No more financial worries about education; get an education loan without a guarantee—here’s how to apply.

Under the Central Government’s PM Vidyalaxmi Scheme, eligible students can avail of education loans—along with interest subsidies—without the need for a guarantor or collateral (pledging assets).

If you excel academically but are facing difficulties enrolling in a college or university due to a lack of funds, there is good news for you. The Central Government has launched the PM Vidyalaxmi Scheme to assist such students. Under this scheme, eligible students can secure education loans without requiring a guarantor or collateral.

The Union Cabinet approved this scheme on November 6, 2024. Its objective is to ensure that no meritorious student’s education is halted solely due to financial constraints. The scheme aligns with the goals of the National Education Policy (NEP 2020), and the entire application process is conducted online.

What is the PM Vidyalaxmi Portal?

The government has launched the PM Vidyalaxmi Portal for the convenience of students. It is an online platform where students can apply for education loans from a single location. Through this portal, loan facilities are made available for higher education—both within India and abroad—from public sector, private, Regional Rural (RRB), and cooperative banks.

Students must first register on the portal. Subsequently, they can fill out a common education loan application form and submit it to their preferred bank. The status of the application can also be tracked online via the portal.

Key Feature of the Scheme

The most significant advantage of this scheme is that students can obtain education loans without a guarantor or collateral. This facility is available to students who have secured admission to selected Quality Higher Educational Institutions (QHEIs) in the country. These institutions have been selected based on the National Institutional Ranking Framework (NIRF).

What are the benefits?

Under the scheme, the Government of India provides a credit guarantee of up to 75 percent on education loans of up to ₹7.5 lakh. In other words, the risk for the bank is reduced, making it easier for students to secure a loan.

If a family’s annual income is up to ₹8 lakh, an interest subsidy of 3% will be provided on education loans of up to ₹10 lakh. Meanwhile, families with an annual income of ₹4.5 lakh or less will receive the benefit of a full interest subsidy on the loan.

Additionally, the entire application process is digital, and the loan amount will be disbursed via a Digital Rupee Wallet.

Benefits for lakhs of students annually

According to the government, more than 22 lakh students are expected to benefit from the PM Vidyalaxmi Yojana each year. This scheme will further strengthen existing initiatives such as the Central Sector Interest Subsidy Scheme (CSIS) and the Credit Guarantee Fund Scheme for Education Loans (CGFSEL).

How ​​to apply

First, register on the PM Vidyalaxmi Portal. Next, fill out the Common Education Loan Application Form. Finally, select your preferred bank and submit the application.