Cabinet Approves PM Vidyalaxmi Scheme with Rs 3,600 Crore Budget to Support 7 Lakh Students yearly
The PM Vidyalaxmi Scheme has been approved by the Cabinet under the leadership of Prime Minister Narendra Modi. An allocation of Rs 3,600 crore has been made for the period from 2024-25 to 2030-31, with the goal of supporting 7 lakh students in their pursuit of higher education. Loans of up to Rs 10 lakh will be provided for education in domestic institutions, with a 3% interest subsidy and e-vouchers available for qualifying students.
The PM VidyalaxmiScheme :-
- Loan Amount and Interest Subvention: Under the PM Vidyalaxmi Scheme, loans up to Rs 10 lakh will be offered to students for pursuing higher education. A 3% interest subsidy will be provided on these loans, ensuring that financial constraints are alleviated for students from middle-income families.
- Streamlined Application Process: A unified online platform, the PM-Vidyalaxmi portal, has been introduced to facilitate the loan application process. Applications for loans and interest benefits can be submitted via this platform, which integrates all banks, simplifying the procedure for students.
- Collateral-Free Loans: Students whose families earn less than Rs 8 lakh annually will be eligible for collateral-free loans under the scheme. This provision removes traditional barriers such as the need for a guarantor or collateral, making financial assistance more accessible.
- Support for Merit Students: The scheme has been designed to ensure that no meritorious student is denied access to higher education due to financial difficulties. Collateral-free loans and competitive interest rates will be offered, ensuring that deserving students are supported in their academic journeys.
- E-Vouchers and CBDC Integration: To ensure efficient disbursement of loans and interest subsidies, e-vouchers and Central Bank Digital Currency (CBDC) wallets will be used for processing payments. This digital approach is expected to streamline transactions, making the process quicker and more efficient.
Eligibility Criteria
The scheme is available to students pursuing higher education in institutions that meet specific quality criteria. Eligible institutions include:
- The top 100 institutions ranked by the National Institutional Ranking Framework (NIRF).
- State government institutions ranked between 101-200 in the NIRF.
- All Central Government institutions.
Initially, 860 institutions have been included in the scheme, benefiting more than 22 lakh students. For loans up to Rs 7.5 lakh, students will also be eligible for a 75% credit guarantee to mitigate the risk for banks and encourage loan disbursements.
Extending Benefits to More Students
The PM Vidyalaxmi Scheme will be extended to 1 lakh additional students each year, provided their families earn less than Rs 8 lakh annually and they are not eligible for other government scholarships or interest subvention schemes. For these students, a 3% interest subvention will be offered on loans up to Rs 10 lakh during the moratorium period.
Focus on Technical and Professional Courses
Preference will be given to students opting for technical and professional courses at government institutions. This focus is intended to enhance the skillset of the youth and prepare them for the demands of a competitive job market.
Financial Outlay and Expected Impact
A significant financial outlay of Rs 3,600 crore has been set aside for the period between 2024-25 to 2030-31. It is estimated that 7 lakh students will benefit from this interest subsidy over the course of the Vidyalaxmi Scheme. The government’s investment reflects its commitment to expanding access to quality education for deserving students.
PM Modi’s Vision for Empowering Youth
Prime Minister Narendra Modi has expressed his support for the PM Vidyalaxmi Scheme, calling it a key step in empowering the nation’s youth and fostering a brighter future for the country. The scheme has been praised as a vital measure for boosting the Yuva Shakti (youth power) of India, contributing to the growth and prosperity of the nation.
Conclusion
The PM Vidyalaxmi Scheme marks an important milestone in the government’s efforts to make higher education more accessible to students across India. By offering collateral-free loans, interest subsidies, and a simplified digital application process, barriers to quality education will be reduced, ensuring that more students can realize their academic and professional goals. With a strong focus on merit, transparency, and empowerment, the scheme is expected to play a pivotal role in building a skilled and educated workforce for India’s future.
Interested students can apply for the scheme through the PM-Vidyalaxmi portal, where they can find further details and submit their applications for financial assistance.
