PM-Vidyalaxmi Education Loan 2026-27: 3% Interest Subsidy, Eligibility

PM-Vidyalaxmi is a Government of India education loan scheme from the Ministry of Education. Students who get merit-based admission to one of the listed Quality Higher Education Institutions (QHEIs) can take an education loan with no collateral and no guarantor. Students with a family income up to ₹8 lakh can also get a 3% interest subsidy. It is open to students from all states, including Maharashtra. As of 26 October 2026, the scheme is running: loan applications are accepted all year on pmvidyalaxmi.co.in, and the window for claiming interest subsidy on loans taken in 2025-26 is open from 1 September to 31 December 2026. Your bank files the claim.

Key dates

The portal FAQ says claims for a financial year begin only after that year ends, so loans taken in 2026-27 (1 April 2026 to 31 March 2027) can be claimed only after 31 March 2027. The exact window has not been announced; the 2025-26 window opened on 1 September 2026.

Who can apply

• Students who got admission on merit (through competitive exams or the institute's merit process) to a listed QHEI. Management quota and NRI quota admissions are not covered.
• QHEIs include all institutions in the top 100 of NIRF (overall, category-wise or domain-wise), state government institutions in the top 200, and all central government institutions. According to the Government's July 2026 backgrounder, 1,425 institutions are covered, and the list is updated with each new NIRF ranking.
• Any degree or diploma course at a QHEI is covered. Indian campuses of foreign universities and foreign campuses of Indian institutions are not.
• Students from all income groups can take the loan. The 3% interest subsidy is only for families earning up to ₹8 lakh a year.
• Aadhaar is mandatory to get any benefit under the scheme.

Benefit

• No collateral, no guarantor. There is no upper limit on the loan. It depends on the course fee and other costs: hostel, mess, refundable fees, a reasonably priced laptop and reasonable living expenses.
• Credit guarantee: the Government guarantees 75% of loans up to ₹7.5 lakh for the bank.
• Interest rate cap: the bank's External Benchmark Lending Rate (EBLR) plus 0.5%. Banks may give up to 1% more concession if you pay interest during the study and moratorium period.
• Repayment: up to 15 years after the moratorium, which is the course period plus one year. Interest paid also gets the Section 80E tax deduction.
• The interest subsidy is paid into the PM Vidyalaxmi Digital Rupee (CBDC) wallet and then moved to the loan account.

If more than 1 lakh new students apply for the 3% subsidy in a year, preference goes to students from government institutions in technical or professional courses. A student who gets any other central or state scholarship, fee reimbursement or interest subsidy cannot get the PM-Vidyalaxmi or CSIS subsidy. For example, a student whose fees are reimbursed under a MahaDBT scheme is not eligible.

Documents

• Class 10 marksheet
• Class 12, diploma or last qualifying exam marksheet
• Proof of admission to the course
• Schedule of expenses from the institution
• Income proof from a competent public or college authority (needed for the interest subsidy)
• Photo of the applicant and of a parent
• Aadhaar

Files must be in PDF or JPEG format, up to 200 KB each. The bank may ask for more documents.

How to apply

1. Go to pmvidyalaxmi.co.in and register with your mobile number and email, then log in.
2. Fill in the Common Education Loan Application Form and upload your documents.
3. Choose your bank. You can have one active application at a time, sent to up to three banks.
4. Track the status under "Track Loan Application". If a bank rejects you, contact the bank or raise a grievance on the portal.
5. After the loan is sanctioned and disbursed, submit your intent for interest subsidy on the portal, if your family income is within the limit.
6. After the financial year ends, make sure your bank files the subsidy claim within the claim window. For 2025-26 loans, the window is 1 September to 31 December 2026.

Keeping the benefit

• From the second year, you must keep up satisfactory academic performance to continue getting the interest subsidy.
• If you leave the course midway or are expelled for disciplinary or academic reasons, you lose the benefit.
• The subsidy and the credit guarantee can be used only once: for an undergraduate, a postgraduate or an integrated course.

Frequently asked questions

What is the last date to apply for PM-Vidyalaxmi?

There is no last date for loan applications; they are accepted all year on the portal. The interest subsidy claim window for loans taken in 2025-26 runs from 1 September to 31 December 2026.

Is the PM-Vidyalaxmi loan interest-free?

No. Families earning up to ₹8 lakh get 3% off the interest during the course plus one year. Full interest is paid by the government only under the older CSIS scheme, for families earning up to ₹4.5 lakh in technical or professional courses.

Which colleges are covered?

Institutions in the top 100 of NIRF (any category), state government institutions in the top 200, and all central government institutions. That was 1,425 institutions as of July 2026. Check the list on the portal for your college.

Is there a maximum loan amount?

No fixed limit. The loan depends on your course costs. The 75% government guarantee applies up to ₹7.5 lakh, and the 3% subsidy applies on up to ₹10 lakh.

Can I get PM-Vidyalaxmi interest subsidy with a MahaDBT scholarship?

No. Students who get any other central or state scholarship, fee reimbursement or interest subsidy are not eligible for the PM-Vidyalaxmi or CSIS interest subsidy. You can still apply for the loan itself.

Official sources

• PM-Vidyalaxmi unified education loan portal
• PM-Vidyalaxmi portal FAQs (documents, banks, claim window)
• PIB backgrounder, 29 July 2026: PM Vidyalaxmi Scheme
• PM India, 6 November 2024: Cabinet approves PM-Vidyalaxmi

Last checked 26 October 2026. Dates can change; always confirm on the official website.