PM-Vidyalaxmi scheme: All you need to know

The Union Cabinet, led by Prime Minister Narendra Modi, on Wednesday, November 6, approved the PM-Vidyalaxmi scheme to make higher education accessible to more Indian youth.

This initiative aims to provide financial support to meritorious students, eliminating financial barriers that may hinder their academic pursuits.

The scheme is designed to benefit over 2 million students annually, enabling them to secure loans for tuition and related expenses without the need for collateral or guarantors.

Students admitted to any of the 860 top-ranking quality higher educational institutions (QHEIs) in India, including those ranked within the top 200 in the National Institutional Ranking Framework (NIRF), will be eligible.

The scheme’s coverage will be updated yearly based on the latest NIRF rankings.

Key benefits of the PM-Vidyalaxmi scheme include:

Collateral-Free Loans: Students can apply for loans covering the entire cost of tuition and related expenses without needing collateral or guarantors.

Credit Guarantee: For loans up to ₹7.5 lakh, the government will offer a 75% credit guarantee, encouraging banks to extend loans to more students.

Interest Subvention: Students from families with annual incomes up to ₹8 lakh can receive a 3% interest subvention on loans up to ₹10 lakh during the moratorium period. Priority will be given to students in government institutions pursuing technical or professional courses.

With an allocation of ₹3,600 crore for the period 2024-2031, the scheme is expected to benefit seven lakh new students annually.

The Department of Higher Education will streamline applications via a unified “PM-Vidyalaxmi” portal.

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