PM-Vidyalaxmi Scheme: Empowering Students Through Accessible Education Loans

The Union Cabinet has approved the PM-Vidyalaxmi scheme to offer financial aid to deserving students, notably impacting the youth (Yuva Shakti). This initiative aims to alleviate financial barriers for middle-class students pursuing higher education, providing collateral-free and interest-subsidized loans to up to one lakh students annually.

The Union Cabinet's latest decision to approve the PM-Vidyalaxmi scheme has been hailed by Prime Minister Narendra Modi as a pivotal move towards enhancing educational accessibility. This scheme aims to empower the youth and solidify the nation's future by providing crucial financial support.

Targeting middle-class students facing economic hurdles, the PM Vidyalaxmi scheme enables those admitted to higher educational institutions to avail education loans easily. Union Information Minister Ashwini Vaishnaw assured that these loans will be collateral-free and guarantor-free, benefiting up to one lakh students per annum.

Eligible students, with an annual family income of up to Rs 8 lakh, can enjoy an interest subvention of three percent on loans up to Rs 10 lakh. This measure is additional to full interest subvention for students from families earning up to Rs 4.5 lakh. The initiative ensures no meritorious student is deprived of higher education due to financial constraints, with a robust loan application system via the PM-Vidyalaxmi portal.

(With inputs from agencies.)