Introduction to the Pradhan Mantri Vidyalaxmi Scheme
The Pradhan Mantri Vidyalaxmi (PM-Vidyalaxmi) Scheme is a life-changing initiative launched by the Ministry of Education, Government of India. This scheme ensures that every deserving Indian student can access affordable and quality higher education, regardless of financial constraints. Operated by the Department of Higher Education in coordination with Canara Bank, it offers collateral-free and guarantor-free education loans along with interest subvention benefits for students enrolled in recognized institutions.
This comprehensive guide from SarkariSetu.org breaks down the key benefits, eligibility, process, and expert tips to help you apply for the Pradhan Mantri Vidyalaxmi Scheme and secure your future.
What is the Pradhan Mantri Vidyalaxmi Scheme?
The Pradhan Mantri Vidyalaxmi Scheme is designed to offer financial assistance to meritorious students admitted to 860 Quality Higher Educational Institutions (QHEIs) in India.
Top Benefits:
- Digital and hassle-free loan application process
- Loans up to any amount based on institutional cost
- 3% interest subvention for students with family income up to ₹8 lakh
- 75% government-backed guarantee on loans up to ₹7.5 lakh
- No collateral, no guarantor needed
Benefits of the PM-Vidyalaxmi Scheme
- Collateral-free, easy education loans
- Covers tuition, hostel, mess, laptop, books, and living costs
- No maximum loan limit – full course cost can be covered
- Government guarantees 75% of loans up to ₹7.5 lakh
- 3% interest subvention during moratorium (course period + 1 year)
- Additional 1% interest discount for timely repayments
- Loan tenure of up to 15 years
- Subvention amount credited to PM-Vidyalaxmi Digital Rupee Wallet
Eligibility for Pradhan Mantri Vidyalaxmi Scheme
Who Can Apply?
- Indian citizens only
- Students must gain merit-based admission to one of the 860 QHEIs
- Annual family income must be ≤ ₹8 lakh to receive 3% interest subvention
- No management quota or donation-based admissions
- Cannot avail other scholarship/subsidy from central/state government
- Must not be expelled or discontinue course midstream
- Must maintain satisfactory academic progress
List of Eligible Institutions (QHEIs)
Students must be admitted to:
- Top 100 NIRF-ranked institutions (overall, category-wise)
- Top 200 state/UT-run HEIs from NIRF rankings
- All other central government higher education institutions
Foreign universities and offshore campuses are not eligible.
How to Apply Online for PM-Vidyalaxmi Scheme
Step 1: Register at Official Portal
- Visit: PM Vidyalaxmi Portal
- Click: Student Login > Create Account
- Use AADHAAR number for registration
- Verify with OTP on mobile/email
Step 2: Submit Loan Application
- Log in and click “Apply for Education Loan”
- Fill in personal, academic, course, and financial details
- Upload scanned documents (mark sheets, ID proof, offer letter)
- Choose preferred bank and branch
- Submit application online
Step 3: Apply for Interest Subvention
- After loan sanction, log in again
- Click “Apply for Interest Subvention”
- Upload income certificate or Annexure 6 from your institution
Step 4: Track Your Application
- Go to “Track Loan Application” section to view live status
Step 5: Raise Grievance (if needed)
- Visit “Initiate Grievance”
- Fill in grievance type, details, and upload relevant documents
Required Documents
- Aadhaar and PAN Card
- Income Certificate (issued by competent authority)
- Academic certificates (10th, 12th, graduation, etc.)
- Entrance exam results
- Admission letter with course details and fee structure
You can also upload Annexure 6 instead of re-uploading documents already submitted to the institution.
FAQs on Pradhan Mantri Vidyalaxmi Scheme
Is collateral or guarantor required?
No, the scheme is fully collateral and guarantor free.
Can I apply if I already have a scholarship?
No, dual benefits are not allowed.
How do I get the interest subvention?
It is credited to your PM-Vidyalaxmi Digital Wallet and adjusted in your loan.
Are foreign institutions eligible?
No, only Indian institutions listed as QHEIs are eligible.
Can I repay early?
Yes, you can repay anytime without prepayment penalties.
Grievance Redressal for PM Vidyalaxmi Scheme
For any complaints, contact:
- Canara Bank Toll-Free: 1800 1031
- Email: hoel@canarabank.com | support@pmvidyalaxmi.co.in
- Phone: 080-22533876
Final Thoughts: Why PM-Vidyalaxmi Scheme Is a Game-Changer
The Pradhan Mantri Vidyalaxmi Scheme is a revolutionary education loan initiative that opens doors to top institutions for thousands of Indian students. Whether you aim for IITs, IIMs, NITs, or top state universities, this scheme ensures money doesn’t stop your dreams.
Start your journey today. Visit pmvidyalaxmi.gov.in and apply now.
If you’re also looking for government-backed insurance plans, don’t miss the Pradhan Mantri Suraksha Bima Yojana – a low-cost accidental insurance scheme available to all eligible citizens.