Over 1.12 Lakh PM-Vidyalaxmi Education Loans Sanctioned Since Launch: Centre

New Delhi: The Centre has said that more than 1.12 lakh collateral-free and guarantor-free education loans have been sanctioned under the PM-Vidyalaxmi scheme since its launch in November 2024, helping students pursue higher education without financial barriers.

According to the Ministry of Education, 1,12,817 education loans worth ₹15,634.78 crore were sanctioned under the scheme between November 6, 2024, and July 21, 2026.

PM-Vidyalaxmi provides collateral-free and guarantor-free education loans to students securing merit-based admission in top Quality Higher Education Institutions (QHEIs). Students from families with an annual income of up to ₹8 lakh are eligible for a 3% interest subvention on loans of up to ₹10 lakh. The government has earmarked ₹3,600 crore for the scheme from 2024-25 to 2030-31, benefiting up to seven lakh fresh students.

The dedicated PM-Vidyalaxmi portal, operational since February 25, 2025, enables students to apply for education loans and interest subsidies through a single, simplified online platform.

The Ministry also highlighted the PM Uchchatar Shiksha Protsahan Credit Guarantee Fund Scheme for Education Loans (PM-USP CGFSEL). Since its launch in 2015, the scheme has provided 14.65 lakh credit guarantees covering education loans worth ₹59,843.74 crore, with the Centre offering a guarantee of up to 75% of eligible loans up to ₹7.5 lakh.

Interest subsidy under PM-Vidyalaxmi is transferred directly to students’ education loan accounts through a Digital Rupee-based Direct Benefit Transfer (DBT) system after Aadhaar-based verification. Continued subsidy from the second year onwards is subject to satisfactory academic performance.

Currently, the PM-Vidyalaxmi portal has onboarded 64 lending institutions, including 12 Public Sector Banks, 20 Private Banks, 25 Regional Rural Banks and seven Cooperative Banks, ensuring wider access to education finance, including for students from rural, tribal and economically weaker backgrounds.

The government said the combined support of scholarships and education loans has contributed to an increase in India’s Gross Enrolment Ratio (GER) in higher education from 23.0 in 2013-14 to 30.0 in 2023-24.

The information was provided by Minister of State for Education Dr. Sukanta Majumdar in a written reply in the Lok Sabha.