Answer: B. Fund approved study costs Education loans help finance eligible study-related costs under the lender’s terms.
Which expenses may an education loan cover?
A Tuition and related costs
B Only entertainment spending
C A lender’s office supplies
D Unrelated household purchases
Answer: A. Tuition and related costs Eligible tuition and course-related expenses depend on the scheme and bank’s approved terms.
How does an education loan differ from a scholarship?
A It is always a grant
B It has no agreement
C It never has interest
D It is generally repayable
Answer: D. It is generally repayable A loan creates repayment obligations; a scholarship is a separate form of support.
Who decides whether to sanction an education loan?
A The application portal alone
B The student’s school friend
C The lending bank
D The exam board
Answer: C. The lending bank The bank reviews the application and makes the lending decision.
Under PM-Vidyalaxmi, what kind of institution matters?
A Any online advertisement
B A listed quality institution
C A coaching center only
D An unlisted private agent
Answer: B. A listed quality institution PM-Vidyalaxmi eligibility depends on scheme criteria, including the institution’s status on the applicable list.
How often can the PM-Vidyalaxmi institution list change?
A It is updated annually
B It never changes
C It changes every day
D It follows bank holidays
Answer: A. It is updated annually The official scheme information says the qualifying institution list is updated each year using current rankings.
What does collateral-free education lending mean?
A No repayment is required
B Interest is always zero
C No bank reviews the application
D No pledged collateral required
Answer: D. No pledged collateral required Collateral-free describes the security requirement; repayment and eligibility conditions still apply.
Does collateral-free mean every student qualifies automatically?
A Yes, admission guarantees sanction
B Yes, every course qualifies
C No, scheme criteria apply
D No, banks never lend
Answer: C. No, scheme criteria apply Students must satisfy the scheme and bank’s eligibility and documentation requirements.
For PM-Vidyalaxmi, who should confirm current eligibility?
A Only a social media page
B Student and selected bank
C A coaching advertiser
D An unrelated lender
Answer: B. Student and selected bank The scheme criteria and lender’s underwriting should be checked before relying on a benefit.
Where does PM-Vidyalaxmi act in the loan process?
A Application processing portal
B It directly lends all funds
C It sets every bank rate
D It guarantees every application
Answer: A. Application processing portal The portal facilitates applications; member banks review, sanction, and disburse education loans.
After sanction through the portal, where may funds be remitted?
A An unknown personal wallet
B A social media account
C A random agent
D Educational institution account
Answer: D. Educational institution account The official portal FAQ says member banks remit the education-loan amount directly to the institution after sanction.
How many banks may a student select in one portal application?
A Only one bank forever
B Every bank in India
C Up to three banks
D Exactly ten banks
Answer: C. Up to three banks The PM-Vidyalaxmi FAQ says one application may be sent to up to three selected banks.
How many active portal applications may a student hold?
A Unlimited active applications
B One active application
C No application is allowed
D Exactly three active forms
Answer: B. One active application The portal FAQ states that a student can submit one active application at a time.
What may explain different loan interest rates?
A Banks set different rates
B Every bank has identical rates
C The portal fixes all rates
D Rates never depend on terms
Answer: A. Banks set different rates The official portal advises students to check each bank’s latest rate because banks charge different rates.
What should be compared besides the stated interest rate?
A Bank logos and slogans
B Campus colors and mascots
C Application page length
D APR, fees, and terms
Answer: D. APR, fees, and terms Comparing APR, charges, repayment terms, and lender conditions gives a fuller cost picture.
For eligible students under PM-Vidyalaxmi, what may the 3% support cover?
A Every future EMI forever
B The entire principal automatically
C Interest during moratorium
D Any personal purchase
Answer: C. Interest during moratorium The scheme offers interest subvention during the moratorium to eligible students, subject to its criteria and limits.
Which annual family income limit is cited for PM-Vidyalaxmi 3% support?
A Up to ₹80 lakh
B Up to ₹8 lakh
C Exactly ₹1 lakh
D No income criterion
Answer: B. Up to ₹8 lakh The official portal lists an annual family-income threshold up to ₹8 lakh for the 3% support, subject to other rules.
For qualifying PM-Vidyalaxmi applicants, what loan amount ceiling is cited for 3% support?
