The Union Cabinet has approved the PM Vidyalaxmi scheme, aimed at easing financial barriers for middle-class students pursuing higher education. This initiative enables students admitted to higher education institutions to secure loans without collateral or guarantors, Union Information Minister Ashwini Vaishnaw announced after the Cabinet meeting.
Under the PM Vidyalaxmi scheme, up to 100,000 students annually can avail of education loans for their studies. Students from families with an annual income up to Rs 8 lakh will receive a three percent interest subsidy on loans up to Rs 10 lakh. Additionally, full interest subvention is available for students with a family income of up to Rs 4.5 lakh.
The government emphasized its commitment to ensuring that no qualified student is denied education due to financial challenges. To streamline the process, loan applications, approvals, and disbursements will be managed through the PM-Vidyalaxmi portal.
Each year, the Department of Higher Education will compile a list of high-quality institutions eligible under the scheme. This list will include the top 100 institutions ranked in various categories of the National Institutional Ranking Framework (NIRF), along with the top 200 institutions of state or UT governments.
For loans up to Rs 7.5 lakh, a credit guarantee covering 75 percent of the outstanding balance will be available, enhancing security for lenders and making it easier for students to access financial support for their education.
(Inputs from ANI)