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What is the PM Vidyalaxmi Scheme? 

The PM Vidyalaxmi Scheme, launched in November 2024, aims to empower students by providing collateral free education loans without the requirement of a guarantor. These loans are tailored for students admitted to one of the 860 designated Quality Higher Education Institutions (QHEIs) across India.

Key Features of PM Vidyalaxmi Scheme

Why Choose an Unsecured Education Loan in India?

An unsecured loan means the borrower is not required to provide any security or collateral to avail financial aid. This opens up opportunities for:

• Students from low-income families
• Meritorious students with no asset backing
• Quick loan processing and disbursal

Advantages of the PM Vidyalaxmi Scheme

• Easy Access to Higher Education
• No burden of providing assets as security
• Government-backed credibility
• Multiple bank options

Bar Graph : Increase in Students Availing Collateral Free Loans (2020-2025)

Key Observations of above Bar graph

The bar chart visually represents the growth in the number of students availing collateral-free loans over the six-year period:

• The number of students starts at 120 thousand in 2020 and rises steadily each year, reaching 450 thousand by 2025.
• The increasing height of the bars from left to right highlights a clear upward trend, with the most significant jump occurring between 2024 (320 thousand) and 2025 (450 thousand).
• The chart effectively communicates the "increase" referenced in the title by showing how the number of students grows over time.

We can clearly see the rising popularity of collateral-free loans among students from 2020 to 2025.

How to Apply for PM Vidyalaxmi Education Loan

1. Visit the official portal pmvidyalaxmi.co.in
2. Register with your personal, academic, and contact details
3. Fill the Common Education Loan Application Form (CELAF)
4. Choose a participating bank
5. Submit your documents online
6. Await communication from the bank regarding approval

Eligibility Criteria

• Must be an Indian citizen
• Secured admission to a QHEI listed under the scheme
• Must meet the academic and income thresholds as defined in the scheme guidelines

Comparison Between Regular and PM Vidyalaxmi Loans

Top Institutions Benefiting from the Scheme

Here’s a look at the top 5 institutions where students have availed this unsecured loan:

These numbers highlight the scheme’s reach across diverse fields like engineering, management, and medicine.

Loan Details: What You Get and How to Repay

• Loan Amount: Covers full tuition fees and course-related expenses, with no cap for eligible students.
• Interest Rates: Competitive rates with a 3% subvention during the moratorium period for families earning up to ₹8 lakhs annually (on loans up to ₹10 lakhs).
• Repayment: Begins after course completion with a grace period until employment, extending up to 15 years.

The government’s credit guarantee for collateral-free loans up to ₹7.5 lakhs ensures banks approve applications confidently, benefiting more students.

Success Stories: Real Impact of the PM Vidyalaxmi Scheme

The PM Vidyalaxmi Scheme has changed lives. Here are two examples:

• Ravi’s Engineering Dream: A small-town student, Ravi secured a loan to study at IIT Delhi. Today, he’s on track to become an engineer, thanks to this unsecured education loan.
• Priya’s Medical Journey: Priya, from a low-income family, used the scheme to fund her MBBS at AIIMS. She’s now a doctor, giving back to society.

These stories show how the scheme turns aspirations into achievements.

Conclusion The PM Vidyalaxmi Scheme is a progressive step towards inclusive education, offering a secure and seamless method of funding higher education through unsecured education loans in India. By eliminating the need for collateral and guarantors, this initiative is poised to uplift thousands of talented students across the nation.

Apply today at https://shikshavahini.com/apply-for-loan and take the first step toward your academic future—without financial stress!