loan account.

Everyone has the right to education. At Kotak, we support students by opening a 811 Zero Balance Digital Savings Account where they can receive the disbursement of the scheme without having to worry much about maintaining a minimum balance.

Eligibility Criteria for PM Vidyalaxmi Scheme

Students must meet all the following conditions to qualify:

For Students

The person who applies must be an Indian citizen.
The applicant must get into one of India's 860 Quality Higher Educational Institutions (QHEIs) based on their academic performance.
The candidate cannot get in through the management quota or a similar quota.
To be eligible for a 3% interest subsidy, the applicant's household must make up to ₹8,00,000 a year.
The candidate must not be getting any other scholarships, interest subsidies, or fee reimbursements from the Central or State Government.
The candidate must not drop out of the course halfway through or be expelled from school for disciplinary or academic reasons.
The candidate must keep up good grades to get an interest subvention starting in the second year.
The applicant can only get interest subvention and credit guarantee benefits once, for either an undergraduate, graduate, or integrated course.

For Quality Higher Education Institutions (QHEIs)

So, which institutions are eligible?

The top 100 ranked HEIs in the overall, category-specific, and/or domain-specific rankings in the most recent NIRF list released by the Ministry of Education.
The Ministry of Education's most recent NIRF ranking shows the top 200-ranked HEIs that are run by state or UT administrations.
The Government of India is in charge of all other HEIs.

*This does not include Indian campuses of international schools, foreign campuses of Indian schools, or foreign schools.

Required Documents

Here is a list of documents you need for the application:

Aadhaar Card
PAN Card
Address Proof
Previous Qualifying Marksheets (Self-attested)
Entrance Exam Result
Offer Letter (from the Institution, along with the fee structure)
Income Certificate (from the designated public authority of the state)

How to Apply for the PM Vidyalaxmi Scheme

Below is a step-by-step guide on how to register and apply for this scheme.

Registration

Go to the official website of the "Pradhan Mantri Vidyalaxmi (PM-vidyalaxmi) Scheme"
Click "Login" and then "Student Login" in the upper ribbon. Click "Create an Account" on the following screen to get to the "Student Registration" page.
Students must register through AADHAAR to get advantages from the PM-Vidyalaxmi Scheme, which offers education loans, interest subsidies, and credit guarantee coverage. If they meet the requirements, they can also apply for Interest Subvention.
You must include the following information on the registration form: your name, mobile number, and email address. Check the email address and mobile number with an OTP. Make a password. It needs to have at least 8 letters. A mix of numbers, letters, and special characters, both upper and lower case.
To sign up, type in the password again, fill out the Captcha code, agree to the "Terms & Privacy," and click "Submit." You will get a confirmation message via SMS, email, or WhatsApp when you sign up.

Application

Go to the official website for the "Pradhan Mantri Vidyalaxmi (PM-vidyalaxmi) Scheme"
Click "Login" and then "Student Login" in the upper ribbon. On the next screen, type in your User ID and Password, which are your Login Details. Your User ID will be the email address you used to sign up.
Enter the Captcha code, read and agree to the "Terms & Privacy," and then click "Login." Enter the OTP that was sent to your mobile number or email address.
Click "Apply for Education Loan" on the "Student's Homepage" to go to the scheme's online application form.
Fill out all of the required fields on the application form and upload all of the required documents in the correct format and size. From the dropdown menu, pick the bank and branch you want. Look over all the information and files that were submitted very carefully. Make any changes that need to be made.
Accept the terms and conditions and the privacy policy (if there is one). To send in your application, click "Final Submit." You will get a message to confirm.

How to Track PM Vidyalaxmi Application Status

Here is a step-by-step guide on how you can track the application for the PM Vidyalaxmi scheme and know what status it is.

Once you have signed in to your PM-Vidyalaxmi account, on the "Student's Homepage," click on the "Track Loan Application" link in the menu.
Choose your Loan Application Number from the list that drops down.
You will be able to see the current status of your application, such as "Under Review," "Approved," or "Disbursed."
Click "Download Application PDF" to get a copy of your application.

Benefit Disbursal

Below is the process by which the loan disbursal is handled.

The bank has a claim for the interest subsidy on behalf of the borrower.
As soon as the claim is approved, the money is added to the beneficiary's personal PM Vidyalaxmi Digital Rupee App (CBDC Wallet) as an e-voucher.
The student gets a message (SMS, email, or WhatsApp) and has to log into the app to get the money.
When the student redeems the amount, it goes into their school loan account to pay the interest using a Direct Benefit Transfer (DBT).

Conclusion

The PM Vidyalaxmi Scheme gives deserving students the power to get education loans without collateral or a guarantor, with interest subsidies and credit guarantees. The program makes it easier to apply online and ensures that loans are paid out on time. This way, students don't have to worry about money problems getting in the way of their education, so they can focus on learning and growing their careers.

FAQs

1. What is the PM Vidyalaxmi Scheme?

The PM Vidyalaxmi Scheme is a scheme that aims to provide scholarships to meritorious students.

2. Is there any application fee?

No, there is no application fee.

3. Am I eligible for this Scheme?

If you’re a student and an Indian citizen, and meet all criteria, you’re eligible for this scheme.

4. Can a student apply more than once?

No, benefits can be claimed only once per course type.

5. How is interest subvention received?

It’s credited via the PM-VIDYALAXMI Digital Rupee App to the loan account.