PM Vidyalaxmi Education Loan Scheme Approved - Collateral-Free Loans for Students
A significant step has been taken by the GOI as the union cabinet, headed by Prime Minister Narendra Modi, has sanctioned the PM Vidyalaxmi scheme, a central sector education loan initiative aiming that bright students of India should continue their higher studies without any financial problem. Under PM Vidyalaxmi, students can get admission to India's top-ranked institutions in the National Institutional Ranking Framework (NIRF) and students can get loans that pay their entire tuition costs without the need for security.
This initiative meets the objectives of the National Education Policy (NEP) 2020, which recommended that in order to improve educational access and equity, financial aid be given to gifted students attending both public and private higher education institutions (HEIs).
PM Vidyalaxmi scheme loan amount and Collateral
Under the PM Vidyalaxmi scheme, students who secure admission to quality Higher Education Institutions (QHEIs) can get collateral-free, guarantor-free loans from banks and financial institutions. These loans include all expenses of students related to the course, tuition fees, and other courses.
PM Vidyalaxmi scheme: Centralized digital portal
The Department of Higher Education will introduce a single portal, “PM-Vidyalaxmi,” which will allow students to apply for interest subsidies and education loans that will be accessible to all participating banks. E-vouchers and Central Bank Digital Currency (CBDC) wallets will be used to pay the interest subsidy payments.
PM Vidyalaxmi's loan amount
Students whose family income is up to Rs 8 lakh and are not eligible for other government scholarships or interest relief programs will also receive receive a 3% interest subsidy on loans up to Rs 10 lakh during the prohibition period.
More than 1 lakh students are going to benefit from this initiative with a preference for those enrolled in technical or professional courses at government institutions. This program has a total of Rs 3,600 crore budget which aims to help 7 lakh new students through this interest subsidy during the specified period.
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