PIB Snippets
Government Scheme
29 July 2026
PM Vidyalaxmi Scheme: PIB Notes
A Central Sector Scheme aimed at widening access to education loans for meritorious students admitted to India’s top-ranked higher education institutions.
Institutional Coverage
Top 860 QHEIs
Selected via NIRF rankings
Loan Amount Cap
No Upper Limit
Education loan amount is uncapped
Interest Subvention
3% Support
For family income up to ₹8 lakh
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PM Vidyalaxmi Scheme: Overview and Key Facts
- A Central Sector Scheme supporting meritorious students pursuing higher education.
- Objective: Improve access to education loans for eligible students.
- Coverage: Available to students admitted to the top 860 Quality Higher Education Institutions (QHEIs).
- Platform: Applications are submitted through the PM Vidyalaxmi Portal.
- Loan Amount: There is no upper limit on the education loan amount available under the scheme.
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Eligibility Criteria: Key Facts for Prelims
- Institution: Admission must be secured in an eligible QHEI.
- Ranking: Eligible institutions are selected through NIRF rankings.
- Restriction: Beneficiaries of other government scholarships remain ineligible.
- Restriction: Students who discontinue their studies lose the specified scheme benefits.
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Interest Subvention and Credit Guarantee: Key Distinction
| Aspect | Interest Subvention | Credit Guarantee |
|---|---|---|
| Benefit | 3% interest support | Government guarantee |
| Income Limit | Family income up to ₹8 lakh | No income limit |
| Loan Limit | Up to ₹10 lakh | Up to ₹7.5 lakh |
| Support | Interest assistance | Covers 75% of outstanding default |
Remember the split: Interest Subvention reduces the cost of borrowing for lower-income families, while Credit Guarantee protects lenders against default — regardless of the borrower’s income.
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Source: PIB
