The government has greenlit the PM Vidyalaxmi scheme, a new initiative aimed at ensuring financial constraints don’t deter talented students from pursuing higher education. Approved by the Union Cabinet under the leadership of Prime Minister Modi, the scheme targets nearly 22 lakh students, offering loans up to ₹10 lakh for those accepted into quality higher education institutions (HEIs). An allocation of ₹3,600 crore has been set for the scheme, covering the period from 2024-25 to 2030-31.
Loan Accessibility for Meritorious Students
The PM Vidyalaxmi scheme enables students gaining admission into top 100 National Institutional Ranking Framework (NIRF) institutions, as well as state and central government HEIs ranked within the top 200, to access collateral-free loans. This financial support will cover tuition and course-related expenses through a streamlined digital system. Eligible students can apply via the ‘PM-Vidyalaxmi’ portal from the Department of Higher Education, ensuring a transparent and user-friendly experience.
Key Features and Benefits of the Scheme
Beyond financial access, the scheme offers a credit guarantee of up to 75% for loans up to ₹7.5 lakh. Additionally, students with annual family incomes up to ₹8 lakh, and who aren’t receiving other government scholarships, qualify for a 3% interest subvention on loans up to ₹10 lakh. Each year, one lakh students will be eligible for this interest support, with preference given to students enrolled in technical or professional courses within government institutions.
