Introduction
The Pradhan Mantri Vidyalaxmi (PM-Vidyalaxmi) scheme, launched by the Department of Higher Education, Ministry of Education, Government of India, ensures that no deserving student is deprived of quality higher education due to financial constraints. It offers collateral-free and guarantor-free education loans with a simple, transparent, student-friendly, and fully digital application process. Students from economically weaker sections also receive interest subvention benefits to reduce their repayment burden. The scheme is implemented through Canara Bank as the nodal bank, with applications accepted only online.
Key Benefits
- Collateral-Free Loans – No guarantor or security is required for loans sanctioned under this scheme for eligible students admitted to QHEIs.
- Loan Coverage – Includes tuition fees, hostel and mess charges, refundable/non-refundable fees, laptop purchase, and reasonable living expenses.
- No Upper Loan Limit – Loan amount is based on actual course and living expenses.
- Credit Guarantee – Government provides 75% credit guarantee for loans up to ₹7,50,000 (irrespective of income).
- Interest Subvention –
- 3% interest subvention for loans up to ₹10,00,000 during the moratorium period (course period + 1 year) for students with annual family income up to ₹8,00,000.
- Full interest subvention under PM-USP CSIS for students with family income up to ₹4,50,000 pursuing professional/technical courses.
- Interest Rate Cap – Linked to the bank’s Externally Benchmarked Lending Rate (EBLR) + 0.5%.
- Additional Concession – Up to 1% rebate if interest is serviced during the study and moratorium period.
- Repayment Flexibility – Loan repayment period can extend up to 15 years (excluding moratorium period).
- Digital Benefit Transfer – Interest subvention is credited to the PM Vidyalaxmi Digital Rupee App (CBDC Wallet), redeemable directly to the student’s loan account.
Eligibility
For Students
- Must be an Indian citizen.
- Must have secured merit-based admission (not management quota) to one of the 860 designated Quality Higher Educational Institutions (QHEIs) in India.
- Annual family income must not exceed ₹8,00,000 to avail 3% subvention.
- Should not be availing any other Central/State scholarship, fee reimbursement, or subvention scheme.
- Must maintain satisfactory academic performance (interest subvention continues from 2nd year onwards only if performance is maintained).
- Benefits (credit guarantee + interest subvention) can be availed only once for either UG, PG, or integrated course.
For Institutions (QHEIs)
Eligible QHEIs include:
- Top 100 HEIs as per the latest NIRF overall/category/domain rankings.
- Top 200 State/UT government HEIs as per NIRF rankings.
- All HEIs governed by the Government of India.
Note: Foreign institutions, Indian campuses of foreign universities, and foreign campuses of Indian universities are excluded.
Application Process (Fully Online)
Registration
- Visit the official PM-Vidyalaxmi Portal.
- Click Login → Student Login → Create an Account.
- Register using Aadhaar authentication.
- Enter personal details (Name, Mobile, Email), verify via OTP, and create a strong password.
- Confirm and submit. A confirmation will be sent via SMS/Email/WhatsApp.
Loan Application
- Login with your registered credentials.
- Go to Apply for Education Loan.
- Fill in required details and upload scanned documents (in specified size/format).
- Choose preferred bank and branch.
- Review and Final Submit. A confirmation will be generated.
Track Loan Status
- Available under Track Loan Application with real-time updates (Under Review / Approved / Disbursed).
- Option to download PDF of submitted application.
Apply for Interest Subvention
- After loan sanction/disbursement, log in and select Apply for Interest Subvention.
- Upload Income Certificate or Annexure 6 (from Institute).
- Submit to claim benefits.
Grievance Redressal
- Students can register complaints via the portal’s Initiate Grievance option.
- Grievance ID will be issued for tracking.
Helpline:
- Toll-Free: 1800 1031
- Landline: 080-22533876
- Email: hoel@canarabank.com | hogps@canarabank.com | support@pmvidyalaxmi.co.in
Required Documents
- Aadhaar Card
- PAN Card
- Address Proof
- Previous Qualifying Mark Sheets
- Entrance Exam Result (if applicable)
- Offer Letter + Fee Structure from Institution
- Income Certificate from competent authority
- Annexure 6 (if institute has verified documents during admission)
Frequently Asked Questions (Latest)
- Q: Can students admitted through management quota apply?
No, only merit-based admissions are eligible. - Q: Is there a course restriction?
Any course at designated QHEIs is covered. - Q: What is the maximum family income to qualify for 3% subvention?
₹8,00,000 per year. - Q: Can students already receiving other scholarships apply?
No, double benefits are not allowed. - Q: What is PM Vidyalaxmi Digital Rupee App?
A CBDC (Central Bank Digital Currency) wallet app developed for direct transfer of interest subvention benefits. Available on Google Play Store and Apple App Store. Aadhaar-based authentication is required for activation.
Sources and References
- Official Guidelines by Ministry of Education
- User Manual for Application Process
- Latest List of 860 QHEIs (NIRF Rankings + Govt. Institutions)