More than 1.12 lakh students have received collateral-free and guarantor-free education loans under the PM-Vidyalaxmi scheme since its launch in November 2024, the Ministry of Education informed the Lok Sabha on Monday.
In a written reply, Minister of State for Education Sukanta Majumdar said 1,12,817 education loans worth Rs 15,634.78 crore have been sanctioned under the scheme so far. The initiative is designed to ensure that eligible students are not forced to give up higher education because of financial constraints. It offers collateral-free education loans to students who secure merit-based admission in top higher education institutions.
Students with an annual family income of up to Rs 8 lakh can also avail a 3 per cent interest subsidy on education loans of up to Rs 10 lakh. The government has allocated Rs 3,600 crore for the scheme between 2024-25 and 2030-31, with the aim of supporting up to seven lakh fresh students during this period.
The ministry said the PM-Vidyalaxmi portal, which became operational on February 25, 2025, allows students to apply for education loans and interest subsidy through a single online platform connected to participating banks.
The government also shared details of the PM Uchchatar Shiksha Protsahan Credit Guarantee Fund Scheme for Education Loans (PM-USP CGFSEL). Since its launch in 2015, the scheme has issued 14,65,880 credit guarantees covering education loans worth Rs 59,843.74 crore. It provides a government guarantee of up to 75 per cent for eligible education loans of up to Rs 7.5 lakh without requiring collateral.
To ensure that benefits reach the right students, the ministry said Aadhaar-based verification is used to prevent duplicate claims. The interest subsidy is transferred directly to students’ education loan accounts through Direct Benefit Transfer (DBT) after verification. From the second year onwards, students must maintain satisfactory academic performance, and their institutions are required to upload semester-wise progress reports on the portal.
According to the ministry, 64 banks have joined the PM-Vidyalaxmi portal so far. These include 12 public sector banks, 20 private banks, 25 regional rural banks and seven cooperative banks, making education loans more accessible to students across the country.
The ministry added that government scholarship and education loan schemes have helped improve access to higher education. India’s Gross Enrolment Ratio (GER) increased from 23.0 in 2013-14 to 30.0 in 2023-24, reflecting a steady rise in higher education participation.
