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Modi Edu Loan Scheme 2024

Education Loan Scheme by Narendra Modi: List of Banks 2024

Raghuvamshi Kanukruthi
Updated On:
May 24, 2025

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About Education Loan Scheme by Narendra Modi

Narendra Modi's educational reforms have made a substantial impact by introducing government education loan schemes that provide financial assistance to students, particularly those from economically weaker sections. 

These reforms introduced government education loan schemes, including offering loans exceeding Rs. 7.5 lakhs with no collateral. These loans support undergraduate, postgraduate, and doctoral studies, including foreign universities. 

Read on to know:

  • The list of schemes introduced by Narendra Modi as well as all the other schemes for education, by the government.
  • Know their interest rates, features, repayment rules and how to apply.
  • Know the list of banks that offer education loan under the government schemes for India and abroad and what their interest rates are.

Find out more about Education Loans without collateral. 

Alternatively, you can also explore the Scholarships that you can avail here.

Education Loan Schemes by Government 2025

Here is a list of other education loan schemes by the government: 

Loan Scheme

Eligibility Criteria

Amount Offered

Description

Education Loan Scheme of the NBCFDC

Must belong to the OBC Category

Admission based on merit is a must

Family Income should be below 3.5 LPA

Upto 20 lakhs

This scheme by the NBCFDC offers financial aid to OBC students pursuing graduate and higher studies. It covers up to 90% of the course fee for studies in India and 85% for abroad. Girls get a concessional interest rate.

Padho Pardesh Scheme (Discontinued)

Minority Communities Students

Masters, M.Phil or Ph.D. Abroad

Family income should be less than 6 LPA

6 lakhs

Due to overlap, limited benefits, and easier access to education loans at lower interest rates, the Padho Pardesh Scheme will be discontinued from 2022-23 onwards. Existing beneficiaries as of March 31, 2022, will still receive interest subsidies on their educational loans during the moratorium period, subject to compliance with existing guidelines.

ACSISOBCEBC Scheme

OBC and EBC Students

Masters, M.Phil or Ph.D. Abroad

Complete tuition fee coverage as the loan amount

The Assistance for Central Sector Institutions for Students from Overseas Indian Communities (ACSISOBCEBC) Scheme provides loans to OBC and EBC students pursuing higher education abroad.

Vidya Lakshmi Education Loan

Indian Citizen

Age 18-35

Admission to a recognized institution

The loan amount is limited to tuition fees or collateral security

This is a national scholarship program for students from all backgrounds.

Gujarat Loan for Study Abroad (Gujarat Govt.)

Gujarat Domicile

Minimum 60% in Class 12

Family income should be less than 6 LPA

Admission to a foreign university

Upto 15 LPA

This scheme by the Gujarat government offers financial aid to students from Gujarat pursuing higher education abroad.

Note: In addition to these common student loans, you can visit your state government's official websites to explore financial aid options available for students pursuing higher education in India and abroad. 

Education Loan Scheme by Narendra Modi Interest Rate

The major With 38 banks involved, the Vidya Lakshmi Initiative under Education Loan Scheme by Narendra Modi initiative targets students with family incomes below Rs. 4.5 lakhs, offering interest rates from 7% to 13%. 

Repayment begins after a moratorium period, easing financial burdens. As of 2025, these schemes empower students, ensuring inclusive education with loans up to Rs. 7.5 lakhs without collateral and manageable interest rates.

Here are some notable features about these rates: 

  • They are influenced by a myriad of factors, including the choice of bank, specifics of the loan scheme, the type of institution, the course of study, and the loan amount. 
  • The public sector banks often offer slightly more favorable rates as part of the government's effort to make education more affordable. 
  • Notably, courses in STEM fields may attract lower interest rates due to their higher employability rates, reflecting a lower risk for lenders. 

Students and their families need to do their research to find the best loan rates. This way, they can make sure their education is affordable under the Vidya Lakshmi Portal program.

Tips on getting education loans at zero interest rate.

