PM Vidyalaxmi: A Central Sector Scheme for Meritorious Students
Introduction
- PM Vidyalaxmi, a Central Sector scheme, is approved by the Union Cabinet, chaired by Prime Minister Shri Narendra Modi.
- The scheme aims to provide financial support to meritorious students, ensuring they can pursue higher studies.
Eligibility
- Students who enter 860 top Quality Higher Education Institutions (QHEIs) will be eligible for tuition fee and course-related charge loans, collateral-free and guarantor-free.
- The scheme will be opened up for the best QHEIs of the country as ranked by NIRF.
- The scheme is applicable to top-quality higher educational institutions as determined by the National Education Rankings (NIRF).
- Students with an annual family income of up to ₹8 lakhs and not eligible for benefits under any other government scholarship or interest subvention schemes will receive a 3% interest subvention for loans up to ₹10 lakh during the moratorium period.
Loan Features
- Collateral-free and guarantor-free loans to cover tuition fees and course-related expenses.
- Credit guarantee of 75 percent for loans of ₹7.5 lakhs and below.
- 3 percent interest subvention for loans up to ₹10 lakh during the moratorium period.
Implementation
- The scheme will be administered through a transparent, student-friendly, and inter-operable system.
- The Department of Higher Education will have a unified portal for applying for education loans and interest subventions.
Policy Alignment
- The scheme is a key initiative from the National Education Policy, 2020, which recommends financial assistance for meritorious students in both public and private Higher Education Institutions (HEIs).
Supplementary Initiatives
- PM Vidyalaxmi will supplement the Central Sector Interest Subsidy (CSIS) and Credit Guarantee Fund Scheme for Education Loans (CGFSEL), two component schemes of PM-USP.
