Home›Student Finance›PM Vidyalaxmi Portal — How to Apply for Education Loan and 3% Interest Subsidy 2026
🏛️ PM Vidyalaxmi
PM Vidyalaxmi Portal — How to Apply for Education Loan and 3% Interest Subsidy 2026
By FinMandi Research Team·June 2026
🔍 Reviewed by FinMandi Research Team·✓ Cross-checked against official bank and RBI sources·✓ Updated June 2026
⚡ PM Vidyalaxmi at a Glance
Subsidy: 3% interest subsidy during course + 1-year moratorium
Income limit: Family annual income up to Rs 8 lakh
Maximum loan: Subsidy available on loans up to Rs 10 lakh
Credit guarantee: Up to Rs 7.5 lakh without collateral
Eligible institutions: Colleges with NAAC Grade A or NIRF rank
Banks: 38 participating banks available on the portal
What is PM Vidyalaxmi and How is it Different from Vidya Lakshmi Portal?
PM Vidyalaxmi (PM-VL) is a Central Government scheme launched in November 2024 that provides interest subsidies and credit guarantees on education loans. It is different from the older Vidya Lakshmi portal (vidyalakshmi.co.in) which is just a portal for applying to multiple banks:
Feature
PM Vidyalaxmi (New)
Vidya Lakshmi (Old Portal)
Interest subsidy
Yes — 3% during moratorium
No
Credit guarantee
Yes — up to Rs 7.5 lakh
No
Income limit
Rs 8 lakh family income
No limit
Banks available
38 scheduled banks
38+ banks
Purpose
Subsidy + guarantee scheme
Loan application portal only
Who is Eligible for PM Vidyalaxmi 2026?
Indian student admitted to a quality higher education institution (NAAC A grade or NIRF ranked)
Family annual income up to Rs 8 lakh
Loan amount must be up to Rs 10 lakh for subsidy eligibility
Loan must be taken from a scheduled commercial bank participating in the scheme
Student must not have availed CSIS (Central Sector Interest Subsidy) for the same loan
How Much Subsidy Do You Get Under PM Vidyalaxmi?
Example: If your education loan is Rs 8 lakh at 8.65% from SBI, you pay 8.65%. The government credits 3% subsidy directly to your loan account during the course period + 1 year moratorium. Effective rate = 5.65% p.a. during moratorium. You start paying full EMI only after moratorium ends.
Documents Required for PM Vidyalaxmi Application
Aadhaar card (student and parent/co-borrower)
PAN card (student and co-borrower)
Income certificate or latest ITR (to prove family income below Rs 8 lakh)
Admission letter from eligible institution
Fee structure from college
Bank account details for subsidy credit
How to Apply on PM Vidyalaxmi Portal — Step by Step
1
Visit the portalGo to pmvidyalaxmi.co.in (official government portal). Do not confuse with vidyalakshmi.co.in.
2
Register with AadhaarCreate account using your Aadhaar-linked mobile number for OTP verification.
3
Fill the common application formEnter course details, institution name, loan amount required and personal details.
4
Select participating bankChoose from 38 banks. SBI, Union Bank, Bank of Baroda and PNB are popular choices.
5
Submit income certificateUpload family income proof to claim subsidy eligibility. This is the key document.
6
Bank processingYour chosen bank reviews the application and sanctions the loan. Track status on portal.
7
Subsidy credited automaticallyOnce sanctioned, the 3% subsidy is credited to your loan account by the government directly.
⚠️ Important: PM Vidyalaxmi and CSIS (Central Sector Interest Subsidy) cannot be combined for the same loan. Choose one. PM Vidyalaxmi is generally more beneficial as it covers more students and offers credit guarantee too.
No. PM Vidyalaxmi covers quality higher education institutions which includes private colleges that have NAAC Grade A accreditation or are ranked in the NIRF (National Institutional Ranking Framework). Many private engineering, medical and management colleges qualify.
PM Vidyalaxmi primarily targets domestic higher education. For overseas education, SBI Global Ed-Vantage and other study abroad loan products are more appropriate. Some overseas course loan schemes have separate interest subsidy provisions, but PM Vidyalaxmi in its current form is primarily for domestic institutions.
If your family income exceeds Rs 8 lakh per year, you are not eligible for the PM Vidyalaxmi interest subsidy. However, you can still apply for education loans through the Vidya Lakshmi portal or directly from banks. You will pay the full interest rate but can still claim Section 80E tax deduction on interest paid.
Processing time depends on the bank you choose. Typically 7–21 working days from complete document submission to loan sanction. Union Bank Vidya Turant scheme claims faster digital processing. Track your application status on the PM Vidyalaxmi portal using your registered mobile number.
⚠️ Disclaimer: All information is for educational and informational purposes only. Rates shown are based on publicly available bank data as of June 2026 and may have changed. FinMandi is an independent information platform — not a bank, NBFC, or registered investment adviser. Always verify directly with your bank before making any financial decision.