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Vidya Lakshmi Portal

The Vidya Lakshmi Portal, a central hub introduced by Narendra Modi's education loan scheme, revolutionizes access to education loans and scholarships for students. This comprehensive platform enables students to effortlessly compare and apply for various loan schemes and scholarships from different banks and government programs all in one place. 

Developed through a collaborative effort among the Department of Financial Services (Ministry of Finance), Department of Higher Education (Ministry of Education) and the Indian Banks Association (IBA), the PM student loan portal makes education more accessible by simplifying the application process. 

Students can now easily evaluate different loan options side by side, choosing the one that best fits their financial needs and academic goals, and apply to multiple banks using a single application form. 

This initiative not only saves time and effort but also empowers students to make informed decisions, ensuring that financial constraints do not hinder their educational pursuits.

Do check out Vidya Lakshmi Education Loan in detail. 

Other Loan Schemes Introduced by Modi

Other than the education loan schemes, there are a few more loan schemes introduced by our prime minister:

1. Pradhan Mantri Mudra Yojana (PMMY)

Pradhan Mantri Mudra Yojana (PMMY), launched in April 2015, is a flagship initiative aimed at providing financial assistance to small and micro-enterprises. 

The scheme offers loans up to Rs. 10 lakh to non-corporate, non-farm small/micro-enterprises, thereby facilitating their growth and expansion. PMMY is segmented into three categories: Shishu (up to Rs. 50,000), Kishore (Rs. 50,001 to Rs. 5 lakh), and Tarun (Rs. 5,00,001 to Rs. 10 lakh), catering to the diverse needs of entrepreneurs at different stages of business development. 

By promoting entrepreneurship and self-employment, PMMY plays a vital role in fostering economic growth, job creation, and financial inclusion across India.‍

2. Pradhan Mantri Awas Yojana (PMAY)

Pradhan Mantri Awas Yojana (PMAY), launched in June 2015, is a visionary scheme aimed at providing affordable housing to all citizens by 2022. 

PMAY offers subsidized home loans, interest rate concessions, and financial assistance to eligible beneficiaries, including economically weaker sections, low-income groups, and middle-income groups. The scheme covers both urban and rural areas, addressing the housing needs of people across diverse socio-economic backgrounds.

By promoting homeownership and improving living standards, PMAY not only fulfills the basic right to shelter but also contributes to sustainable urban development and inclusive growth nationwide.

3. Stand-Up India Scheme

Launched in April 2016, the Stand-Up India Scheme is an initiative aimed at developing entrepreneurship among women, Scheduled Castes (SCs), and Scheduled Tribes (STs) in India. 

The scheme provides financial support in the form of loans ranging from Rs. 10 lakh to Rs. 1 crore to at least one scheduled caste or scheduled tribe borrower and at least one woman borrower per bank branch. 

By facilitating access to credit, the scheme aims to empower marginalized sections of society and promote inclusive economic growth. Stand-Up India encourages innovation, job creation, and the development of sustainable enterprises across various sectors. It is playing a major role in bringing out the entrepreneurial potential of underprivileged communities and driving socio-economic empowerment at every level.

The Narendra Modi government has introduced several initiatives to support Indian students pursuing higher education abroad, with the Vidya Lakshmi Portal being a key platform. It allows students to apply for education loans from multiple banks through a single application. Additionally, the PM Vidyalakshmi Scheme offers collateral-free loans up to ₹10 lakh and interest subsidies for students from economically weaker sections. Another supportive measure is the Central Sector Interest Subsidy Scheme (CSIS), which provides interest relief during the moratorium period. These schemes aim to make overseas education more accessible and affordable for deserving students across India.

Education Loan Scheme by Narendra Modi for Abroad

The Narendra Modi government has introduced several initiatives to support Indian students pursuing higher education abroad, with the Vidya Lakshmi Portal being a key platform. Not just that, most schemes discussed above provide an education loan for abroad, with different loan limits and interest rates. 

Another supportive measure is the Central Sector Interest Subsidy Scheme (CSIS), which provides interest relief during the moratorium period. 

