The PM Vidyalaxmi Education Loan Scheme, an initiative by the Government of India, is designed to make education loans more accessible, transparent, and easier for students pursuing higher studies in India and abroad.
The scheme operates through the PM Vidyalaxmi Portal, a centralized online platform developed with NSDL e-Governance, the Department of Financial Services, the Department of Higher Education, and the Indian Banks’ Association, allowing students to compare education loan schemes, apply to multiple banks using a single form, and track their applications online.
This guide is for students applying under the PM Vidyalaxmi Scheme who are concerned about delays, rejections, confusion between schemes, unclear bank responses, eligibility criteria, interest rate comparisons, loan limits, and repayment terms, and want a clear, step-by-step understanding of how the system actually works.
Key Takeaways
The Vidya Lakshmi Portal enables students to apply for education loans from multiple banks using a single Common Education Loan Application Form (CELAF), thus simplifying the process, allowing comparison of loan offers, interest rates, and eligibility criteria online.
Eligibility typically requires Indian citizenship, 10+2 education, and admission proof from a recognized institution. Loans cover both domestic and international courses.
PM Vidyalaxmi loan interest rates are primarily MCLR-based, linked to banks' cost of funds and reviewed monthly. Rates vary by bank and course.
The blog also talks about the PM Vidyalaxmi Interest Subvention Scheme, launched in November 2024. Its an additional subsidy given to eligible families.
Features of PM Vidyalaxmi Education Loan Portal
One of the biggest feature or you can call it a benefit is the Single Window Access. You can apply for education loans to multiple banks through one centralized platform i.e. PM Vidyalaxmi Portal. Let’s check out the other striking features:
Standardized Common Loan Application Form (CELAF)
Submit one common application to multiple lenders, reducing repetitive paperwork.
Loan Scheme Database
Explore 139+ loan schemes from 45+ banks, including government-sponsored schemes.
Real-Time Application Tracking
Check the status of your loan application anytime without visiting the bank.
Secure Document Upload
Upload KYC and supporting documents safely on the portal for lender verification.
Institute Search & Verification
View the consolidated list of approved institutes and courses eligible for education loans, at one place.
Real Time Updates
Get updates on application status, approvals, or queries directly through the portal.
Integrated Grievance Redressal
Raise complaints or queries to banks if there are delays or issues in processing. You can also reach out to the grievance cell.
Additionally, there are government-supported education loans like the
scheme by Narendra Modi
, designed to support economically weaker sections with subsidized interest rates.
The table below shows the MCLR of different banks, which is revised periodically. To arrive at the effective interest rate, a spread is added to the MCLR. This spread depends on various features like risk analysis of the profile.
Do read more about what is MCLR to understand your loan terms more effectively.
Eligibility Criteria for PM Vidyalaxmi Education Loan
To apply for an education loan through the Vidya Lakshmi Portal, students must meet the eligibility criteria set by participating banks. These criteria ensure that the loan is used for genuine academic purposes and can be repaid responsibly.
The applicant must:
Be an Indian citizen.
Have an admission letter from a recognized institute approved by the bank.
How to Apply for an Education Loan on the PM Vidyalaxmi Portal (Step-by-Step Guide)
The PM Vidyalaxmi Portal allows students to apply for education loans online from multiple banks in one place in a super convenient manner. Let’s walk you through the complete application journey, from registration to cancellation.
Step 1
Step 2
Step 3
Step 4
Step 1 – Register on the PM Vidyalaxmi Portal
To start your application process:
Go to the official PM Vidyalaxmi Portal.
Click on ‘Register’ in the top right corner.
Fill in your name, mobile number, email ID, and create a password.
Enter the CAPTCHA and agree to the terms.
Click on ‘Submit’. You’ll receive an activation link on your email.
Click the link to activate your student account.
Step 2 – Log in to Your Student Dashboard
Return to the Vidya Lakshmi homepage portal homepage.
Click on ‘Login’ → ‘Student Login’.
Enter your email ID, password, and CAPTCHA.
Click ‘Login’ to access your dashboard.
Step 3 – Fill the Common Education Loan Application Form (CELAF)
Navigate to ‘Apply for Education Loan”’ tab.
You’ll be redirected to the CELAF form.
The form has 7 sections:
Basic Information
Education Information
Bank Details
Course & Institute Details
Cost of Finance
Document Upload
Bank Preferences (up to 3)
Fill in details carefully, click ‘Save and Next’ each time.
Click ‘Submit’ after completing all sections.
