Pursuing higher education can be financially challenging for many students in India. To ease this burden, the Government of India continues its flagship initiative in 2025 — the PM Vidyalakshmi Education Loan Scheme, integrating the Central Sector Interest Subsidy Scheme (CSIS). This student-centric scheme provides interest-free loans during the moratorium period and is available via the official Vidyalakshmi Portal.
This article provides a complete guide on how to apply for the CSIS subsidy under the PM Vidyalakshmi platform, including eligibility, benefits, documents, and application steps — all updated for 2025.
Highlights of the PM Vidyalakshmi Scheme for Education Loan
• Scheme Name: PM Vidyalakshmi Scheme – Central Sector Interest Subsidy Scheme (CSIS)
• Launched By: Ministry of Education, Government of India
• Purpose: Financial aid via interest-free education loans during course + 1-year moratorium
• Income Limit: Up to ₹4.5 Lakh annual family income for full subsidy
• Portal: www.vidyalakshmi.co.in / www.education.gov.in/scholarships-education-loan-4
• Coverage: Technical & professional courses in recognized Indian institutions
• Loan Limit: Up to ₹10 lakh for eligible courses under the IBA model loan scheme
Key Benefits of the PM Vidyalakshmi Scheme 2025
• 100% Interest Waiver: Full interest subsidy during the moratorium period (course duration + 1 year)
• No Collateral Required: Loans up to ₹7.5 lakh are available without any collateral or third-party guarantee
• Single Application Platform: Apply to multiple banks through a centralized online system
• Digital Transfers: Subsidy credited directly to your education loan account
• Covers Recognized Institutions: Includes NAAC/NBA accredited colleges and centrally funded institutions like IITs, NITs, IIMs, etc.
Eligibility Criteria for CSIS under Vidyalakshmi
• Nationality: The student must be an Indian citizen
• Income Limit: Family income should not exceed ₹4.5 lakh per annum
• Loan Type: Must be taken under the Indian Banks’ Association (IBA) Model Education Loan Scheme
• Course Eligibility: Technical/professional courses from NAAC/NBA-accredited or CFTI institutions
• Loan Amount: Maximum loan of ₹10 lakh (interest subsidy applicable only during the moratorium)
• Education Location: Applicable only for studies in India
Step-by-Step Application Process
🔹 Step 1: Register on the Vidyalakshmi Portal
Visit www.vidyalakshmi.co.in and create an account using your name, mobile number, and email ID.
🔹 Step 2: Fill Common Loan Application Form (CELAF)
Provide your personal, academic, and financial details in the unified CELAF format.
🔹 Step 3: Apply to Banks
You can choose and apply to up to 3 different banks for an education loan through the portal.
🔹 Step 4: Get Loan Sanctioned
Once your loan is approved by a bank, proceed with the documentation process.
🔹 Step 5: Apply for Interest Subsidy
After loan sanction, eligible students are prompted to apply for CSIS. Upload supporting income and course-related documents.
🔹 Step 6: Verification and Disbursement
After successful verification by the bank and nodal agency (Canara Bank), the interest subsidy is disbursed directly to your loan account.
Documents Required
• Aadhaar Card and PAN Card
• Passport-size Photograph
• Income Certificate (issued by designated state authority)
• Proof of Admission and Course Fee Structure
• Previous Academic Records (Mark Sheets)
• Bank Account Details (for e-disbursement)
Important Guidelines
• The scheme applies only to loans sanctioned from November 6, 2024, onwards
• Make sure your institution is approved under the IBA loan model and accredited
• Maintain academic performance — failing or dropping out may disqualify you from the subsidy
• Apply for the subsidy within the specified period after loan disbursement
FAQs (Frequently Asked Questions)
Q: Is this scheme applicable for overseas education?
A: No, the CSIS scheme is valid only for studies within India.
Q: What is the moratorium period covered under the scheme?
A: Course duration plus one year after completion.
Q: Can I apply without an income certificate?
A: No, income certification is mandatory to determine eligibility.
Q: Are private banks part of this scheme?
A: Yes, many private and public sector banks registered under the IBA model participate.
Contact & Support
• Official Portal: www.vidyalakshmi.co.in
• Nodal Bank: Canara Bank – Oversees subsidy disbursement
• Grievance Cell: Accessible via the portal’s dashboard for applicants
Final Thoughts
The PM Vidyalakshmi Education Loan Scheme 2025 is a major relief for students from low-income families aspiring for higher education. By offering zero-interest loans during the moratorium and simplified digital access via the Vidyalakshmi Portal, the government is empowering youth through education.
Apply early, check your eligibility, and upload valid documents to avoid delays.
