Education is the key to a bright future, but rising tuition fees often make higher studies difficult for many students. To ensure that no student is deprived of education due to a lack of money, the Government of India launched the PM Vidyalakshmi Scheme. Under this scheme, students can apply for education loans at affordable interest rates through a single online portal.
Let us understand in detail how this scheme works, its benefits, and the process of applying for an education loan under the PM Vidyalakshmi Scheme.
What is the PM Vidyalakshmi Scheme?
The PM Vidyalakshmi Scheme is an initiative by the Government of India to provide financial support to students seeking education loans. It was launched under the Pradhan Mantri Vidyalakshmi Karyakram to make education financing easier and more transparent. The scheme allows students to apply for loans from multiple banks through a single application on the Vidyalakshmi Portal (www.vidyalakshmi.co.in).
The main objective of this scheme is to help students get education loans at lower interest rates, making higher education more accessible and affordable.
Benefits of the PM Vidyalakshmi Scheme
- Single Online Platform – Students can apply for loans from multiple banks without visiting different branches.
- Low-Interest Education Loans – The scheme offers education loans at lower interest rates compared to normal bank loans.
- Quick and Transparent Process – The online portal makes loan applications simple and hassle-free.
- Loan for Various Courses – Loans can be availed for undergraduate, postgraduate, diploma, and professional courses in India and abroad.
- No Collateral for Small Loans – Loans up to ₹7.5 lakh do not require collateral under government guidelines.
- Easy Tracking – Students can check the status of their loan application online at any time.
- Multiple Loan Options – More than 40 banks are registered on the Vidyalakshmi portal, giving students a choice to select the best loan option.
Who Can Apply for the PM Vidyalakshmi Scheme?
Any Indian student who wants to pursue higher education and requires a loan can apply under this scheme. However, there are certain eligibility criteria:
- The applicant must be an Indian citizen.
- The student must have secured admission to a recognized educational institution in India or abroad.
- The course should be approved by UGC, AICTE, ICMR, or other government bodies.
- Some banks may require a minimum academic performance to grant loans.
Expenses Covered Under the Scheme
The education loan taken under the PM Vidyalakshmi Scheme covers a wide range of expenses, such as:
- Tuition fees
- Hostel and accommodation charges
- Examination and library fees
- Books, laptops, and study materials
- Travel expenses for studies abroad
- Any other necessary expenses related to education
How to Apply for a Loan under the PM Vidyalakshmi Scheme?
Applying for an education loan under this scheme is easy and completely online. Follow these steps:
Step 1: Visit the Vidyalakshmi Portal
Go to the official website www.vidyalakshmi.co.in and register yourself with your email ID and phone number.
Step 2: Fill Out the Common Loan Application Form (CLAF)
After registering, log in to your account and fill out the Common Loan Application Form (CLAF). This form collects details like:
- Personal information
- Educational qualifications
- Course details
- Loan amount required
- Bank preferences
Step 3: Choose Your Bank and Loan Scheme
Select the banks from which you wish to apply for the education loan. Multiple banks offer different schemes, so choose the one that suits you best.
Step 4: Upload Required Documents
Scan and upload the following documents:
- Admission proof from the educational institution
- 10th and 12th mark sheets
- KYC documents (Aadhaar, PAN, etc.)
- Income proof of parents or guardians
- Course fee structure
Step 5: Submit the Application
Once all details are filled in, submit the application. The portal will forward your loan request to the selected banks.
Step 6: Track Your Application
You can log in anytime to check the status of your loan application. Banks will review your application and contact you if additional information is needed.
Banks Participating in the PM Vidyalakshmi Scheme
Many nationalized and private banks in India provide education loans under this scheme. Some of the major banks include:
- State Bank of India (SBI)
- Punjab National Bank (PNB)
- HDFC Bank
- ICICI Bank
- Axis Bank
- Bank of Baroda
- Canara Bank
- Union Bank of India
- Kotak Mahindra Bank
Loan Repayment Terms
- The loan repayment starts after 1 year of course completion or 6 months after getting a job.
- The repayment period varies from 5 to 15 years, depending on the loan amount and bank policy.
- Students can also avail of government subsidies on interest under different schemes.
Why Choose the PM Vidyalakshmi Scheme?
- Government-backed loans ensure reliability.
- Lower interest rates compared to regular education loans.
- Easy application and approval process through a single platform.
- No need to visit multiple banks, saving time and effort.
The PM Vidyalakshmi Scheme is a great initiative by the Government of India to make higher education affordable for all. By applying through the Vidyalakshmi portal, students can access multiple education loan options from various banks in just a few simple steps. This scheme ensures that money is never a barrier to education, helping students achieve their dreams without financial worries.
