The objective of this initiative is to provide financial assistance to meritorious students, eliminate financial obstacles that can obstruct their educational activities.
The scheme is designed to benefit more than 2 million students annually, enabling them to secure loans for tuition and related expenses without the need of collateral or guarantor.
Students admitted in one of the 860 Top-Ranking Quality Higher Educational Institutions (Qheis) in India are ranked within the top 200 in the National Institutional Ranking Framework (NIRF), which will be eligible.
Plan coverage will be updated annually based on the latest NIRF rankings.
The major benefits of PM-Vidyalaxmi scheme include:
Collateral-free loan: Students can apply for loans covering tuition and full cost of related expenses without the requirement of collateral or guarantor.
Credit Guarantee: For loans up to ₹ 7.5 lakh, the government will offer a 75% credit guarantee, encouraging banks to expand more students.
Interest runner -up: Students of families with annual income of up to ₹ 8 lakh can get 3% interest subsequences on loans up to ₹ 10 lakh during the period of the provision. Students will be given priority in government institutions pursuing technical or professional courses.
For a period of 2024-2031, with an allocation of 3,600 crores, the scheme is expected to benefit seven lakh new students annually.
The Department of Higher Education will streamlines applications through an integrated “PM-Vidylaxmi” portal.
Also read: Supreme Court order Maintaining Madrasa Act is a big relief for 1.2 million students
first published: November 6, 2024 4:00 pm First
PM-Vidyalaxmy Scheme (T) Cabinet Decision (T) Education Schemes
