PM-Vidyalaxmi sanctions over 1.12 lakh collateral-free education loans worth ₹15635 crore since launch: Govt
Students from families earning up to ₹8 lakh annually are eligible for a 3% interest subsidy on loans up to ₹10 lakh, with the government earmarking ₹3,600 crore to support
Up to one lakh fresh students every year, provided they are not availing any other scholarship or interest subvention on education loans, are eligible for this benefit.
NEW DELHI: The Centre’s PM-Vidyalaxmi scheme has sanctioned more than 1.12 lakh collateral-free and guarantor-free education loans worth ₹15,634.78 crore since its launch in November 2024, providing financial support to students pursuing higher education in the country’s top institutions.
Minister of State for Education Dr Sukanta Majumdar provided this information in a written reply in the Lok Sabha on Monday.
The PM-Vidyalaxmi scheme was introduced as a central sector scheme to ensure that no deserving student is denied access to higher education because of financial constraints. Under the programme, students securing merit-based admissions in recognised Quality Higher Education Institutions (QHEIs) are eligible for collateral-free and guarantor-free education loans.
To make higher education more affordable, the scheme also offers a 3% interest subvention on education loans of up to ₹10 lakh for students whose annual family income does not exceed ₹8 lakh. Up to one lakh fresh students every year, provided they are not availing any other scholarship or interest subvention on education loans, are eligible for this benefit. The government has earmarked an outlay of ₹3,600 crore for the period from 2024-25 to 2030-31, targeting nearly seven lakh fresh beneficiaries during the scheme period.
A dedicated PM-Vidyalaxmi online portal, operational since February 25, 2025, provides a single-window platform through which students can apply for education loans and interest subvention using a common application process accepted by participating banks. According to the government, as of July 21, 2026, a total of 1,12,817 loans had been sanctioned under the scheme.
The government is also implementing the PM Uchchatar Shiksha Protsahan Credit Guarantee Fund Scheme for Education Loans (PM-USP CGFSEL), under which it provides a credit guarantee covering up to 75% of education loans up to ₹7.5 lakh taken without collateral or third-party guarantees. Since its launch in 2015, the scheme has issued 14,65,880 credit guarantees covering loans worth ₹59,843.74 crore.
To ensure that only eligible students receive the interest subsidy, Aadhaar-based de-duplication is carried out before approval. Once approved, students receive an SMS prompting them to install the PM-Vidyalaxmi Digital Rupee App. The interest subsidy is transferred by the government to the student’s digital wallet and, upon redemption, is credited directly to the education loan account through Direct Benefit Transfer (DBT).
Continuation of the interest subvention from the second year onwards depends on satisfactory academic performance. Participating higher education institutions upload semester-wise academic progress reports on the PM-Vidyalaxmi portal to facilitate performance monitoring.
The scheme currently has extensive banking participation, with 12 public sector banks, 20 private banks, 25 regional rural banks and seven cooperative banks onboarded to provide education loans. The government said this broad banking network is helping eligible students, including those from rural, tribal and economically disadvantaged backgrounds, access higher education financing.
The minister noted that scholarships and education loans together are helping reduce financial barriers to higher education, contributing to an increase in India’s Gross Enrolment Ratio (GER) in higher education from 23.0 in 2013-14 to 30.0 in 2023-24.
