Pradhan Mantri Vidyalaxmi Scheme

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Rate of Interest: 6.75% p.a. *T&C Apply.

Loan to pursue higher studies in Top 967 Quality Higher Educational Institutions
NIL Processing Charges.
No Guarantor & No Collateral Security.
Lower Rate of Interest.
Reducing Balance Interest Rate.
No Prepayment penalty
Need based finance with required margin on eligible expenses shall be considered for Education Loan in Top 967 Quality Higher Educational Institutions
Annual family income is up to Rs. 4.5 lakhs, shall be eligible for full interest subvention during moratorium period for education loan up to Rs. 10 lakhs.
Annual family income is between Rs. 4.5 lakhs and Rs. 8 lakhs shall be eligible to apply for 3% interest subvention during moratorium period for education loan up to Rs. 10 lakhs.

Institutions	The Ministry of Education (MOE) has identified Top 917 Quality Higher Educational Institutes (QHEIs). Annually, the Department of Higher Education (DHE) will update the list of such Quality Higher Education Institutions (QHEIs).
Loan Quantum	Need-based finance with the required margin on eligible expenses will be considered for Education Loan in Top 917 Quality Higher Educational Institutions
Eligible Courses	All Graduation, Post-Graduation, Degree, Diploma, and Integrated courses offered by the identified QHEIs are eligible.
Margin	Institution Category AAA: Nil Margin AA & A: (Margin as per IBA Model Education Scheme) Margin Details for AA & A Institutions: Loan Amount up to Rs 4.00 Lakhs: Nil Margin Loan Amount above Rs 4.00 Lakhs: 5% Margin
Security	No Collateral Security required.
Repayment Tenure	The repayment period of the education loan would be up to 15 years, excluding the moratorium period (Course period + 1 year). No prepayment penalty will be levied for prepayment of loan any time during the repayment period.
Expenses considered for the loan	Course Fee payable to college/school/hostel. Examination/Library/Laboratory fee. Travel expenses/passage money for studies abroad. Insurance premium for the student borrower, if applicable. Caution deposit, building fund/refundable deposit supported by Institution bills/receipts. Purchase of books/equipment/instruments/uniforms. Purchase of computer at a reasonable cost, if required for the completion of the course. Any other expense required to complete the course subject to ceiling. Reasonable lodging and boarding charges will be considered if the student opts for outside accommodation.
Eligibility under Subsidy/Interest Subvention	All Education loans under the PM Vidyalaxmi scheme can be covered subject to eligibility, as per income and other norms.
Insurance Coverage	Obtaining life insurance cover is mandatory for loan amounts above Rs. 7.50 lakhs.

Institutions	The Ministry of Education (MOE) has identified Top 967 Quality Higher Educational Institutes (QHEIs). Annually, the Department of Higher Education (DHE) will update the list of such Quality Higher Education Institutions (QHEIs).
Loan Quantum	Need-based finance with the required margin on eligible expenses will be considered for Education Loan in Top 967 Quality Higher Educational Institutions
Eligible Courses	All Graduation, Post-Graduation, Degree, Diploma, and Integrated courses offered by the identified QHEIs are eligible.
Margin	Institution Category AAA: Nil Margin AA & A: (Margin as per IBA Model Education Scheme) Margin Details for AA & A Institutions: Loan Amount up to Rs 4.00 Lakhs: Nil Margin Loan Amount above Rs 4.00 Lakhs: 5% Margin
Security	No Collateral Security required.
Repayment Tenure	The repayment period of the education loan would be up to 15 years, excluding the moratorium period (Course period + 1 year). No prepayment penalty will be levied for prepayment of loan any time during the repayment period.
Expenses considered for the loan	Course Fee payable to college/school/hostel. Examination/Library/Laboratory fee. Travel expenses/passage money for studies abroad. Insurance premium for the student borrower, if applicable. Caution deposit, building fund/refundable deposit supported by Institution bills/receipts. Purchase of books/equipment/instruments/uniforms. Purchase of computer at a reasonable cost, if required for the completion of the course. Any other expense required to complete the course subject to ceiling. Reasonable lodging and boarding charges will be considered if the student opts for outside accommodation.
Eligibility under Subsidy/Interest Subvention	All Education loans under the PM Vidyalaxmi scheme can be covered subject to eligibility, as per income and other norms.
Insurance Coverage	Obtaining life insurance cover is mandatory for loan amounts above Rs. 7.50 lakhs.

1. What is PM-Vidyalaxmi Education Loan scheme?

A central sector scheme launched by Department of Higher Education on 06.11.2024 with an objective to provide financial support to meritorious students so that financial constraints do not prevent any youth of India from pursuing quality higher education

2. Who can apply under PM Vidyalaxmi Education Loan Scheme

Any student who has secured admission in recognized higher education institutions (955 identified institution) in India through merit-based selection are eligible to apply for education loan under PM Vidyalaxmi Scheme.

