PM Vidyalaxmi Scheme 2026: Collateral-Free Education Loan & 3% Interest Subsidy

At a glance

About the scheme

Launched by the Department of Higher Education under the Ministry of Education, the PM-Vidyalaxmi Scheme ensures that financial constraints do not stop deserving students from pursuing higher education in India. Implemented with Canara Bank as the nodal bank, it offers collateral-free loans covering full tuition fees and related living expenses for students joining 860 designated Quality Higher Educational Institutions (QHEIs). The scheme also provides a 75% credit guarantee on loans up to ₹7,50,000 and credits interest subvention directly to beneficiaries via the PM-Vidyalaxmi Digital Rupee App.

Benefits

• Collateral-free and guarantor-free education loans with no upper limit based on course fees and associated expenses (hostel, mess, laptop, living costs).
• 75% credit guarantee from the Government of India on loan amounts up to ₹7,50,000 regardless of family income.
• 3% interest subvention on loans up to ₹10,00,000 for students with annual family income up to ₹8,00,000 during the course period plus one year.
• Interest rate capped at individual bank Externally Benchmarked Lending Rate (EBLR) + 0.5%.
• Up to 1% additional interest rebate if interest is serviced during the study and moratorium periods.
• Flexible loan repayment duration of up to 15 years, excluding the moratorium period.
• Direct transfer of interest subvention via the PM-Vidyalaxmi Digital Rupee CBDC wallet app.

Who can apply (eligibility)

• Must be a citizen of India.
• Must have secured merit-based admission in one of the 860 designated Quality Higher Educational Institutions (QHEIs).
• Annual family income must not exceed ₹8,00,000 to qualify for the 3% interest subvention.
• Must maintain satisfactory academic performance to continue receiving interest subvention from the second year onwards.
• Can avail credit guarantee and interest subvention benefits only once, for an undergraduate, postgraduate, or integrated programme.

Who cannot apply

• Students admitted through management quota or similar discretionary quotas are not eligible.
• Students receiving any other Central or State Government scholarship, fee reimbursement, or interest subvention scheme.
• Students who discontinue their course midstream or are expelled on disciplinary or academic grounds.
• Students enrolled in foreign education institutions, Indian campuses of foreign institutions, or foreign campuses of Indian institutions.

Documents required

• Aadhaar Card
• PAN Card
• Address Proof
• Previous Qualifying Marksheets (self-attested)
• Entrance Exam Result
• Offer Letter from the institution showing the fee structure
• Income Certificate issued by the designated state authority (or Annexure 6 certificate from the institution)

How to apply

1. 1Visit the official portal at pmvidyalaxmi.co.in and click on Login followed by Student Login to create a new account.
2. 2Register using your Aadhaar details, full name, mobile number, and email address, then verify through OTP.
3. 3Log in to the student dashboard using your registered email ID, password, and OTP.
4. 4Click on 'Apply for Education Loan' and fill in all mandatory academic and personal details.
5. 5Upload required documents in the prescribed file formats and choose your preferred bank and branch.
6. 6Review the completed application form, accept the declaration, and click 'Final Submit'.
7. 7After loan sanction and disbursement, log back in and select 'Apply for Interest Subvention' to upload your income certificate.

Frequently asked questions