The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the PM-Vidyalaxmi scheme on November 6, 2024, aimed at providing financial support to meritorious students seeking higher education. The scheme ensures collateral-free, guarantor-free loans for students enrolling in top 860 Quality Higher Education Institutions (QHEIs) across India, covering tuition fees and other educational expenses. With an outlay of ₹3,600 crore, this scheme targets to benefit 22 lakh students annually, empowering them to pursue their academic dreams without financial barriers.
Key Features of PM-Vidyalaxmi Scheme
Eligibility and Loan Coverage: Students admitted to the top 860 QHEIs, including government and private institutions based on NIRF rankings, will be eligible for full education loans covering tuition and course-related expenses.
Loan Amount and Credit Guarantee: Students can avail loans up to ₹7.5 lakh, with a 75% credit guarantee for defaults, providing banks with security in loan disbursement.
Interest Subvention: Students with a family income of up to ₹8 lakh, not availing other government scholarships, will receive a 3% interest subvention on loans up to ₹10 lakh during the moratorium period.
Targeted Beneficiaries: The scheme prioritizes government institution students pursuing technical and professional courses. It is expected to benefit over 7 lakh new students annually, with 1 lakh students receiving interest subvention.
Digital Platform for Streamlined Application Process
A unified portal, ‘PM-Vidyalaxmi’, will facilitate applications for loans and interest subvention, integrating with all banks and offering payments through e-vouchers and CBDC wallets.
Empowering India’s Youth for a Brighter Future
The scheme aligns with the government’s broader vision of making higher education accessible to talented youth, especially from poor and middle-class backgrounds. Union Education Minister Dharmendra Pradhan emphasized that PM-Vidyalaxmi will remove financial obstacles, empowering India’s “yuva shakti” to reach their full potential.
Here’s a concise table summarizing the key points from the PM-Vidyalaxmi scheme
| Why in News | Key Points |
|---|---|
| PM-Vidyalaxmi Scheme Approved | Scheme approved by Union Cabinet on November 6, 2024. |
| Objective | Provides collateral-free, guarantor-free education loans to meritorious students. |
| Loan Coverage | Full tuition fees and other course-related expenses for students in top 860 Quality Higher Education Institutions (QHEIs). |
| Outlay | ₹3,600 crore allocated for 2024-25 to 2030-31. |
| Eligibility | Students securing admission in top 860 QHEIs based on NIRF rankings. |
| Institutions Covered | Top 860 institutions, both government and private, ranked in the top 100 in NIRF (overall, category-specific, and domain-specific rankings). |
| Interest Subvention | 3% interest subvention for loans up to ₹10 lakh during the moratorium period for students with a family income of up to ₹8 lakh. |
| Credit Guarantee | 75% credit guarantee for loans up to ₹7.5 lakh in case of defaults. |
| Beneficiaries | Expected to benefit over 22 lakh students annually. |
| Digital Platform | Unified portal ‘PM-Vidyalaxmi’ for loan applications and interest subvention. |
| Implementation Timeline | 2024-25 to 2030-31. |
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