PM VIDYALAKSHMI SCHEMEđź“š
PM VIDYALAKSHMI SCHEMEđź“š
Why in news?
The Union Cabinet has approved the PM Vidyalaxmi, a new Central Sector program designed to give financial aid to deserving students
Pradhan Mantri Vidya Laxmi Scheme
PM Vidyalaxmi is a key initiative stemming out of the National Education Policy, 2020, which had recommended that financial assistance should be made available to meritorious students through various measures in both public and private HEIs.
Features:
A mission mode mechanism will facilitate and drive the extension of education loans to meritorious students who get admission in the top 860 quality higher educational institutions of the nation, translating to covering more than 22 lakh students every year
Collateral and Guarantor-Free Loans:
Loans under the PM Vidyalaxmi scheme will be collateral-free and do not require a guarantor, which addresses a significant barrier in previous education loan schemes.
Coverage for One Lakh Students:
The scheme is designed to cover up to one lakh students annually, providing them with the necessary financial backing to pursue studies at prestigious institutions.
Subsidy on Interest Rates:
Students from families with annual incomes up to Rs 8 lakh will receive a three per cent interest subsidy on loans up to Rs 10 lakh. For families earning up to Rs 4.5 lakh annually, a full interest subsidy is available.
Eligible Institutions:
The scheme covers students seeking admission to institutions ranked under the National Institutional Ranking Framework (NIRF), including the top 100 institutions overall, category-specific, or domain-specific. It also includes the top 200 state or Union Territory government institutions and other government-approved Higher Education Institutions (HEIs).
Credit Guarantee for Loan Default:
Loans up to Rs 7.5 lakh will be eligible for a 75 percent credit guarantee in case of an outstanding default, providing an added layer of security for both students and lenders.
• Students can apply on unified portal "PM-Vidyalaxmi for education loan as well as submit request for disbursement of interest subvention