Executive Summary:
The Ministry of Education launched the Pradhan Mantri Vidya Laxmi (PM Vidyalaxmi) scheme on November 6, 2024, to ensure that financial constraints do not prevent students from pursuing higher education. The scheme provides collateral-free and guarantor-free education loans to students admitted on merit to Quality Higher Education Institutions (QHEIs). The PM Vidyalaxmi portal, operating since February 25, 2025, simplifies the loan application process.
Key Points / Main Content:
Scheme Overview:
* PM Vidyalaxmi provides education loans to students in all states and union territories admitted to QHEIs.
* NIRF 2024 rankings determine the list of QHEIs.
* There is no upper limit on the number of education loans granted.
* CIBIL score is not a criterion for loan approval.
Financial Assistance:
* Students with family income up to ₹8 lakh receive a 3% interest subvention on loans up to ₹10 lakh, capped at one lakh fresh students.
* Interest subvention is provided during the moratorium period (course period plus one year), with a total outlay of ₹3,600 crore from 2024-25 to 2030-31.
* The PMUSP CSIS scheme offers full interest subvention to students in technical/professional courses from NAAC/NBA accredited HEIs with family income up to ₹4.5 lakh for loans up to ₹10 lakh, during the moratorium period.
* The PMUSP CGFSEL scheme provides credit guarantee for education loans up to ₹7.5 lakh, covering up to 75% of outstanding default.
* Repayment period for education loans is up to 15 years after the moratorium period, as per the Indian Banks Association's model loan scheme.
Implementation and Monitoring:
* The PM Vidyalaxmi portal streamlines loan and interest subvention applications.
* Scheme guidelines are available on the Ministry of Education website.
* The Indian Banks Association has circulated guidelines to member banks.
* Multilingual pamphlets are available on the PM Vidyalaxmi portal.
* QHEIs are requested to display publicity materials and publicize the call center number (18001031).
* The Department of Higher Education (DHE) and the Department of Financial Services (DFS) monitor loan progress with the Indian Banks Association (IBA) and banks.
* DHE coordinates with DFS, QHEIs, banks, and IBA for smooth implementation and organizes awareness workshops with the University Grants Commission (UGC).
Impact Analysis:
Students:
* Impact: Increased access to higher education through financial assistance and simplified loan processes.
* Action Required: Apply for loans and interest subventions through the PM Vidyalaxmi portal.
Quality Higher Education Institutions (QHEIs):
* Impact: Expected increase in enrollment due to enhanced financial accessibility for students.
* Action Required: Display PM Vidyalaxmi scheme publicity materials, distribute pamphlets, and participate in awareness workshops.
Banks and Financial Institutions:
* Impact: Increased loan processing and disbursement under the scheme.
* Action Required: Implement the scheme guidelines, utilize the PM Vidyalaxmi portal, and participate in monitoring and coordination meetings.
Ministry of Education, Department of Higher Education, and Department of Financial Services:
* Impact: Responsible for monitoring, coordinating, and ensuring the effective implementation of the scheme.
* Action Required: Regularly monitor loan submissions, processing, and disbursement, conduct meetings with stakeholders, and organize awareness workshops.
Key Entities Referenced
PM Vidyalaxmi Yojana: A central sector scheme launched to ensure that no student is denied the opportunity to pursue higher education due to financial constraints by providing collateral-free and guarantor-free education loans.
Ministry of Education: The Indian government ministry responsible for education.
Bihar: A state in India, mentioned in the context of extending the PM Vidyalaxmi scheme to students outside top institutions.
NIRF 2024: National Institutional Ranking Framework 2024, used to prepare the list of Quality Higher Education Institutions (QHEIs) for academic year 2024-25.
PMUSP Central Sector Interest Subsidy Scheme (PMUSP CSIS): A scheme implementing full interest subvention to students pursuing technical/professional courses from approved NAAC/NBA accredited HEIs whose annual family income is up to 4.5 lakhs for loans up to Rs. 10 lakhs during the moratorium period.
Pradhan Mantri Uchchatar Shiksha Protsahan Credit Guarantee Fund Scheme for Education Loans (PMUSP CGFSEL): A Central Government scheme providing credit guarantee for education loans sanctioned up to 7.5 lakhs.
Indian Banks Association (IBA): An association of banks that circulated the guidelines of PMVidyalaxmi to its member banks and branches.
University Grants Commission (UGC): An organisation collaborating with the Department of Financial Services (DFS), IBA and banks to conduct workshops for increased awareness among Quality Higher Education Institutions (QHEIs) and students.
