Parliament Question: Education Loans for Students belonging to BPL

GOVERNMENT OF INDIA MINISTRY OF EDUCATION DEPARTMENT OF HIGHER EDUCATION LOK SABHA STARRED QUESTION NO. 425 ANSWERED ON- 23.03.2026 EDUCATION LOANS FOR STUDENTS BELONGING TO BPL *425. Shri Lavu Sri Krishna Devarayalu: Will the Minister of EDUCATION be pleased to state: (a) the details of the number of students belonging to the Below Poverty Line (BPL) category who have applied for education loans under various Central Government education loan schemes during the last three years along with the number of applications sanctioned and rejected during the said period, State-wise; (b) the steps taken by the Government to ensure that priority is accorded to students from BPL families in the sanctioning and disbursement of education loans; and (c) whether the Government proposes to increase the moratorium period for repayment of education loans to two years after completion of the course and if so, the details thereof and if not, the reasons therefor? ANSWER MINISTER OF EDUCATION (SHRI DHARMENDRA PRADHAN) (a) to (c): A Statement is laid on the Table of the House. *****STATEMENT REFERRED TO IN REPLY TO PARTS (A) TO (C) OF LOK SABHA STARRED QUESTION NO. 425 ANSWERED ON 23.03.2026 ASKED BY SHRI LAVU SRI KRISHNA DEVARAYALU, HON’BLE MEMBER OF PARLIAMENT REGARDING ‘EDUCATION LOANS FOR STUDENTS BELONGING TO BPL’ (a) to (c): Education is in the concurrent list and both the Central Government and State Governments work together for its improvement. The Government of India is implementing different education loan schemes for providing financial assistance for higher education to all categories of students including students belonging to BPL, subject to extant scheme guidelines. There is no upper limit on number of education loans that can be sanctioned under these schemes. The Central Government launched the PM Vidyalaxmi, a new Central Sector scheme in November 2024 that seeks to provide financial support to meritorious students including students from below poverty line category getting merit based admission in Quality Higher Education Institution (QHEIs). Under the PM Vidyalaxmi scheme, students getting merit-based admission in Quality Higher Education Institution (QHEIs) are eligible to get collateral-free, guarantor-free education loans from banks to cover full amount of tuition fees and other expenses related to the course. There is no upper limit on the number of such loans that can be sanctioned. Further, the repayment can be done up to 15 years after the moratorium period. Further, the Department of Financial Services (DFS) has informed that all Scheduled Commercial Banks (SCBs) have been advised by Reserve Bank of India (RBI) to adopt Model Education Loan Scheme (MELS), formulated by Indian Banks’ Association (IBA), 2022 (last amended on 23.6.2025). This scheme is available for all sections of the society. The main features of the scheme are as under: • The scheme provides need-based education loan. • No collateral security or third-party guarantee is required for loans amount up to ₹ 7.50 lakhs, provided they are eligible for Central Sector Interest Subsidy Scheme (CSIS)/ Credit Guarantee Fund Scheme for Education loan (CGFSEL). • No Margin for loans up to ₹ 4 lakhs. • Moratorium period is allowed up to study period plus one year in all cases. • Repayment period (after moratorium) is available up to 15 years for all loans. Further, the RBI vide its Circular on Collateral Free Loans - Educational Loan Scheme, has advised that banks must not, mandatorily, obtain collateral security in the case of educational loans up to ₹ 4 lakhs. To facilitate the students from poorer households, 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, including students belonging