Thu Nov 07 07:14:57 UTC 2024: ## Government Launches PM Vidyalaxmi Scheme to Support Higher Education for Meritorious Students
**New Delhi:** The Union Cabinet has approved the **PM Vidyalaxmi scheme**, a new initiative aimed at providing financial assistance to meritorious students from low-income families pursuing higher education. This scheme will cover over 22 lakh students annually, with an allocation of Rs 3,600 crore.
The **PM Vidyalaxmi scheme** offers **collateral-free, guarantor-free loans** from banks and financial institutions to cover the full cost of tuition and other expenses. Eligible students will be those who secure admission to **Quality Higher Education Institutions (QHEIs)**, which are ranked within the top 100 in the **National Institutional Ranking Framework (NIRF)**, including both government and private institutions. Additionally, state government HEIs ranked between 101-200 in the NIRF and all central government-run institutions will be included.
**Key features of the scheme:**
* **Loan Guarantee:** Students can avail a credit guarantee of 75% of outstanding default for loans up to Rs 7.5 lakhs.
* **Interest Subvention:** Students with an annual family income of up to Rs 8 lakhs, who are not eligible for other government scholarships, can receive a 3% interest subvention on loans up to Rs 10 lakhs. This benefit will be provided to one lakh students annually, with preference given to those studying in government institutions and pursuing technical or professional courses.
**Application Process:** Interested and eligible students can apply for both the education loan and the interest subvention through the unified **’PM-Vidyalaxmi’ portal** on the Department of Higher Education website.
The **PM Vidyalaxmi scheme** is expected to significantly enhance access to higher education for meritorious students from underprivileged backgrounds, paving the way for a more inclusive and equitable education system in India.
First Piper 