Wish you could get a good education but affirmed of the cost? The Pradhan Mantri Vidyalaxmi (PM-Vidyalaxmi) Scheme may be the secret. As an initiative of the Government of India, through the Department of Higher Education, this is meant to make sure that no deserving student is denied his or her right to study due to their financial capabilities.
This is an effective plan giving a simplified, online procedure of securing collateral-free and guarantor-free education. And, in case you have secured a position in one of the best Indian institutions, this guide will take you through all that you need to know, including advantages and eligibility to the step-by-step application process.
What is the PM-Vidyalaxmi Scheme?
Overall, PM-Vidyalaxmi Scheme is a portal that is friendly to students and can easily help them to obtain an education loan. Its essence being to offer financial assistance to gifted students so that the high cost of education is not an obstacle to their goals. The program is operated in partnership with Canara bank, that is the nodal bank and is characterized by a fully online and open application system.
Key Benefits & Features: Why Choose This Scheme?
The PM-Vidyalaxmi Scheme is unique and is characterized by its favorable financial conditions and strong government support. This is the reason why it is so helpful:
- No Securities or Collateral Required: The loan will not be secured and you will not have to secure it with any asset or using a guarantor.
- Loan with No Upper Limit: This loan includes your entire fees and other related costs such as hostel, living cost, and a laptop with no fixed limit.
- Considerable Interest Subvention: Students whose family income is not exceeding 8 Lakh per annum are entitled to have their interest subventioned at 3% within the moratorium period (course period plus one year).
- Government Credit Guarantee: The Government of India guarantees 75 percent credit guarantee on the loans of up to 75 Lakh, so the banks have an easy time granting loans.
- Competitive Interest Rates: The interest rate will be limited to the bank Externally Benchmarked Lending Rate (EBLR) + 0.5%.
- Incentive on Timely Payments: Timely paying Timely payment would earn you another interest concession of up to 1% provided that you service the interest as long as the period of study and moratorium.
- Reasonable Repayment Period: You will have between 15 years to repay the loan once the moratorium has lapsed.
- Digital Disbursement of Benefits: The interest subversion amount will be deposited directly into your PM-VIDYALAXMI DIGITAL RUPEE APP (a CBDC wallet), through which it is sent to your loan account.
Eligibility Criteria: Who Can Apply?
For Students:
To qualify for this scheme, you must:
- Be an Indian citizen.
- Have been merit-basedly admitted to one of the 860 Quality Higher Educational Institutions (QHEIs) in India.
- Have not been taken in under a management quota or such like reservation.
- Have an annual family income of up to ₹8,00,000 to avail of the 3% interest subvention.
- Not be in receipt to any other Central or State Government scholarship or interest subversion.
- Dedicate to completing the course and performing satisfactorily afterwards in the second year and above.
For Institutions (QHEIs):
Eligible institutions include:
- Top 100 ranked HEIs in the latest NIRF rankings.
- Top 200 ranked state/UT government HEIs in the latest NIRF rankings.
- All other HEIs under the governance of the Government of India.
Please note: Indian campuses of foreign universities and foreign campuses of Indian institutions are not covered under this scheme.
How to Apply Online: A Step-by-Step Walkthrough
The entire process is digital and user-friendly. Here’s how to get started.
1. Registration on the Portal
- Step 1: Visit the official PM-Vidyalaxmi Scheme website.
- Step 2: Click on ‘Login’ > ‘Student Login’ and then select ‘Create an Account’.
- Step 3: You will need your Aadhaar number to register for the loan, interest subvention, and credit guarantee benefits.
- Step 4: Fill in the registration form with your name, mobile number, and email ID. Verify these details via OTP.
- Step 5: Create a strong password (8+ characters with upper/lower case letters, numbers, and a special character), confirm it, and submit the form.
2. Submitting Your Loan Application
- Step 1: Log in to the portal using your registered email and password.
- Step 2: On your Student Homepage, click ‘Apply for Education Loan’.
- Step 3: Carefully fill out the online application form and upload all required documents in the specified format.
- Step 4: Select your preferred bank and branch from the dropdown menu.
- Step 5: Review all information, agree to the T&Cs, and click ‘Final Submit’. You will receive a confirmation message.
3. Tracking Your Application & Managing Your Loan
- Track Application: After logging in, go to ‘Track Loan Application’ to see your current status (e.g., Under Review, Approved) and download a PDF copy of your application.
- Apply for Interest Subvention: Once your loan is disbursed, log in, select ‘Apply for Interest Subvention’, and submit your claim by uploading your Income Certificate.
- Raise a Grievance: If you face any issues, use the ‘Initiate Grievance’ section to register a new complaint. You will get a Grievance ID for tracking.
Documents You’ll Need to Provide
Have these documents ready for a smooth application process:
- Aadhaar Card
- PAN Card
- Address Proof
- Self-attested previous qualifying marksheets
- Entrance exam result card
- Offer letter from the institution (including the fee structure)
- Income Certificate from a designated public authority
Pro Tip: If your institution has already accepted some documents during admission, get a certificate from them (Annexure 6) to avoid re-submission.
Frequently Asked Questions (FAQs)
Q1. Can I apply if I was admitted through a management quota?
No. To be eligible to this scheme, one needs to be admitted on purely merit.
Q2. What is the maximum family income for the 3% interest subvention?
Your family income should be ₹8 Lakh or less annually.
Q3. Can I choose my bank for the loan?
Yes, the application portal will give you the option of which bank and branch you want to use in a dropdown list.
Q4. How is the interest subvention amount paid to me?
The amount is credited to your PM-VIDYALAXMI DIGITAL RUPEE APP (CBDC Wallet) and is then transferred to your loan account.
Q5. What is the maximum loan amount covered by the credit guarantee?
The government gives a credit guarantee of 75 percent on the loan value up to ₹7.5 Lakh.
Q6. Are foreign universities in India eligible?
No, the Indian campuses of foreign education institutions are not under this scheme.
What is the PM VIDYALAXMI DIGITAL RUPEE APP?
The PM VIDYALAKSMI DIGITAL RUPEE App is a specific mobile application that is premised on the Central Bank Digital Currency (CBDC). It is the one through which you get subvention benefits on your interest.
- Availability: You can download it from the Google Play Store for Android or the App Store for iOS.
- Activation: The app can be downloaded using the mobile number that the financing bank has registered. Activation will occur through OTP based on the Aadhaar.
- Purpose: It is used for both the PM Vidyalaxmi and the CSIS interest subvention schemes.
Need Help? Grievance Redressal Contacts
For any queries or issues, you can contact the nodal bank:
- Toll-Free No.: 1800 1031
- Telephone: 080- 22533876
- Email:
hoel@canarabank.com,hogps@canarabank.com,support@pmvidyalaxmi.co.in
Disclaimer: This information is for guidance purposes only. Always refer to the official PM-Vidyalaxmi Scheme website for the most current and accurate details.