Step 4 – Check Your Loan Application Status
Log in to your account.
Click on ‘Application Status’.
View:
Navigate to Loan Status Section.
Use Application ID or Student ID.
Status: Under Review, Approved, Rejected
People Also Ask
How to cancel an education loan application?
If you wish to withdraw your loan request:
Log in to the portal.
Locate the loan application under ‘My Applications’.
Click on ‘Cancel/Withdraw’ next to the relevant bank.
Confirm the action and ensure you receive cancellation confirmation.
how to edit an existing education loan application?
You can edit your application only before final submission:
Log in and go to ‘My Applications’.
Click on the ‘Edit’ button next to the application.
Update the required fields.
Double-check the new information and click ‘Save Changes’.
What are the other important points to take care while registration?
Use the exact student name as on your Class 10 marksheet.
A valid mobile number is required (can be yours or your guardian’s).
Email ID cannot be changed later — use one you actively monitor.
Keep scanned copies of all documents handy.
How to Apply on PM Vidyalaxmi Education Loan Portal- A Walkthrough Manual
Looks like a complex task? Do check out our step by step manual below on How to Apply for PM Vidyalaxmi Education Loan where we have given a simplified walkthrough of the complete process.
What is the Processing Time for PM Vidyalaxmi Loan?
The processing time for a PM Vidyalaxmi Education Loan varies based on loan amount, study location, and documentation:
1. Domestic – Up to ₹7.5 lakh
Processing Time: ~15 working days
Note: Application may be rejected if bank queries are not answered on time.
2. Domestic – Above ₹7.5 lakh
Processing Time: Up to 30 working days
Note: Higher scrutiny applies due to the larger loan amount.
3. International Studies
Typical Loan Amount: Usually above ₹7.5 lakh
Processing Time: Up to 30 working days
Note: Requires additional documents like admission letter, visa copy, etc.
People also ask
Can I apply if I don’t have a co-applicant?
Most banks require a co-applicant, usually a parent or guardian. Without one, your approval chances are low.
Are diploma or certificate courses eligible for loans via the portal?
Yes, select diploma and certificate courses are eligible, if they are recognized by the bank or government.
What happens if the bank does not respond within 30 days?
Check the status. Your application may be marked as rejected, and you can reapply or approach another bank.
What if the bank doesn’t respond within 30 days?
You can follow up with the bank, raise a grievance on the Vidya Lakshmi portal, or escalate to the bank’s nodal officer if delays continue.
What if my loan is approved but not disbursed?
Disbursal usually depends on document submission, fee demand letters, or timelines set by the institute. Confirm pending requirements with the bank immediately.
How to Get my PM Vidyalaxmi Application Processed Faster?
Fill your form correctly with utmost care.
Contact your bank if you haven't received any correspondence within a few days after applying.
Keep a check on any communication received from the bank and respond immediately with the details or documents as required.
In case the application is on hold, clear the requirements immediately.
Who is eligible for the PM Vidyalaxmi Education Loan subsidy?
Students applying through the Vidyalaxmi Portal who meet the income and course criteria are eligible. Eligibility depends on annual family income and the type of course (technical/professional or others).
Is the subsidy applied automatically or do I need to apply separately?
The subsidy is applied automatically through the Vidyalaxmi Portal if you meet the eligibility criteria. There is no separate application for the subsidy.
PM Vidyalaxmi Education Loan Subsidy
Launched on November 6, 2024, the Pradhan Mantri Vidyalaxmi (PM Vidyalaxmi) Subsidy is a central government initiative that helps ensure students aren't held back from higher education due to financial limitations.
This subsidy is applied automatically on Vidyalakshmi Portal while applying for education loan, provided the applicant meets the eligibility criteria for it.
Here are the features of the subsidy scheme:
75% credit guarantee by the Government of India for loan amounts up to ₹7,50,000, irrespective of family income.
3% interest subvention on loans up to ₹10,00,000 for students with annual family income up to ₹8,00,000 during the moratorium period (course period plus one year).
Full interest subvention to students with up to ₹4,50,000 annual family income under PM-USP CSIS for technical/professional courses.
Up to 1% additional interest concession if interest is serviced during the study period and the moratorium period.
The interest subvention amount will be credited to PM-VIDYALAXMI DIGITAL RUPEE APP (CBDC WALLET) of the beneficiary and on redemption on the app by the beneficiary, the amount will be transferred to the beneficiary loan account.
Banks Listed on the PM Vidyalaxmi Portal
This is a list of banks that are registered on the Vidya Laxmi portal. These banks offer education loans, which students can apply for.
