Thu Nov 07 11:03:34 UTC 2024: ## Government Launches PM Vidyalaxmi Scheme to Support Higher Education
**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. The scheme will allocate Rs 3,600 crore annually, potentially benefiting over 22 lakh students.
Under PM Vidyalaxmi, students securing admission in top-ranked Quality Higher Education Institutions (QHEIs) will be eligible for collateral-free, guarantor-free loans to cover tuition fees and other expenses. The QHEIs will include the top 100 institutions in the National Institutional Ranking Framework (NIRF) across categories and those ranked between 101-200 for state government institutions.
The scheme offers a significant benefit for students with an annual family income up to Rs 8 lakhs. These students can avail a 3% interest subvention on loans up to Rs 10 lakhs, subject to eligibility criteria.
A key highlight of the scheme is a 75% credit guarantee for loans up to Rs 7.5 lakhs, providing additional security to banks and financial institutions. This is expected to encourage more lenders to participate in the program and ease access to financing for deserving students.
Students interested in applying for the PM Vidyalaxmi loan and interest subvention can do so through a unified portal operated by the Department of Higher Education.
This new scheme is expected to play a significant role in making quality higher education accessible to more students, particularly those from underprivileged backgrounds. It aims to reduce financial barriers and support the aspirations of bright young minds in India.
First Piper 