to BPL who are pursuing technical/professional courses from approved National Assessment and Accreditation Council (NAAC) accredited HEIs/National Board of Accreditation (NBA) accredited courses, whose annual family income is up to ₹ 4.5 lakhs and for education loans up to ₹ 10 lakhs, during the moratorium period. There is no upper limit on number of student beneficiaries for this Scheme. Further under the CGFSEL Scheme, credit guarantee is provided by government for loans upto ₹ 7.5 lakhs for students from all income groups. There is no upper limit on number of student beneficiaries for this Scheme.In PM-Vidyalaxmi scheme too, a 3% interest subvention support during moratorium period (course period plus one year) is given every year up to one lakh fresh students having an annual family income of up to ₹ 8 lakhs and not eligible for benefits under any other government scholarship or interest subvention schemes on education loans. An outlay of ₹ 3,600 Crore has been made during 2024-25 to 2030-31, and 7 lakh fresh students are expected to get the benefit of this interest subvention during the period. The DFS and RBI have informed that data on all types of education loans were not maintained centrally earlier. In February 2025, a simple 2-page and completely digital application process for education loans have been launched through the portal https://pmvidyalaxmi.co.in The details of Education Loans applied, sanctioned and disbursed during the financial year 2025- 26, from 1st April 2025 to 28th February 2026, at the all-India level is as under: Annual Income of No. of No. of No. of No. of No. of student's family applications applications applications applications applications received withdrawn/ rejected pending with sanctioned closed by student for students clarification/ banks for processing Up to ₹ 4.5 lakhs 4,57,976 1,68,734 24,915 25,375 2,38,952 ₹ 4.5 lakhs to ₹ 8 94,073 33,204 4,588 4,713 51,568 lakhs More than ₹ 8 lakhs 96,922 31,289 3,674 4,648 57,311 Total 6,48,971 2,33,227 33,177 34,736 3,47,831 It may be seen that, at all-India level, more than 83% of the education loans were sanctioned to students with annual family income of up to ₹ 8 lakhs. A State-wise statement is given at the Annexure. In addition, in 2024-25, more than 95 lakh scholarships were provided by different Ministries in central government to students of post matric and higher education. Thus, the IBA-MELS, 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. With respect to moratorium period, the Model Education Loan Scheme, inter alia, provides that: i. While EMI based repayment is the generally accepted practice, many times the salary levels at the start of the career may not facilitate comfortable payment of EMI in certain cases (e.g. professionals like Doctors). Telescoping of repayment with stepped up instalments with passage of time may be considered in such cases. ii. Banks may also provide for moratorium taking into account spells of under-employment/ unemployment, say two or three times (maximum of 6 months at a time) during the life cycle of the loan. iii. Banks may also encourage student borrowers who want to set up start-up units by giving moratorium on repayment of principal and interest during incubation period which may be considered up to 2 years. *****ANNEXURE ANNEXURE REFERRED TO IN REPLY OF PART(A) TO (C) OF THE LOK SABHA STARRED QUESTION NO. 425 ANSWERED ON 23.03.2026 ASKED BY SHRI LAVU SRI KRISHNA DEVARAYALU, HON’BLE MEMBER OF PARLIAMENT REGARDING ‘EDUCATION LOANS FOR STUDENTS BELONGING TO BPL’ State/ UT Annual No. of No. of No. of No. of No. of Family applicati application applicati applications applications Income of ons s ons pending sanctioned student's received withdrawn rejected with student family /closed by for