These schemes aim to make overseas education more accessible and affordable for deserving students across India.

Features of Education Loan Scheme by Narendra Modi

Eligibility for Government Loan Schemes

Here are the major eligibility criteria for Narendra Modi and other education loan schemes by the government: 

  • Targets a wide range of academic pursuits, including technical, management, medical, arts, vocational, and degree courses.
  • Open to students pursuing education both within India and abroad, ensuring global opportunities.
  • Aims to support students at various levels of their educational journey, from undergraduate to postgraduate studies.

Profile not Suitable for Narendra Modi Education Loan? Learn More About eligibility criteria for various education loans.

Loan Amount

It offers structured loan amounts to cater to different financial needs:

  1. Up to Rs. 4 Lacs for basic education requirements, with no collateral required.
  2. Rs. 4 Lakh to Rs. 7.5 Lakh, designed for more significant educational pursuits with simpler collateral requirements.
  3. Above Rs. 7.5 Lacs for extensive education plans, including higher studies abroad, with more comprehensive collateral terms.
  4. Interest subsidy available for eligible applicants, making education more accessible.

Need a loan for a higher amount? Get Loans upto 50 lacs, disbursed in just 7 days. Check your eligibility with Propelld. 

Application Simplicity: Streamlined Process

  • Introduces a single-window application process through the Vidya Lakshmi Portal, simplifying the application to multiple banks.
  • Ensures a user-friendly experience, enabling students to easily manage their loan applications and track their status online.
  • Promotes transparency and ease of access, making the financial aspects of education less daunting for students and their families.

How to Apply for the Prime Minister Education Loan?

Navigating the registration and application process for the education loan scheme by Narendra Modi is a seamless journey, thanks to the centralized Vidya Lakshmi Portal. Here's a concise guide to getting you started:

  1. Visit the Portal: Begin by heading to the Vidya Lakshmi Portal, the one-stop destination for your education loan needs, designed under the PM Student Loan framework.
  2. Create an Account: Register by providing essential details such as your name, email address, and mobile number. Verification of these details ensures a secure and personalized experience.
  3. Complete the Application Form: Once registered, log in to fill out the Common Education Loan Application Form (CELAF), which is recognized by all banks and streamlines the process of applying to multiple banks simultaneously.
  4. Document Upload: Prepare and upload the documents as specified on the portal. This step is crucial for the verification process and speeds up loan approval.
  5. Loan Selection and Application: Browse through various government education loan schemes, including the Prime Minister Education Loan, and apply to the ones that best fit your educational needs and financial situation.
  6. Track Application Status: Stay updated with real-time notifications regarding your application status directly on the portal.

*Remember, applying early and providing accurate information will expedite the approval process, bringing you one step closer to achieving your educational aspirations under the Narendra Modi Education Loan Scheme.

Loan Amount Categories: Tailored Financial help

It offers structured loan amounts to cater to different financial needs:

  1. Up to Rs. 4 Lacs for basic education requirements, with no collateral required.
  2. Rs. 4 Lakh to Rs. 7.5 Lakh, designed for more significant educational pursuits with simpler collateral requirements.
  3. Above Rs. 7.5 Lacs for extensive education plans, including higher studies abroad, with more comprehensive collateral terms.
  4. Interest subsidy available for eligible applicants, making education more accessible.

Need a loan for a higher amount? Get Loans upto 50 lacs, disbursed in just 7 days. Check your eligibility with Propelld. 

Application Simplicity: Streamlined Process

  • Introduces a single-window application process through the Vidya Lakshmi Portal, simplifying the application to multiple banks.
  • Ensures a user-friendly experience, enabling students to easily manage their loan applications and track their status online.
  • Promotes transparency and ease of access, making the financial aspects of education less daunting for students and their families.

How to Apply for a Prime Minister Education Loan?

