The Union Cabinet, in its latest decision, has approved the PM-Vidyalaxmi scheme aimed at providing financial support to meritorious students, ensuring that financial constraints do not hinder their access to quality higher education. Union Minister Ashwini Vaishnaw announced the approval of the scheme on Wednesday, which is expected to significantly ease the burden of education-related expenses for students across India.
Under this initiative, students who secure admission to Quality Higher Education Institutions (QHEIs) will be eligible for collateral-free, guarantor-free loans. The scheme will cover not only tuition fees but also other course-related expenses, empowering students to pursue their academic goals without the worry of financial barriers.
The Cabinet has approved an outlay of ₹3,600 crore for the PM-Vidyalaxmi scheme, with the intention of supporting over 22 lakh students each year. The scheme will be applicable to students securing admissions in the top 860 QHEIs, based on rankings determined by the National Institutional Ranking Framework (NIRF). This includes all government and private institutions ranked within the top 100 in NIRF, as well as state government-run institutions ranked between 101-200 and all central government institutions. The list of qualifying institutions will be updated annually based on the latest NIRF rankings.
Minister Vaishnaw stated that the scheme is designed to ensure that financial difficulties do not prevent talented youth from pursuing quality higher education. He further explained that the scheme would provide up to ₹7.5 lakh in loans, with a 75% credit guarantee for banks offering these loans. Additionally, for students from families earning up to ₹8 lakh annually and not qualifying for other government scholarship schemes, a 3% interest subvention will be provided for loans up to ₹10 lakh during the moratorium period.
The PM-Vidyalaxmi scheme will particularly benefit students pursuing technical and professional courses in government institutions. The interest subvention will be available to one lakh students annually, with a focus on fresh entrants into higher education from 2024 to 2030. Over the course of this period, an estimated 7 lakh students will benefit from the scheme.
The Department of Higher Education will set up a unified online portal, ‘PM-Vidyalaxmi,’ where students can apply for loans and access interest subvention through a simplified process. The disbursement of interest subvention will be handled via e-vouchers and Central Bank Digital Currency (CBDC) wallets.
Union Education Minister Dharmendra Pradhan hailed the scheme as a game-changer for millions of students from underprivileged and middle-class backgrounds. He emphasized that the scheme would help eliminate financial obstacles and provide students with the opportunity to pursue their academic aspirations without hindrance.
“Universalizing access to higher education for India’s talented youth is PM Modi’s guarantee,” Pradhan stated. “PM’s approval to #PMVidyalaxmi with an outlay of ₹3,600 crore will remove obstacles to higher education and enable our yuva shakti (youth power) to pursue their dreams.”
With the implementation of the PM-Vidyalaxmi scheme, the government aims to maximize access to higher education for deserving students, ensuring that no bright student is held back by financial constraints.
Sources By Agencies
