10 February, 2025 | 15:46 IST
Students who wish to pursue higher education but postpone their plans due to financial constraints can now prepare to achieve their dreams with the launch of a government-backed education loan scheme. The central government has introduced a scheme called Pradhan Mantri Vidyalaxmi that will provide funding to meritorious students, allowing them to continue their education without financial barriers.
The PM Vidyalaxmi scheme was approved by the Union Cabinet in November last year. More than 22 lakh students will benefit annually from the government's proposed scheme, which will offer financial help to students seeking admission to the top 860 higher educational institutions in India.
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For more specific details and terms, do refer to the official press release on PM Vidyalaxmi scheme.
1. Go to the official Vidyalaxmi portal and apply for an education loan.
2. Register on the portal by creating an account. You will need to provide your name, email, address, mobile number, Aadhaar number, and other required details.
3. Once the registration is done, log into the Vidyalaxmi portal with your login credentials.
4. Head to the 'loan application section' and select the type of loan you wish to apply for.
5. Enter the required details, such as the course name, institution, and personal information.
6. Complete your application form and click submit.
7. After submission, you can track the status of your application on the Vidyalakshmi portal, which will also notify you about the loan approval.
You can also explore more personal loan offers for education, through online lending platforms like Moneycontrol. Through the Moneycontrol app, you can apply for loans up to Rs 50 Lakhs from eight lenders in a 100% paperless process. The interest rates start at as low as 10.5% per annum.
The interest rates vary depending on the bank or financial institution granting the educational loan and the course fee charged by the QHEI or HEIs. Currently, the interest rates vary from 8.1% - 18% for a loan amount of Rs. 10 lakh.
The repayment period of the education loan is up to 15 years, excluding the moratorium period. The bank may purchase life insurance coverage for the student borrower if the loan amount exceeds a predetermined threshold, which is set by them respectively. The insurance premium might be included in the education loan amount if the borrower requests it.
The aim of the PM Vidyalaxmi Scheme Student Loan scheme is to offer education loans without the need for collateral or guarantors to students enrolled in the top 860 Quality Higher Education Institutions (QHEIs) in India. They are identified by the National Institutional Ranking Framework (NIRF).
The plan has received an application of approximately Rs 3,600 crore for the period from 2024–25 to 2030–31. Its goal is to assist around 2.2 million students annually by offering loans of up to Rs 7.5 lakh at affordable interest rates.
Moneycontrol has partnered with eight lenders to offer fully digital loans up to Rs 50 Lakhs. The application process is easy to follow: enter your details, complete the KYC verification, and choose an EMI plan. Interest rates can start as low as 10.5% per year.
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