 "Cabinet approves PM-Vidyalaxmi scheme for students; know all about it")
The PM Vidyalaxmi scheme, which offers financial aid to deserving students pursuing higher education, was approved by the Union Cabinet on Wednesday. Every year, the program seeks to provide education loans to more than 22 lakh deserving students who are accepted into the top 860 prestigious universities in the country.
Students can apply for special education loans under the PM-Vidyalaxmi scheme that are free of collateral and guarantors. With a fully digital platform to guarantee comfort and convenience for students, the application process is made simple, accessible, and student-friendly.
PM-Vidyalaxmi scheme: Overview
Under this program, banks and other financial organisations offer loans to students accepted into Quality Higher Education organisations (QHEIs) that are free of collateral and guarantors in order to pay for tuition and other course-related costs. A fully digital, interoperable, transparent, and user-friendly system will be used to carry out the plan.
According to the government announcement, over 22 lakh students will benefit each year as education loans will be given to eligible students enrolling in the top 860 famous higher education institutions in the nation using a mission-oriented strategy.
PM-Vidyalaxmi scheme: Insights
An estimated 7 lakh new students are expected to benefit from this interest subvention, which has been authorised for expenditures of Rs 3,600 Crore between 2024–2025 and 2030–31.
Students can now apply for school loans and interest subvention from all banks with ease thanks to the Department of Higher school's new "PM-Vidyalaxmi" integrated platform.
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PM Vidyalaxmi scheme: Educational institutions
According to the NIRF rankings, the program will be available to the country's highest-quality universities, including all government and private HEIs that place in the top 100 overall, category-specific, and domain-specific rankings; state government HEIs that place 101–200 in the NIRF; and all institutions under central government control.
Who is eligible for the PM-Vidyalaxmi scheme?
In order to help banks increase coverage, the Government of India is offering a 75% credit guarantee on student loans up to Rs 7.5 lakh. Additionally, loans up to Rs 10 lakh with a 3% interest subsidy are available to students from households earning up to Rs 8 lakh annually.
This is on top of the entire interest subsidy already provided to students whose families make up to Rs. 4.5 lakhs a year. The press release states that students from government institutions who have chosen technical or professional courses will be given preference. An investment of Rs 3,600 crore has been made between 2024–2025 and 2030–2031; it is anticipated that 7 lakh new students will benefit from this interest subsidy throughout that time.
PM Vidyalaxmi scheme: Where can a student apply?
Through a streamlined application process that can be used by all banks, students will be able to apply for education loans and interest subsidies through the Department of Higher Education's unified portal, PM-Vidyalaxmi. E-vouchers and Central Bank Digital Currency (CBDC) wallets will be used to pay interest subvention.