PM-Vidyalaxmi Scheme Overview

The PM-Vidyalaxmi Scheme, a recently approved central sector initiative, aims to support students pursuing higher education.

Scheme Features
Eligibility: The scheme is open to students gaining admission in institutions listed within the top 100 of the NIRF rankings (overall, category-specific, and domain-specific).

Collateral-Free Loans: Students can avail themselves of education loans without needing a guarantor or collateral.

Digital Portal: Managed by the Department of Higher Education, the scheme operates through the “PM-Vidyalaxmi” digital platform, where students can apply for loans and interest subventions. Transactions are facilitated via E-vouchers and Central Bank Digital Currency (CBDC) wallets.

Credit Guarantee: The Government of India will provide a 75% credit guarantee for loans up to ₹7.5 lakhs to encourage banks to expand loan coverage.

Interest Subvention: Students with family incomes up to ₹8 lakhs, who are not benefiting from any other government scholarship or interest subsidy, will receive a 3% interest subvention on loans up to ₹10 lakhs during the moratorium period.

Complementary Schemes: PM-Vidyalaxmi works in conjunction with other schemes such as the CSIS and the Credit Guarantee Fund Scheme for Education Loans (CGFSEL) under PM-USP.

Central Sector Interest Subsidy (CSIS) Scheme
The CSIS scheme offers interest subsidies on education loans for economically disadvantaged students. Administered by the Ministry of Education’s Department of Higher Education, the scheme covers up to ₹10 lakhs, with loans up to ₹7.5 lakhs requiring no collateral or third-party guarantees. The interest subsidy applies during a 12-month moratorium period following course completion.

Pradhan Mantri Uchchatar Shiksha Protsahan (PM-USP) Yojana
This scheme provides financial assistance to economically weaker students, helping them manage expenses throughout their studies. Implemented by the Department of Higher Education, Ministry of Education, scholarships are based on Higher Secondary/Class XII Board results and are allocated by State Education Boards. A 50% reservation for girls is provided, along with a 3% allocation for students from Ladakh. Scholarships are divided among Humanities, Science, and Commerce streams in a 3:3:1 ratio. Eligible students must be within the top 80th percentile in Class XII Board exams, enrolled in full-time degree courses, and have a family income below ₹4.5 lakh per year.