Under this scheme, students can access loans to fully cover tuition fees and related expenses. For loans up to ₹7.5 lakh, a 75% credit guarantee ensures banks can offer collateral-free loans. Additionally, students from families with an annual income of up to ₹8 lakh, who are ineligible for other scholarships or interest-subvention schemes, will receive a 3% interest subvention on loans up to ₹10 lakh during the moratorium period. This benefit will extend to one lakh students annually, with preference given to those in technical or professional courses at government institutions.

The scheme, with an outlay of ₹3,600 crore for 2024-25 to 2030-31, aims to benefit seven lakh fresh students. It focuses on top-ranked institutions as identified by the National Institutional Ranking Framework (NIRF), including the top 100 in NIRF rankings and select state and central government institutions ranked between 101 and 200.

By ensuring financial access to quality education, PM Vidyalaxmi seeks to empower over 22 lakh students across the nation, making higher education more inclusive and equitable.