Archive · 30 Jul 2026
Centre injects Rs 1,050 crore into education loan schemes
The Indian government is giving a big money boost of Rs 1,050 crore to help students get loans for college.
These loans can be taken without putting up a house or a guarantor.
Students from families that earn up to Rs 8 lakh a year can get a 3% interest discount.
Another program gives a full interest break for families earning up to Rs 4.5 lakh.
The government also promises to back 75% of the loan amount so banks don’t need collateral.
This helps many students study without worrying about money.
Government allocates Rs 1,050 crore to subsidize education loans across multiple schemes.
Loans up to Rs 7.5 lakh can be collateral‑free under the Model Education Loan Scheme.
PM Vidyalaxmi Scheme offers 3% interest relief and 75% credit guarantee for students from families earning up to Rs 8 lakh.
Central Sector Interest Subsidy covers full interest during moratorium for students with household income up to Rs 4.5 lakh.
Credit Guarantee Fund provides 75% guarantee on loans up to Rs 7.5 lakh, removing collateral requirement.
- Who
- Indian government
- What
- Subsidies and guarantees for education loans
- When
- FY 2024-25 and ongoing
- Where
- India
- Why
- To make higher education more affordable for students
- Total budgetary commitment
- Rs 1,050 crore
- Model Scheme loan limit
- Rs 7.5 lakh
- PM Vidyalaxmi interest relief
- 3%
- Credit guarantee percentage
- 75%
- PM Vidyalaxmi income eligibility
- up to Rs 8 lakh
- CSIS income eligibility
- up to Rs 4.5 lakh
- CSIS loan limit
- up to Rs 10 lakh
- CGF loan limit
- up to Rs 7.5 lakh