PM Vidya Lakshmi Scheme: Apply for 10 Lakh Collateral-Free Student Loan for Higher Education

The PM Vidya Lakshmi Scheme is a significant initiative launched by the Government of India to provide financial support to students pursuing higher education. Approved by the Cabinet on November 6, 2024, this scheme is designed to facilitate access to collateral-free loans for students enrolled in quality institutions, both government and private, as identified through the National Institutional Ranking Framework (NIRF).

The program will be available to all government and private higher education institutions that are ranked in the top 100 according to the NIRF's overall, category-specific, and domain-specific rankings; state government HEIs that are ranked in the 101–200 range; and all central government-governed institutions.

The program's goal is to provide education loans to more than 22 lakh deserving students who are accepted into the country's top 860 prestigious universities each year.

Special education loans that are free of collateral and guarantors are available to students under the PM-Vidya Lakshmi scheme. With a completely digital platform to guarantee students' comfort and convenience, the application process is straightforward, easily accessible, and student-friendly.

To assist banks in expanding their coverage, the Government of India is offering a 75% credit guarantee for student loans up to Rs 7.5 lakh.

 Furthermore, loans up to Rs 10 lakh with a 3% interest subsidy are available to students from families earning up to Rs 8 lakh annually.
Additionally, students with yearly family incomes up to Rs. 4.5 lakhs are already eligible for the full interest subsidy.

Objectives and Features

• Loan Amount: The scheme offers loans up to 10 lakh for higher education within India.
• Interest Subsidy: A 3% interest subsidy is provided during the moratorium period for eligible students, making it easier for them to manage their financial burdens while studying.

• Target Beneficiaries: The initiative aims to assist approximately 7 lakh new students annually, particularly those from families with an annual income of up to ?8 lakh who do not qualify for other government scholarships.

• E-Vouchers: Each year, one lakh students will receive e-vouchers to facilitate their loan applications and interest support.

• Digital Platform: The application process is streamlined through the unified "PM Vidya Lakshmi" portal, which allows students to apply for loans across multiple banks using a single application form known as the Common Education Loan Application Form (CELAF).

How to Apply for the PM Vidya Lakshmi Scheme

Students interested in applying for the PM Vidya Lakshmi Scheme can do so through the Vidya Lakshmi Portal, which serves as a centralized platform for education loan applications. Here’s a step-by-step guide on how to apply: Step-by-Step Application Process

• Visit the Vidya Lakshmi Portal: Go to the official website at www.vidyalakshmi.co.in.

• Register on the Portal:

• Click on the 'Register' option.
• Fill in your basic details, such as name, mobile number, email ID, and create a password.
• Complete the CAPTCHA and agree to the terms and conditions.
• Submit your registration. An activation link will be sent to your email.

• Activate Your Account: Open your email and click on the confirmation link to activate your account.

• Log In: Use your credentials to log into the portal.

• Fill out the Common Education Loan Application Form (CELAF):

• Search for education loan options that suit your needs.
• Complete the CELAF by providing necessary information across various tabs, including personal details, course information, and financial data.
• You can apply to up to three banks using this single application form.

• Submit Your Application: After filling out all required sections of the CELAF, review your information and submit the application.

• Track Your Application: You can monitor the status of your loan application through the portal by logging in with your credentials.

Documents Required to Apply for the PM Vidya Lakshmi Scheme

When applying for the PM Vidya Lakshmi Scheme, students need to prepare a set of documents that are essential for the loan application process. Here’s a comprehensive list of the required documents:

1. Passport-size Photographs:
• Two recent passport-size photographs of both the student and co-applicant.
2. Identity Proof:
• Government-approved photo ID, such as:
• Aadhar card
• PAN card
• Voter ID
3. Proof of Birth:
• Birth certificate or 10th-grade mark sheet indicating the date of birth.
4. Academic Documents:
• Mark sheets and passing certificates for 10th and 12th grades (or equivalent).
• Any additional academic qualifications (e.g., graduation certificates).
5. Admission Letter:
• A letter of admission from the institution where the student intends to enroll, along with the detailed fee structure for the course.
6. Financial Documents (if applicable):
• For salaried co-applicants: Recent salary slips, Income Tax returns, and Form 16.
• Last six months' bank statements for both the applicant and co-applicant.
7. Additional Documents for Study Abroad:
• Valid passport and study visa approval, if applicable.

These documents help verify the identity, academic credentials, and financial background of the applicants, ensuring a smooth application process for education loans under the PM Vidya Lakshmi Scheme

Implementation and Impact  

The government has allocated 3,600 crore for the implementation of this scheme from 2024-25 to 2030-31. By leveraging a digital and transparent system, the PM Vidya Lakshmi Scheme aims to enhance educational opportunities for students, ensuring that financial constraints do not hinder their academic aspirations. This initiative is aligned with the broader goals of the National Education Policy 2020, which emphasizes equitable access to quality education.

Overall, the PM Vidya Lakshmi Scheme represents a crucial step towards empowering students in India by providing them with the necessary financial resources to pursue their educational goals without undue stress.

FAQs

Ques.1 How can students apply for the scheme?

Ans.  Students can apply through the Vidya Lakshmi Portal by:

1. Registering on the portal.
2. Fill out the Common Education Loan Application Form (CELAF).
3. Selecting preferred banks and submitting the required documents

Ques.2  Are there any interest subsidies available?

Ans. Students from families earning up to Rs 8 lakh a year can apply for loans up to Rs 10 lakh with a 3% interest subsidy. Additionally, the full interest subsidy is already available to students whose family's earnings do not exceed Rs. 4.5 lakhs per year.

Ques.3 What types of courses are covered under the Vidya Lakshmi Scheme?

Ans. The PM Vidya Lakshmi Scheme provides financial assistance to students pursuing various types of courses in India and abroad. Below is a detailed overview of the eligible courses under this scheme:

1. Undergraduate Courses:
• Bachelor’s degrees in fields such as B.A., B.Com., B.Sc., etc.
• Professional undergraduate courses in disciplines like Engineering, Medicine, Law, Veterinary Science, and Agriculture.
2. Postgraduate Courses:
• Master’s degrees (M.A., M.Com., M.Sc., etc.) and Ph.D. programs.
• Professional postgraduate courses, including MBA, MCA, and specialized diplomas.
3. Professional Courses:
• Courses like Chartered Accountancy (CA), Cost and Works Accountancy (ICWA), and Company Secretary (CS).
• Technical courses conducted by institutions like IIMs, IITs, and other recognized universities.

4. Diploma and Certificate Courses and specialized training courses

Ques.4 Are vocational training and skill development courses covered under the Vidya Lakshmi Scheme?

Ans. Vocational training and skill development courses are not covered under the PM Vidya Lakshmi Scheme. The scheme specifically focuses on providing financial assistance for higher education in recognized degree and diploma programs, including professional and technical courses.

Ques.5 What documents are required for the application?

Ans. Key documents include:

• Passport-size photographs
• Identity proof (Aadhar card, PAN card)
• Birth certificate
• Academic certificates (10th and 12th mark sheets)
• Admission letter from the institution with fee structure
• Financial documents (salary slips, IT returns) if applicable