The Central Government’s Pradhan Mantri Vidyalaxmi (PM-Vidyalaxmi) scheme is for students who secure admission on merit to good higher education institutions but fear giving up studies because of fees. It was approved by the Union Cabinet on 6 November 2024 and is run by the Department of Higher Education, Ministry of Education. It is a Central Sector scheme (₹3600 crore, 2024-25 to 2030-31). This is not a scholarship, it is an education loan scheme. PM-USP (CSSS) gives meritorious students a scholarship directly, while Vidyalaxmi gives a collateral-free and guarantor-free loan and a subvention on the interest.
What is given
Students who secure admission on merit get a collateral-free and guarantor-free education loan. The loan is only for study in designated Quality Higher Education Institutions (QHEIs) — according to PIB, 1425 QHEIs are covered at present, public and private. The Government of India gives a 75% credit guarantee on loans up to ₹7.5 lakh, which lets banks lend without security. The interest rate cannot exceed the bank’s EBLR + 0.5%.
3% interest subvention — who gets it
Students whose family annual income is up to ₹8 lakh get 3% interest subvention on loans up to ₹10 lakh, during the moratorium period (the course period plus one year). Each year, a maximum of one lakh fresh students can get this subvention. Families with income up to ₹4.5 lakh already get full interest subvention during the moratorium under the existing PM-USP CSIS scheme — the Vidyalaxmi 3% subvention is for the income band above that. The subvention is given only once, for one course.
Who can apply
The loan is given to students who have secured admission on their own merit to a designated QHEI — students admitted through management quota or NRI quota are not eligible. The loan is available to students from all income groups; only the 3% interest subvention has the ₹8 lakh income limit. Loans are given by Scheduled Banks, Regional Rural Banks and Cooperative Banks; repayment can run up to 15 years after the moratorium. According to PIB, 112817 Vidyalaxmi loans were sanctioned from 6 November 2024 to 21 July 2026.
How to apply
A dedicated PM-Vidyalaxmi portal (pmvidyalaxmi.co.in) has been created, live since 25 February 2025. Through this single portal, the student applies for both the education loan and the interest subvention in one simplified process. The interest subvention is claimed through the bank — check the portal for the claim window after taking the loan. Do not pay anyone for applying; take information only from the official portal.
Frequently Asked Questions
Q1: What does PM-Vidyalaxmi give?
A: A collateral-free and guarantor-free education loan for students admitted on merit, plus 3% interest subvention on loans up to ₹10 lakh for income up to ₹8 lakh.
Q2: Is this a scholarship?
A: No — it is an education loan scheme; a scholarship gives money directly, while here you get a loan and a subvention on the interest.
Q3: For study in which institutions is the loan given?
A: Only in designated Quality Higher Education Institutions (QHEIs) — 1425 institutions are covered at present; check your institution on the portal.
Q4: Where do I apply?
A: On the PM-Vidyalaxmi portal, pmvidyalaxmi.co.in — one portal for both the loan and the interest subvention.
Useful links
- PM-Vidyalaxmi official portal: https://pmvidyalaxmi.co.in/
- PM-Vidyalaxmi scheme on MyScheme: https://www.myscheme.gov.in/schemes/pmvs
- Next Action: see all 726 Central Government schemes — /english/kendra-sarkar-ki-yojnayen-2/
Leave a Reply