Pradhan Mantri Education Loan Schemes for Abroad in 2025

The Pradhan Mantri Education Loan scheme is an initiative launched by the Government of India to provide financial assistance to bright students so that they can pursue higher education in India or abroad. The main reason for launching this scheme was to make sure that every deserving student gets the opportunity to pursue higher education, no matter whether the university is in India or abroad. Before we begin, let us take a brief look at the history of Pradhan Mantri Education Loan and how it all began.

Vidya Lakshmi Portal and Its Role in Education Loans

The sole purpose of the Vidya Lakshmi portal is to provide students access to education loan schemes offered by multiple banks. The government loan scheme for students is integrated into this portal to ensure accessibility to financial aid programs. For subsidies on education loans, a separate portal known as the JanSamarth Portal is also linked there, you can check your eligibility there as well.

Key Features of the Vidya Lakshmi Portal:

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  Multiple Lenders: Over 40 banks, including major public and private sector banks, offer education loans through this portal. An exclusive list of partner banks is provided on their website.

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  Common Application Form: Students can apply to multiple banks simultaneously using a single application form. This saves a lot of time and effort for applicants. It also brings transparency to the entire process.

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  Real-time Status Tracking: Applicants can track their loan applications and receive updates from banks, which makes the loan application tracking process hassle-free.

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  Grievance Redressal: The portal offers a simple and efficient mechanism for resolving issues related to loan processing and delays.

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  Jan Samarth Portal Integration: Direct integration with the National Scholarship Portal and Jan Samarth portal to help students with subsidies and other financial assistance beyond loans.

For more details, students can visit the official Vidya Lakshmi Portal by clicking here. The entire process of registration and applying for an education loan on the Vidya Lakshmi portal can be easily understood from the video step-by-step:

Now, let us see the impact of budget 2025 on education loans. Also, if you are interested in learning about various government schemes for education loan, read our detailed blog here.

Budget 2025 Announcements and Impact on Education Loans

In the Union Budget 2025, the Indian government has announced several measures to support students who want to study abroad as well as those students who are planning to pursue their higher education in India. Let us understand one of the most important aspects of the Union Budget 2025 related to study abroad financing:

Tax Collected at Source (TCS) on Education Remittances Removed:

For students who are studying abroad, TCS (tax collected at source) was a major financial concern as remittances for tuition and living expenses attracted TCS. Under the Union Budget 2025, students and their families will no longer have to pay additional TCS on remittances for tuition and living expenses abroad. This will significantly reduce the financial strain. Now, let us understand various eligibility criteria that need to be fulfilled for Pradhan Mantri education loan.

Eligibility Criteria for Pradhan Mantri Education Loans

There are some education loan eligibility criteria India. Let us understand the eligibility criteria for a PM education loan and PM Vidyalaxmi Scheme:

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  Indian Citizenship: The applicant must be an Indian citizen.

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  Educational Qualification: Must have secured admission to a recognized foreign university.

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  Age Limit: Generally, applicants should be between 18 to 35 years old at the time of loan application.

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  Academic Performance: A good academic record is required for most education loan schemes.

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  Family Income: Some schemes, such as the PM-Vidyalaxmi Scheme, require the annual family income to be below INR 4.5 lakhs to avail of interest subsidies.

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  Course Eligibility: The course should also be recognized as well. These include undergraduate, postgraduate, Ph.D., and professional courses in recognized institutions abroad.

Next, we will understand various education loan subsidies provided by the government of India for studying abroad.

List of Pradhan Mantri Education Loan Subsidies for Studying Abroad

There are several pradhan mantri shiksha loan schemes that support students who wish to study abroad. The main purpose of these schemes is to make education loans more financially accessible for students through a government loan scheme for students. Now, let us understand the various key government education loan schemes for studying abroad.

PM-Vidyalaxmi Scheme (2024 Update):

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  Collateral-Free Loans: For India’s top 860 higher education institutions.

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  Credit Guarantee: Banks receive a 75% credit guarantee for loans up to INR 7.5 lakhs.

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  Interest Subvention: Students from families with an annual income of up to INR 8 lakhs can avail a 3% interest subsidy on loans up to INR 10 lakhs during the moratorium period.

Padho Pardesh Scheme (Now Merged with Other Schemes):

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  Earlier, this scheme provided interest subsidies for students from minority communities studying abroad.
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  This scheme has been discontinued.
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  The benefits have now been merged into broader PM education loan schemes.

Dr Ambedkar Central Sector Scheme for Education Loans:

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  This scheme is made to assist students from Other Backward Classes (OBCs) and Economically Weaker Sections (EWS).
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  It offers interest subsidy for overseas studies in M.Phil., Ph.D., and other professional courses.

NRI/Overseas Education Loans through Banks:

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  Banks such as SBI, Canara Bank, and Bank of Baroda offer government loan schemes for students studying abroad.
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  These loans cover tuition fees, living expenses, travel costs, and exam fees.

These are some of the prominent education loan scheme Indian government. Now, let us understand the application process for PM education loan.

How to Apply for a Pradhan Mantri Education Loan for Studying Abroad

In order to search, apply and track for education loans on the Vidya Lakshmi portal dashboard, you have to follow these easy steps:

Step 1: Fill out the Common Education Loan Application Form (CELAF). This is the most important initial step for your loan application. Access the dashboard and click on the 'Loan Application Form' tab.

Step 2: Then you need to click on the orange tab labelled 'Search and Apply for Loan Scheme' on the dashboard. This will allow you to explore and apply various loan schemes available.

Step 3: Use the provided filters to refine the search results according to your specific requirements. You can filter the schemes based on factors such as whether it is for study in India or study abroad. Other filters can help you choose the variations in the course, required loan amount and more.

Step 4: Once you have applied the filters, a list of suitable loan schemes will be displayed. Each scheme will have an option to apply for it.

Step 5: Click on a particular scheme that interests you, and you will be redirected to a page with detailed information about that particular scheme. Make sure you review the details carefully.

Please that you can apply for a loan from a maximum of 3 banks, and only one scheme per bank can be selected for the application.

The Pradhan Mantri Education Loan schemes are very beneficial for students who are planning to pursue their higher studies abroad. These schemes have reduced the financial burden on students by giving various benefits. The Vidya Lakshmi Portal serves as an efficient platform for students to search, apply and track their loan applications. The recent Budget 2025 updates further support students by reducing the financial burden and giving better access to international education through government loan schemes for students and PM education loan programs.

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