PM – Vidyalaxmi scheme
PM – Vidyalaxmi scheme
‘PM – Vidyalaxmi Scheme’ is a Central Sector scheme to provide financial support to meritorious students who gets admission in quality Higher Education Institution (QHEIs) will be eligible to get collateral & guarantor free education loan .
| Sl No. | Parameters | Details | ||||||||||
| 1 | Eligible Students |
Students admitted through open competitive examinations/ merit based admission shall get this loan. Students admitted through management quota (or similar quota) will not be eligible. |
||||||||||
| 2 | Eligibility | Meritorious students who get admission in the Quality Higher Educational Institutions (QHEIs) in India.
The student should be an Indian National. Students of all family income groups will be eligible to get this education loan. |
||||||||||
| 3. | Quality Higher Education Institutions (QHEIS) | Following are the criteria of an Institute to be considered as quality HEI under PM – Vidyalaxmi;
Top 100 ranked HEIs in the overall/ category-specific and/or domain specific rankings in latest list of NIRF published by the Ministry of Education; plus Top 200 ranked HEIs under the governance of State/UT governments in the latest list of NIRF published by the Ministry of Education; plus; All remaining HEIs under the governance of Government of India. Indian campus of foreign education institutions, foreign campus of Indian education institutions and foreign education institutions will not be covered. Department of Higher Education (DHE) shall prepare a list of such Higher Education Institution (HEIs) in consultation with NBA (for NIRF ranked institutions) and AISHE (for remaining central government institutions). This list will be updated every year using the latest NIRF ranking and placement record of the institution for selection of QHEI in future. A list of 904 Institutes for the year 2025-26 is enclosed in (Annexure – B). This list will continue till updating new list by DHE for which a circular will be issued in Due course. |
||||||||||
| 4 | Eligible Courses | Graduation/ Post Graduation degree and diploma courses offered by QHEIs. | ||||||||||
| 5 | Loan Amount | Need based finance depending upon course fee and other fees charged by the QHEI and other associated expenses (like mess, hostel fee, other refundable fees of the QHEI, cost of reasonable quality of laptop and reasonable amount of living cost required by the student during the course period.)
There is no maximum limit of education loan. |
||||||||||
| 6 | Margin |
Scholarship/ assistantship to be included in margin. Margin may also be allowed on a pro-rata basis, as and when disbursements are made. |
||||||||||
| 7 | Security / Guarantee | No Collateral security or guarantee is required
Assignment of the future income of student borrower. Parent(s)/ guardian(s)/ spouse, as applicable to be made joint/ co-borrowers. |
||||||||||
| 8 | Repayment Period | The repayment period of the education loan would be up to 15 years excluding moratorium period (Course period + 1 year), which is same as IBA Model Education Loan Scheme guidelines. | ||||||||||
| 9 | Definition of family | “Family”, for the purpose of determining the family income criteria in this scheme shall be the student plus her/ his father & mother plus her/ his spouse, wherever applicable. | ||||||||||
Frequently Asked Questions (FAQs)
Find answers to commonly asked questions about Indian Bank Education Loans.
1. What is an Education Loan?
An Education Loan from Indian Bank helps students finance higher education in India or abroad by covering eligible academic expenses such as tuition fees, books, hostel charges, and other approved educational costs.
2. Who is eligible to apply for an Indian Bank Education Loan?
Indian citizens who have secured admission to a recognized educational institution in India or abroad and meet the bank's eligibility criteria can apply for an Education Loan.
3. What is the interest rate for an Indian Bank Education Loan?
The Education Loan interest rate depends on the Institute/College/University. Please refer to the latest interest rates published by Indian Bank.
4. What expenses are covered under an Education Loan?
An Education Loan may cover tuition fees, examination fees, hostel charges, books, equipment, laptops, travel expenses (for overseas studies), and other eligible education-related expenses as per the loan scheme, details of collateral is required if loan amount is more than 7.50 Lakh.
5. What documents are required to apply for an Education Loan?
Applicants generally need identity proof, address proof, admission letter, academic records, fee structure, income proof of the co-applicant, bank statements, and other documents required by Indian Bank.
6. Can I apply for an Education Loan to study abroad?
Yes. Indian Bank offers Education Loans for eligible higher education courses in India as well as abroad, subject to the bank's terms and eligibility criteria.
7. How can I calculate my Education Loan EMI?
You can use the Indian Bank Education Loan EMI Calculator to estimate your monthly EMI based on the loan amount, interest rate, and repayment tenure.
8. Is a co-applicant required for an Education Loan?
Yes. An eligible parent, guardian, or another acceptable co-applicant is generally required, subject to the bank's lending guidelines.
9. Can I get tax benefits on an Education Loan?
Yes. Interest paid on an Education Loan may qualify for tax benefits under the applicable provisions of the Income Tax Act, subject to prevailing tax laws.
10. Can I apply for an Indian Bank Education Loan online?
Yes. Eligible applicants can apply for an Education Loan online through the Indian Bank website or by visiting the nearest Indian Bank branch.
11. What is the repayment tenure for an Education Loan?
The repayment tenure depends on the loan scheme and the sanctioned loan amount, as per Indian Bank's prevailing guidelines.
12. How long does it take to process an Education Loan application?
The processing time depends on the completeness of the application, document verification, and fulfilment of the bank's eligibility requirements.
Disclaimer
The content has been translated from the English version using indigenously developed Artificial Intelligence capabilities (Bhashini, developed by MeitY). In the event of any ambiguity or doubt, users are advised to refer to the original English content for clarification.
All information, materials, advice, suggestions, illustrations, notifications, circulars, and other items on this website are collectively referred to as the “Content.”
Indian Bank assumes no responsibility for any errors, omissions, inaccuracies, or typographical mistakes that may appear in the Content. Indian Bank does not provide any warranty or representation regarding the Content and expressly disclaims all liabilities.
Any action taken by users on the basis of such Content shall be entirely at their own risk and responsibility.
Indian Bank reserves the right to modify, correct or update any part of the Content at any time.
No portion of the Content may be displayed or printed without prior written approval of Indian Bank.
As the translated Content has been generated using AI, we encourage suggestions for improvement.
Suggestions may be submitted at:
https://bhashini.gov.in/bhashadaan/en/home