The Ministry of Education's PM Vidyalaxmi Scheme offers collateral-free and guarantor-free education loans to students admitted on merit to Quality Higher Education Institutions, those in the NIRF top 100 across categories. It supports NEP 2020 and SDG 4; India's higher education enrolment ratio rose from 23.7% (2014-15) to 30% (2023-24).
Loans have no upper limit and cover fees, hostel, mess, laptop and living costs, through scheduled, regional rural and cooperative banks. The government gives a 75% credit guarantee on loans up to ₹7.5 lakh; interest qualifies under Section 80E. It complements PM-USP CSIS, which offers full interest subvention for family incomes up to ₹4.5 lakh.