PM Vidya Lakshmi
Pradhan Mantri Vidya Lakshmi Yojana
PM Vidya Lakshmi Yojana, launched 1 January 2025, provides financial support for higher education through a unified digital portal. It offers 3% annual interest subvention on education loans up to ₹10 lakh for students admitted to Quality Higher Education Institutions (QHEIs) — institutions with NIRF ranking or NAAC A/A+ accreditation. The government provides a ₹7,500 crore credit guarantee, removing the collateral requirement. Students from families with income up to ₹8 lakh can apply through the vidyalakshmi.co.in portal, apply to multiple banks simultaneously, and receive loan disbursement directly to their institution. The 3% subvention applies during the course period plus 1-year moratorium — effectively reducing bank rate from ~10% to ~7%.
Key Objectives
- Remove financial barriers to quality higher education through collateral-free credit.
- Provide 3% interest subvention to reduce effective loan cost for students.
- Cover 1 lakh students per year from lower-income families.
- Create a single digital portal for education loan application across multiple banks.
Benefits
Eligibility
- Students admitted to Quality Higher Education Institutions (QHEIs)
- Family annual income up to ₹8 lakh
- Pursuing UG, PG, or professional degree courses
- Institution must be NIRF-ranked (top categories) or NAAC A/A+ accredited
- Loan through scheduled commercial bank via the portal
- Interest subvention during course period + 1 year after graduation/completion
How to Apply
Register on vidyalakshmi.co.in with Aadhaar and admission letter
Fill unified education loan application form
Apply to multiple participating banks simultaneously
Bank verifies QHEI status of your institution and processes loan
Loan disbursed directly to institution — government credit guarantee activated
3% subvention credited to loan account quarterly during moratorium
Required Documents
Frequently Asked Questions
Which institutions qualify under PM Vidya Lakshmi as QHEIs?
Quality Higher Education Institutions (QHEIs) include: all IITs, NITs, IIMs, AIIMS, and central universities; private and state institutions with NIRF ranking in top 100 (overall, university, engineering, medical, management categories); institutions with NAAC A or A+ grade. Check the QHEI list on vidyalakshmi.co.in before applying.
How is PM Vidya Lakshmi different from the old Vidya Lakshmi portal?
The old portal (2015) was a common platform to apply to banks for education loans — no government subsidy was attached. PM Vidya Lakshmi (2025) adds: 3% interest subvention reducing effective loan cost, government credit guarantee removing collateral requirement, and specifically targets students from income families below ₹8 lakh.
Can I get PM Vidya Lakshmi for a distance education / online degree?
Currently PM Vidya Lakshmi is for regular full-time degree programmes at QHEIs. Distance education and online degrees from regular universities are not covered under the current guidelines. Check the scheme guidelines for updates as the scheme evolves.