PM - Vidya Laxmi (PMVS): Education Loan Scheme

Scheme Name

PM - Vidya Laxmi (PMVS): Education Loan scheme

Objective

Providing financial support education loans to the meritorious students who get admission in the quality Higher Educational Institutions (QHEIs) of the nation

Nationality

• The student should be an Indian National (including NRI).
• For Overseas Citizens in India (OCI), and students who are born abroad (overseas citizenship by birth, when parents were on deputation with Foreign Govt./Govt. agencies or International / Regional Agencies etc.) and are now studying in India after repatriation of their parents.

Eligibility criteria

Should have secured admission to a higher education course in the 860 institutions.

Meritorious

Admission in these select Premier institutions through common entrance test could be considered a meritorious student.

Categorisation Institutions

List of select 860 quality Higher Educational Institutions (list of Institutions)

Courses Eligible

All the Graduation/ Post Graduation degree and diploma courses offered by 860 quality Higher Educational Institutions.

Expenses considered for loan.

1. Fee payable to college/ hostel
2. Examination/ Library/ Laboratory fee
3. Insurance premium for student borrower
4.   Caution deposit, building fund / refundable deposit supported by   Institution bills/receipts.
5. Purchase of books/ equipment/ instruments/ uniforms
6. Purchase of computer at reasonable cost, if required for completion of the course
7. Any other expense required to complete the course - like academic and maintenance Fees, study tours, project work, thesis, exchange programme, etc.

Quantum of Finance

Need based Finance linked to total education expenses.

Margin

Scholarship, teaching/research assistantship can be included in the margin.

Security/ Guarantee

1. Co-obligation of parents/guardian as joint co-borrowers.

   The co-borrower should be parent(s)/guardian of the student borrower. In case of married person, co-borrower can be spouse or the parent(s)/parents-in-law.

2. No collateral security required.

Moratorium period

Course period* + 1 year after completion of study.

(*the period of completion of initial course for which student is seeking admission)

Repayment

Repayment of the loan will be maximum 180 equated monthly instalments (EMIs). (i.e. 15 years’ maximum excluding moratorium period).

Rate of Interest

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Charges

Processing Charge- No processing/ upfront charges.

Account Handling Charges - As per service charges booklet., Presently - Rs. 500+0.20 % of Loan amount

PM Vidya Laxmi Enrolment charges to be borne by the student (Rs. 100 + GST, subject to change).

No Prepayment charges

Interest subvention

The eligibility for interest subvention in PM-Vidyalaxmi and PM-USP CSIS in the QHEIs is given in the table below:

Student availing any other Central /State Government Scholarship, or any other interest subvention scheme or Fee reimbursement shall not be eligible for availing benefits under this Scheme.

The definition of “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.

Credit Guarantee on education loans:

-Education loan sanction amount is up to ₹ 7.5 lakhs, irrespective of family income, the student shall be eligible for credit guarantee where 75% of outstanding default will be covered by Government, as per the other existing guidelines of the PM-USP Credit Guarantee Fund Scheme for Education Loans (CGFSEL) run by DHE.

Disbursement of Interest Subsidy Claims

• Once the application for interest subvention gets approved, the student will get sms, email and whatsapp message to install the e-voucher/Programmable /Central Bank Digital Currency (CBDC) wallets on their mobiles.
• On receipt of claims from Banks, interest subvention amount will be credited to e-voucher/Programmable CBDC wallet of each student. 
• Once the student opts for redemption of the e-voucher/ Programmable CBDC towards repayment of his/her education loan amount, this interest subvention amount shall get credited to his/her education loan account through Direct Benefit Transfer (DBT) towards interest payment through Public Financial Management System (PFMS) Portal and National Automated Clearing House (NACH), as per guidelines of the Department of Expenditure, Ministry of Finance. 

Check list / List of Documents required.

1. Student-applicant:

Application Process

Unified PM Vidyalaxmi Portal - 3 simple steps to apply for an educational loan.

1. Registration:- Student/User will register to PM-Vidyalaxmi portal (https://pmvidyalaxmi.co.in). Each user will be assigned a unique Student ID.
2. Fill Up Single Form: - Students have to fill Common Education Loan Application Form by providing all the necessary details. After filling the form, the applicant can search for Educational Loan and APPLY as per his/her needs, eligibility and convenience.
3. Submit Application to Bank: - Students can submit application to bank for Educational Loan as per his/her needs, ease and convenience.