In-Depth: PM Vidyalaxmi Scheme | 08 December, 2024

Summary

PM VidyaLakshmi is a new government initiative aimed at providing financial support to Indian students pursuing higher education. Under this scheme, eligible students can avail of collateral-free loans up to ₹7.5 lakh, with a 75% credit guarantee to banks. Additionally, students from families earning up to ₹8 lakh annually are entitled to interest subsidies for loans up to ₹10 lakh. The scheme covers over 22 lakh students annually and is designed to ensure that financial constraints do not hinder access to quality education in top institutions. Applications are processed through a simplified digital portal.

Takeaways

• 😀 PM VidyaLakshmi Scheme provides financial support to students for higher education, ensuring financial constraints do not prevent anyone from pursuing their studies.
• 😀 The scheme is an initiative stemming from India's National Education Policy 2020, which recommended financial assistance for students.
• 😀 Eligible students can avail of collateral-free and guarantor-free loans from banks and financial institutions for tuition fees and other educational expenses.
• 😀 The scheme will be administered through a transparent, student-friendly, and digital system, making it inter-operable across platforms.
• 😀 The scheme targets top-quality higher education institutions, including both government and private institutions ranked in the top 100 by NIRF, as well as state institutions ranked between 101 and 200.
• 😀 A total of 860 qualifying institutions are covered, with over 2.2 million students potentially benefiting from the scheme.
• 😀 Students can apply for loans up to ₹7.5 lakh, with a 75% credit guarantee for outstanding defaults, reducing the risk for banks and making loans more accessible.
• 😀 Interest subsidy of 3% on loans up to ₹10 lakh will be provided for students from families with an annual income of up to ₹8 lakh, who are not already receiving other government scholarships.
• 😀 The interest subsidy scheme will benefit 7 lakh fresh students between 2024-2030, with a total budget allocation of ₹3600 crore.
• 😀 The application process for loans and interest subsidy is streamlined through the VidyaLakshmi portal, with students able to apply digitally and check their loan status.
• 😀 The VidyaLakshmi portal will also provide updates on loan status and allow students to reapply for loans in case of application rejections, making the process simple and transparent.

Q & A

What is the **PM VidyaLakshmi Scheme**?

The PM VidyaLakshmi Scheme is a government initiative aimed at providing financial support to students pursuing higher education. It offers education loans, interest subsidies, and credit guarantees to ensure that financial barriers do not hinder students from attending quality educational institutions.

Who is eligible for the PM VidyaLakshmi Scheme?

Students from families with an annual income of up to ₹8 lakh are eligible for the scheme. Additionally, students who are seeking admission to top-ranked institutions as per the NIRF rankings can also benefit from the program.

What financial benefits does the PM VidyaLakshmi Scheme offer?

The scheme provides collateral-free loans of up to ₹7.5 lakh, with a 75% credit guarantee for outstanding defaults. Additionally, it offers an interest subsidy of 3% on loans up to ₹10 lakh during the moratorium period.

How does the PM VidyaLakshmi Scheme support students in terms of loan repayment?

The scheme offers a 75% credit guarantee for defaults, reducing the risk for banks and ensuring easier access to loans for students. Furthermore, students can receive an interest subsidy on loans, helping reduce their financial burden during the repayment period.

What is the application process for the PM VidyaLakshmi Scheme?

Students can apply through the VidyaLakshmi Portal. The process involves registering, filling out the common education loan application form, and selecting suitable loan options based on eligibility. After submission, students can track the status of their application.

Which educational institutions are eligible under the PM VidyaLakshmi Scheme?

The scheme is applicable to institutions that are ranked within the top 100 according to the National Institutional Ranking Framework (NIRF). This includes both government and private higher educational institutions.

What is the interest subsidy provided under the PM VidyaLakshmi Scheme?

The scheme provides an interest subsidy of 3% on loans up to ₹10 lakh during the moratorium period, which helps ease the financial burden on students during their study period.

What types of courses and institutions are prioritized under the PM VidyaLakshmi Scheme?

The scheme gives preference to students opting for technical and professional courses at government institutions. This includes engineering, medical, and other high-demand career-oriented programs.

How does the government facilitate loan disbursements under the PM VidyaLakshmi Scheme?

Loan disbursements, as well as interest subsidies, will be made via e-vouchers and Central Bank Digital Currency (CBDC) wallets, ensuring a transparent and efficient transfer of funds.

What is the budget allocation for the PM VidyaLakshmi Scheme, and how many students will benefit?

A budget of ₹3,600 crores has been allocated for the period 2024 to 2031. Around 2.2 million students are expected to benefit from the scheme, with 7 lakh new students anticipated to receive interest subsidies.