PM Vidyalakshmi Yojana Approved in Cabinet: Empowering Meritorious Students with Financial Assistance for Higher Education
In an important cabinet meeting chaired by PM Narendra Modi, the Pradhan Mantri Vidyalakshmi Yojana was approved on Wednesday. This is a new central scheme aimed at providing financial assistance to the meritorious students of the country so that no student is deprived of higher education due to financial constraints. PM Vidyalakshmi is another important initiative emanating from the National Education Policy, 2020, which recommended that financial assistance should be provided to meritorious students in both public and private higher education institutions.
Loan facility under PM Vidyalakshmi Yojana
Under the PM Vidyalakshmi Yojana, any student admitted to a Quality Higher Education Institution (QHEI) will be eligible to receive a loan from banks and financial institutions without any collateral or guarantor to cover the entire amount of tuition fees and other expenses related to the course. The Pradhan Mantri Vidya Lakshmi Yojana will be operated through an easy, transparent and student-friendly system that will be inter-operable and completely digital.
Interest discount in lone
Under the scheme, the student will also be eligible for a credit guarantee of 75% of the outstanding default for loan amounts up to Rs 7.5 lakh. This will help banks to provide education loans to students under the scheme. Apart from this, students whose annual family income is Rs 8 lakh or less and who are not eligible for benefits under any other government scholarship or interest waiver scheme will also be provided 3 percent interest discount on loans up to Rs 10 lakh during the moratorium period.
Estimated beneficiary of the yojana
Interest waiver assistance will be given to one lakh students every year. Priority will be given to those students who are from government institutions and who have opted for technical/professional courses. The government will spend Rs 3600 crore on this scheme during the financial year 2024-25 to 2030-31 and 7 lakh new students are expected to get the benefit of this interest discount during this period.