A Central Sector effort, the PM Vidyalaxmi Scheme was introduced on Wednesday and offers financial assistance to students so they can pursue higher education without facing financial limitations.
To pay for their entire tuition and other associated costs, students accepted into Quality Higher Education Institutions (QHEIs) are eligible for loans that are free of collateral and guarantors.
PM Vidyalaxmi Scheme Introduced by Central Government
The program is applicable to all centrally regulated universities, state government institutions rated 101–200, and elite government and private higher education institutions placed in the top 100 of the NIRF rankings. Every year, the list will be updated.
Students may be eligible for educational loans under PM-Vidyalaxmi, and 860 qualifying institutions serving over 2.2 million students will be included initially.
Banks will be able to make loans up to ₹7.5 lakh with a 75% credit guarantee on outstanding defaults.
In order to encourage banks in providing these educational loans, loans up to ₹7.5 lakh would receive a 75% credit guarantee on outstanding defaults.
During the moratorium period, students who earn up to ₹8 lakh annually and are not eligible for any other government scholarships or interest subsidies can get a 3% interest subsidy on loans up to ₹10 lakh.
100,000 Students To Benefit From Interest Subsidy
Every year, 100,000 students will benefit from the interest subsidy, with government school pupils and those enrolled in technical or professional degrees receiving preference.
700,000 new students are anticipated to receive the interest subsidy under the ₹3,600 crore budget that has been set aside for the program from 2024–2025 to 2030–31.
The creation of a single PM-Vidyalaxmi platform will allow students to apply for interest subsidies and loans. All banks will have access to the simplified application, and Central Bank Digital Currency (CBDC) wallets and E-vouchers will be used to distribute subsidies.
Students can apply for educational loans by registering and logging in to the Vidya Lakshmi portal, completing the Common Education Loan Application Form (CELAF), and searching and applying for loans according to their needs and eligibility.
The Central Sector Interest Subsidy (CSIS) and the Credit Guarantee Fund Scheme for Education Loans (CGFSEL) under the PM-USP are complemented by the PM-Vidyalaxmi Scheme, which expands on previous government initiatives in financial inclusion and education.
Students enrolled in technical or professional courses at authorized institutions who have an annual family income of up to ₹4.5 lakh are eligible for a 100% interest subsidy on loans up to ₹10 lakh during the moratorium period under the PM-USP CSIS.
