PM Vidyalakshmi for higher education, 22 lakh students to get benefits
New Delhi| The Union Cabinet chaired by Prime Minister Narendra Modi has approved a new scheme ‘PM Vidyalakshmi’. The objective of this scheme is to provide financial assistance to meritorious students so that financial constraints do not prevent the students from pursuing higher education. PM Vidyalakshmi is an important initiative stemming from the National Education Policy, 2020.
According to the Education Ministry, it was recommended that financial assistance should be provided to meritorious students in public and private higher educational institutions. Under PM Vidyalakshmi Yojana, any student who takes admission in a quality higher education institution (QHEI) can avail collateral free and guarantor free loans from banks and financial institutions to cover the entire amount of tuition fees and other expenses related to the course. Will be eligible to receive.
The Ministry of Education states that the scheme will be operated through a simple, transparent and student-friendly system. This system will be interoperable and completely digital. This scheme will be applicable to top quality higher educational institutions of the country. The top 100 higher educational institutions of the NIRF ranking will come under this.
At the same time, higher educational institutions ranking 101-200 belonging to state governments will also be ranked in it. This list will be updated every year using the latest NIRF rankings. It will start with 860 qualified quality higher educational institutions, involving more than 2.2 million students. Students will also be eligible for a credit guarantee of 75 per cent for loan amounts up to Rs 7.5 lakh.
In addition, three per cent interest rebate will also be provided on loans up to Rs 10 lakh for students whose annual family income is up to Rs eight lakh and are not eligible for benefits under any other government scholarships or interest rebate schemes. Every year one lakh students will be given interest subvention. Preference will be given to students who are from government institutions and have opted for technical and professional courses.
A provision of Rs 3,600 crore has been made during FY 2024-25 to 2030-31. Seven lakh new students are expected to get the benefit of interest subvention during this period. The Higher Education Department will have an integrated portal ‘PM-Vidyalakshmi’ on which students will be able to apply for education loans as well as interest rebates through a simplified application process used by all banks. Interest rebate will be paid through e-voucher and Central Bank Digital Currency (CBDC) wallet.
The Education Ministry believes that ‘PM Vidyalakshmi’ will increase the reach of the youth of the country to quality higher education. It will also advance the scope and reach of initiatives taken by the Government of India over the last decade in the field of education and financial inclusion. It will complement the two constituent schemes of PM-USP, Central Sector Interest Subsidy (CSIS) and Credit Guarantee Fund Scheme for Education Loans (CGFSEL) being implemented by the Department of Higher Education.
Under PM-USP CSIS students with annual family income up to Rs 4.5 lakh get full interest rebate on education loans up to Rs 10 lakh. Thus, PM Vidyalakshmi and PM-USP together will provide assistance to all eligible students to pursue quality higher education, technical and vocational education.
