Quick Answer
PM Vidyalaxmi is a government portal where you can apply for collateral-free, guarantor-free education loans from 48 banks using one application form. Students at 955 Quality Higher Education Institutions (QHEIs) can access loans with no upper limit, and those with family income up to ₹8 lakh get 3% interest subsidy (or 100% subsidy if income is under ₹4.5 lakh). The portal launched in February 2025 and has already sanctioned over 68,000 loans worth ₹9,118 crores.
PM Vidyalaxmi is a unified government portal that gives you collateral-free, guarantor-free education loans from multiple banks through a single digital application. Launched on February 25, 2025, it serves two main purposes: it lets you apply to multiple banks simultaneously using one Common Education Loan Application Form (CELAF), and it provides access to government interest subsidies for eligible students.
The portal is designed specifically for students admitted to 955 Quality Higher Education Institutions (QHEIs)—these include top 100 NIRF-ranked colleges, state government institutions ranked 101-200, and all central government institutions. Within its first year, the portal has sanctioned over 68,000 loans totaling ₹9,118 crores, making it a significant step toward accessible education financing.
PM Vidyalaxmi connects you only to banks—NBFCs like Credila, Avanse, Auxilo, and Propelld are NOT available on this portal. Apply to NBFCs separately through your institute or their websites.
As of now, 48 banks have joined the PM Vidyalaxmi platform, offering over 86 different loan schemes. This includes 12 public sector banks (PSBs) like SBI, PNB, Bank of Baroda, Canara Bank, UCO Bank, and IDBI Bank, plus 15 private banks including HDFC, ICICI, Axis, IDFC, and Yes Bank. The platform also includes 17 regional rural banks and 3 cooperative banks.
You can apply to up to 3 banks at once through a single application form, which saves you from filling out multiple forms and uploading documents repeatedly. Each bank evaluates your application based on their own criteria, so you might get different offers from different lenders.
The portal offers two types of interest subsidies depending on your family income. The PM Vidyalaxmi Interest Subvention gives you a 3% interest subsidy if your family income is up to ₹8 lakh per year, applicable on loans up to ₹10 lakh during the moratorium period (your course duration plus one year). One lakh students receive this benefit every year, with 7 lakh students expected to benefit between 2024-25 and 2030-31.
If your family income is below ₹4.5 lakh, you qualify for the Central Sector Interest Subsidy Scheme (CSIS), which covers 100% of the interest during the moratorium period on loans up to ₹7.5 lakh. This applies only to technical and professional courses at NAAC/NBA accredited institutions or institutions of national importance, and only for domestic education in India—not for study abroad.
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Ask a Question| Scheme | Income Limit | Subsidy Rate | Max Loan Amount | Applicable For |
|---|---|---|---|---|
| PM Vidyalaxmi | Up to ₹8 lakh | 3% interest | ₹10 lakh | All courses at QHEIs |
| CSIS | Up to ₹4.5 lakh | 100% interest | ₹7.5 lakh | Technical/professional courses only |
| Credit Guarantee | No limit | 75% default coverage | ₹7.5 lakh | All eligible students |
Example: If you take a ₹7 lakh loan at 10% interest for a 2-year course, total interest would be ₹56,000. With 3% subvention, the government pays ₹21,000 and you pay ₹35,000. With 100% CSIS subsidy, you pay zero interest during the moratorium.
The subsidy amount is credited to your PM Vidyalaxmi Digital Rupee App (CBDC wallet). You must download this app after receiving notification of your eligibility and redeem the subsidy within 90 days. Once redeemed, the amount is transferred directly to your loan account.
To apply through PM Vidyalaxmi, you must be an Indian citizen who has secured admission to one of the 955 Quality Higher Education Institutions (QHEIs) through a merit-based process or open competitive examination. Students admitted through management quota or similar quotas are not eligible. There is no income cap for the loan itself—students from all family income groups can apply—but income limits apply only for interest subvention benefits.
QHEIs include all government and private institutions ranked within the top 100 in NIRF (overall, category-specific, or domain-specific rankings), state government institutions ranked 101-200, and all central government-governed institutions. You can check the complete list at dashboard.aishe.gov.in before applying.
Under the PM Vidyalaxmi scheme, loans are collateral-free and guarantor-free regardless of the amount, as long as you're admitted to a QHEI. There is no ceiling on the maximum loan amount—it depends on your course fees and associated expenses including tuition, hostel and mess charges, refundable and non-refundable fees, cost of a laptop, and reasonable living expenses during the entire course period.
However, individual banks may have their own policies. For example, SBI requires a co-borrower for all loans above ₹75 lakh and offers need-based loans up to ₹3 crore. For loans up to ₹7.5 lakh, the government provides a credit guarantee of 75% of the outstanding default amount, which encourages banks to lend without collateral.