If your application for an education loan from PM Vidyalaxmi didn't go through, don't worry! Here is what you can do:
Explore other Banks on the Portal
Check out the loan schemes offered by other banks on the portal. There are as many as 44 other banks and programs you can check out. Check out the complete features, interest rates, repayment terms and other details to find the best suited deal. Submit your application to another bank.
Explore NBFCs
Alternatively, you can also check out the loan schemes offered by NBFCs like Propelld that offer student-first education loan options with:
Quick Approval: Get your loan approved in as fast as 7 days.
Academics based Approvals: Strong academic performance increases your chances of approval.
Simpler Documentation: Fewer documents compared to traditional banks.
Hassle-Free Process: Transparent terms and student-friendly policies.
Thus, you can secure education financing without the usual delays and stress, making it a great alternative to traditional bank loans.
There can be numerous reasons that may get your application canceled. But that's not the end of the story, you can always reapply the loan. To do so, follow these steps:
1. Contact Your Bank for the Reason
Contact your bank and know the exact reason for loan rejection. Also, ask your bank to close your existing loan application. You can do this through mail or by visiting the bank in person.
2. Submit Closure Request of Existing Loan
Submit a closure request for your existing loan to the bank and track its status on the portal. You can reapply only after the current application is closed.
3. Edit and Correct the Application Form
Once your closure is confirmed:
Log in to Vidya Lakshmi Portal
Click “Reapply for Loan Scheme”
Edit and submit your application with improvements
4. Reapply to New Loan Scheme
Post filling the application form, you can check out the loan schemes offered by all 44 banks on the portal.
Compare lenders based on:
Interest rates
Processing time
Repayment options
Eligibility criteria
Then submit your application again.
Loan Closure Not Updated on PM Vidyalaxmi Portal?
Vidya Lakshmi allows only one active application at a time. Until your previous loan is shown as closed, the portal will block new applications, which can delay your plans. Hence it is extremely important to get the loan closure updated on the portal.
Real Example:
A user on r/CATPreparation shared how even after closing a loan with SBI, their status was still marked as "active" on PM Vidyalaxmi. This halted their reapplication process.
Let’s address this concern and know how to get the loan closure updated on PM Vidyalaxmi if not done automatically:
Ask the bank to provide a written loan closure certificate.
Vidya Lakshmi Education Loans cover a wide range of academic and study-related expenses, not just tuition fees. Here’s what’s included:
College/School/Hostel Fees
100% coverage for tuition, hostel rent, and other institution-related charges.
Examination, Library & Lab Fees
100% coverage for all exam, library, and laboratory charges.
Travel for Abroad Studies
Airfare and other travel costs for international education (Based on actual cost and approval).
Books, Equipment & Computer
Includes books, uniforms, course-specific equipment, and a personal computer (Capped at 20% of tuition fees).
Project Work, Thesis & Study Tours
Educational tours, research projects, or thesis expenses (Capped at 20% of tuition fees).
Caution & Refundable Deposits
Caution money, building fund, and other refundable deposits (Capped at 10% of tuition fees).
Two-Wheeler Purchase
Vehicle cost for commuting from hostel to college (Up to ₹50,000, requires collateral or third-party guarantee). Available only if applicable.
Quick Tip
Plan your loan usage strategically. Prioritize mandatory academic expenses first and keep receipts for all reimbursements to avoid approval issues later.
Are exam or semester repeat fees covered?
No, repeat exam or semester fees are usually not covered under standard education loans.
PM Vidyalaxmi Portal College List
The PM Vidyalaxmi Portal features 139 education loan schemes from 45 Indian banks. The list of approved colleges is based on the latest NIRF rankings, helping students find institutions eligible for loans easily.
Tax Benefits on PM Vidyalaxmi Education Loan Interest Rate
Tooltip Paragraph
If you're repaying an education loan through the PM Vidyalaxmi Portal, you can avail
income tax deductions
Specific expenses or investments that the government allows you to subtract from your income to reduce tax.
on the interest paid, under
Section 80E
Section 80E lets you subtract the interest paid on an education loan from your taxable income thus helping you save tax.
of the Income Tax Act, 1961. These tax benefits apply to both students (applicants) and parents or co-applicants repaying the loan, helping reduce your total income tax liability significantly.
