The government has approved the PM Vidyalaxmi scheme to ensure that financial constraints do not prevent any student from pursuing higher education. Under the scheme, meritorious students will be offered loans upto Rs 10 lakh for higher education. An allocation of Rs 3,600 crore has been made by the centre for 2024-25 to 2030-31 under the new central scheme. The scheme was approved by union cabinet chaired by PM Modi and targets to provide financial support to nearly 22 lakh students.
Explained: What Is PM Vidyalaxmi Scheme?
Under the PM Vidyalaxmi scheme, any student who gets admission to a quality higher education institution will be eligible to get collateral-free, guarantor-free loans from banks and financial institutions to cover the full amount of tuition fees and other expenses related to the course. The scheme will be administered through a simple, transparent and student-friendly system that will be inter-operable and entirely digital.
Key features of the scheme:
The scheme will be applicable to the HEIs, government and private institutions that are ranked within the top 100 in NIRF in overall, category-specific and domain-specific rankings.
The scheme will also cover state government HEIs ranked 101-200 in NIRF and all central government-governed institutions.
The scheme is expected to benefit over 22 lakh students who will be able to potentially gain from PM-Vidyalaxmi.
For loan amounts up to Rs 7.5 lakhs, the student will also be eligible for a credit guarantee of 75 per cent of outstanding default.
Students having an annual family income of up to Rs 8 lakhs, and not eligible for benefits under any other government scholarship, can avail of a 3 per cent interest subvention for loans up to Rs 10 lakhs.
The interest subvention support will be given to one lakh students every year. Preference will be given to students who are from government institutions and have opted for technical/ professional courses.
Interested and eligible students can apply for the education loan as well as interest subvention, through a unified portal 'PM-Vidyalaxmi' in the Department of Higher Education.
"This initiative is a major step in making higher education more inclusive and accessible for all students, particularly those from economically disadvantaged backgrounds. We applaud Prime Minister Modi's vision to create a skilled, educated workforce that will drive growth and create a better future for the youth of this country," said Professor Manoj Tiwari, Director, IIM Mumbai.