3. Expenses covered under the scheme.

The education loan under the scheme may cover the following expenses:

Tuition fees
Hostel charges
Examination / Library / Laboratory fees
Cost of books
Laptop / computer (if required for course)
Insurance premium (if applicable)
Other reasonable academic expenses

4. Requirement of any collateral security/ Guarantor.

As per the scheme guidelines loans are provided without collateral and Guarantor irrespective of the Loan amount.

5. Interest subsidy available under PM-Vidyalaxmi scheme

Eligible students may receive interest subsidy during moratorium period for loan up to Rs.10.00 lakh subject the following guideline:

Income Eligibility	Technical/Professional courses	Other Courses
Annual Family Income up to Rs.4.50 lakh	100 % Interest subvention	3% Interest Subvention
Annual Family Income (above Rs.4.50 lakh up to Rs.8 lakh)	3 % Interest Subvention	3 % Interest Subvention

6. Pre-requisites of availing interest subsidy/Interest subvention

To avail the interest subsidy under the scheme, students are required to submit the necessary documents including:

Valid Aadhar Details
Income proof from authorized Public Authority of the State Government.

7. What is the Definition of Family for the purpose of subsidy in context to Education loan under PM-Vidyalaxmi?

The definition of family” for the purpose of determining the family income criteria under the scheme shall be student alongwith his/her father & mother plus his/her spouse, wherever applicable.

8. Moratorium period available under the PM-Vidyalaxmi scheme.

Moratorium period under the scheme is Course period plus one year.

9. What is the process for applying loan in PM-Vidyalaxmi scheme?

Students may apply for an education loan under the scheme through the designated portal (https://pmvidyalaxmi.co.in). The broad process is as follows:

Student should register on PM-Vidyalaxmi portal with e mail and Mobile Number.
Complete the application with required details on the PM Vidyalaxmi portal.
Selects the preferred bank (Max 3) for availing education loan.
Uploads necessary documents such as admission letter, fee structure, identity and income certificate.
Application is forwarded to the selected bank for processing.
The bank examines eligibility as per scheme guidelines.
The bank may seek additional information/documents, if required.
Upon satisfactory assessment, the loan is sanctioned and terms are communicated to the student.
Loan is disbursed as per requirement of the institution, subject to compliance with sanction conditions.

10. How should I come to know that my loan application is pending?

In case the application is pending, student is advised to:

Log in to PM-Vidyalaxmi portal
Check application status on portal
Check the remarks by the bank (if any)
Submit pending documents (if any)
Contact the Bank.

11. Why is my loan delayed?

Delay in processing/sanction of the education loan applications may occur due to one or more of the following reasons:

Incomplete application
Missing admission proof
Fee structure not submitted
Income documents not provided
Co-borrower details pending

Students are advised to ensure submission of complete and accurate information to avoid delays in the processing.

12. My subsidy is not credited. What should I do?

In case where the interest subsidy is not credited, the student is advised to verify the following:

Submission of valid income certificate and the required documents.
Aadhaar details are provided correctly.
Admission for pursuing the eligible courses

13. Do I need a co-borrower?

Yes, co-borrower is required for the education loan under the scheme. Generally, parent/guardian is required as co-borrower.

14. What are the basic documents required for Education loan under PM-Vidyalaxmi scheme?

The following documents (illustrative) are required for applying the education loan in Pm Vidyalaxmi Portal:

Admission letter
Fee structure
Aadhaar card
PAN (if available)
Income certificate
Bank account details
Academic records
Entrance exam results
Co-borrower documents

15. Whether all the courses offered by Institutions are eligible?

All the Graduation/ Post Graduation degree and diploma offered by QHEIs are eligible.

16. When will loan be disbursed?

The Loan is disbursed directly to the Institutions in stages after submission of the demand letter alongwith the applicable margin , wherever applicable.

17. Can loan be cancelled after sanction?

The loan can be cancelled on the following grounds:

Student do not join course
False information provided
Required documents not submitted
At request of the student( before disbursement)

18. Is there any processing fee?

No processing charges are applicable under the scheme. Only portal fees of Rs.200+GST is applicable.

19. Whether credit guarantee under the Pm-Vidyalaxmi is applicable?

Yes, Loan Quantum sanctioned up to Rs. 7.50 lakh are eligible to be covered under CGFSEL.

20. If the co-applicant is having adverse credit history, whether he/she can join the loan as the Co-applicant?

Acceptance of co-applicant with adverse credit history shall be subject to the Bank’s extant guidelines regarding CIC/CIR score. Accordingly, such cases will be considered on a case-to-case basis in line with the Banks credit policy.