Benefit
Details
Who can claim
Only individual taxpayers (students or parents), not companies or trusts
What is deductible
Entire interest paid on the education loan (no upper cap)
Deduction period
Max 8 consecutive financial years (starting from the year of first repayment)
Loan must be from
A bank or financial institution recognized under Indian law (including NBFCs like Propelld)
Repayment must be done by
The person claiming the deduction (applicant or co-applicant who is paying the EMIs)
Cannot be claimed if
You’re already receiving an interest subsidy under a government scheme
How to Claim Income Tax Benefits on PM Vidyalaxmi Education Loan Interest Under Section 80E?
There is no unique procedure for receiving a deduction for Interest paid on student loans. Individuals are the only entities eligible to get education loan tax benefits, corporations or businesses are not. The procedure is the same as for any other income tax deduction application. To claim this tax deduction, follow these quick steps:
Obtain an
interest payment certificate
An interest payment certificate is a document from your bank that shows how much loan interest you paid in a year for tax purposes.
for the student loan from the relevant bank branch.
If the applicant has access to online banking, they can also download this interest certificate from the bank's official website.
Only the information on interest paid for the current fiscal year should be included.
It needs to be validated with a seal or bank stamp.
When filing an income tax return, note the interest amount paid under Section 80E deductions.
Attach your
ITR
Income Tax Return (ITR) is a form where you report your income, expenses, and taxes paid to the government each year.
documentation and a copy of the interest certificate.
The PM Vidyalaxmi Scheme and Portal have made education loans more transparent and accessible, but in practice, students can still face delays, eligibility confusion, interest rate issues, and unclear bank communication. Understanding how different banks interpret guidelines, how subsidies and subvention actually apply, and what to do if your application gets stuck can make a significant difference in both approval time and overall loan cost.
Students seeking faster approvals or more flexible repayment plans can also explore trusted private lenders like Propelld.
Tailored plans for all courses and colleges in India
Faster disbursements with minimal documentation
Ideal for those without a co-applicant or fixed income proof
Are you parent of a JEE/NEET aspirant?
Join the group and get latest updates, expert advice on counselling and college selection. Completely FREE!
Who can apply for an education loan through Vidya Lakshmi?
Indian students who have completed high school, graduation, or are pursuing professional courses in India can apply for education loans via the Vidya Lakshmi portal.
What is the maximum loan amount available through Vidya Lakshmi?
Vidya Lakshmi offers loans ranging from a few lakhs up to ₹1.5 crore, depending on the course, institution, and the student’s repayment capacity. Loans below ₹7.5 lakh usually do not require collateral.
Which banks provide education loans through Vidya Lakshmi?
Some popular banks on the portal include Canara Bank, State Bank of India (SBI), Punjab National Bank (PNB), Central Bank of India, Corporation Bank, and Dena Bank.
Are education loans through Vidya Lakshmi interest-free?
No, loans on Vidya Lakshmi have standard interest rates. However, certain government-backed schemes provide interest subsidies for eligible students from economically weaker sections.
Can I use Vidya Lakshmi loans for studying abroad?
Yes, the portal supports loans for international studies, covering tuition fees, living expenses, and other costs depending on the bank’s scheme.
Do I need collateral to apply for a Vidya Lakshmi loan?
For loans up to ₹7.5 lakh, collateral is usually not required. Loans above this amount typically require collateral security and a guarantor.
What is the repayment tenure for Vidya Lakshmi education loans?
Repayment tenure varies by bank but generally ranges from 10 to 15 years. Moratorium periods are usually provided, which include the course duration plus 6–12 months after course completion.
Is it free to apply for loans through Vidya Lakshmi?
Yes, students can apply for loans, track applications, and access schemes via Vidya Lakshmi without any fees or charges.
Can a student register multiple times on Vidya Lakshmi?
No. Students should register only once with a valid email ID and password. Forgotten credentials can be recovered using the “Forgot Password” option.
What if I forget my Vidya Lakshmi portal password?
Click on “Forgot Password” on the login page. A reset link will be sent to your registered email ID to set a new password.
Which banks approve Vidya Lakshmi loans faster?
Public sector banks like SBI, PNB, and Canara Bank generally process applications quickly, especially under government-backed schemes.
What is the subsidy under the PM Vidyalakshmi scheme?
The portal itself doesn’t provide a direct subsidy, but through the Central Sector Interest Subsidy (CSIS), students from families with income ≤ ₹4.5 lakh per annum can get full interest subsidy during the moratorium period.
Can Vidya Lakshmi loans cover living and other expenses?
Yes, education loans can include tuition fees, hostel or accommodation costs, books, laptops, study tours, and other necessary expenses related to education.
How long does it take for a Vidya Lakshmi loan to be approved?
