PM-Vidyalaxmi scheme approved to support meritorious students' higher education

The Union Cabinet has approved the PM-Vidyalaxmi scheme, offering financial support to merit. The PM-Vidyalaxmi scheme, recently approved by the Union Cabinet, provides collateral-free loans to help meritorious students pursue higher education without financial barriers.

In Short

• Cabinet approves PM-Vidyalaxmi scheme for student loans
• Collateral-free loans for students in top 860 institutions
• 75% credit guarantee for loans up to Rs 7.5 lakhs

The Union Cabinet has approved the PM-Vidyalaxmi scheme, a new initiative aimed at ensuring that financial constraints no longer prevent talented students in India from pursuing quality higher education.

Through this scheme, eligible students who gain admission into accredited higher education institutions can access collateral-free, guarantor-free loans to cover tuition fees and other course-related expenses.

KEY FEATURES OF PM-VIDYALAXMI

PM-Vidyalaxmi is designed to provide financial support to students admitted to the top 860 institutions across India, reaching more than 22 lakh students annually.

For loans up to Rs 7.5 lakhs, the Government of India will provide a 75 percent credit guarantee, encouraging banks and financial institutions to expand their loan coverage.

The scheme will be managed via a fully digital, transparent, and student-friendly portal. Additionally, students from families with an annual income of up to Rs 8 lakhs can avail a 3 percent interest subsidy for loans up to Rs 10 lakhs during the moratorium period, provided they do not qualify for any other government scholarship or subsidy.

The scheme has been allocated Rs 3,600 crore for the period 2024-25 to 2030-31, expected to benefit around 7 lakh new students. The unified PM-Vidyalaxmi portal will allow students to apply for education loans and request interest subvention disbursements, making the process efficient and accessible.