GOVERNMENT OF INDIA
MINISTRY OF EDUCATION
DEPARTMENT OF HIGHER EDUCATION
LOK SABHA
UNSTARRED QUESTION NO. 3680
ANSWERED ON- 11/08/2025
CIBIL SCORE CRITERIA FOR PM-VIDYALAXMI
†3680. SHRI DILESHWAR KAMAIT:
Will the Minister of EDUCATION be pleased to state:
(a) the name of States in which PM- Vidyalaxmi Yojana has been launched;
(b) the effective measures taken by the Government to extend this scheme to students outside
top institutions, particularly in the State of Bihar;
(c) the time by which the scheme is likely to be fully operational;
(d) whether the Government has provided any interim support to students currently facing
financial constraints and if so, the details thereof;
(e) whether the Government has any plans to relax the criteria and conditions regarding CIBIL
score for poor students to avail loans under the said scheme, if so, the details thereof;
(f) the manner in which the Government ensures sustainability of the scheme; and
(g) whether the Government has any roadmap to accommodate the increasing number of
beneficiaries and if so, the details thereof?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF EDUCATION
(DR. SUKANTA MAJUMDAR)
(a) to (c): The Pradhan Mantri Vidya Laxmi (PM Vidyalaxmi), a new central sector scheme
has been launched on 6th November 2024. The main objective of the scheme is to ensure that
no student is denied the opportunity to pursue higher education due to financial constraints.
Under the scheme, collateral-free and guarantor-free education loans are provided to students
of all the states and union territories who get merit-based admission in Quality Higher
Education Institutions (QHEIs) and desirous of availing education loan to pursue higher
education from these QHEIs. The NIRF 2024 ranking has been considered to prepare the list
of QHEIs for academic year 2024-25 based on the following criteria:• Top 100 ranked Higher Education Institutions (HEIs) in the overall, category-specific
or domain-specific rankings in latest list of NIRF published by the Ministry of
Education; plus
• Top 200 ranked HEIs under the governance of state/UT governments in the latest list
of NIRF published by the Ministry of Education; plus
• all remaining HEIs under the governance of Government of India.
(d) : Under the PM-Vidyalaxmi Scheme, for students with annual family income up to ₹8 lakhs,
the scheme provides 3% interest subvention on loans up to ₹ 10 lakhs. Up to one lakh fresh
students not getting any other scholarship or interest subvention on education loan will get this
benefit. Interest subvention benefit is provided during moratorium period, i.e., course period
plus one year. Total outlay kept for interest subvention from 2024-25 to 2030-2031 is ₹3,600
crore.
Further, the Department of Higher Education is implementing the PM-USP Central
Sector Interest Subsidy Scheme (PM-USP CSIS). Under the PM USP-CSIS Scheme, full
interest subvention is provided to all students who are pursuing technical/professional courses
from approved National Assessment and Accreditation Council (NAAC) accredited
HEIs/National Board of Accreditation (NBA) accredited courses and whose annual family
income is up to ₹ 4.5 lakhs for loans up to Rs. 10 lakhs, during the moratorium period. There
is no upper limit on number of student beneficiaries for this Scheme.
Moreover, under the Pradhan Mantri Uchchatar Shiksha Protsahan Credit Guarantee
Fund Scheme for Education Loans (PM-USP CGFSEL) of the Central Government, credit
guarantee is provided for education loans sanctioned up to ₹ 7.5 lakhs. The guarantee cover is
up to 75% of outstanding default. Further, under the model education loan scheme of the Indian
Banks’ Association, the repayment period for education loan is up to 15 years after moratorium
period (course year plus one year).
Thus, PM Vidyalaxmi, PM-USP CSIS and PM USP CGFSEL schemes, along with the
various scholarships together provide holistic support to all deserving students to pursue higher
education in quality HEIs and technical/professional education in approved HEIs.
(e) to (g): CIBIL score of students is not a criterion for sanction of education loans under the
PM Vidyalaxmi scheme. Further, all students who get merit based admission in the qualityHEIs and desirous of availing education loan for pursuing higher education from the quality
HEIs can avail the same. There is no upper limit on the number of such education loans.
A dedicated online platform, the PM Vidyalaxmi portal https://pmvidyalaxmi.co.in has
been developed on which students can apply for the education loan as well as interest
subvention, through a simplified application process to be used by all banks. This portal has
started operating from 25th February 2025.
The PM Vidyalaxmi scheme has been launched recently. To improve awareness, the
scheme guidelines have already been provided in the website of Ministry of Education at
https://www.education.gov.in/en/scholarships_education_loan. Further, the Indian Banks
Association has circulated the guidelines to all the member banks for use of their branches.
Multi-lingual pamphlet of PM-Vidyalaxmi has been developed and uploaded in the PM
Vidyalaxmi portal. All QHEIs have been requested to download and distribute the same to their
students.
All QHEIs have been requested to prominently display the PM-Vidyalaxmi Scheme
publicity materials within their campuses and actively publicize the dedicated call centre
number 1800-1031 for the PM-Vidyalaxmi Scheme.
The Department of Higher Education (DHE) and the Department of Financial Services
(DFS) monitor the progress of education loan submission, processing and disbursement on a
regular basis together with the Indian Banks Association (IBA) and banks. Further, the DHE
in coordination with DFS conduct meetings with QHEIs, banks and IBA for smooth
implementation of the scheme on a regular interval. Workshops are also organized with the
QHEIs in collaboration with the University Grants Commission, DFS, IBA and the banks to
increase awareness among the QHEIs and students.
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