Why in the News?

The Indian Cabinet, led by Prime Minister Narendra Modi, has recently approved the Pradhan Mantri Vidya Laxmi Education Scheme. This initiative aims to provide financial assistance to students hailing from economically weaker sections of society, specifically those whose families earn less than 8 lakh rupees annually. The scheme offers education loans of up to 10 lakh rupees, coupled with a 3% interest subsidy, to make higher education more accessible for these students.

About PM Vidhya Laxmi Scheme

• Launch Date: 6th November 2024
• Total Outlay: ₹3,600 Crores during 2024-25 to 2030-31
• Ministry Launched By: Ministry of Education, Government of India
• Target Beneficiaries: Meritorious students admitted to top 860 higher education institutions in India
• Loan Amount: Up to ₹10 lakh
• A user-friendly digital portal for easy application
• Key Features of Scheme:
  • Students can avail loans, without the need for collateral or a guarantor.
  • Students from families with an annual income of up to ₹8 lakhs are eligible for a 3% interest subvention on loans up to ₹10 lakhs.
  • For loans up to ₹7.5 lakhs, the government provides a 75% credit guarantee to support banks in disbursing loans.
  • A user-friendly digital portal allows students to apply for loans and interest subvention.
  • The scheme covers a wide range of top-ranking higher education institutions, including both government and private institutions.
• Eligibility Criteria:
  • The student must be admitted to a Quality Higher Education Institution (QHEI) as determined by the NIRF rankings.
  • For interest subvention, the family's annual income should be up to ₹8 lakhs.
  • The student should not be eligible for any other government scholarship or interest subvention scheme.