Navigating the registration and application process for the education loan scheme by Narendra Modi is a seamless journey, thanks to the centralized Vidya Lakshmi Portal. Here's a concise guide to getting you started:

  1. Visit the Portal: Begin by heading to the Vidya Lakshmi Portal, the one-stop destination for your education loan needs, designed under the PM Student Loan framework.
  2. Create an Account: Register by providing essential details such as your name, email address, and mobile number. Verification of these details ensures a secure and personalized experience.
  3. Complete the Application Form: Once registered, log in to fill out the Common Education Loan Application Form (CELAF), which is recognized by all banks and streamlines the process of applying to multiple banks simultaneously.
  4. Document Upload: Prepare and upload the documents as specified on the portal. This step is crucial for the verification process and speeds up loan approval.
  5. Loan Selection and Application: Browse through various government education loan schemes, including the Prime Minister Education Loan, and apply to the ones that best fit your educational needs and financial situation.
  6. Track Application Status: Stay updated with real-time notifications regarding your application status directly on the portal.

*Remember, applying early and providing accurate information will expedite the approval process, bringing you one step closer to achieving your educational aspirations under the Narendra Modi Education Loan Scheme.

Loan Repayment Terms

Under the government education loan scheme introduced by Narendra Modi, the moratorium period offers borrowers either up to one-year post-course completion or six months after securing employment, whichever occurs first, to commence repayments.

This period is crucial for planning finances as it transitions from deferment to active repayment, typically beginning six months after graduation or course completion. This flexibility allows borrowers time to secure suitable employment, significantly increasing on-time repayments and enhancing borrower satisfaction and financial stability, as evidenced by recent reports from leading financial institutions.

Understand the benefits of an education loan moratorium period.

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List of Banks for Education Loan Scheme by Narendra Modi

Please find below the comprehensive list of 38 banks offering financial support under this scheme:

  1. Abhyudaya Cooperative Bank Limited
  2. Allahabad Bank
  3. Andhra Bank
  4. Axis Bank
  5. Bank Of Baroda
  6. Bank Of India
  7. Bank Of Maharashtra
  8. Canara Bank
  9. Corporation Bank
  10. Central Bank Of India
  11. Dena Bank
  12. Dombivli Nagari Sahakari Bank Limited
  13. Federal Bank
  14. GP Parsik Bank Ltd
  15. HDFC Bank
  16. ICICI Bank
  17. IDBI Bank
  18. Indian Bank
  19. Indian Overseas Bank
  20. Karnataka Bank
  21. Kotak Bank
  22. Karur Vysya Bank
  23. New India Cooperative Bank Limited
  24. Oriental Bank Of Commerce
  25. Pragathi Krishna Gramin Bank
  26. Punjab And Sind Bank
  27. Punjab National Bank
  28. RBL Bank
  29. Syndicate Bank
  30. State Bank of India
  31. Tamilnad Mercantile Bank Limited
  32. UCO Bank
  33. Union Bank
  34. United Bank of India
  35. Vijaya Bank
  36. YES Bank
  37. IndusInd Bank
  38. South Indian Bank

Apart from these, there are NBFCs also offering education loans. Find out the complete details about education loans by NBFCs in India.

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EMI and Interest Rate on Government Education Loans by Top Indian Banks

This table shows starting interest rates and EMI variations for student loans in India by the government and also for abroad from major Indian banks. Remember, these are estimates - contact the bank for your personalized offer.

Bank

Interest Rate (For Studies in India)

EMI Variation

Interest Rate (For Studies Abroad)

EMI Variation

State Bank of India (SBI)

8.10% - 12.50% p.a.

Depends on loan amount, course, and borrower profile

8.15% - 14.50% p.a.

Depends on loan amount, course, and borrower profile

HDFC Bank

8.60% - 11.35% p.a.

Depends on loan amount, course, and borrower profile

8.95% - 15.00% p.a.

Depends on loan amount, course, and borrower profile

ICICI Bank

11.60% - 12.85% p.a.

Depends on loan amount, course, and borrower profile

12.05% - 14.55% p.a.

Depends on loan amount, course, and borrower profile

Axis Bank

12.05% - 14.50% p.a.

Depends on loan amount, course, and borrower profile

13.70% - 15.20% p.a.

