The Union Cabinet on November 6, 2024 approved a new Central Sector Scheme, PM Vidyalaxmi, which seeks to provide financial support to meritorious students in their pursuit of higher education.
Key features of scheme
- A student who secures admission in any of the top 860 Quality Higher Education Institutions (QHEIs), both government and private, will be eligible to get collateral-free, guarantor-free loan from banks and financial institutions to cover full amount of tuition fees and other expenses related to the course.
- For loans up to ₹7.5 lakh, the student will receive a credit guarantee of 75%, enabling banks to extend education loans to students.
- For students with annual family income of up to ₹8 lakh, and not eligible for benefits under any other government scholarship or interest-subvention schemes, 3% interest subvention for loans up to ₹10 lakh will be provided during the moratorium period.
- The interest subvention support will be given to one lakh students every year.
- Preference will be given to students from government institutions who have opted for technical or professional courses.
- The scheme will be applicable to top QHEIs of the nation, as determined by the National Institutional Ranking Framework (NIRF) rankings.
