Archive · 29 Jul 2026
PM-Vidyalaxmi Scheme Approves 1.12 Lakh Loans
The PM-Vidyalaxmi scheme has approved over 1.12 lakh education loans since its launch in November 2024.
These loans are collateral-free and guarantor-free, making it easier for students to pursue higher education without financial stress.
The scheme offers a 3% interest subsidy on loans up to Rs 10 lakh for students with an annual family income of up to Rs 8 lakh.
The government has allocated Rs 3,600 crore for the scheme between 2024-25 and 2030-31, aiming to support up to seven lakh fresh students.
The PM-Vidyalaxmi portal, launched on February 25, 2025, allows students to apply for loans and interest subsidies through a single online platform connected to participating banks.
The government has also shared details of the PM-USP CGFSEL scheme, which has issued 14,65,880 credit guarantees covering education loans worth Rs 59,843.74 crore.
To ensure benefits reach the right students, Aadhaar-based verification is used, and interest subsidies are transferred directly to students' loan accounts through Direct Benefit Transfer (DBT).
The ministry has onboarded 64 banks, including public, private, regional rural, and cooperative banks, making education loans more accessible to students across the country.
Over 1.12 lakh education loans approved under the PM-Vidyalaxmi scheme since November 2024.
Loans are collateral-free and guarantor-free, with a 3% interest subsidy for eligible students.
Government allocated Rs 3,600 crore for the scheme from 2024-25 to 2030-31.
PM-Vidyalaxmi portal launched on February 25, 2025, for online loan applications.
64 banks, including public, private, regional rural, and cooperative banks, participate in the scheme.
- Who
- Students seeking higher education
- What
- Approval of 1.12 lakh collateral-free and guarantor-free education loans under the PM-Vidyalaxmi scheme
- When
- Since November 2024
- Where
- India
- Why
- To ensure eligible students are not forced to give up higher education due to financial constraints
Government Support
Student Accessibility
Loan Approval Process
Government Support
The government has streamlined the loan approval process through the PM-Vidyalaxmi portal, making it easier for students to access education loans.
Student Accessibility
Students find the process accessible and beneficial, as it provides collateral-free and guarantor-free loans, reducing financial barriers to higher education.
Interest Subsidy
Government Support
The government offers a 3% interest subsidy on education loans up to Rs 10 lakh, aiming to support students from families with an annual income of up to Rs 8 lakh.
Student Accessibility
Students benefit from the interest subsidy, which reduces the financial burden and makes higher education more affordable.
Bank Participation
Government Support
The government has successfully onboarded 64 banks, including public, private, regional rural, and cooperative banks, to the PM-Vidyalaxmi portal.
Student Accessibility
Students have more options and easier access to education loans due to the participation of a diverse range of banks.
- Total Loans Approved
- 1,12,817
- Total Loan Amount
- Rs 15,634.78 crore
- Interest Subsidy
- 3% on loans up to Rs 10 lakh
- Annual Family Income Limit
- Up to Rs 8 lakh
- Government Allocation
- Rs 3,600 crore (2024-25 to 2030-31)
- Target Students
- Up to seven lakh fresh students
- Portal Launch Date
- February 25, 2025
- Banks Participating
- 64 banks (12 public, 20 private, 25 regional rural, 7 cooperative)