Govt to offer loans to youth under PM Vidyalakshmi scheme

Govt to offer loans to youth under PM Vidyalakshmi scheme 

TIMES NEWS NETWORK   AHMEDABAD 07.11.2024 

New Delhi : To make quality higher education more accessible to India’s middle-class youth, Union Cabinet on Wednesday approved PM Vidyalakshmi Scheme, which is designed to ease financial burden of students from families with an annual income below Rs 8 lakh. Under this scheme, eligible students will be able to secure collateral-free and guarantor-free education loans of up to Rs 10 lakh, backed by an interest subsidy.

It aims at simplifying the education loan process for students admitted to institutions ranked under National Institutional Ranking Framework (NIRF), including the top 860 Quality Higher Education Institutions (QHEIs). With an initial outlay of Rs 3,600 crore for two years, the scheme is expected to impact up to 22 lakh students annually. In a post which was uploaded on X, PM Modi stated, “This scheme is a big boost to making education more accessible. It empowers the Yuva Shakti, building a brighter future for our nation.” The scheme’s impact will be felt especially among stu dents at central and state govt institutions and private institutions ranked in the NIRF’s top 200. 

A unified portal will streamline the application process, allowing students to access both the loan and interest subsidy through a simple digital platform which has been launched in order to help students. Education minister Dharmendra Pradhan lauded the scheme, highlighting its potential to empower millions of students by addressing financial constraints that have previously hindered access to quality higher education as per requirements, “PM Vidyalakshmi will maximize access to higher education for meritorious students, ensuring that financial barriers do not prevent students from achieving their goals,” he stated. Under PM Vidyalakshmi, students only need to pay interest during their study period. 

For loans up to Rs 7.5 lakh, the scheme provides a 75% credit guarantee on outstanding defaults, supporting banks in providing loans. In addition, eligible students will receive a 3% interest subsidy during the moratorium period, giving priority to those enrolled in technical and professional courses. If the family income is below Rs 4.5 lakh, there is no upper limit for interest subvention which is among the provisions of the PM Vidyalakshmi Scheme scheme of the government.