A Up to ₹10 lakh
B Up to ₹1 crore
C No loan limit
D Exactly ₹50,000
Answer: A. Up to ₹10 lakh The official scheme FAQ describes 3% interest support for eligible loans up to ₹10 lakh during the moratorium.
Does a stated income limit alone guarantee interest subvention?
A Yes, approval is automatic
B Yes, every course qualifies
C No, support is never available
D No, other criteria apply
Answer: D. No, other criteria apply Income is only one condition; institution, application, scheme caps, and other criteria also matter.
For PM-USP CSIS, which income limit is cited for full moratorium interest support?
A Up to ₹45 lakh
B Exactly ₹10 lakh
C Up to ₹4.5 lakh
D No income limit
Answer: C. Up to ₹4.5 lakh The official portal distinguishes PM-USP CSIS support for eligible students with family income up to ₹4.5 lakh.
What should be checked before relying on a government subsidy?
A A past advertisement only
B Current scheme rules
C A friend’s loan file
D An unofficial message
Answer: B. Current scheme rules Scheme guidelines and eligibility can change, so students should verify official current rules.
Which documents may the portal request for an education-loan application?
A Admission and expense records
B Only a social profile
C A vehicle sale receipt
D A restaurant menu
Answer: A. Admission and expense records The official portal lists admission proof and the institution’s course-expense schedule among application documents.
What academic record may be requested?
A A music playlist
B A travel booking
C A bank’s annual report
D Qualifying exam marksheets
Answer: D. Qualifying exam marksheets The portal’s published list includes marksheets from the prior qualifying examination.
What can establish family income for scheme review?
A A verbal estimate
B A random cash receipt
C Specified income proof
D A social media post
Answer: C. Specified income proof The scheme portal lists income proof issued by a designated authority among documents for interest support.
Why should the course expense schedule be accurate?
A It changes the exam result
B It supports loan assessment
C It replaces admission proof
D It cancels repayment
Answer: B. It supports loan assessment The lender uses course-cost details to assess the requested amount and supporting documents.
Before submission, what should a student do with application details?
A Review for accuracy
B Copy another student’s data
C Leave every field blank
D Use guessed amounts
Answer: A. Review for accuracy Accurate entries help the bank assess the application and request the right documents.
Who performs loan due diligence before sanction?
A The portal’s web host
B The student’s classmates
C The course textbook
D The bank
Answer: D. The bank The portal FAQ says banks verify documents and perform due diligence before sanction.
What should a student do if a bank requests more documents?
A Send credentials to a caller
B Ignore every request
C Respond through official channel
D Post documents publicly
Answer: C. Respond through official channel Responding through the bank’s verified process helps complete its review while protecting personal information.
If an application is rejected, whom should the student contact?
A An unknown loan agent
B The selected bank
C A social media follower
D An unrelated school
Answer: B. The selected bank The portal FAQ advises students to contact the respective bank for clarification after rejection.
Where can a student track the portal application?
A Track Loan Application section
B A public comment thread
C A bank advertisement
D A class attendance sheet
Answer: A. Track Loan Application section The portal provides a tracking section for application status and bank responses.
What does a loan sanction confirm?
A The course is completed
B The loan is fully repaid
C A scholarship is guaranteed
D Approved terms and conditions
Answer: D. Approved terms and conditions A sanction confirms the bank’s approval subject to the stated terms and conditions.
Does sanction always mean funds are already disbursed?
A Yes, funds arrive instantly
B Yes, repayment is finished
C No, disbursal is separate
D No, the loan is cancelled
Answer: C. No, disbursal is separate Sanction and disbursal are distinct steps in the lending process.
Before accepting a sanction, what should be reviewed?
A Only the bank logo
B Rate, fees, and schedule
C Only the campus map
D Only a friend’s opinion
Answer: B. Rate, fees, and schedule Reviewing the sanction and KFS helps the student understand the costs and repayment obligations.
During a moratorium, what should a borrower check?
A Interest and repayment terms
B Only the course timetable
C Only the bank’s office color
D Only the portal logo
Answer: A. Interest and repayment terms A moratorium’s effect on interest and repayment depends on the scheme and loan documents.
Is an education-loan moratorium automatically interest-free?
