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PM Vidyalaxmi Education Loan Scheme & Portal
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
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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.
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Eligibility typically requires Indian citizenship, 10+2 education, and admission proof from a recognized institution. Loans cover both domestic and international courses.
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PM Vidyalaxmi loan interest rates are primarily MCLR-based, linked to banks' cost of funds and reviewed monthly. Rates vary by bank and course.
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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:
You can also check out the loan options from NBFCs. Do read this guide on how NBFCs differ from traditional banks in student loan approvals.
Additionally, there are government-supported education loans like the scheme by Narendra Modi , designed to support economically weaker sections with subsidized interest rates.
PM Vidyalaxmi Education Loan Interest Rates (2025 Updated)
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.
| Bank Name | MCLR |
|---|---|
| Allahabad Bank | 8.65 |
| Andhra Bank | 8.75 |
| Bank of Baroda | 8.65 |
| Bank of India | 9.60 |
| Bank of Maharashtra | 7.85 |
| Canara Bank | 8.50 |
| Central Bank of India | 9.00 |
| Corporation Bank | 8.90 |
| Dena Bank | 8.80 |
| IDBI Bank | 9.45 |
| Indian Bank | 9.45 |
| Indian Overseas Bank | 8.70 |
| Oriental Bank of Commerce | 8.75 |
| Punjab and Sind Bank | 7.50 |
| Punjab National Bank | 8.45 |
| State Bank of India | 9.15 |
| Syndicate Bank | 8.65 |
| UCO Bank | 8.70 |
| Union Bank of India | 7.85 |
| United Bank of India | 8.85 |
| Vijaya Bank | 8.75 |
| Axis Bank Ltd | 8.74 |
| Bandhan Bank Ltd | 10.45 |
| Catholic Syrian Bank Ltd | 9.90 |
| City Union Bank Ltd. | 9.30 |
| Development Credit Bank Ltd | 10.84 |
| Dhanalaxmi Bank Ltd | 9.90 |
| Federal Bank Ltd | 9.20 |
| HDFC Bank Ltd | 8.75 |
| ICICI Bank Ltd | 8.80 |
| IDFC Bank Ltd | 9.25 |
| Indusind Bank | 9.90 |
| Jammu and Kashmir Bank Ltd | 9.00 |
| Karnataka Bank Ltd | 10.5 |
| Karur Vysya Bank Ltd | 9.65 |
| Kotak Mahindra Bank | 9.00 |
| Laxmi Vilas Bank Ltd | 9.90 |
| Nainital Bank | 8.45 |
| RBL Bank | 9.50 |
| South Indian Bank Ltd | 9.45 |
| Tamilnad Mercantile Bank Ltd | 9.20 |
| Yes Bank Ltd. | 9.70 |
This is a brief list of banks in PM Vidyalaxmi portal. You can also Download List of Banks in PDF
PM Vidyalaxmi Education Loan Interest Rates: Points to Remember
Here are a few points that you must take care while checking the interest rates and applying for PM Vidyalaxmi Education loan:
1. Look for the most recent rates before applying because most student loan interest rates are MCLR-based.
2. Your course and school determine interest rates on student loans.
3. Subsidies for interest rates must be requested individually; they are only sometimes granted.
Get Education Loan 10X Faster than Banks.
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.
- Have completed 10+2.
- Have a Co-Applicant (usually).
Want to be sure if your college is eligible for the PM Vidyalaxmi Scheme? Do check out this PM Vidyalaxmi Portal college list.
Documents Required for PM Vidyalaxmi Education Loan
The following documents are required to get a PM Vidyalaxmi Education loan:
- Class 10 and 12 mark sheets
- Graduation/Post-graduation certificates
- Entrance exam scorecards (if applicable) (e.g., JEE, CAT, GRE)
- Proof of Identity: PAN, Aadhaar, Passport, or Voter ID
- Proof of Address: Aadhaar, Utility Bills, Rent Agreement
- Ensure consistent details across all documents
- Last 6 months’ bank statement or updated passbook
- Stamped and signed by your bank
- Admission letter from the college/university
- Course details, duration, and fee structure
- Visa copy (if applying for study abroad)
- Latest salary slips or ITR returns
- Bank statement of co-applicant (last 6 months)
- Guarantor Form (for better approval chances)
- Ongoing loan repayment details
- Cost breakdown from your institution (tuition, hostel, misc.)
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Check out Propelld’s instant education loan services for quick, digital approvals - no long queues or excessive paperwork.
Do check out the list of documents required to apply for education loan.
Education loan - 2 Days Approval. 3 Steps Process. 4 Documents Required
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 – 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.
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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’.
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View:
- Navigate to Loan Status Section.
- Use Application ID or Student ID.
- Status: Under Review, Approved, Rejected
People Also Ask
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.
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’.
- 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
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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.
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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.
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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.
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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.
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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.
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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.
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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).
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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.
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Abhyudaya Cooperative Bank Limited |
Dena Bank |
Pragathi Krishna Gramin Bank |
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Allahabad Bank |
J & K Bank |
Punjab and Sind Bank |
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Karnataka Bank Ltd |
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Andhra Pragathi Grameena Bank |
Dombivli Nagri Sahakari Bank ltd |
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Kerala Gramin Bank |
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GP Parsik Bank Ltd |
Syndicate Bank |
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Nainital Bank |
Tamilnad Mercantile Bank |
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Bank of Maharashtra |
New India Bank |
Uco Bank |
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Canara Bank |
New India Cooperative Bank Ltd |
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Indian Bank |
Oriental Bank of Commerce |
United Bank of India |
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Corporation Bank |
Vijaya Bank |
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Got Rejected for PM Vidyalaxmi Education loan?
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.
Learn more about student loan rejection reasons and improve your financial profile.
Get Education Loan with Higher Chances of Approval
How to Reapply for PM Vidyalaxmi Education Loan?
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:
Once your closure is confirmed:
- Log in to Vidya Lakshmi Portal
- Click “Reapply for Loan Scheme”
- Edit and submit your application with improvements
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.
- Raise a formal grievance by sending a mail to support@pmvidyalaxmi.co.in with supporting documents.
- Visit your bank branch and request them to update the closure status on the portal backend (they usually have access).
- You can also write to bank nodal officer or escalate via the RBI Banking if the issue isn’t resolved within a reasonable time.
- Keep records of all communication and responses to strengthen your case.
Do read RBI guidelines for education loans to know more about education loan details and your rights as a borrower.
Expenses Covered by PM Vidyalaxmi Education Loans
Vidya Lakshmi Education Loans cover a wide range of academic and study-related expenses, not just tuition fees. Here’s what’s included:
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.
Check out how to see the PM Vidyalaxmi Portal College List on the portal. You can also download the PM Vidyalaxmi Portal College list in pdf here.
Tax Benefits on PM Vidyalaxmi Education Loan Interest Rate
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.
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Benefit |
Details |
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Who can claim |
Only individual taxpayers (students or parents), not companies or trusts |
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What is deductible |
Entire interest paid on the education loan (no upper cap) |
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Deduction period |
Max 8 consecutive financial years (starting from the year of first repayment) |
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Loan must be from |
A bank or financial institution recognized under Indian law (including NBFCs like Propelld) |
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Repayment must be done by |
The person claiming the deduction (applicant or co-applicant who is paying the EMIs) |
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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
