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PM Vidyalaxmi Scheme Crosses 10 Lakh Education Loans; Who Can Be Beneficiaries
Tuition costs have made accessing higher education much more difficult than being accepted into a higher education institution for many students. New statistics provided by the Union Ministry of Education indicate that the PM Vidyalaxmi Scheme has become one of the largest education loan schemes in India, enabling students to access higher education without the need for collateral. The Minister of Education (MoE) in a post on X (formerly Twitter) indicated new statistics based on a written reply provided by Union MoS Education Dr. Sukanta Majumdar in the Lok Sabha. The reply captures the expansion of the scheme since inception, with more than 10 lakh loan applications sanctioned.
PM Vidyalaxmi Scheme: New Statistics
The new statistics as provided by the MoE, as of July 12, 2026, are as follows:
- 1,008,106 loans sanctioned.
- Total loans sanctioned of ₹15,042.52 crores.
- The scheme has 1,051 Quality Higher Education Institutions (QHEIs), of which 138 are in Tamil Nadu.
- Students with a family income of ₹8 lakh a year can avail of education loans of ₹10 lakh with a 3% interest subsidy if they are not availing of any other government scholarship or interest subsidy.
- An allocation of ₹3,600 crores has been made by the government for the years 2024-25 to 2030-31. It is expected that around seven lakh new students will avail of the benefit under the interest subsidy in this period.
What is the PM Vidyalaxmi Scheme?
The PM Vidyalaxmi Scheme funds students who would otherwise be unable to afford higher education due to financial challenges. Students who are able to enroll in specific Quality Higher Educational Institutes through merit-based admissions will be able to apply for collateral-free and guarantor-free education loans through a singular digital system. The scheme is in line with the aspirations of the National Education Policy (NEP) 2020, to promote better access to higher education.
Who is Eligible?
You may be eligible for the PM Vidyalaxmi Scheme if you:
- Obtain a merit-based admission in a Quality Higher Education Institution (QHEI)
- Apply for an education loan from the listed banks
- Meet the income limits for an interest subsidy
Do not receive another government interest subsidy or scholarship for the same education loan
Key Benefits for Students
The scheme links access to education loans and financial relief during loan repayment. Major benefits for Students include:
- Eligible education loans do not require collateral or a third-party guarantor
- Government of India provides a credit guarantee for education loans of up to ₹ 7.5 Lakhs, which helps banks to provide loans
- Loans up to ₹ 10 Lakhs will have a subsidy of 3% of the interest during the moratorium period for students whose families have an annual income of up to ₹ 8 Lakhs.
- The application process through the PM Vidyalaxmi portal is fully digital and transparent.
Expansion of Institutions Under the Scheme
Upon the scheme’s approval in 2024, 860 Quality Higher Education Institutions were identified through NIRF rankings. Government initiatives have broadened this institutional list periodically. Recent data from the Ministry has shown that 1,051 QHEIs exist. This shows the scheme's institutional reach and the increased accessibility of its beneficiaries.
Why This Matters
Financial assistance can improve opportunities after you're admitted to the next level of academic education. The PM Vidya Laxmi scheme aims to improve access to higher education for students' families by removing collateral requirements and reducing loan costs.
The scheme has already gained momentum with government data showing that more than 1 million loans have been sanctioned, with thousands of crores already disbursed. With the commencement of admissions for the 2026-27 academic year to several universities and technical institutions, the scheme is expected to remain a key financial support system for students aspiring to access quality higher education.
PM Vidyalaxmi Scheme Crosses 10 Lakh Education Loans; Who Can Be Beneficiaries
Tuition costs have made accessing higher education much more difficult than being accepted into a higher education institution for many students. New statistics provided by the Union Ministry of Education indicate that the PM Vidyalaxmi Scheme has become one of the largest education loan schemes in India, enabling students to access higher education without the need for collateral.
The Minister of Education (MoE) in a post on X (formerly Twitter) indicated new statistics based on a written reply provided by Union MoS Education Dr. Sukanta Majumdar in the Lok Sabha. The reply captures the expansion of the scheme since inception, with more than 10 lakh loan applications sanctioned.
PM Vidyalaxmi Scheme: New Statistics
The new statistics as provided by the MoE, as of July 12, 2026, are as follows:
- 1,008,106 loans sanctioned.
- Total loans sanctioned of ₹15,042.52 crores.
- The scheme has 1,051 Quality Higher Education Institutions (QHEIs), of which 138 are in Tamil Nadu.
- Students with a family income of ₹8 lakh a year can avail of education loans of ₹10 lakh with a 3% interest subsidy if they are not availing of any other government scholarship or interest subsidy.
- An allocation of ₹3,600 crores has been made by the government for the years 2024-25 to 2030-31. It is expected that around seven lakh new students will avail of the benefit under the interest subsidy in this period.
What is the PM Vidyalaxmi Scheme?
The PM Vidyalaxmi Scheme funds students who would otherwise be unable to afford higher education due to financial challenges. Students who are able to enroll in specific Quality Higher Educational Institutes through merit-based admissions will be able to apply for collateral-free and guarantor-free education loans through a singular digital system. The scheme is in line with the aspirations of the National Education Policy (NEP) 2020 to promote better access to higher education.
Who is Eligible?
You may be eligible for the PM Vidyalaxmi Scheme if you:
- Obtain a merit-based admission in a Quality Higher Education Institution (QHEI)
- Apply for an education loan from the listed banks
- Meet the income limits for an interest subsidy
Do not receive another government interest subsidy or scholarship for the same education loan
Key Benefits for Students
The scheme links access to education loans and financial relief during loan repayment. Major benefits for Students include:
- Eligible education loans do not require collateral or a third-party guarantor
- Government of India provides a credit guarantee for education loans of up to ₹ 7.5 Lakhs, which helps banks to provide loans
- Loans up to ₹ 10 Lakhs will have a subsidy of 3% of the interest during the moratorium period for students whose families have an annual income of up to ₹ 8 Lakhs.
- The application process through the PM Vidyalaxmi portal is fully digital and transparent.
Expansion of Institutions Under the Scheme
Upon the scheme’s approval in 2024, 860 Quality Higher Education Institutions were identified through NIRF rankings. Government initiatives have broadened this institutional list periodically. Recent data from the Ministry has shown that 1,051 QHEIs exist. This shows the scheme's institutional reach and the increased accessibility of its beneficiaries.
Why This Matters
Financial assistance can improve opportunities after you're admitted to the next level of academic education. The PM Vidya Laxmi scheme aims to improve access to higher education for students' families by removing collateral requirements and reducing loan costs.
The scheme has already gained momentum with government data showing that more than 1 million loans have been sanctioned, with thousands of crores already disbursed. With the commencement of admissions for the 2026-27 academic year to several universities and technical institutions, the scheme is expected to remain a key financial support system for students aspiring to access quality higher education.
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