Source: PIB
Context: The Union Cabinet, led by Prime Minister Narendra Modi, has approved the PM Vidyalaxmi Scheme, aimed at providing financial support to meritorious students, ensuring that financial challenges do not hinder anyone in India from pursuing quality higher education.
About PM Vidyalaxmi Scheme:
- Objective: To provide financial assistance to meritorious students, eliminating financial constraints in accessing quality higher education.
- Eligibility: Available to students admitted to top 860 HEIs in India, as per NIRF rankings, covering over 22 lakh students annually.
- Loan features: Offers collateral-free, guarantor-free education loans with a user-friendly, digital application process.
- Credit guarantee: Government provides a 75% credit guarantee on loans up to ₹7.5 lakhs, supporting banks in loan expansion.
- Interest subvention: For families with an annual income up to ₹8 lakhs, a 3% interest subvention is provided on loans up to ₹10 lakhs. Full interest subvention is available to students with family incomes up to ₹4.5 lakhs under the PM-USP scheme.
- Unified portal: The scheme will be accessible through the “PM-Vidyalaxmi” portal, enabling easy loan applications and interest subvention processing via e-vouchers and CBDC wallets.
- Complementary schemes: Supplements existing schemes like CSIS and CGFSEL under PM-USP, offering comprehensive support for technical and professional courses in approved HEIs.
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