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.
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.
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.
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.
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. |
The Daily Current Affairs Quiz which keeps you updated with the current events happening all…
In Uttar Pradesh, certain areas are recognized by specific regional names that highlight their historical,…
Haryana is a state in northern India known for its rich history and industrial growth.…
The NITI Aayog has recommended adding coking coal to India's critical minerals list, emphasizing its…
UK Prime Minister Keir Starmer announced the resumption of Free Trade Agreement (FTA) negotiations with…
COP29 marked a significant milestone in global efforts to address climate change within the tourism…