TNI Bureau: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved PM Vidyalaxmi, a new Central Sector scheme to provide financial support to meritorious students so that financial constraints do not prevent anyone from pursuing higher studies.
Under the PM Vidyalaxmi scheme:
🔴Any student who gets admission in quality Higher Education Institution will be eligible to 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 scheme will be applicable to the top quality higher educational institutions of the nation.
🔴For loan amount up to Rs 7.5 lakhs, the student will also be eligible for a credit guarantee of 75% of outstanding default. This will give support to banks in making education loans available to students under the scheme.
🔴For students having an annual family income of up to Rs 8 lakhs, and not eligible for benefits under any other Government scholarship or interest subvention schemes, 3% interest subvention for loan up to Rs 10 lakhs will also be provided during moratorium period.
🔴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.
🔴The Department of Higher Education will have a unified portal “PM-Vidyalaxmi” on which students will be able to apply for the education loan as well as interest subvention, through a simplified application process to be used by all banks.
🔴Payment of interest subvention will be made through E-voucher and Central Bank Digital Currency (CBDC) wallets.