On November 6, 2024, the Union Cabinet, led by Prime Minister Narendra Modi, approved the PM Vidyalaxmi Scheme, a significant initiative aimed at making higher education more accessible to meritorious students across India. The scheme is designed to ensure that financial barriers do not prevent any deserving student from pursuing education at top institutions.
Key Highlights:
- Financial Support: The scheme will provide collateral-free, guarantor-free education loans to students admitted to top 860 Quality Higher Educational Institutions (QHEIs) in India.
- Loan Guarantee: For loans up to ₹7.5 lakhs, students will receive a 75% credit guarantee, encouraging banks to lend more freely.
- Interest Subvention: Students with an annual family income of up to ₹8 lakhs will receive a 3% interest subvention on loans up to ₹10 lakhs, with additional interest subsidies for students from lower-income families.
- Eligible Institutions: The scheme will be applicable to institutions ranked in the top 100 by the National Institutional Ranking Framework (NIRF), as well as select state and central government institutions.
- Digital Platform: The entire application process will be streamlined and digitalized through a unified portal, simplifying the process for students.
- Budget Allocation: An allocation of ₹3,600 crore for 2024-25 to 2030-31 will benefit approximately 7 lakh students over the course of the scheme.
Supplementary Support Schemes:
The PM Vidyalaxmi Scheme builds on existing government initiatives, including the Central Sector Interest Subsidy Scheme (CSIS) and the Credit Guarantee Fund Scheme for Education Loans (CGFSEL), which provide additional financial assistance to students from lower-income families and those pursuing technical/professional courses.
This comprehensive initiative will ensure that financial constraints do not prevent talented students from accessing quality higher education, thus fostering a more inclusive and educated India.