Collateral-free, guarantor-free education loans for students admitted on merit to top institutions, with 3% interest subvention up to Rs 8 lakh income.
Ministry of Education (Department of Higher Education)
💰 Benefit: Collateral-free and guarantor-free education loan (no maximum cap); 75% govt credit guarantee on loans up to Rs 7.5 lakh; 3% interest subvention on loans up to Rs 10 lakh during moratorium for family income up to Rs 8 lakh
Always verify eligibility on the official website before applying. Scheme rules may change. Facts last checked against the official source on 14 October 2026.
There is no income limit for the collateral-free loan itself. The 3% interest subvention is only for students whose family income is up to Rs 8 lakh a year; up to Rs 4.5 lakh gets full interest subvention under PM-USP CSIS.
There is no upper cap; the amount depends on fees, hostel, mess, laptop and living costs of the course. Loans up to Rs 7.5 lakh get a 75% government credit guarantee, and subvention applies on up to Rs 10 lakh.
No age limit is mentioned in official PM Vidyalaxmi documents. Eligibility depends on merit-based admission to a listed QHEI.
1,425 Quality Higher Education Institutions are covered as per PIB (July 2026): NIRF top 100, top 200 state government institutions in NIRF, and all central government institutions. The list is updated using the latest NIRF ranking.
Aadhaar, Class 10 and 12 (or diploma) marksheets, admission proof, fee schedule from the institute, income proof from a public or college authority, and photographs.
Loan applications are open year-round on the portal. For FY 2025-26 loans, banks must submit interest subvention claims between 1 September 2026 and 31 December 2026.