New Delhi, November 6: The Union Cabinet's approval of the Pradhan Mantri Vidyalaxmi Yojana marks a pivotal development in making higher education more accessible for meritorious students across India.
Announcing the scheme, Union Education Minister Dharmendra Pradhan highlighted it as a cornerstone in fulfilling the Prime Minister’s vision of a 'Viksit Bharat,' or developed India. The scheme, aimed at providing education loans up to ₹10 lakh for students admitted to high-ranking institutions, will support around one lakh students annually.
A total of ₹3,600 crore has been allocated for the scheme, which promises collateral-free and guarantor-free loans for eligible students. To further ease the financial burden, students from families with an annual income up to ₹8 lakh will receive a 3% interest subsidy, with full interest subsidies for those from families earning up to ₹4.5 lakh annually. Union Information Minister Ashwini Vaishnaw emphasized that no deserving student should miss out on higher education due to financial limitations.
The Vidyalaxmi Yojana includes support for students studying in the top 100 National Institutional Ranking Framework (NIRF) institutes, the top 200 state and Union Territory government institutions, and other government-recognized institutions.
Applications will be managed through the PM Vidyalaxmi portal, ensuring a streamlined and transparent process.
Loans up to ₹7.5 lakh will also benefit from a 75% credit guarantee to cover defaults, adding an extra layer of financial security to the initiative.