The interest rate is capped at the bank's Externally Benchmarked Lending Rate (EBLR) plus 0.5%. Repayment period is up to 15 years excluding the moratorium period (course duration plus one year).
Visit pmvidyalaxmi.co.in and register using your Aadhaar number. You'll need to provide your full name (as per Aadhaar), mobile number (linked to Aadhaar for OTP verification), and email address. Verify both your mobile and email via OTPs, then create a password with at least 8 characters including uppercase and lowercase letters, numbers, and special characters.
Complete the standardized CELAF form with your personal details, family income, course and college information, academic records, required loan amount, and co-applicant financial details. This single form allows you to apply to multiple banks without repeating the process.
Upload all documents in PDF format only—no JPEG, PNG, DOCX, or ZIP files are accepted. You'll need your Aadhaar, PAN, address proof, 10th and 12th mark sheets, graduation mark sheets (if applicable), entrance exam results, admission letter with year-wise fee structure, and 2 passport photos.
Your co-applicant must provide Aadhaar, PAN, proof of income from designated public authority (for interest subvention), last 2 years' ITR with computation of income, last 6 months' bank statements, last 3 months' salary slips (if salaried), or business registration and financials (if self-employed).
Choose your preferred banks and branches from the dropdown menu. You can apply to a maximum of 3 banks simultaneously. Each bank will evaluate your application independently based on their own criteria.
Carefully review all information and uploaded documents. Make any necessary corrections, agree to the terms and conditions, and click "Final Submit." You'll receive a confirmation message via SMS, email, and WhatsApp.
Log in to your account and click "Track Loan Application" on the student homepage. Select your loan application number to see the current status (Under Review, Approved, or Disbursed). You can also download a PDF copy of your application from this section.
After receiving notification of eligibility from the Ministry, apply for interest subvention through the portal. Download the PM Vidyalaxmi Digital Rupee App (available on Play Store and App Store) to receive your subsidy via Central Bank Digital Currency (CBDC). You must redeem the subsidy within 90 days of receipt.
Processing through PM Vidyalaxmi typically takes 20-45 days, making it the slowest channel compared to bank campus partners (7-10 days) or NBFCs like Propelld (2-3 days). For urgent funding needs, it's recommended to apply through multiple channels simultaneously rather than waiting for one response.
For support, contact the dedicated call center at toll-free 1800 1031 or email hoel@canarabank.com. You can also raise grievances through the portal—as of February 2026, 25,061 out of 26,683 grievances have been resolved, with 106 out of 123 loan-related complaints closed.
While PM Vidyalaxmi offers significant benefits, it has several limitations you should understand. First, the portal connects you only to banks—NBFCs like Credila, Avanse, Auxilo, and Propelld are not available. For students at mid-tier or lower-tier colleges, or those with weak co-applicant profiles (no ITR, informal income, low credit score), NBFCs are often the only realistic option.
Second, banks on the portal enforce strict documentation requirements—ITR for the last 2 years is mandatory, credit score of 700+ is preferred (650+ minimum), and collateral may be required above bank-specific limits even though the PM Vidyalaxmi scheme itself is collateral-free. Not having filed ITR is the single biggest reason for delays and rejections.
Third, the portal is limited to the 955 QHEIs. If your college isn't on this list (check at dashboard.aishe.gov.in), you cannot use PM Vidyalaxmi. Finally, there's often a gap between sanctioned and disbursed amounts because the sanctioned amount covers the entire course period while disbursement happens year-wise or semester-wise based on fee demands.
If your co-applicant has informal income, no ITR, or weak documentation, banks will likely reject your application. NBFCs like Propelld accept bank statements, GST returns, and business proof as alternatives.
PM Vidyalaxmi is best for students at QHEI-listed institutions whose co-applicant has strong documentation (ITR filed, credit score 700+, salaried or documented income), who are not in a rush (can wait 20-45 days), want to compare multiple bank offers simultaneously, and are eligible for interest subvention benefits.
It's not ideal if your college is not on the QHEI list, your co-applicant has informal income or no ITR, you need fast processing (under 10 days), your loan amount exceeds bank collateral-free limits and you have no property, or you want flexible loan products like partial interest payments or short-term semester financing.
The smartest approach is to apply through multiple channels simultaneously rather than waiting for one rejection before trying another. Each lender has different approval criteria, so parallel applications maximize your chances of getting funded on time.
Never wait for one rejection before trying another channel. A higher-rate NBFC with interest-only payments can cost less than a lower-rate bank with full moratorium. If your admission deadline is near, prioritize NBFC or campus partner over PM Vidyalaxmi.
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