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Under the PM-VidyaLakshmi scheme, students will be able to access special, collateral-free, and guarantor-free education loans.
With PM-Vidyalaxmi scheme students can get loans of up to Rs 7.5 lakh, with the Government of India providing a 75% credit guarantee to help banks expand coverage. (Representative image)
The Union Cabinet approved the PM-Vidyalaxmi scheme on Wednesday to provide financial support to meritorious students in higher studies. The scheme aims at extending education loans to over 22 lakh meritorious students who get admission in the top 860 quality higher educational institutions of the nation, each year.
Under the PM-Vidyalaxmi scheme, students can avail themselves of special education loans that are both collateral-free and guarantor-free. The application process is designed to be simple, accessible, and student-friendly, with a fully digital platform to ensure ease and convenience for students.
“The scheme will be applicable to the top quality higher educational institutions of the nation, as determined by the NIRF rankings – including all HEIs, government and private, that are ranked within the top 100 in NIRF in overall, category-specific and domain specific rankings; state government HEIs ranked in 101-200 in NIRF and all central government governed institutions. This list will be updated every year using the latest NIRF ranking, and to begin starts with 860 qualifying QHEIs, covering more than 22 lakh students to be able to potentially avail benefits of PM-Vidyalaxmi; if they so desire,” stated the press release.
Students can get loans of up to Rs 7.5 lakh, with the Government of India providing a 75% credit guarantee to help banks expand coverage. Additionally, students from families with an annual income of up to Rs 8 lakh are eligible for loans up to Rs 10 lakh, with a 3% interest subsidy.
This is in addition to the full interest subvention already offered to students with up to Rs. 4.5 lakhs annual family income.
According to the press release, 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, and 7 lakh fresh students are expected to get the benefit of this interest subvention during the period.
