PM Vidyalaxmi: Empowering Middle-Class Students with Education Loans

The Union Cabinet has launched the PM Vidyalaxmi scheme, offering education loans to middle-class students for higher education. The scheme ensures loans are collateral-free, providing interest subvention based on family income. Annually, one lakh students are eligible under this scheme, facilitating access to top educational institutions.

The Union Cabinet has unveiled the PM Vidyalaxmi scheme, a forward-thinking initiative for middle-class students aiming to pursue higher education. This program addresses the financial challenges many students face when aspiring to attend prestigious institutions.

Union Information Minister Ashwini Vaishnaw announced that the loans offered under this scheme will be both collateral-free and guarantor-free. Up to one lakh students will be covered each year, making it a substantial support system for educational aspirations.

The scheme provides a three per cent interest subvention for families earning up to Rs 8 lakh annually on loans up to Rs 10 lakh, supplementing existing support for families earning up to Rs 4.5 lakh. This initiative by the Department of Higher Education aims to ensure no meritorious student is denied education due to financial obstacles.

High-quality educational institutions will be selected each year, incorporating the top 100 ranked in NIRF and top 200 state institutions, ensuring students access the best education. The implementation will be streamlined through the PM-Vidyalaxmi portal, with loans up to Rs 7.5 lakh granted a 75% credit guarantee on outstanding defaults.

(With inputs from agencies.)