Lok Sabha Question No. 2749 (UNSTARRED), answered on 2026-03-09
Subject: Educational Loan under PM-Vidyalaxmi Scheme
Ministry: EDUCATION
Asked by: Shri Vijay Kumar Hansdak, Kumari Selja

## GOVERNMENT OF INDIA MINISTRY OF EDUCATION

## DEPARTMENT OF HIGHER EDUCATION

## LOK SABHA

## UNSTARRED QUESTION NO. 2749

ANSWERED ON- 09.03.2026

## EDUCATIONAL LOAN UNDER PM-VIDYALAXMI SCHEME

2749. Shri Vijay Kumar Hansdak:

Kumari Selja:

Will the Minister of Education be pleased to state:

(a) the number of students who have applied via PM Vidyalaxmi portal since its launch in 2024;

(b)  the  number  of  education  loan  applications  received,  sanctioned,  rejected,  withdrawn, disbursed  and  pending  since  its  inception,  bank-wise  and  State/UT-wise  along  with  the average  processs  time  for  loan  applications  and  the  number  of  complaints  on  delays  or rejections received since 2024;

(c)  whether  the  Government has analysed the reasons for the significant gap between loan sanctions and actual disbursements under PM-Vidyalaxmi, if so, the details thereof;

(d) the number of complaints received regarding demand for illegal collateral or third-party guarantees for education loans below the collateral-free loans during the last three years;

(e) the number of higher-education institutions formally empanelled or linked with banks for education loan facilitation; and

(f)  whether institutions in Tier-Il and Tier-III  cities show lower facilitation rates, if so, the details thereof?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF EDUCATION

(DR. SUKANTA MAJUMDAR)

(a)  to  (f):  Education  is  in  the  concurrent  list  and  both  the  central  government  and  State Governments  work  together  for  its  improvement.  The  Government  of  India  has  launched the PM-Vidyalaxmi, a new central sector scheme in November 2024. The main objective of the scheme is to ensure that no student is denied the opportunity to pursue higher education due to financial constraints. Under the scheme, collateral-free and guarantor-free education loan  is  provided  to  all  the  students  who  get  merit-based  admission  in  top  Quality  Higher Education Institutions  (QHEIs)  and who desire  to avail the education loan and there is no upper  limit  for  this.  Further,  for  students  with  annual  family  income  up  to  ₹8  lakh,  the scheme  provides  3%  interest  subvention  on  loans  up  to  ₹  10  lakhs.  Up  to  one  lakh  fresh students not getting any other scholarship or interest subvention on education loan will get this interest subvention.

A dedicated online platform, the PM Vidyalaxmi portal https://pmvidyalaxmi.co.in has been developed on which students can apply for the education loan as well as interest subvention, through  a  simplified  application  process  to  be  used  by  all  banks.  This  portal  has  started operating from 25th February 2025. During 25th February 2025 and 2 nd March 2026, more than 68,000 PM -Vidyalaxmi education loans have been sanctioned. The amount sanctioned is ₹9118  crores.  The  State-wise  and  Bank-wise  number  of  education  loan  applications received,  sanctioned,  rejected,  disbursed  and  withdrawn/closed/pending  with  students  for want of relevant information is available at https://www.education.gov.in/en/parl\_ques .

The  gap  between  the  loan  sanctioned  and  the  actual  disbursement  arises  because  the sanctioned amount is for entire course period, while the amount disbursed is for the current year/ current semester of course, depending on the fee demand of the educational institution.

In the portal https://pmvidyalaxmi.co.in , during 25th February 2025 and 28 th February 2026, a total of 26,683 grievances have been received, out of which 25,061 grievances have been resolved. Out of the total grievances received, 123 complaints pertain to delays or rejection of loan applications. Of these, 106 complaints have already been resolved and closed. Further, ten  complaints  pertain to  collateral  or  third-party  guarantee  demand  under  PM-Vidyalaxmi Scheme, out of which 4 loan applications have been sanctioned and disbursed.

A total of 955 Quality Higher Education Institutions (QHEIs) have been included under the PM Vidyalaxmi Scheme. It is applicable for all students, including students of Tier-II  and Tier-III cities, who get merit based admission in these QHEIs and are desirous of availing PM - Vidyalaxmi education loan for their higher education in these QHEIs.

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