students clarification/ banks for processing ANDAMAN AND Total 441 197 33 9 202 NICOBAR ISLANDS Up to Rs. 248 113 18 7 110 4.5 lakhs ₹ 4.5 lakhs 95 40 8 1 46 - ₹ 8 lakhs Above ₹ 8 98 44 7 1 46 lakhs ANDHRA PRADESH Total 40,631 12,654 1,989 1,429 24,559 Up to Rs. 28,051 8,959 1,455 1,013 16,624 4.5 lakhs ₹ 4.5 lakhs 5,760 1,740 278 203 3,539 - ₹ 8 lakhs Above ₹ 8 6,820 1,955 256 213 4,396 lakhs ARUNACHAL Total 163 79 9 8 67 PRADESH Up to Rs. 100 51 5 7 37 4.5 lakhs ₹ 4.5 lakhs 38 21 1 1 15 - ₹ 8 lakhs Above ₹ 8 25 7 3 0 15 lakhs ASSAM Total 9,289 4,065 732 414 4,078 Up to Rs. 6,417 2,961 558 294 2,604 4.5 lakhs ₹ 4.5 lakhs 1,741 707 112 77 845 - ₹ 8 lakhs Above ₹ 8 1,131 397 62 43 629 lakhs BIHAR Total 20,103 8,783 991 968 9,361 Up to Rs. 12,664 5,875 624 611 5,554 4.5 lakhs ₹ 4.5 lakhs 4,939 2,045 267 247 2,380 - ₹ 8 lakhs Above ₹ 8 2,500 863 100 110 1,427 lakhs CHANDIGARH Total 655 246 23 36 350State/ UT Annual No. of No. of No. of No. of No. of Family applicati application applicati applications applications Income of ons s ons pending sanctioned student's received withdrawn rejected with student family /closed by for students clarification/ banks for processing Up to Rs. 181 79 8 11 83 4.5 lakhs ₹ 4.5 lakhs 139 48 4 8 79 - ₹ 8 lakhs Above ₹ 8 335 119 11 17 188 lakhs CHHATTISGARH Total 4,327 1,279 248 189 2,611 Up to Rs. 2,252 758 141 108 1,245 4.5 lakhs ₹ 4.5 lakhs 1,020 266 62 45 647 - ₹ 8 lakhs Above ₹ 8 1,055 255 45 36 719 lakhs DELHI Total 14,074 5,302 541 806 7,425 Up to Rs. 6,678 2,698 249 410 3,321 4.5 lakhs ₹ 4.5 lakhs 3,193 1,187 159 185 1,662 - ₹ 8 lakhs Above ₹ 8 4,203 1,417 133 211 2,442 lakhs GOA Total 933 296 38 54 545 Up to Rs. 455 148 22 32 253 4.5 lakhs ₹ 4.5 lakhs 188 60 9 13 106 - ₹ 8 lakhs Above ₹ 8 290 88 7 9 186 lakhs GUJARAT Total 12,865 4,364 653 659 7,189 Up to Rs. 5,944 2,168 367 314 3,095 4.5 lakhs ₹ 4.5 lakhs 3,348 1,131 170 173 1,874 - ₹ 8 lakhs Above ₹ 8 3,573 1,065 116 172 2,220 lakhs HARYANA Total 13,702 5,277 673 835 6,917 Up to Rs. 6,493 2,707 365 394 3,027 4.5 lakhs ₹ 4.5 lakhs 3,222 1,204 163 204 1,651 - ₹ 8 lakhs Above ₹ 8 3,987 1,366 145 237 2,239 lakhs HIMACHAL Total 3,491 945 173 144 2,229 PRADESH Up to Rs. 2,166 596 127 93 1,350 4.5 lakhs ₹ 4.5 lakhs 740 189 20 34 497 - ₹ 8 lakhsState/ UT Annual No. of No. of No. of No. of No. of Family applicati application applicati applications applications Income of ons s ons pending sanctioned student's received withdrawn rejected with student family /closed by for students clarification/ banks for processing Above ₹ 8 585 160 26 17 382 lak hs JAMMU AND Total 3,505 1,148 66 548 1,743 KASHMIR Up to Rs. 1,577 557 36 270 714 4.5 lakhs ₹ 4.5 lakhs 910 278 17 133 482 - ₹ 8 lakhs Above ₹ 8 1,018 313 13 145 547 lakhs JHARKHAND Total 14,633 5,701 473 701 7,758 Up to Rs. 9,716 4,034 283 482 4,917 4.5 lakhs ₹ 4.5 lakhs 2,784 990 109 134 1,551 - ₹ 8 lakhs Above ₹ 8 2,133 677 81 85 1,290 lakhs KARNATAKA Total 89,865 30,273 4,494 6,554 48,544 Up to Rs. 74,745 25,052 3,848 5,762 40,083 4.5 lakhs ₹ 4.5 lakhs 7,113 2,502 341 374 3,896 - ₹ 8 lakhs Above ₹ 8 8,007 2,719 305 418 4,565 lakhs KERALA Total 82,210 23,718 3,910 4,697 49,885 Up to Rs. 69,704 20,230 3,486 3,998 41,990 4.5 lakhs ₹ 4.5 lakhs 6,065 1,741 244 330 3,750 - ₹ 8 lakhs Above ₹ 8 6,441 1,747 180 369 4,145 lakhs LADAKH Total 17 4 1 3 9 Up to Rs. 13 4 1 2 6 4.5 lakhs ₹ 4.5 lakhs 2 0 0 1 1 - ₹ 8 lakhs Above ₹ 8 2 0 0 0 2 lakhs LAKSHADWEEP Total 17 7 1 2 7 Up to Rs. 9 4 0 0 5 4.5 lakhs ₹ 4.5 lakhs 4 2 0 1 1 - ₹ 8 lakhs Above ₹ 8 4 1 1 1 1 lak hs MADHYA PRADESH Total 22,728 8,065 1,032 1,084 12,547State/ UT Annual No. of No. of No. of No. of No. of Family applicati application applicati applications applications Income of ons s ons pending sanctioned student's received withdrawn rejected with student