PM Vidyalaxmi Scheme – Details & Application Process

Imagine securing an education loan without running from one bank to another, worrying about approvals, or struggling with complex paperwork. Sounds like a dream, right? But what if we told you that the Indian government has made this possible with a single online portal?

This article was created to help students and parents navigate the PM-Vidyalakshmi Scheme, a government initiative designed to simplify the process of applying for education loans. Whether you’re planning to study in India or abroad, understanding this scheme can make financing your education easier and stress-free.

In this guide, we’ll break down everything you need to know—how to apply, eligibility criteria, and required documents.

What is PM-Vidyalaxmi Scheme ?

On November 6, 2024, the Government of India approved the PM-Vidyalaxmi Scheme to ensure that no talented student misses out on higher education due to financial constraints.

This initiative introduces a special education loan product designed to be completely collateral-free and guarantor-free, making it easier for deserving students to access financial support. The scheme covers students who secure admission to 860 top-quality higher education institutions across India. With a fully digital, transparent, and student-friendly application process, this initiative aims to make funding higher education simple, stress-free, and accessible for all.

About PM-Vidyalaxmi Portal

PM-Vidyalaxmi is a Unified Portal for the students to apply for education loan provided by scheduled commercial banks, co-operative banks, RRBs & private banks and submit application for Educational Loan & Interest Subvention.

Vidyalakshmi Scheme Details

The scheme is designed to make higher education more accessible to deserving students across India. Here’s how it works:

1. Making Education Loans Easier – A dedicated mission-mode mechanism will ensure that bright students who secure admission in the top 860 Quality Higher Educational Institutions (QHEIs) get access to education loans. This initiative aims to support over 22 lakh students every year.
2. No Collateral, No Guarantor Required – A special loan product will be introduced, offering collateral-free and guarantor-free education loans. The entire process will be simple, transparent, and fully digital, making it hassle-free for students.
3. Government-Backed Credit Support – For loans up to ₹7.5 lakh, the Government of India will provide a 75% credit guarantee, enabling banks to extend financial support to more students.
4. Interest Benefits for Families with Moderate Income – If a student’s family income is up to ₹8 lakh per year, they will get a 3% interest subvention on loans up to ₹10 lakh.
5. Extra Help for Families with Lower Income – Students from families earning up to ₹4.5 lakh per year will continue to receive full interest subvention, easing their financial burden even further.
6. Applicable Across Multiple Banks – This scheme is open to students applying for loans through Scheduled Banks, Regional Rural Banks (RRBs), and Cooperative Banks across India.

Additionally, eligibility for interest subvention under PM-Vidyalaxmi and PM-USP CSIS in QHEIs is outlined in the table below.

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PM Vidyalaxmi Scheme Eligibility 

Getting an education loan isn’t just about securing admission—it’s also about meeting the bank’s eligibility requirements. Before approving a loan, banks assess the student’s profile to ensure they qualify. Here’s what you need to know if you’re planning to apply through the Vidya Lakshmi Portal:

1. Indian Citizenship – The applicant must be a citizen of India.
2. Educational Qualification – The student must have passed their 10+2 board exams.
3. Entrance Exam Requirement – Admission to college should be based on merit or an entrance exam required by the institution.
4. Study Location – Loans are available for students pursuing education within India or abroad.
5. Income Criteria for Interest Subsidy – To qualify for interest subsidies, the family’s annual income should typically be within the Economically Weaker Section (EWS) category (up to ₹4.5 lakh per year).

If you meet these criteria, you’re one step closer to funding your education through an education loan. Planning ahead and understanding these requirements can make the loan approval process smoother and hassle-free! 

Documents Required For PM Vidyalaxmi Scheme Application

Following Documents to be uploaded by the student in portal

1. Marksheet for Class X
2. Marksheet for Class XII /Last qualifying Examination
3. Proof of admission to the course
4. Schedule of Expenses for the course as given by institution.
5. Proof of income issued by public authority/ College authority.
6. Applicants /Parents photograph

How to Apply for an Education Loan on the PM-Vidyalakshmi Portal

Applying for an education loan through the PM-Vidyalakshmi portal is a simple and structured process. Follow these steps to apply successfully:

1. Register and Log In:
   

   • Visit the official PM-Vidyalakshmi portal (https://pmvidyalaxmi.co.in/) and create an account by providing the required details.
   • Log in to your account to access the application process.

2. Fill the Common Education Loan Application Form (CELAF):
   

   • Complete the Common Education Loan Application Form by entering your personal details, academic information, and loan requirements.
   • Ensure that all information is accurate to avoid delays in processing.

3. Search and Apply for Educational Loans:
   

   • Browse through the list of available education loan schemes from different banks.
   • Select a loan that matches your needs, eligibility, and repayment preferences.
   • Submit your application to the bank of your choice.

4. Application Processing by Banks:
   

   • Once submitted, your application is forwarded to the selected banks for processing.
   • The bank will review your application and may request additional documents if required.

5. Loan Sanction and Disbursement:
   

   • If approved, the bank will update the PM-Vidyalakshmi portal with the status as Sanctioned/Disbursed.
   • You will receive an SMS notification about your application status.
   • You can also track your application status on your dashboard.

6. Interest Subvention Benefit (If Eligible):
   

   • Based on the details provided, the student will receive a notification regarding their eligibility for the interest subvention. 
   • Once the loan is sanctioned and disbursed, the bank will inform the student via SMS, Email, or WhatsApp about the next steps to claim the benefit.
   • To receive the interest subvention, the student must log in to the portal and submit their claim. The Ministry of Education will then review the applications and shortlist eligible students based on predefined criteria.
   • If approved, the interest subvention amount will be credited to the student’s Digital Rupee Wallet. The student must then redeem the amount by transferring it to their loan account to avail of the benefit.

By following these steps, students can easily apply for an education loan and track their progress through the PM-Vidyalakshmi portal. Ensure all necessary documents are ready for a smooth application process.

You can view the complete guidelines of the scheme Here

FAQS

Q.1 What is the Two-Page Education Loan Application Form?

It’s a simplified, common loan application form used for applying under the PM-Vidyalakshmi scheme. This makes the loan application process easier and more efficient for students seeking financial assistance.

Q.2 How can a student track their education loan application status?

Tracking your application is simple! Just log in to the PM-Vidyalakshmi portal and click on the “Track Loan Application” tab. Here, you’ll see whether your loan is approved, rejected, or disbursed.

If your application is rejected, don’t worry—you can reach out to the respective bank for further clarification and possible next steps.

Q.3 How many education loan applications can a student submit?

You can apply to a maximum of three banks for an education loan, increasing your chances of securing financial support.

Q.4 What format should the documents be uploaded in?

When uploading documents, make sure they are in PDF or JPEG format and don’t exceed 200 KB in size. This helps keep the process smooth and ensures quick verification.

Reference:
1. education.gov.in