PNB Vidyalaxmi Scheme: PSU bank cuts interest rates on education loan – Check new rates, eligibility and more

Punjab National Bank (PNB), the country’s second-largest PSU bank, has reduced its interest rates on education loans by 20 basis points (bps) under the Vidyalaxmi Scheme.

Also known as PM-Vidyalaxmi, the Vidyalaxmi Scheme is a special education loan product that is both collateral-free and guarantor-free. This education loan is available for students who get admission on their merit to quality Higher Education Institutions (QHEIs) in India.

In an official release, PNB said that the initiative further strengthens its “commitment to enhance education accessibility”.

“The Vidyalaxmi Scheme is designed to provide comprehensive financial support to students towards quality-driven higher education. This initiative is available to candidates who secure admission on merit to 860 identified Quality Higher Education Institutions (QHEIs) across India,” the release said.

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These institutions have been categorized by PNB as follows:

Group Name No. of Institutes

AAA 85

AA 152

A 623

Key features of the Vidyalaxmi Scheme:

Eligibility: Indian Nationals including NRIs, and OCIs pursuing Graduation/Post-Graduation degree or diploma courses in QHEIs.

Quantum of Finance: Need-based financing.

Margin:

AAA & AA Institutes – NIL

Other Institutes – NIL up to Rs 4 lakh; 5% for amounts above Rs 4 lakh

Revised Interest Rate: Institute-specific, starting from 7.50%.

Security: No collateral required; parents/guardians to be joint borrowers

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Subsidy benefits:

For students from families with an annual income of up to Rs 4.5 lakh, 100% interest subvention is available for technical and professional courses under the PM-USP CSIS scheme. Additionally, they are also eligible for a 3% interest subvention on other courses under the PM-Vidyalakshmi scheme. For those with an annual income between Rs 4.5 lakh and Rs 8 lakh, a 3% interest subvention is available for both technical/professional and other courses under the PM-Vidyalakshmi scheme.