New Delhi: The Union Cabinet led by Prime Minister Narendra Modi on Wednesday gave green signal to the PM-Vidyalaxmi scheme. The scheme is yet another key initiative stemming from the National Education Policy, 2020, which is aimed at providing financial support to meritorious students so that money-related problems do not act as a hindrance for any youth of India from pursuing quality higher education.
PM Vidyalaxmi scheme ensures that the students getting admission in quality Higher Education Institution (QHEIs) get collateral free, guarantor free loan from banks and financial institutions to cover full amount of tuition fees and other expenses related to the course. The government assured that the scheme will have a simple process and be entirely digital.
PM Vidyalaxmi Yojana details
Under the PM Vidyalaxmi scheme, meritorious students who opt for loan amounts up to Rs 7.5 lakhs will get a 75 percent credit guarantee by the Government to support banks to expand coverage. Students, whose family income is up to Rs 8 lakhs, the scheme will also provide for 3 percent interest subvention on loans up to Rs 10 lakh. “This is in addition to the full interest subvention already offered to students with up to Rs. 4.5 lakhs annual family income,” the Cabinet informed.
“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. An outlay of Rs 3,600 Crore has been made during 2024-25 to 2030-31, and 7 lakh fresh students are expected to get the benefit of this interest subvention during the period,” the release stated.
The educational institutions under the PM Vidyalaxmi scheme will be chosen by the NIRF rankings – including all HEIs, government and private. The institutions will be determined that are ranked within the top 100 in NIRF in overall, category-specific and domain specific rankings; state government HEIs ranked in 101-200 in NIRF and all central government governed institutions.
PM-Vidyalaxmi scheme was approved by Union Cabinet under which loan amounts up to Rs 7.5 lakhs will be provided a 75 percent credit guarantee by the Government of India. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
