PM Vidyalaxmi Yojana

PM Vidyalaxmi is a financial aid scheme for meritorious students who are admitted to quality higher education institutions (QHEIs) — specifically, institutions with NIRF ranking within top 100, or institutions ranked 101-200 with certain additional criteria. The scheme provides collateral-free and guarantor-free education loans with a full interest subsidy during the study period for students from families with annual income up to ₹8 lakh, and 75% subsidy for those between ₹8 lakh and ₹15 lakh.

What distinguishes PM Vidyalaxmi from older education loan schemes is its central credit guarantee — the government guarantees the loan through a designated Credit Guarantee Fund, meaning banks can lend without demanding collateral from the student's family. This removes the biggest barrier that previously prevented first-generation college students from middle-income families from accessing education loans for premium institutions.

The loan can cover tuition fees, hostel, books, equipment, travel, and other education-related expenses. To apply, check if your admitted institution is on the QHEIs list, then apply through the PM Vidyalaxmi portal at vidyalaxmi.co.in. The portal integrates with the National Scholarship Portal (NSP) for seamless verification. Our editorial team reviewed institution eligibility lists and loan terms against the Education Ministry and DFS official circulars, July 2026.