1.12 Lakh Collateral-Free Education Loans Sanctioned Under PM-Vidyalaxmi Scheme

The PM-Vidyalaxmi Scheme has sanctioned over 1.12 lakh collateral-free and guarantor-free education loans since its launch in November 2024. As of July 21, 2026, the total number of sanctioned loans stood at 1,12,817, with the total sanctioned amount crossing Rs 15,634 crore.

The scheme was introduced by the Government of India to ensure that financial constraints do not prevent meritorious students from pursuing higher education. Under the scheme, students who secure merit-based admission to eligible Quality Higher Education Institutions (QHEIs) can avail themselves of collateral-free and guarantor-free education loans.

The PM-Vidyalaxmi Scheme also provides an interest subvention benefit for students from families with an annual income of up to Rs 8 lakh. Eligible students can receive a 3% interest subvention on education loans of up to Rs 10 lakh. Up to one lakh fresh students each year can avail of this benefit, provided they are not receiving any other scholarship or interest subvention on an education loan.

The government has allocated Rs 3,600 crore for the period from 2024-25 to 2030-31 to provide the 3% interest subvention benefit to up to seven lakh fresh students during this period. A dedicated online platform, the PM Vidyalaxmi portal, was launched to streamline the process for students seeking education loans and interest subvention.

The portal has been operational since February 25, 2025, and allows students to apply through a simplified application process that can be accessed by participating banks. The scheme is available through Scheduled Banks, Regional Rural Banks (RRBs) and Cooperative Banks. Currently, 12 public sector banks, 20 private banks, 25 RRBs and seven cooperative banks have been onboarded to the PM Vidyalaxmi portal.

The wider network is intended to help eligible students from different parts of the country, including those from rural, tribal and underprivileged communities, access financial support for higher education. The government has put in place Aadhaar-based de-duplication to ensure that only eligible students receive the interest subvention benefit.

Once an interest subvention application is approved, the student receives an SMS on their registered mobile number asking them to install the PM-Vidyalaxmi Digital Rupee App. After banks submit their claims, the government credits the interest subvention amount to the student's digital wallet. The student can then opt to redeem the amount, following which the funds are transferred to the education loan account through Direct Benefit Transfer (DBT).

The release of interest subvention from the second year onwards is linked to the student's academic performance. The PM-Vidyalaxmi Scheme is a significant initiative by the government to promote higher education and provide financial support to meritorious students. With the scheme's success, it is expected to have a positive impact on the education sector and the country's overall development.

The scheme's focus on providing collateral-free and guarantor-free education loans, along with interest subvention, is expected to benefit a large number of students, particularly those from underprivileged backgrounds. As the scheme continues to grow and expand, it is likely to play a crucial role in promoting higher education and empowering students to pursue their academic goals.

In conclusion, the PM-Vidyalaxmi Scheme is a notable initiative by the government to support higher education and provide financial assistance to meritorious students. With its success, it is expected to have a positive impact on the education sector and the country's overall development.