A Yes, all interest disappears
B Yes, principal is cancelled
C No, moratorium never applies
D No, verify subsidy eligibility
Answer: D. No, verify subsidy eligibility A moratorium does not automatically waive interest; any support depends on qualifying scheme rules.
What should guide repayment after the course period?
A An unofficial social post
B A friend’s installment amount
C Sanctioned repayment schedule
D A guessed due date
Answer: C. Sanctioned repayment schedule The loan agreement sets the applicable repayment schedule and should be checked carefully.
Why understand the co-borrower’s role?
A They choose exam grades
B They may share obligations
C They set bank rates
D They approve government schemes
Answer: B. They may share obligations The loan documents specify any co-borrower’s or co-obligant’s responsibilities.
Under PM-Vidyalaxmi’s special loan product, what may be waived for eligible students?
A Collateral and guarantor requirements
B All repayment obligations
C Every interest charge
D All application checks
Answer: A. Collateral and guarantor requirements The scheme describes a collateral-free and guarantor-free product for eligible students, while repayment duties remain.
Can working professionals in part-time programmes assume this special benefit applies?
A Yes, without any conditions
B Yes, every course qualifies
C No, no education loan exists
D No, check current clarification
Answer: D. No, check current clarification A Ministry of Education notice dated March 2026 says the collateral-free and guarantor-free benefit may not extend to working professionals in part-time programmes.
What does a credit guarantee primarily support?
A Student’s exam admission
B Automatic loan forgiveness
C Lender risk sharing
D A guaranteed interest subsidy
Answer: C. Lender risk sharing The PM-Vidyalaxmi announcement describes a government credit guarantee to support banks in extending loans.
For a loan up to ₹7.5 lakh under the scheme, what guarantee share is cited?
A 100% of original fee
B 75% of default outstanding
C 10% of tuition
D No credit guarantee
Answer: B. 75% of default outstanding The official scheme announcement cites a 75% guarantee of outstanding default for loans up to ₹7.5 lakh.
Does a credit guarantee cancel the student’s repayment duty?
A No, loan remains repayable
B Yes, all dues vanish
C Yes, only fees remain
D No, banks do not lend
Answer: A. No, loan remains repayable A credit guarantee supports the lender; it does not turn the student’s loan into a grant.
What may happen to support if annual scheme limits are reached?
A Every applicant is guaranteed support
B The loan is automatically cancelled
C The bank stops all applications
D Selection rules may apply
Answer: D. Selection rules may apply The portal describes an annual cap and selection priorities when eligible applications exceed available support.
Which admission category is excluded from PM-Vidyalaxmi benefits per portal FAQ?
A Government institution
B Listed quality institution
C Management quota
D Approved technical course
Answer: C. Management quota The PM-Vidyalaxmi FAQ lists management-quota education loans as ineligible for the scheme.
Why check the institution’s current scheme listing?
A It sets bank branch hours
B Eligibility can depend on it
C It changes the loan principal
D It replaces identity checks
Answer: B. Eligibility can depend on it The Ministry updates qualifying institution lists, so applicants should check the current list.
How can students reduce missed loan obligations?
A Track notices and due dates
B Ignore bank messages
C Delete the repayment schedule
D Use an old due date
Answer: A. Track notices and due dates Monitoring official messages and due dates helps the borrower act on requests and scheduled payments.
What should be done if loan-account entries look incorrect?
A Ignore every statement
B Pay an unknown agent
C Delete all receipts
D Raise a bank query
Answer: D. Raise a bank query A documented query gives the bank a chance to review an account discrepancy.
Which source is safest for scheme application information?
A Anonymous chat groups
B Unverified agents
C Official portal and ministry
D Old screenshots
Answer: C. Official portal and ministry Official portals and Ministry notices are the appropriate sources for current eligibility and process details.
What should students compare before choosing a bank?
A Only branch colors
B Rate, service, and conditions
C Only promotional slogans
D Only a friend’s choice
Answer: B. Rate, service, and conditions Bank rates and terms can differ, so students should compare the current offer and repayment conditions.
What best describes responsible education borrowing?
A Borrow for eligible study needs
B Take the maximum automatically
C Ignore future repayments
D Rely on unverified subsidy
Answer: A. Borrow for eligible study needs Responsible borrowing matches the loan amount to eligible education costs and a realistic repayment plan.