PM-Vidyalaxmi Scheme To Provide Financial Aid To Deserving Students Pursuing Higher Education

New Delhi: The Union Cabinet on Wednesday approved the PM-Vidyalaxmi scheme to provide monetary support to meritorious students for pursuing quality higher education. As per the scheme, anybody who gets admission in Quality Higher Education Institutions (QHEIs) will be eligible to get collateral-free, guarantor-free loan from banks and financial institutions to cover the full amount of tuition fees and other expenses related to the course. 

"A big boost to making education more accessible. The Cabinet has approved the PM-Vidyalaxmi scheme to support youngsters with quality education. It is a significant step towards empowering the Yuva Shakti and building a brighter future for our nation," Prime Minister Narendra Modi said in a post on X, formerly known as Twitter. 

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An outlay of Rs 3,600 crore has been approved for the scheme under which education loans will be facilitated to students securing admissions in top 860 QHEIs of the country based on the National Institutional Ranking Framework (NIRF). This will cover more than 22 lakh students every year. 

Earlier, at a press conference here, Union minister Ashiwini Vaishnaw said, "The Cabinet has approved PM-Vidyalaxmi scheme to provide financial support to meritorious students so that financial constraints do not prevent any youth of India from pursuing quality higher eduction." 

PM-Vidyalaxmi Scheme to Provide Collateral-Free Loans, Interest Subvention For 7 Lakh Students Annually

Under the PM-Vidyalaxmi Scheme 860 institutions will be initially covered, benefiting over 22 lakh students. Students with a family income of up to Rs 8 lakh (not receiving other scholarships) will be eligible for 3 pc interest subvention on loans up to Rs 10 lakh during the moratorium period. A 75 pc credit guarantee is offered for loans up to Rs 7.5 lakh. The government has allocated Rs 3,600 crore for the scheme, which will support 7 lakh students annually.

Students Can Apply For Education Loan Via Unified Portal

The Department of Higher Education will have a unified portal, 'PM-Vidyalaxmi,' where students can apply for the education loan as well as interest subsidies. Payment of interest subvention will be made through e-voucher and Central Bank Digital Currency (CBDC) wallets. Union Education Minister Dharmendra Pradhan said the scheme will empower millions of students from the poor and middle class.

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