Pradhan Mantri Vidyalaxmi Scheme

Loan to pursue higher studies in Top 860 Quality Higher Educational Institutions
NIL Processing Charges.
No Guarantor & No Collateral Security.
Lower Rate of Interest.
Reducing Balance Interest Rate.
No Prepayment penalty
Need based finance with required margin on eligible expenses shall be considered for Education Loan in Top 860 Quality Higher Educational Institutions
Annual family income is up to Rs. 4.5 lakhs, shall be eligible for full interest subvention during moratorium period for education loan up to Rs. 10 lakhs.
Annual family income is between Rs. 4.5 lakhs and Rs. 8 lakhs shall be eligible to apply for 3% interest subvention during moratorium period for education loan up to Rs. 10 lakhs.

Institutions

Ministry of Education (MOE) has identified Top 860 Quality Higher Educational Institutes (QHEIs) for the year 2024-25.
Annually, Department of Higher Education (DHE) shall be updating the list of such Quality Higher Education Institutions (QHEIs).

Loan Quantum

Need based finance with required margin on eligible expenses shall be considered for Education Loan in Top 860 Quality Higher Educational Institutions

Eligible Courses

All the Graduation, Post-Graduation, Degree, Diploma and Integrated courses offered by the identified QHEIs are eligible.

Margin

Institution Category

Margin (%)

AAA

Nil

AA & A

(Margin as per IBA Model Education Scheme)

Security

No Collateral Security

Repayment Tenure

The repayment period of the education loan would be up to 15 years excluding moratorium period (Course period + 1 year)
No prepayment penalty will be levied for prepayment of loan any time during the repayment period.

Expenses considered for the loan

Course Fee payable to college/school/hostel.
Examination/Library/Laboratory fee.
Travel expenses/passage money for studies abroad.
Insurance premium for student borrower, if applicable.
Caution deposit, building fund/refundable deposit supported by Institution bills/receipts.
Purchase of books/equipments/instruments/uniforms.
Purchase of computer at reasonable cost, if required for completion of the course.
Any other expense required to complete the course subject to ceiling.

Reasonable lodging and boarding charges will be considered in case the student chooses/is required to opt for outside accommodation

Eligibility under subsidy/Interest Subvention

All Education loans under the PM Vidyalaxmi scheme can be covered subject to eligibility, as per income & other norms.

Insurance Coverage

Obtention of life insurance cover is mandatory for the loan amount above Rs. 7.50 lakhs

Student should be an Indian National.
OCI/PIO category are eligible for pursuing education in India
Students admitted through open competitive examinations/ merit-based admission in the Top 860 QHEIs identified by MOE for degree/ diploma programmes.

Stipulated Loan Application with 2 passport size photos of applicant / Co-applicants
Proof of Identity and Address as per KYC norms.
Proof of Academic Records/Previous Qualifying self-attested copy of Mark sheets
Proof of admission: offer Letter or Admission Letter from the Institution/Entrance Exam Result.
Statement of cost of study/Schedule of expenses of institution.
PAN Card & Aadhaar is mandatory document to be submitted along-with application
Income certificate/ proof from the authorized Public Authority of the State Government shall be submitted.
Any other document as specified by the Bank to enable to take the credit decision.