family /closed by for students clarification/ banks for processing Up to Rs. 15,135 5,714 751 743 7,927 4.5 lakhs ₹ 4.5 lakhs 4,496 1,482 176 206 2,632 - ₹ 8 lakhs Above ₹ 8 3,097 869 105 135 1,988 lakhs MAHARASHTRA Total 61,113 22,772 3,268 3,195 31,878 Up to Rs. 37,657 14,633 2,238 1,953 18,833 4.5 lakhs ₹ 4.5 lakhs 10,411 3,788 526 551 5,546 - ₹ 8 lakhs Above ₹ 8 13,045 4,351 504 691 7,499 lakhs MANIPUR Total 1,119 468 102 109 440 Up to Rs. 850 351 75 88 336 4.5 lakhs ₹ 4.5 lakhs 153 66 19 11 57 - ₹ 8 lakhs Above ₹ 8 116 51 8 10 47 lakhs MEGHALAYA Total 1,580 540 65 79 896 Up to Rs. 1,308 468 56 62 722 4.5 lakhs ₹ 4.5 lakhs 157 37 6 10 104 - ₹ 8 lakhs Above ₹ 8 115 35 3 7 70 lakhs MIZORAM Total 164 78 8 16 62 Up to Rs. 117 54 6 13 44 4.5 lakhs ₹ 4.5 lakhs 30 18 2 1 9 - ₹ 8 lakhs Above ₹ 8 17 6 0 2 9 lakhs NAGALAND Total 544 243 26 21 254 Up to Rs. 413 197 22 13 181 4.5 lakhs ₹ 4.5 lakhs 78 31 2 3 42 - ₹ 8 lakhs Above ₹ 8 53 15 2 5 31 lak hs ODISHA Total 15,987 5,495 1,023 683 8,786 Up to Rs. 11,461 4,087 820 514 6,040 4.5 lakhs ₹ 4.5 lakhs 2,495 841 127 108 1,419 - ₹ 8 lakhsState/ UT Annual No. of No. of No. of No. of No. of Family applicati application applicati applications applications Income of ons s ons pending sanctioned student's received withdrawn rejected with student family /closed by for students clarification/ banks for processing Above ₹ 8 2,031 567 76 61 1,327 lakhs PUDUCHERRY Total 1,479 536 85 80 778 Up to Rs. 1,027 379 69 55 524 4.5 lakhs ₹ 4.5 lakhs 200 63 8 12 117 - ₹ 8 lakhs Above ₹ 8 252 94 8 13 137 lakhs PUNJAB Total 7,947 2,817 468 611 4,051 Up to Rs. 2,611 970 164 193 1,284 4.5 lakhs ₹ 4.5 lakhs 2,605 924 170 214 1,297 - ₹ 8 lakhs Above ₹ 8 2,731 923 134 204 1,470 lakhs RAJASTHAN Total 18,458 6,897 1,016 752 9,793 Up to Rs. 9,506 3,886 600 441 4,579 4.5 lakhs ₹ 4.5 lakhs 4,698 1,604 239 161 2,694 - ₹ 8 lakhs Above ₹ 8 4,254 1,407 177 150 2,520 lakhs SIKKIM Total 266 101 19 16 130 Up to Rs. 190 73 16 8 93 4.5 lakhs ₹ 4.5 lakhs 37 14 2 4 17 - ₹ 8 lakhs Above ₹ 8 39 14 1 4 20 lakhs TAMIL NADU Total 1,08,710 42,579 5,615 5,399 55,117 Up to Rs. 89,125 35,519 4,755 4,546 44,305 4.5 lakhs ₹ 4.5 lakhs 9,391 3,515 440 422 5,014 - ₹ 8 lakhs Above ₹ 8 10,194 3,545 420 431 5,798 lak hs TELANGANA Total 19,872 7,775 1,244 633 10,220 Up to Rs. 10,640 4,461 767 343 5,069 4.5 lakhs ₹ 4.5 lakhs 3,400 1,318 217 109 1,756 - ₹ 8 lakhs Above ₹ 8 5,832 1,996 260 181 3,395 lakhs Total 215 76 5 12 122State/ UT Annual No. of No. of No. of No. of No. of Family applicati application applicati applications applications Income of ons s ons pending sanctioned student's received withdrawn rejected with student family /closed by for students clarification/ banks for processing THE DADRA AND Up to Rs. 75 35 2 3 35 NAGAR HAVELI 4.5 lakhs AND DAMAN AND ₹ 4.5 lakhs 75 21 3 6 45 DIU - ₹ 8 lakhs Above ₹ 8 65 20 0 3 42 lakhs TRIPURA Total 1,508 561 140 127 680 Up to Rs. 1,207 454 126 110 517 4.5 lakhs ₹ 4.5 lakhs 158 60 7 5 86 - ₹ 8 lakhs Above ₹ 8 143 47 7 12 77 lakhs UTTAR PRADESH Total 51,175 20,585 2,682 2,529 25,379 Up to Rs. 33,525 14,337 1,933 1,603 15,652 4.5 lakhs ₹ 4.5 lakhs 9,494 3,559 444 488 5,003 - ₹ 8 lakhs Above ₹ 8 8,156 2,689 305 438 4,724 lakhs UTTARAKHAND Total 7,362 2,370 332 299 4,361 Up to Rs. 4,226 1,424 194 168 2,440 4.5 lakhs ₹ 4.5 lakhs 1,665 513 85 60 1,007 - ₹ 8 lakhs Above ₹ 8 1,471 433 53 71 914 lakhs WEST BENGAL Total 17,823 6,931 999 1,035 8,858 Up to Rs. 11,490 4,698 728 711 5,353 4.5 lakhs ₹ 4.5 lakhs 3,229 1,199 151 178 1,701 - ₹ 8 lakhs Above ₹ 8 3,104 1,034 120 146 1,804 lak hs ALL INDIA Total 6,48,971 2,33,227 33,177 34,736 3,47,831 Up to Rs. 4,57,976 1,68,734 24,915 25,375 2,38,952 4.5 lakhs ₹ 4.5 lakhs 94,073 33,204 4,588 4,713 51,568 - ₹ 8 lakhs Above ₹ 8 96,922 31,289 3,674 4,648 57,311 lakhs