PM Vidyalaxmi: Financial Aid for Meritorious Students

Why in the news?

On November 6, 2024, the Union Cabinet approved PM Vidyalaxmi, a scheme offering collateral-free loans with interest subvention to support higher education for students in NIRF-ranked institutions.

PM Vidyalaxmi: Financial Aid for Meritorious Students

Key Features of PM Vidyalaxmi Scheme

  • Launch and Objectives: The Union Cabinet, led by Prime Minister Narendra Modi, approved the PM Vidyalaxmi scheme on November 6 to support meritorious students pursuing higher education.
  • Loan Benefits: The scheme enables students to obtain collateral-free, guarantor-free loans to cover tuition fees and related expenses. Loans up to ₹10 lakh receive a 3% interest subsidy during the moratorium period for students with family incomes below ₹8 lakh.
  • Target Audience: Aimed at students not covered by other government scholarships, it prioritises those enrolled in technical or professional courses, particularly in government institutions.

Coverage and Eligibility

  • Institutional Eligibility: Unlike past schemes tied to NAAC and NBA-accredited institutions, Vidyalaxmi is limited to 860 institutions ranked under the National Institutional Ranking Framework (NIRF). These include government and private institutions within the top 100 overall or category/domain-specific rankings.
  • Scope of Support: An estimated 22 lakh students will benefit, with a ₹3,600 crore allocation for 2024-2031. Around seven lakh new students will receive interest subvention during this period.
  • Simplified Access: Students apply via the Vidyalaxmi portal, which integrates loan tracking and links to major banks, streamlining the application process.

National Institutional Ranking Framework (NIRF): Key Points

  • Launch: Introduced by the Ministry of Education in November 2015.
  • Purpose: Ranks higher education institutions in India based on performance metrics.
  • Parameters (Weightage out of 10):
    • Teaching, Learning & Resources
    • Research and Professional Practice
    • Graduation Outcome
    • Outreach and Inclusivity
    • Perception

Sources Referred:

PIB, The Hindu, Indian Express, Hindustan Times