Approval time depends on the bank and document verification, usually taking 7–15 business days. Applying in advance is recommended to ensure timely disbursement.
Can students apply for multiple loans through Vidya Lakshmi?
Students can only apply for one education loan for the same course. Existing loans must be disclosed during the application process.
Are female students eligible for any special benefits?
While the portal doesn’t specify gender-based benefits, priority may be given to female students under certain government-backed schemes.
Can Vidya Lakshmi loans be prepaid?
Yes, borrowers can prepay the loan before the end of the repayment period without incurring prepayment penalties, subject to bank policies.
Where can I get more information or assistance regarding Vidya Lakshmi loans?
Students can visit the official Vidya Lakshmi website or contact their helpdesk for guidance on applications, loan schemes, and document requirements.
A banker turned content marketer with expertise in growth-focused content strategies for the finance and digital sectors. She currently drives data-backed content initiatives at Propelld, through high-impact storytelling.
Before moving into content marketing, Vaishali spent nearly a decade in banking, across their asset and lending divisions and spent almost a decade in finance. An MBA in Marketing and a writer at heart, she finally took up content marketing and now simplifies money talks for the readers.
She is also a certified digital marketer (MICA), combining data-driven insights with creative storytelling to deliver measurable business growth.
Beyond work, Vaishali is a handcrafted brand founder, avid reader, and travel & food blogger, blending creativity and strategy in everything she does.
Raghu Vamshi Kanukurthi is the Business Head of Domestic Higher Education Lending at Propelld, where he drives sales, credit strategy, and risk management for education loans that empower students from underserved backgrounds.
An IIT Madras alumnus, Raghu brings a multidisciplinary background spanning engineering design, e-commerce logistics, and aquaculture entrepreneurship. He carries an in-depth understanding of loan products and their pricing strategy. This diverse experience shapes his practical, problem-solving approach to lending innovation.
Today, he is passionate about financial inclusion, helping students bridge the gap between ambition and access with hassle-free, student-first education financing solutions.
General Financial Information Disclaimer
This page is intended solely for general educational and informational purposes. The content presented here does not constitute financial, legal, investment, or professional advice, and should not be relied upon as such.
Education loan terms including but not limited to interest rates, loan amounts, eligibility, collateral requirements, moratorium provisions, repayment schedules, processing timelines, and approval outcomes may vary significantly based on:
The policies and underwriting norms of the respective bank or NBFC
The applicant’s and co-applicant’s financial profile and credit history
The course, institution, country of study, and loan structure
Applicable Reserve Bank of India (RBI) guidelines and regulatory changes
Any examples, scenarios, timelines, or illustrations mentioned on this page are indicative only and are not guarantees of approval, disbursal, or identical outcomes.
Propelld operates as an RBI approved NBFC. Final decisions regarding loan sanction, pricing, documentation, and disbursal rest entirely with our lending team.
While every effort is made to ensure accuracy and currency of information, loan policies and regulatory guidelines may change over time. Readers are strongly advised to:
Verify details with the concerned bank or NBFC
Refer to official lender communications and RBI notifications
Seek independent financial or legal advice where required
By using this information, readers acknowledge that financial decisions should be made based on their individual circumstances and verified sources, and not solely on general guidance provided on this page.
RBI & Regulatory Alignment Disclaimer
Title: Regulatory & Policy Reference Disclaimer
The education loan rules, disclosures, borrower rights, and regulatory references mentioned on this page are derived from publicly available guidelines, circulars, and notifications issued by the Reserve Bank of India (RBI), along with applicable lending regulations governing Non-Banking Financial Companies (NBFCs).
Propelld is an RBI-regulated NBFC and provides education loans in accordance with prevailing RBI norms and internal credit policies. However, final loan terms—including interest rates, sanctioned amounts, eligibility assessment, collateral or co-applicant requirements, moratorium structure, repayment schedules, and approval outcomes—are determined based on:
The applicant’s financial profile and credit assessment
Course, institution, and loan structure
Internal underwriting policies of Propelld
Applicable regulatory requirements in force at the time of sanction
Any regulatory explanations, interpretations, or summaries provided on this page are indicative and simplified for general understanding. They should not be treated as a substitute for official RBI notifications, lender-issued sanction letters, or legally binding policy documents.
RBI guidelines and lending regulations are subject to change from time to time. Readers are advised to:
Refer to the latest RBI circulars and official publications
Review Propelld’s sanction letter, loan agreement, and policy disclosures
Seek independent professional advice where clarification is required
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