PM Education Loan: What is it and how can you benefit?

PM Vidyalaxmi Yojana: The Government of India has launched several schemes with the aim of financially empowering youth for higher education. One of these is the Prime Minister's Education Loan Scheme, also known as the Prime Minister Vidyalaxmi Yojana. This scheme is designed for students who wish to pursue higher education in India or abroad but are unable to proceed due to financial constraints. Under this scheme, education loans are provided to students at affordable interest rates.

What is the PM Education Loan Scheme?

The Prime Minister's Education Loan Scheme is an initiative by the Government of India, under which students are assisted in obtaining education loans from banks. The main objective of this scheme is to prevent meritorious students from dropping out of their studies due to financial reasons. Under this scheme, the central government also provides interest subsidy, which reduces the burden on students. Students can avail loans for various courses under this scheme, including higher education in India or abroad. This includes engineering, medical, management, law, and other professional courses, as well as diploma courses from technical and vocational institutions.

How much loan amount can be availed?

Different benefits will be available under this scheme based on the annual family income. Those with an income up to ₹4.5 lakh will be provided a loan, and the government will bear the interest on their entire loan. For families with an income between ₹4.5 lakh and ₹8 lakh, a loan of up to ₹10 lakh can be provided, with an interest rate of 3% on the loan. Banks determine the loan amount based on the student's merit, the institution, and the cost of the course.

Who can avail its benefits?

To avail the benefits of this scheme, the student must be an Indian citizen and must have secured admission in a recognised institution or university. If the annual family income is less than ₹4.5 lakh, the government provides a subsidy on the interest.

How to Apply

• To apply, visit the official website: vidyalakshmi.co.in.
• Enter your education, course, and institution details.
• Select a bank of your choice and submit the application.
• Submit copies of Aadhaar, PAN, admission letter, income certificate, and course details.