The Union Cabinet, led by Prime Minister Narendra Modi, on Wednesday, November 6, approved the PM-Vidyalaxmi scheme to make higher education accessible to more Indian youth.
This effort is to give financial assistance to deserving students, removing any financial hurdles that may impede their academic ambitions.
The initiative is intended to help nearly 2 million students each year, allowing them to get loans for tuition and related fees without the requirement for collateral or guarantors.
Students admitted to any of India’s 860 top-ranked quality higher education institutions (QHEIs), including those listed in the top 200 by the National Institutional Ranking Framework (NIRF), would be eligible.
The scheme’s coverage will be revised yearly depending on the most recent NIRF rankings.
Key benefits of the PM-Vidyalaxmi scheme include:
Collateral-Free Loans: Students can apply for loans covering the entire cost of tuition and related expenses without needing collateral or guarantors.
Credit Guarantee: For loans up to ₹7.5 lakh, the government will offer a 75% credit guarantee, encouraging banks to extend loans to more students.
Interest Subvention: Students from families with annual incomes up to ₹8 lakh can receive a 3% interest subvention on loans up to ₹10 lakh during the moratorium period. Priority will be given to students in government institutions pursuing technical or professional courses.
With an allocation of ₹3,600 crore for the period 2024-2031, the scheme is expected to benefit seven lakh new students annually.
The Department of Higher Education will streamline applications via a unified “PM-Vidyalaxmi” portal.
Get the latest news updates and stay informed with FELA NEWS!
Source: CNBC
