Govt expands higher education access through PM-Vidyalaxmi education loan scheme

The government has sanctioned education loans worth ₹15,634.78 crore to 112,817 students under the PM-Vidyalaxmi scheme since its launch in November 2024, the Ministry of Education informed the Lok Sabha.

In a written reply, Minister of State for Education Sukanta Majumdar said 112,817 students have benefited from the scheme, with loans totaling ₹15,634.78 crore.

PM-Vidyalaxmi provides collateral-free and guarantor-free education loans to students who secure merit-based admission to eligible higher education institutions, helping them continue their studies without financial barriers.

The scheme also offers a 3% interest subsidy on education loans of up to ₹10 lakh for students whose annual family income does not exceed ₹8 lakh.

The Centre has allocated ₹3,600 crore for the initiative between 2024-25 and 2030-31 and expects it to support as many as seven lakh new students during the period.

Majumdar informed the House that the PM-Vidyalaxmi portal became operational on February 25, 2025, enabling students to apply for education loans and interest subsidies through a unified online platform integrated with participating banks.

The ministry also provided an update on the PM Uchchatar Shiksha Protsahan Credit Guarantee Fund Scheme for Education Loans (PM-USP CGFSEL).

Since its launch in 2015, the scheme has extended 1,465,880 credit guarantees for education loans amounting to ₹59,843.74 crore.

Under the program, the government guarantees up to 75% of eligible education loans of up to ₹7.5 lakh without requiring collateral.

To streamline the process and avoid duplicate claims, the ministry said Aadhaar-based verification is used before benefits are approved. Interest subsidies are credited directly to students' education loan accounts through the Direct Benefit Transfer (DBT) system.

Students must maintain satisfactory academic performance from the second year onward, while their institutions are required to upload semester-wise progress reports on the portal.

According to the ministry, 64 banks are currently integrated with the PM-Vidyalaxmi portal. These include 12 public sector banks, 20 private banks, 25 regional rural banks, and seven cooperative banks, allowing students across the country to access education loans through a common platform.

The ministry said education loan and scholarship initiatives have played a role in improving higher education access.

India's Gross Enrollment Ratio (GER) increased from 23.0 in 2013-14 to 30.0 in 2023-24, reflecting sustained growth in participation in higher education.