Govt Approves PM Vidyalaxmi Scheme: Easy Education Loans for University Students; Here’s What to Know

Nov 8, 2024, 12:01 IST

The Modi-led central government has approved the PM Vidyalaxmi scheme to help students pursue higher education without financial barriers. This scheme provides loans of up to Rs 10 lakh for eligible students, ensuring financial support. More details below.

Under the PM Vidyalaxmi plan, any student who is accepted into a reputable university would be entitled to receive a loan from a bank or other financial institution.
Under the PM Vidyalaxmi plan, any student who is accepted into a reputable university would be entitled to receive a loan from a bank or other financial institution.

Modi-led central government has approved the PM Vidyalaxmi scheme. The scheme aims to make sure that financial limitations don’t stop students from pursuing higher education. The program offers loans for higher education up to Rs 10 lakh to deserving candidates. The center has allocated Rs 3,600 crore under this new central scheme for 2024–2025 to 2030–2031 years. 

Nearly 22 lakh students are expected to receive financial support under the plan, which was approved by the union cabinet led by Prime Minister Modi. 

What is PM Vidyalaxmi Yojana?

Under the PM Vidyalaxmi plan, any student who is accepted into a reputable university would be entitled to receive a loan from a bank or other financial institution that does not require collateral or guarantors in order to pay for all of their tuition costs and other course-related expenses. 

This scheme will provide much-needed financial assistance to college students. 

Which Educational Institutions are Eligible?

The scheme applies to top-ranking Higher Education Institutions (HEIs), including government and private colleges, that rank within the top 100 in the National Institutional Ranking Framework (NIRF) for overall, category-specific, and domain-specific rankings. State government HEIs ranked 101-200 in NIRF and all central government institutions are also included.

Key Features of PM Vidyalaxmi Yojana

Check the key features of the newly launched scheme below:

Student Reach: The scheme aims to support over 22 lakh students, helping them access financial aid for higher education.

Loan Coverage and Guarantees: Students can receive loans up to Rs 10 lakh. For loans up to Rs 7.5 lakh, students are eligible for a 75% credit guarantee on any outstanding amount in default.

Interest Subsidy: Students with an annual family income up to Rs 8 lakh and who don’t qualify for other government scholarships can receive a 3% interest subsidy on loans up to Rs 10 lakh.

Support for One Lakh Students Annually: The interest subsidy will be provided to one lakh students each year, prioritizing those from government institutions and enrolled in technical or professional courses.

Students who meet the requirements can apply for interest subsidies and education loans through the Department of Higher Education's unified portal, PM-Vidyalaxmi.

ALSO READ: New Category Added to Mudra Yojana: Discover the Updated Loan Limit

ALSO READ: India Goes Digital: Easily Register for a Birth Certificate Online with These Simple Steps

 

Vidhee Tripathi
Vidhee Tripathi

Content Writer

Vidhee Tripathi completed her PG Diploma degree in Digital Media from Indian Institute of Mass Communication, New Delhi. She is a graduate in Science with chemistry honors from Banaras Hindu University. She has 2 years of experience in various aspects of journalism. She was previously associated with the social media wing of Akashvani. At jagranjosh.com, currently she covers current affairs, national news and international news. She is also associated with the education news section of Jagran Josh.

Certificate: Creative Writing, Problem Solving, Web Content Writing
... Read More
Get here latest daily, weekly and monthly Current Affairs and GK in English and Hindi for UPSC, SSC, Banking, Railway, Defence and exams. Download Jagran Josh Current Affairs App.

Take Weekly Tests on app for exam prep and compete with others. Download Current Affairs and GK app

AndroidIOS

Trending

Latest Education News