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Introduction |
The Union Cabinet on 6th November 2024 approved “Pradhan Mantri Vidyalaxmi” (PM-Vidyalaxmi), a Central Sector Scheme to financial support to meritorious students so that financial constraints do not prevent any youth of India from pursuing quality higher education.
A special education loan for meritorious students who get admission in the top 860 quality Higher Educational Institutions (QHEIs) of the nation as selected by Department of Higher Education (DHE). The loan under the scheme provides collateral free, guarantor free education loan which has been made accessible through a simple, transparent, student-friendly and entirely digital application process through the new PM Vidyalaxmi Portal. |
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Student Eligibility
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Applicability of Scheme |
A special education loan for meritorious students (other than through Management/NRI quota) who get admission in the top 860 Quality Higher Educational Institutions (QHEIs) of the nation as selected by Department of Higher Education (DHE).
860 Colleges bifurcated in 03 Categories: PM Vidyalaxmi AAA Category – 51 colleges PM Vidyalaxmi AA Category – 63 colleges PM Vidyalaxmi A Category – 746 colleges |
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Quantum Of Finance |
No Upper cap (Depending on course structure & subject to terms and conditions as applicable) |
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Margin
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Security |
Primary – Assignment of future income of student Collateral – NIL |
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Guarantor |
Not Required |
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Co-borrower |
For AAA & AA Category Institutes: Parent(s)/guardian/ spouse/ parents-in-law of the student may be taken as joint-borrower.
For A Category Institutes: Joint borrower is compulsory
The joint borrower should normally be parent (s)/ guardian of the student borrower. In case of a married person, joint borrower can be spouse or the parent (s)/ parents-in-law. |
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Moratorium Period |
Course Period + 1 Year |
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Repayment |
Max. 15 Years excluding Moratorium period |
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Rate of Interest |
Please click here to know our latest interest rates |
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Insurance
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Comprehensive life insurance policy for the student availing Educational Loan to the minimum of loan amount for a minimum period of loan term (i.e., course period + moratorium period + repayment period) assigned in favour of the Bank. One time premium based term policy for life of the student for entire tenure of loan to be considered for payment within the ceiling of sanctioned limit. For AAA & AA Category institutes- Insurance has been waived off |
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Credit Guarantee |
Credit guarantee equivalent to 75% of loan amount for loans up to ₹ 7.5 lakh will be available, irrespective of family income. Credit guarantee benefit under PM-Vidyalaxmi shall be admissible only once either for undergraduate or post graduate or integrated course. |
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Interest Subvention details |
If education loan amount is more than Rs. 10 Lakh, interest subvention shall be provided for disbursed total principal amount of loan up to ₹ 10 lakhs only.
However, Interest subventions shall be provided by DHE in a year, to Max. of One Lakh applicants only.
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PM Vidyalakshmi Portal |
For all the education loans, application to be routed through New PM VLP portal (https://pmvidyalaxmi.co.in). |
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Annual Family Income |
Income certificate should be verified by authorized Public Authority of the State Govt. Income of Family will include income of Student + his/her parents + his/her Spouse (if, any). |
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Charges |
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