PM Vidyalaxmi (PM-Vidyalaxmi) is a central government scheme that gives students collateral-free, guarantor-free education loans for higher studies, and pays 3% interest subvention for families with an annual income of up to Rs 8 lakh. The scheme is run by the Department of Higher Education, Ministry of Education, with Canara Bank as the nodal bank.
There is no last date to apply – the scheme is open round the year, and you apply on the PM Vidyalaxmi portal when you need the loan for your admission.
PM Vidyalaxmi Scheme 2026
Quick facts2026-27
| Scheme name | Pradhan Mantri Vidyalaxmi (PM-Vidyalaxmi) Scheme |
| Run by | Department of Higher Education, Ministry of Education |
| Who can apply | Students admitted on merit to one of the 860 designated QHEIs in India |
| Main benefits | Collateral-free and guarantor-free loan, 75% credit guarantee, 3% interest subvention |
| Last date to apply | No fixed last date – apply any time during admission |
| Official website | pmvidyalaxmi.co.in |
Benefits of the PM Vidyalaxmi scheme
- A special loan product of collateral-free and guarantor-free education loans for students admitted to Quality Higher Education Institutions (QHEIs).
- There is no upper limit on the loan amount – it depends on the course fee and related expenses such as mess, hostel fee, refundable and non-refundable fees, a laptop and living expenses.
- 75% credit guarantee by the Government of India for loan amounts up to Rs 7.5 lakh, irrespective of family income.
- 3% interest subvention on loans up to Rs 10 lakh for students whose annual family income is up to Rs 8 lakh, during the moratorium period (course period plus one year).
- Students with annual family income up to Rs 4.5 lakh already get full interest subvention under PM-USP CSIS for technical and professional courses.
- Interest rate is capped at the bank’s Externally Benchmarked Lending Rate (EBLR) plus 0.5%.
- Up to 1% additional interest concession if interest is serviced during the study period and the moratorium period.
- Repayment period up to 15 years, excluding the moratorium period.
- The interest subvention is credited to the PM Vidyalaxmi Digital Rupee app (CBDC wallet), and the student redeems it to the loan account.
Eligibility for PM Vidyalaxmi
- The applicant must be an Indian citizen.
- The applicant must get merit-based admission to one of the 860 designated Quality Higher Educational Institutions (QHEIs) in India.
- Applicants admitted through the management quota or a similar quota are not eligible.
- Annual family income must be up to Rs 8 lakh to qualify for the 3% interest subvention.
- The applicant must not be receiving any other Central or State government scholarship, interest subvention scheme or fee reimbursement.
- The applicant must not discontinue the course midstream or be expelled on disciplinary or academic grounds.
- Satisfactory academic performance is needed to keep receiving interest subvention from the second year onwards.
- Interest subvention and credit guarantee benefits can be availed only once, for either an undergraduate, postgraduate or integrated course.
The following institutions qualify as QHEIs: the top 100 institutions in the overall, category-specific or domain-specific NIRF rankings, the top 200 state and UT government institutions in the NIRF rankings, and all institutions under the Government of India. Indian campuses of foreign institutions, foreign campuses of Indian institutions and foreign institutions are not covered.
Documents required
- Aadhaar card and PAN card.
- Address proof.
- Previous qualifying marksheets (self-attested).
- Entrance exam result.
- Offer letter from the institution, along with the fee structure.
- Income certificate issued by the designated public authority of your state.
If the institution has already taken some of these documents at the time of admission, the student submits a certificate from the institution for the same, and only the remaining documents go to the bank.
How to apply for PM Vidyalaxmi
- Register and log in on the PM Vidyalaxmi portal with your email ID and mobile number.
- Fill the Common Education Loan Application Form with your personal, academic and course details.
- Search for the education loan on the portal and choose your preferred bank and branch from the dropdown.
- Upload the required documents and submit the application.
- The application is routed to the selected bank for processing, and the bank sanctions and disburses the loan.
- The bank updates the loan status on the portal as sanctioned or disbursed, and you get an SMS.
- Track the application on your dashboard, and download a PDF copy of the submitted application if needed.
- Once eligible, the interest subvention is credited to your PM Vidyalaxmi Digital Rupee wallet – redeem it to your loan account.
Frequently asked questions
PM Vidyalaxmi is a central government education loan scheme by the Department of Higher Education, Ministry of Education. It provides collateral-free and guarantor-free loans to students admitted on merit to the 860 designated Quality Higher Education Institutions, with 3% interest subvention for families earning up to Rs 8 lakh a year.
No. The scheme does not have a fixed last date – you can apply on the PM Vidyalaxmi portal whenever you need the education loan for your admission.
There is no upper limit on the loan amount. It depends on the course fee and associated expenses such as hostel, mess, laptop and living expenses. The 75% government credit guarantee applies to loans up to Rs 7.5 lakh, and the 3% interest subvention applies to loans up to Rs 10 lakh.
No. Students admitted through the management quota or a similar quota are not eligible for this loan.
No. Applicants who are receiving any other Central or State government scholarship, interest subvention or fee reimbursement are not eligible.
The subvention amount is credited to the PM Vidyalaxmi Digital Rupee app, a CBDC wallet. The student activates the app with Aadhaar-based OTP authentication and redeems the amount to the loan account.
No. Foreign institutions, Indian campuses of foreign institutions and foreign campuses of Indian institutions are not covered under the scheme.
Official links
- PM Vidyalaxmi portal – apply for education loan
- PM Vidyalaxmi scheme details on myScheme (Government of India)
- PM Vidyalaxmi Scheme guidelines (PDF)
- List of 860 Quality Higher Education Institutions
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