Who can apply for the PM Vidyalaxmi Scheme 2024?

Students admitted to Quality Higher Education Institutions (QHEIs) with a family income of up to ₹8 lakh are eligible.

What is the loan limit under this govt scheme?

Loans up to ₹7.5 lakh are collateral-free; loans up to ₹10 lakh are eligible for interest subvention.

How much interest subvention is provided?

A 3% interest subvention is available for families with an annual income of ₹8 lakh or less.

What documents are required for the application?

Documents include proof of admission, family income proof, identity proof, transcripts, and bank details.

How do I apply for the PM Vidyalaxmi Scheme?

Applications can be submitted through the "PM-Vidyalaxmi" portal by registering, filling the form, uploading documents, and completing verification.

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No-Collateral, No-Guarantor Loans: All You Need to Know About the PM Vidyalaxmi Scheme

Jaagruk Bharat

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Updated: 28-01-2025 at 7:15 AM

No-Collateral, No-Guarantor Loans: All You Need to Know About the PM Vidyalaxmi Scheme

The PM Vidyalaxmi Scheme 2024 is the government scheme that offers no-guarantor, collateral-free loans for students to support them towards higher studies. The government program simplifies access in terms of availing financial aid and aims to make higher education accessible, and affordable, for all deserving Indian students.

Aspect	Details
Scheme Name	PM Vidyalaxmi Scheme 2024
Launch Year	2024
Objective	To provide collateral-free, guarantor-free student loans for higher education
Target Group	Economically disadvantaged students in India
Loan Limit	Up to ₹7.5 lahks without collateral; loans up to ₹10 lahks with interest subvention
Interest Subvention	3% for loans up to ₹10 lakh for eligible families
Budget Allocation	₹3,600 crores (2024-25 to 2030-31)
Expected Beneficiaries	7 lakh students
Managing Authority	Department of Higher Education
Duration	Funding from 2024 to 2031

The PM Vidyalaxmi Scheme 2024 is a Government of India initiative that provides transformative education loans to students belonging to low-income families. It aims to make quality higher education institutions (QHEIs) accessible to admitted students by covering tuition fees and other course-related expenses. With a lot of budget and structured support, such a government scheme is likely to be targeted at millions of students over the next few years.

About

The PM Vidyalaxmi Scheme is a subsidy scheme to ensure that loans for higher education are available without much collateral or even a guarantor. It has partnerships with banks and financial institutions and provides money for the tuition and other fees of course study, especially for below-poverty-line families. The interest subvention is also allowed for such students. Thus, loans are affordable for students, and the burden of repayment is relatively lesser.

Benefits

The benefits offered by this govt scheme are designed to support students pursuing higher education. The key advantages include:

Collateral-Free Loan: students are eligible to draw loans up to ₹7.5 lakh without collateral or a guarantor.
Interest Subvention: Families having an annual income of ₹8 lakh or less would be eligible for a 3% interest subvention on loans up to ₹10 lakh during the moratorium period.
Accessibility to Top Institutions: A student admitted to QHEIs from top-ranked NIRF (National Institutional Ranking Framework) institutions will be covered.
Extended Financial Support: The government has allocated a budget of ₹3,600 crore to sustain the scheme from 2024-2031.
Single Platform for Application: Students can apply through the “PM-Vidyalaxmi” portal, streamlining the application and approval process.

Eligibility Criteria

To be eligible for the PM Vidyalaxmi Scheme, applicants must meet the following criteria to ensure they qualify for the benefits:

Be admitted to a Quality Higher Education Institution (QHEI) as defined by the government scheme.
Have a family income of up to ₹8 lakh to avail of interest subvention.
Students belonging to families with incomes up to ₹4.5 lahks can avail of the PM-USP CSIS, wherein full interest subvention is available on loans up to ₹10 lahks for courses like technical or professional courses.

Application Process

To apply for the PM Vidyalaxmi Scheme, follow these simple steps to ensure your application is submitted correctly and processed smoothly. Here's how you can proceed:

Step 1. Registration: Log in at the "PM-Vidyalaxmi" portal and create an account.

Step 2. Application Filing: Fill out the online application form with personal and academic details.

Step 3. Upload Documents: Required documents include proof of admission, family income, identity proof, etc.

Step 4. Verification: Applications shall be verified by the banks and the educational institution.

Step 5. Sanction and Disbursement: The loan will be disbursed either through an e-voucher or into the CBDC wallet for easy tracking upon approval of the same.

Documents Required

To complete the application for the PM Vidyalaxmi Scheme, you will need to submit the following documents to ensure that your application is processed correctly and promptly. These documents help verify your eligibility and academic status:

Application letter from QHEI
Proof of family income for interest subvention
Government-issued identity proof such as an Aadhaar card, passport, etc
Transcripts/Certificates
Bank details where the loan will be released.

Conclusion

The PM Vidyalaxmi Scheme 2024 is one such landmark initiative meant to provide more equitable access to higher education for students from weaker sections of the economy. The government scheme removes the barriers that may arise due to financial constraints and allows access to higher education for students from those sections by making facilitation easy.

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