PM- Vidyalaxmi Scheme to Provide Financial Support

Why in the News?

  • Cabinet Approval: The Government has approved the PM-Vidyalaxmi scheme to provide financial support for meritorious students.
  • Objective: To ensure financial constraints don’t hinder youth from pursuing quality higher education in India.

Key Features of PM-Vidyalaxmi Scheme:

  • Collateral-Free Loans: Provides collateral-free and guarantor-free loans for students to pursue higher education.
  • Loan Support: Up to 5 lakh rupees loan with a 75% credit guarantee by the government; 3% interest subvention on loans up to 10 lakh rupees for students with family income up to 8 lakh rupees.
  • Application Portal: Students can apply via the unified PM Vidyalaxmi portal, offering a digital, student-friendly process accessible to all banks.

PM- Vidyalaxmi Scheme to Provide Financial Support

Significance of the Scheme

  • Boosts Access: Targets 22 lakh students annually in 860 top institutions based on the NIRF
  • Policy Alignment: Supports National Education Policy goals, providing equal opportunities for talented students from low-income families.
  • Minister’s Vision: Education Minister Pradhan emphasized it as a step toward empowering youth and universalizing access to 21st-century education for India’s meritorious students.

Sources Referred:

PIB, The Hindu, Indian Express, Hindustan Times