PM-Vidyalakshmi Scheme: Union Finance Minister Nirmala Sitharaman informed the Lok Sabha that the newly launched Prime Minister Vidyalakshmi scheme is set to be implemented by February 2025. Approved by the Union Cabinet in November, the scheme aims to provide financial support to talented students pursuing higher education in both public and private institutions. Through this initiative, students will be able to access education loans for higher studies in India.
Sitharaman announced that loans of up to Rs 7.5 lakh will be provided under the scheme, with a 75% credit guarantee. Additionally, students from households with an annual income of up to Rs 8 lakh will be eligible for loans exceeding Rs 7.5 lakh for higher education. Loans up to Rs 10 lakh will benefit from a 3% interest subvention, while individuals with an annual income of up to Rs 4.5 lakh will receive full interest subvention.
PM-Vidyalakshmi Scheme
The Union Cabinet approved the PM-Vidyalakshmi scheme in November to provide financial assistance to talented students pursuing higher education at both public and private institutions. This initiative aims to offer education loans to students enrolled in the top 860 Quality Higher Education Institutions (QHEIs) across India, without requiring collateral or guarantors. These institutions include a mix of government and private entities, ensuring broad access to a diverse student population.
The scheme has a budget allocation of approximately Rs 3,600 crore for the period from 2024-2025 to 2030-31. It is designed to assist 2.2 million students annually by offering loans of up to Rs 7.5 lakh at favorable interest rates.
Key Details
The program will be available to the top Qualifying Higher Education Institutions (QHEIs), as determined by the National Institutional Ranking Framework (NIRF) rankings.
The program will include all Higher Education Institutions (HEIs), whether government or private, that are ranked within the top 100 in the NIRF across overall, category-specific, and domain-specific rankings.
Additionally, state government HEIs ranked between 101-200 in the NIRF rankings, along with all central government-run institutions, will also be eligible for the scheme.
The list of eligible institutions will be reviewed annually based on the latest NIRF rankings. Initially, the scheme will cover 860 qualifying QHEIs.
The program is expected to benefit over 2.2 million students, offering them the opportunity to access the advantages of PM-Vidyalakshmi.
Students may be eligible for a 75% credit guarantee on any outstanding loan amounts up to Rs 7.5 lakh in case of default.
Loan Concession
Under this program, students applying for loans up to Rs 7.5 lakh will receive a 75% credit guarantee, simplifying the approval and disbursement process by banks and financial institutions. The aim is to reduce financial risks for lenders while providing increased support to students.
The program also includes interest subvention for students with a family income of up to Rs 8 lakh per year, who are not recipients of other government scholarships or interest subvention schemes.
Eligible students will receive a 3% interest subsidy on loans up to Rs 10 lakh during the moratorium period, which is the time between loan disbursement and the start of repayment.
Eligibility and Application Process
The program is designed for students who have been admitted to one of India’s top 860 Quality Higher Education Institutions (QHEIs), whether private or government, as ranked by the National Institutional Ranking Framework (NIRF).
Applicants can submit their loan applications through the PM-Vidyalakshmi portal, which is linked to various banks, ensuring a seamless and digital application process.
Source: Business Today
Read the latest and breaking Hindi news | English News on अब पाएं सबसे निष्पक्ष, विश्वसनीय और तेज खबरें, सिर्फ WWW.THEINSIGHTTODAY.COM पर।. Get live Hindi news about India and the World from politics, sports, bollywood, business, cities, lifestyle, astrology, spirituality, jobs and much more..Read Latest News on your Mobile app so Download Mobile app The Insight Today