6 things to know about the new PM Vidyalaxmi Scheme
An outlay of Rs 3,600 crore for 2024-25 to 2030-31 has been approved for the scheme which will cover more than 22 lakh students every year.
PM-Vidyalaxmi scheme (X)
CHENNAI: The Union Cabinet recently approved the PM-Vidyalaxmi scheme which will enable students who get admission to Quality Higher Education Institutions (QHEIs) to get collateral-free, guarantor-free loans from banks and financial institutions to cover the full tuition fees and other course expenses.
An outlay of Rs 3,600 crore for 2024-25 to 2030-31 has been approved for the scheme which will cover more than 22 lakh students every year.
Here is all you need to know about the PM-Vidyalaxmi scheme:
1. Who is eligible: Students admitted to QHEIs, based on National Institutional Ranking Framework (NIRF) rankings are eligible for collateral-free, guarantor-free loans.
2. What are the numbers: An outlay of Rs 3,600 crore for 2024-25 to 2030-31 has been approved for the scheme which will cover more than 22 lakh students every year.
3. Which institutions are covered: The scheme covers the top 860 QHEIs (including government and private institutions) ranked in the top 100 by NIRF, plus state-run institutions ranked 101-200, and all central government-run institutions.
4. What are the loan details: For loans up to Rs 7.5 lakh, the student can also get credit guarantee of 75 per cent of outstanding default.
5. Interest subvention: 3% interest subvention is available for students from families with an annual income of up to Rs 8 lakh (not benefiting from other government schemes). The interest subvention, applicable to loans up to Rs 10 lakh during the moratorium period, is expected to benefit 7 lakh fresh students during 2024-25 to 2030-31. This is in addition to the full interest subvention already offered to students with up to Rs 4.5 lakhs annual family income.
Preference will be given to students who are from government institutions and have opted for technical/ professional courses.
6. Unified portal: The 'PM-Vidyalaxmi' portal will allow students to apply for loans and interest subvention through simplified process. Payment of interest subvention will be made through e-voucher and Central Bank Digital Currency (CBDC) wallets.