News: Since its launch in November 2024, PM Vidyalaxmi has expanded coverage from 860 to 1,425 Quality Higher Educational Institutions (QHEIs).

About

• Central Sector Scheme of the Ministry of Education.
• Provides collateral-free and guarantor-free education loans to meritorious students pursuing higher education.
• Aim: Ensure equitable access to quality higher education by reducing financial barriers.

Key Features

• Loan Coverage → Tuition fees and other educational expenses; no absolute loan limit.
• Repayment → Up to 15 years (excluding the moratorium period).
• Interest Rate → Capped at the bank's EBLR + 0.5%.
• Credit Guarantee → National Credit Guarantee Trustee Company (NCGTC) provides 75% credit guarantee for loans up to ₹7.5 lakh.
• Eligibility → Students admitted to the top 1,425 QHEIs through merit or competitive examinations.

Interest Subvention

• Family income up to ₹4.5 lakh/year → 100% interest subvention during the moratorium period (for technical & professional courses under PM-USP CSIS).
• Family income ₹4.5–8 lakh/year → 3% interest subvention on loans up to ₹10 lakh during the moratorium period.
• Limited to one degree level, subject to satisfactory academic performance.
• Interest subsidy is transferred through Direct Benefit Transfer (DBT) into the student's PM Vidyalaxmi Digital Rupee (CBDC) Wallet for automatic redemption.