Punjab National Bank (PNB), the second-largest state-owned lender in the country, has announced a reduction of 20 basis points (bps) in its interest rates for education loans offered under the PM Vidyalaxmi scheme, making higher education more accessible for aspiring students. This government-backed initiative aims to provide financial assistance to students enrolled in undergraduate or postgraduate degree/diploma courses.
What is PM Vidyalaxmi scheme?
The PM Vidyalaxmi scheme is designed to provide comprehensive financial support to students for quality-driven higher education. This initiative is available to students who secure admission on merit to the 860 identified Quality Higher Education Institutions (QHEIs) across India.
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What is the eligibility of the scheme?
The scheme is open to Indian nationals, including Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs), who are pursuing graduation or postgraduation degree/diploma courses in Qualified Higher Education Institutions (QHEIs).
What is the margin requirement for availing a loan under PM Vidyalaxmi?
Financing will be need-based, depending on the specific requirements of the student.
Margin requirements for students enrolled in AAA & AA-rated institutes: No margin is required.
For other institutes, no margin is required for loans up to Rs 4 lakh; a 5% margin is applicable for amounts above Rs 4 lakh.
What is the revised interest rate?
Interest rates are institute-specific and start at 7.50% per annum
Note that collateral is not required under the scheme. However, parents or guardians must be joint borrowers on the loan.
Punjab National Bank has categorised Quality Higher Education Institutions (QHEIs) into three groups based on their ratings: Group I, classified as AAA, includes 85 institutions; Group II, labelled as AA, comprises 152 institutions; and Group III, categorised as A, consists of 623 institutions.
What is the subsidy amount for the PM Vidyalaxmi scheme?
Students pursuing higher education can avail themselves of interest subvention benefits based on their family’s annual income and the type of course.
For students enrolled in technical or professional courses, those with an annual family income of up to Rs 4.5 lakh are eligible for 100% interest subvention. If the annual income is between Rs 4.5 lakh and Rs 8 lakh, they can avail a 3% interest subvention under the PM Vidyalaxmi scheme. For students enrolled in other courses, a uniform 3% interest subvention is available under the PM Vidyalaxmi scheme, regardless of whether their family income falls below Rs 4.5 lakh or between Rs 4.5 lakh and Rs 8 lakh.
| Income Details | Technical / Professional courses | Other courses |
| Annual income Up to 4.5 lakhs | 100% interest subvention (PM-USP CSIS) | 3% interest subvention (PM-Vidyalaxmi) |
| Annual income 4.5 lakhs – 8.00 lakhs | 3% interest subvention (PM-Vidyalaxmi) | 3% interest subvention (PM-Vidyalaxmi) |
Documents required for PM Vidyalaxmi
According to the PNB website, below are the documents required:
KYC Details (Student)—Aadhaar, PAN ID, and Address Proof.
Previous Qualifying self-attested copy of Mark Sheets.
Entrance Exam Result.
Offer letter from the Institution along with Fee Structure.
Passport-size photographs.
Previous or existing loans, if any, from Banks/Lenders, banks may obtain suitable documentary evidence.
Proof of family Income from designated public authority of the state.
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