PM Vidyalaxmi Education Loan Scheme Key Features, Eligibility, and Application Process Explained
PM Vidyalaxmi Education Loan Scheme Key Features, Eligibility, and Application Process Explained. The PM Vidyalaxmi scheme aims to assist meritorious but financially disadvantaged students in India by providing loans for higher education. Approved in November 2024, it covers admissions in 860 top institutes and benefits over 22 lakh students annually.
PM Vidyalaxmi Education Loan Scheme Key Features, Eligibility, and Application Process Explained
Features of PM Vidyalaxmi Scheme
- Collateral-free loans: No need for any collateral or guarantor.
- Online application: Loans can be applied for online through the Vidyalaxmi portal.
- Loan amount: Up to ₹7.5 lakhs with a 75% credit guarantee by the government.
- Interest subsidy: 3% interest subvention on loans up to ₹10 lakh for families earning up to ₹8 lakh annually.
- Interest-free: Complete interest subsidy for students with an annual family income up to ₹4.5 lakhs.
- Available at banks: Offered by Scheduled Banks, Regional Rural Banks, and Cooperative Banks.
Eligibility for PM Vidyalaxmi Scheme
- Merit-based admission: Students getting admission to quality higher education institutions (QHEIs) in India.
- Family income: Applicable to students from all income groups.
- Courses: Covers degree and diploma programs.
- Competitive exams: Students admitted through merit-based admissions or competitive exams are eligible.
- Quota admissions: Management quota students are not eligible.
How to Apply for PM Vidyalaxmi Scheme
- Visit the official Vidyalaxmi portal.
- Register by creating an account with details such as name, email, mobile number, and Aadhaar number.
- Log in and go to the loan application section.
- Select the type of loan and provide necessary details (course, institution, personal information).
- Choose the bank or financial institution for the loan.
- Submit the application and track its status on the portal.
Interest Rate of PM Vidyalaxmi Scheme
- The interest rate for loans under PM Vidyalaxmi will be lower than regular education loans.
- Banks may offer customized interest rates as per their policies.
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Repayment Period
- The repayment period is up to 15 years, excluding the moratorium period.
- For loans above a certain threshold, banks may include life insurance coverage in the loan amount, depending on the borrower’s request.
In conclusion, the PM Vidyalaxmi scheme provides a significant opportunity for students aspiring for higher education by offering financial support without the burden of collateral and at affordable