Depends on loan amount, course, and borrower profile

Kotak Mahindra Bank

8.50% - 11.10% p.a.

Depends on loan amount, course, and borrower profile

Not available

Not available

Important Note:

  • The interest rates and EMI variations mentioned above are indicative and can vary depending on the individual bank's policies, loan amount, course of study, borrower's profile (credit score, academic record, etc.), and chosen loan scheme.
  • It's always recommended that you visit the official bank website or contact customer care for the latest interest rates and specific loan details.

Scholarships and Subsidies for Education by Narendra Modi

Under the education loan scheme initiated by Prime Minister Narendra Modi, the integration of scholarships with loans through the Vidya Lakshmi Portal significantly strengthens the student support system. This portal features over 200 scholarships across various disciplines, offering a comprehensive range of financial aid options to mitigate educational costs. 

Learn all about the Prime Minister Scholarship. Eligibility criteria, Benefits, Documents required, and application process for the PM scholarship program.

Moreover, the scheme includes a special subsidy for economically weaker sections, providing loans over Rs. 7.5 lakhs without collateral for families with incomes below Rs. 4.5 lakhs. This initiative aims to alleviate financial barriers and ensure inclusive access to education financing, enhancing opportunities for students from all backgrounds.

Propelld: Financing the Future of Learning

Navigating the complexities of education loans to get through higher education’s financial requirements requires a trusted partner. 

Propelld, a trusted NBFC in the world of education financing in India, emerges as this partner. With over 2 Lacs customers, collaborations with 2500+ institutes, and more than 2000 Crores disbursed, Propelld is revolutionizing the way education is financed.

Propelld’s commitment extends beyond just loan disbursement. With no-collateral loans, moratorium availability, and a streamlined process that's 10X faster than banks, Propelld ensures your dream of quality education is within reach. Not just that, you get the support of our highly dedicated and empathetic staff that guides you throughout your financing journey to make it easy. 

Whether you're eyeing skill-up courses, coaching, college education, or schooling, our partnerships span a range of prestigious institutions and courses. 

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FAQs About Education Loan Scheme by Narendra Modi

Who is Eligible for Foreign University Loans?

For aspiring students eyeing education abroad under the education loan scheme by Prime Minister Narendra Modi, eligibility criteria play a crucial role. According to recent data from the Ministry of Education, candidates must meet specific academic requirements and secure admission to recognized foreign universities to qualify for the scheme. Additionally, proficiency in standardized tests like GRE, GMAT, or TOEFL may be necessary, depending on the course and institution.

How Can I Apply to Multiple Banks for a Loan?

The scheme features a centralized online portal that allows applicants to simultaneously apply for loans across multiple banks, facilitating a more efficient application process and increasing the chances of obtaining financial support.

What Educational Levels Does the Loan Cover?

The education loan scheme by Prime Minister Narendra Modi offers a broad spectrum of financial support, encompassing educational pursuits from undergraduate to doctorate levels. Recent statistics indicate that students can avail themselves of loans ranging from Rs. 20,000 to over Rs. 1 crore, depending on the course, institution, and financial assessment. This inclusive approach caters to diverse academic aspirations and empowers individuals to pursue higher education without financial constraints.

Which Banks Offer These Loans and How Much Can I Borrow?

A wide array of public and private banks are involved, with loan amounts varying up to INR 10 lakhs for studies within India and up to INR 20 lakhs for studies abroad, subject to specific course and institution requirements.

Who is eligible for Pradhan Mantri education loan Yojana?

The Scheme is applicable to students belonging to economically weaker sections having gross parental/ family income Up to Rs.4.5 lakh per annum from all sources.

What is the CSIS Scheme?

The CSIS (Central Sector Interest Subsidy) Scheme in India offers interest subsidies on education loans for economically weaker students, promoting affordability and access to higher education.

Who is eligible for the CSIS scheme?

The CSIS scheme is meant for students belonging to economically weaker sections with an annual gross parental/family income of not more than Rs. 4.5 lacs per annum.

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