Now you will not have to worry about money for studies, you will get education loan without guarantee, know how to apply?

If you are good in studies but are facing difficulty in taking admission in college or university due to lack of money, then there is relief news for you. The Central Government’s PM Vidyalaxmi Scheme has been started to help such students. Under this scheme, eligible students can get education loan without any guarantor and without collateral.

This scheme was approved by the Union Cabinet on 6 November 2024. Its objective is to ensure that the studies of any meritorious student do not stop merely because of financial constraints. This scheme has been prepared in accordance with the objectives of the New Education Policy (NEP 2020) and its entire process has been kept online.

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What is PM Vidyalakshmi Portal?

The government has started PM Vidyalaxmi Portal for the convenience of students. This is an online platform where students can apply for education loan from one place. Through this portal, loan facilities for higher education in India and abroad are provided from government, private, regional rural (RRB) and co-operative banks.

Students have to first register on the portal. After this, the Common Education Loan Application Form can be filled and the application can be sent to the bank of your choice. The complete status of the application can also be seen online on the portal.

The biggest feature of the scheme

The biggest advantage of this scheme is that students can get education loan without any guarantee and without mortgaging any property. This facility is for those students who have got admission in selected quality higher education institutions (QHEIs) of the country. These institutions have been selected on the basis of National Institutional Ranking Framework (NIRF).

What benefits will you get?

Under the scheme, the Government of India gives up to 75 percent credit guarantee on education loans up to Rs 7.5 lakh. This means that the risk for the bank reduces and it becomes easier for students to get loans.

If the annual income of the family is up to Rs 8 lakh, then 3 percent interest subsidy will be available on education loan up to Rs 10 lakh. Whereas families whose annual income is Rs 4.5 lakh or less, they will be given the benefit of full interest subsidy on the loan.

Apart from this, the entire application process is digital and the loan amount will also be released through Digital Rupee Wallet.

Every year lakhs of students will get benefit

According to the government, more than 22 lakh students are expected to get the benefit of PM Vidyalakshmi Yojana every year. This scheme will work to further strengthen the already running schemes like Central Sector Interest Subsidy Scheme (CSIS) and Credit Guarantee Fund Scheme for Education Loan (CGFSEL).

Apply like this

First of all register on PM Vidyalaxmi Portal. After this fill the Common Education Loan Application Form. Then select the bank of your choice and submit the application.

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